Protecting Businesses from Burdensome Compliance Cost Act of 2019

Bill: 116-hr-379
Sponsor: full_name: Rep. Gibbs, Bob [R-OH-7]
Introduced: 2019-01-09
Policy area: Taxation
Subjects: Retail and wholesale trades

Sales and excise taxes

State and local taxation

Tax administration and collection, taxpayers
Latest action: action_date: 2019-01-09
text: Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.

Summaries:
action_date: 2019-01-09
action_desc: Introduced in House
text: <p><b>Protecting Businesses from Burdensome Compliance Cost Act of 2019</b></p> <p>This bill limits the authority of a state to require a remote seller to collect (1) a tax or fee owed by a purchaser located in the state incident to a purchase of a good or service from the seller, and (2) information incident to the purchase. A remote seller is a seller with no physical presence in the state in which the purchaser is located at the time of the purchase. </p> <p>A state may not impose the requirements for collecting taxes or fees and related information on a remote seller unless the purchase occurs after this bill takes effect and the tax or fee is imposed under a statute in effect in the state where the purchaser is located at the time of the purchase. A subdivision of a state may not impose the requirements on a remote seller. </p> <p>The tax or fee must apply to purchases throughout the state of the good or service. The rate must be uniform and may not exceed the combined rate of the state and local taxes and fees payable by purchasers in the state of the good or service from sellers physically present in the state. </p> <p>The state statute may not require the seller to (1) remit the taxes or fees to more than one location, or (2) provide information about the purchaser other than the zip code of the purchase and the aggregate amount of fees or taxes collected in a particular zip code.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 379 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. Short title This Act may be cited as the Protecting Businesses from Burdensome Compliance Cost Act of 2019 . 2. Limitation on Authority of States To Require Remote Sellers To Collect Taxes and Fees Owed by Purchasers of Goods and Services (a) Limitation Except as provided in subsection (b), a State may not require a remote seller— (1) to collect a tax or fee owed by a purchaser then located in such State incident to the purchase of a good or service from such seller, or (2) to collect information incident to the purchase of a such good or service from such seller by such purchaser, if such seller does not have a physical presence in such State at the time of such purchase. (b) Exception Subsection (a) shall not apply with respect to the purchase of a good or service if— (1) such purchase occurs after the effective date of this Act, (2) the tax or fee described in such subsection— (A) is imposed only on a purchaser pursuant to a statute then in effect in the State in which the purchaser is located at the time of such purchase, and (B) is also payable incident to purchases throughout such State of such good or service, and payable at a uniform rate that does not exceed the combined rate of the State and local taxes and fees payable by purchasers in such State of such good or service from sellers physically present in such State at the time of such purchases, and (3) such statute does not require a remote seller— (A) to remit to more than a single location in such State, taxes and fees owed by purchasers then located in such State and collected by such seller, or (B) to provide to such State any information about such purchasers, other than— (i) the zip code areas in which such purchasers were located in such State at the time of the purchases, and (ii) the aggregate amount of such taxes or fees collected by such seller owed by such purchasers in a particular zip code area. 3. Prohibition of Authority of Subdivisions of States A subdivision of a State may not require a remote seller— (1) to collect a tax or fee owed by a purchaser then located in such State (or in such subdivision) incident to the purchase of a good or service from such seller, or (2) to collect information incident to such purchase. 4. Definitions For purposes of this Act: (1) Remote seller The term remote seller means a person that sells a good or service and that does not have a physical presence in the State in which purchaser is located at the time the purchase of such good or service occurs. (2) State The term ‘‘State’’ means any of the several States, the District of Columbia, or a commonwealth, territory, or possession of the United States. 5. Effective Date This Act shall take effect on January 1, 2020, and shall apply with respect to purchases that occur on and after such date.