Title: No Retroactive Online Taxation Act of 2018
Policy area: Taxation

Summary:
No Retroactive Online Taxation Act of 2018
This bill bans states from imposing a sales tax collection duty on a remote seller for any sale that occurred before June 21, 2018. A "remote seller" is a person without a physical presence in a state who makes a sale into the state. The ban does not apply to any sales tax collected or paid by a remote seller before June 21, 2018.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7184 Introduced in House (IH)]

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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 Representatives 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.
    (b) Rule Regarding Prior Collection.--Subsection (a) does not apply 
in the case of any sales tax collected 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 employees to be 
                        in the State.
                            (ii) Using the services of an agent 
                        (excluding an employee) to establish or 
                        maintain 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 unrelated 
                        person providing fulfillment services) 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 subparagraph (A) was for less than 
                15 days in a taxable year (or a greater number of days 
                if provided by State law), or if the person's physical 
                presence in the State was solely for the purpose of 
                conducting limited or transient business activity.
            (2) Remote seller.--The term ``remote seller'' 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, including a 
                person other than the actual seller, to--
                            (i) pay or collect a sales, use, or similar 
                        tax upon the sale of a good or service; or
                            (ii) report any information with respect to 
                        such sale of a good or service; or
                    (B) the assessment of a sales, use or similar tax 
                on a person.
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