I 
115TH CONGRESS 
2D SESSION 
H. R. 7184 
To provide for a ban on the retroactive taxation of internet commerce, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 28, 2018 
Mr. SENSENBRENNER introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To provide for a ban on the retroactive taxation of internet 
commerce, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘No Retroactive Online 
Taxation Act of 2018’’. 
SEC. 2. BAN ON RETROACTIVE TAXATION OF INTERNET 
COMMERCE. 
(a) IN GENERAL.—A State may not impose a sales 
tax collection duty on a remote seller for any sale that 
occurred prior to June 21, 2018. 
VerDate Sep 11 2014 
04:22 Nov 29, 2018
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7184.IH
H7184
kjohnson on DSK79L0C42 with BILLS
(b) RULE REGARDING PRIOR COLLECTION.—Sub-
section (a) does not apply in the case of any sales tax col-
lected or paid by a remote seller prior to June 21, 2018. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) PHYSICAL PRESENCE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘physical presence’’ 
means, with respect to a person, that a person’s 
business activities in the State must include at 
least one of the following during such person’s 
taxable year: 
(i) Being an individual physically in 
the State, or assigning one or more em-
ployees to be in the State. 
(ii) Using the services of an agent (ex-
cluding an employee) to establish or main-
tain a market in the State, if such agent 
does not perform services in the State for 
any other person during such taxable year. 
(iii) The leasing or owning of tangible 
personal property (other than software, 
digital or alphanumeric data, or tangible 
personal property temporarily stored by an 
VerDate Sep 11 2014 
04:22 Nov 29, 2018
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7184.IH
H7184
kjohnson on DSK79L0C42 with BILLS
unrelated person providing fulfillment serv-
ices) or of real property in the State. 
(B) EXCEPTION.—A person does not have 
physical presence in a State if the person’s 
physical presence in the State under subpara-
graph (A) was for less than 15 days in a tax-
able year (or a greater number of days if pro-
vided by State law), or if the person’s physical 
presence in the State was solely for the purpose 
of conducting limited or transient business ac-
tivity. 
(2) REMOTE SELLER.—The term ‘‘remote sell-
er’’ means a person without a physical presence in 
a State who makes a sale into the State. 
(3) SALES TAX COLLECTION DUTY.—The term 
‘‘sales tax collection duty’’ means— 
(A) an obligation imposed on a person, in-
cluding a person other than the actual seller, 
to— 
(i) pay or collect a sales, use, or simi-
lar tax upon the sale of a good or service; 
or 
(ii) report any information with re-
spect to such sale of a good or service; or 
VerDate Sep 11 2014 
04:22 Nov 29, 2018
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7184.IH
H7184
kjohnson on DSK79L0C42 with BILLS
(B) the assessment of a sales, use or simi-
lar tax on a person. 
Æ 
VerDate Sep 11 2014 
04:22 Nov 29, 2018
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H7184.IH
H7184
kjohnson on DSK79L0C42 with BILLS