FOR IMMEDIATE RELEASE
DMA Says Congress Must Simplify the More Than 7,600 Varying Sales Tax Codes Before Placing Costly Collection Burdens On Remote Sellers
WASHINGTON – July 16, 2001 – The need to significantly simplify the nation`s 7,600 varying sales tax jurisdictions before remote sellers are required to collect and remit sales tax will be highlighted at the Congressional Internet Caucus meeting scheduled for Tuesday, July 17, the Direct Marketing Association (DMA) said today.
A key panelist, Frank Julian, operating vice president and tax counsel for Federated Department Stores and chairman of the DMA`s Use Tax Committee, is to advise the caucus that if Congress is to grant the states broad tax collection powers, it must first establish parameters for the drastic simplification of the more than 7,600 taxing jurisdictions. “Of the critical elements of simplification that must be enacted, three that are the most important are the three the states seem to be resisting the most,” Julian said. “There must be only one sales tax rate per state for all commerce, bright line nexus standards for business activity taxes and a reasonable collection allowance must be paid to all sellers.``
The DMA has stressed that Congress should not include any requirements for remote sellers to collect sales tax until it can agree on a framework for significant simplification of the nation`s disparate sales tax systems.
Who: Congressional Internet Caucus
What: Panel discussion on Internet sales tax legislation
When: Tuesday, July 17 noon-2 p.m.
Where: U.S. Capitol Room SC-5