Early this week, Chairman of the House Judiciary Committee Bob Goodlatte (R-VA-6) released draft legislation designed to address the remote collection of taxes on online purchases. Goodlatte’s proposal is an alternative to the legislation introduced by Jason Chaffetz (R-UT-3), Remote Transactions Parity Act (HR 2775), which is presently waiting to be heard by the House Judiciary Committee. GFOA continues to support the Remote Transactions Parity Act because it would compel retailers to collect taxes on remote sales, based on the location of the consumer.
Unfortunately, Goodlatte’s draft contains principles that would complicate and strip taxing authority from state and local governments. GFOA is working closely with it colleagues at the National League of Cities, U.S. Conference of Mayors, and National Association of Counties and National Governors Association, along with partners in the retail community, to urge Goodlatte to consider moving forward with the better solution, the Remote Transactions Parity Act.
GFOA will continue to keep its members informed about the status of these discussions and will continue to encourage members to engage their members of Congress directly, using the resources in GFOA’s Marketplace Fairness Act Resource Center in support of the Remote Transactions Parity Act.