During a U.S. Senate subcommittee hearing July 25, the Direct Marketing Association argued against a bill making the Streamlined Sales and Use Tax Agreement mandatory.
The SSUTA allows remote sellers (those selling via the internet, telephone or catalog) voluntarily collect sales taxes from people or businesses in member states. For the agreement to take effect, 10 states needed to enact legislation; so far, 19 states have done so, according to DM News (via MediaBuyerPlanner). The bills would let the states that voluntarily become members of the SSUTA require remote sellers to charge sales and use tax.
The DMA's tax counsel, George S. Isaacson, testified that "taxation without borders results in cost, complexity, confusion and conflicts," according to the article, saying the SSUTA conflicts with constitutional provisions to prevent state and local tax laws from hindering interstate commerce.
The DMA said it believes that the SSUTA creates a barrier to entry for small businesses and a barrier to growth for midsize businesses seeking an expansion of their customer base.
