2019 House Bill 4542 ↩

Senate Roll Call 325: Passed

To establish a regulatory regime for imposing state sales and use tax on purchases by residents from internet and catalog merchants in other states. This follows the 2018 U.S. Supreme Court opinion in South Dakota v. Wayfair that allows states to levy sales and use tax on out of state sellers if a state exempts smaller sellers (less than $100,000 in sales or 200 transactions annually), and creates a collection system that feature, in the words of the opinion, “a single, state-level tax administration, uniform definitions of products and services, simplified tax rate structures… and also provides sellers access to sales tax administration software paid for by the State.” The bill is part of a package comprised designed to meet those conditions. House Bills 4542 and 4543 impose a duty on larger out-of-state retailers to collect and remit sales and use tax to this state. House Bills 4540 and 4541 authorize and create rules for smaller retailers selling into the state through third party “marketplace facilitators," which is the model used by Amazon.com.