On July 24, the U.S. House Committee on the Judiciary held a hearing titled “Examining the Wayfair decision and its Ramifications for Consumers and Small Business.” The hearing mostly addressed what some believe is the pending “chaos” facing businesses as states look to implement the decision. GFOA was joined by other local government associations in submitting a statement for the hearing expressing support for the court’s decision to overturn the 1992 Quill decision and to highlight the importance of sales taxes for vital public services. Also addressed was the collaborative effort by states, local governments, and the business community to create a framework to simplify sales and use tax administration. Three witnesses represented state legislatures and the retail community, testifying in support of the decision. Click here to view an archived recording of the hearing and to review witness testimony.
GFOA will continue to monitor an issue raised during the hearing: the idea that Congress needed to enact a moratorium of some sort to allow businesses an opportunity to adjust to the post-Quill world and to ensure that states enact reasonable remote seller legislation. We will report on any developments, especially if any federal legislation is formally introduced.