I 

116TH CONGRESS 

1ST SESSION H. R. 379 

To limit the authority of a State to require remote sellers to collect taxes 

and fees owed by purchasers then located in such State incident to 

their purchases of goods and services from such sellers, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2019 

Mr. GIBBS (for himself and Mr. GIANFORTE) introduced the following bill; 

which was referred to the Committee on the Judiciary 

A BILL 

To limit the authority of a State to require remote sellers 

to collect taxes and fees owed by purchasers then located 

in such State incident to their purchases of goods and 

services from such sellers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Businesses 

5 from Burdensome Compliance Cost Act of 2019’’. 


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1 SEC. 2. LIMITATION ON AUTHORITY OF STATES TO RE2 QUIRE REMOTE SELLERS TO COLLECT TAXES 

3 AND FEES OWED BY PURCHASERS OF GOODS 

4 AND SERVICES. 

5 (a) LIMITATION.—Except as provided in subsection 

6 (b), a State may not require a remote seller— 

7 (1) to collect a tax or fee owed by a purchaser 

8 then located in such State incident to the purchase 

9 of a good or service from such seller, or 

10 (2) to collect information incident to the pur11 chase of a such good or service from such seller by 

12 such purchaser, 

13 if such seller does not have a physical presence in such 

14 State at the time of such purchase. 

15 (b) EXCEPTION.—Subsection (a) shall not apply with 

16 respect to the purchase of a good or service if— 

17 (1) such purchase occurs after the effective date 

18 of this Act, 

19 (2) the tax or fee described in such sub20 section— 

21 (A) is imposed only on a purchaser pursu22 ant to a statute then in effect in the State in 

23 which the purchaser is located at the time of 

24 such purchase, and 

25 (B) is also payable incident to purchases 

26 throughout such State of such good or service, 


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1 and payable at a uniform rate that does not ex2 ceed the combined rate of the State and local 

3 taxes and fees payable by purchasers in such 

4 State of such good or service from sellers phys5 ically present in such State at the time of such 

6 purchases, and 

7 (3) such statute does not require a remote sell8 er— 

9 (A) to remit to more than a single location 

10 in such State, taxes and fees owed by pur11 chasers then located in such State and collected 

12 by such seller, or 

13 (B) to provide to such State any informa14 tion about such purchasers, other than— 

15 (i) the zip code areas in which such 

16 purchasers were located in such State at 

17 the time of the purchases, and 

18 (ii) the aggregate amount of such 

19 taxes or fees collected by such seller owed 

20 by such purchasers in a particular zip code 

21 area. 

22 SEC. 3. PROHIBITION OF AUTHORITY OF SUBDIVISIONS OF 

23 STATES. 

24 A subdivision of a State may not require a remote 

25 seller— 


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1 (1) to collect a tax or fee owed by a purchaser 

2 then located in such State (or in such subdivision) 

3 incident to the purchase of a good or service from 

4 such seller, or 

5 (2) to collect information incident to such pur6 chase. 

7 SEC. 4. DEFINITIONS. 

8 For purposes of this Act: 

9 (1) REMOTE SELLER.—The term ‘‘remote sell10 er’’ means a person that sells a good or service and 

11 that does not have a physical presence in the State 

12 in which purchaser is located at the time the pur13 chase of such good or service occurs. 

14 (2) STATE.—The term ‘‘State’’ means any of 

15 the several States, the District of Columbia, or a 

16 commonwealth, territory, or possession of the United 

17 States. 

18 SEC. 5. EFFECTIVE DATE. 

19 This Act shall take effect on January 1, 2020, and 

20 shall apply with respect to purchases that occur on and 

21 after such date. 

Æ 


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