The Direct Marketing Association told a Congressional subcommittee that the moratorium on Internet sales taxes should be extended.
“We support the extension of the moratorium while Congress continues to work out a practical way to substantially simplify the more than 7,600 varying sales tax codes,” said Frank Julian, operating vice president and tax counsel for Federated Department Stores and chairman of the DMA Use Tax Steering Committee.
He testified on Wednesday before a subcommittee of the House Judiciary Committee at a hearing on whether Congress should force retailers to collect and remit tax for sales they make over the Internet.
The current moratorium on Internet taxes will expire on Oct. 21.
The current moratorium on Internet access taxes and multiple and discriminatory taxes on the Internet is set to expire Oct. 21.
The DMA’s criteria for ensuring fair and competitive Internet tax legislation include:
* One tax rate per state for all commerce, both remote and over-the-counter sales
* Uniform definitions of taxable items
* A collection allowance for all retailers
* One audit form recognized by all states
* Reaffirm a “physical presence” requirement for business activity tax nexus
* One location to which to remit tax payments
* Full and open congressional review prior to enactment of the legislation
* Affirmative congressional approval that states have met all simplification criteria
The DMA has expressed support for a bill introduced by Rep. Bob Goodlatte (R-VA), which would ban Internet access taxes. The bill would also spell out the standards by which a company could tax companies doing business in the state.
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