I 

113TH CONGRESS 

2D SESSION H. R. 5252 

To ensure that methods of collecting taxes and fees by private citizens 

on behalf of States are fair and effective and do not discriminate against 

interstate commerce. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2014 

Mr. SENSENBRENNER (for himself, Mr. BACHUS, Mr. TERRY, Mr. COHEN, 

and Mr. JOHNSON of Georgia) introduced the following bill; which was 

referred to the Committee on the Judiciary 

A BILL 

To ensure that methods of collecting taxes and fees by private citizens on behalf of States are fair and effective 

and do not discriminate against interstate commerce. 

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 ‘‘Tax and Fee Collection 

5 Fairness Act of 2014’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) States may designate in-State or out-of9 State persons or other entities as collection agents 


sroberts on DSK5SPTVN1PROD with BILLS
2 

•HR 5252 IH

1 for the State with a duty to collect certain taxes and 

2 fees from residents of the State. 

3 (2) States have the sovereign right to tax their 

4 citizens, subject to the Constitution and the law. 

5 States do not have the right to tax interstate com6 merce or to impose taxes or other duties on citizens 

7 of other States without limitation. 

8 (3) Collection agents for a State may feasibly 

9 collect fees and taxes from customers in connection 

10 with financial transactions to which the agent and 

11 customer are parties. In such cases, the agent has 

12 transactional nexus with the customer. 

13 (4) Congress can help ensure against unreason14 able burdens on interstate commerce by making 

15 transactional nexus a condition of imposing a duty 

16 on a person to serve as a collection agent for the 

17 State and making such person strictly liable for any 

18 failure to collect. 

19 SEC. 3. TRANSACTIONAL NEXUS REQUIREMENT. 

20 No State may require any person to collect from, or 

21 remit on behalf of, any other person any State or local 

22 fee, tax, or surcharge imposed on a purchaser or user with 

23 respect to the purchase or use of any product or service 

24 within a State, unless there is transactional nexus between 

25 the person from whom the State seeks to require such colVerDate Mar 15 2010 20:07 Aug 15, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5252.IH H5252

sroberts on DSK5SPTVN1PROD with BILLS
3 

•HR 5252 IH

1 lection or remittance and the purchaser or user of such 

2 product or service. ‘‘Transactional nexus’’ means that 

3 there is a direct monetary transaction between the person 

4 required to collect or remit the fee, tax, or surcharge and 

5 the purchaser or user upon whom the fee, tax, or sur6 charge is imposed. The term ‘‘State’’ means each of the 

7 several States, the District of Columbia, the Common8 wealth of Puerto Rico, Guam, American Samoa, the 

9 United States Virgin Islands, the Commonwealth of the 

10 Northern Mariana Islands, and any other territory or pos11 session of the United States. 

12 SEC. 4. ENFORCEMENT. 

13 Notwithstanding any provision of section 1341 of title 

14 28, United States Code, or the constitution or laws of any 

15 State, the district courts of the United States shall have 

16 jurisdiction, without regard to amount in controversy or 

17 citizenship of the parties, to grant such mandatory or pro18 hibitive injunctive relief, interim equitable relief, and de19 claratory judgments as may be necessary to prevent, re20 strain, or terminate any acts in violation of this Act. 

Æ 


sroberts on DSK5SPTVN1PROD with BILLS