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H.J.R. 14 Enrolled

             1     

JOINT RESOLUTION URGING CONGRESS TO SUPPORT EQUITY

             2     
AND SALES TAX FAIRNESS

             3     
2012 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Steve Eliason

             6     
Senate Sponsor: Wayne L. Niederhauser

             7     
             8      LONG TITLE
             9      General Description:
             10          This joint resolution of the Legislature urges the United States House of
             11      Representatives to pass legislation for the fair and constitutional collection of state sales
             12      tax by both in-state and remote sellers.
             13      Highlighted Provisions:
             14          This resolution:
             15          .    urges the United States House of Representatives and the United States Senate to
             16      pass, without delay, federal legislation for the fair and constitutional collection of
             17      state sales tax;
             18          .    urges that Congress consider in the legislation the following principles: 1)
             19      state-provided or state-certified tax collection and remittance software that is simple
             20      to implement and maintain; 2) immunity from civil liability for retailers utilizing
             21      state-provided or state-certified software in tax collection and remittance; 3) tax
             22      audit accountability to a single state tax audit authority; 4) elimination of interstate
             23      tax complexity by streamlining taxable good categories; 5) adoption of a meaningful
             24      small business exception so that small businesses that sell remotely are not
             25      adversely affected by the legislation; and 6) fair compensation to the tax-collecting
             26      retailer; and
             27          .    affirms that, through passage of such legislation, the United States Congress will
             28      foster consistent standards for in-state and remote sellers who are obligated to
             29      collect state sales and use taxes, whether on a point-of-delivery basis or a


             30      point-of-sale basis, thus providing equal, consistent, and fair treatment among traditional brick
             31      and mortar retailers, brick and click retailers, catalogue retailers, and pure-play
             32      Internet-only-based retailers.
             33      Special Clauses:
             34          None
             35     
             36      Be it resolved by the Legislature of the state of Utah:
             37          WHEREAS, United States Supreme Court decisions in National Bellas Hess v.
             38      Department of Revenue, 386 U.S. 753 (1967) and Quill Corp. v. N.D., 504 U.S. 298 (1992),
             39      have ruled that the Commerce Clause of the United States Constitution denies states the
             40      authority to require the collection of sales and use taxes by remote sellers that have no physical
             41      presence in the taxing state;
             42          WHEREAS, the United States Supreme Court also declared in the Quill v. North
             43      Dakota decision that Congress could exercise its authority under the Commerce Clause of the
             44      United States Constitution to decide "whether, when, and to what extent" the states may require
             45      sales and use tax collection on remote sales;
             46          WHEREAS, states and localities that use sales and use taxes as a revenue source may
             47      not collect revenue from some portion of remote sales commerce;
             48          WHEREAS, since 1999, various state legislators, governors, local elected officials,
             49      state tax administrators, and representatives of the private sector have worked together as a
             50      Streamlined Sales Tax Project and Governing Board to develop a streamlined sales and use tax
             51      system currently adopted in some form in 24 states;
             52          WHEREAS, between 2001 and 2002, 40 states enacted legislation expressing their
             53      intent to simplify the states' sales and use tax collection systems, and to participate in
             54      discussions to allow for the collection of states' sales and use taxes;
             55          WHEREAS, the actions of these states arguably provide some justification for
             56      Congress to enact legislation to allow states to require remote sellers to collect the states' sales
             57      and use tax;


             58          WHEREAS, any federal legislation should be fair to both in-state and remote sellers,
             59      whether such legislation requires sales and use taxes to be collected on a point-of-sales or
             60      point-of-delivery basis;
             61          WHEREAS, Congress, in considering federal legislation, should consider the following
             62      principles: 1) state-provided or state-certified tax collection and remittance software that is
             63      simple to implement and maintain; 2) immunity from civil liability for retailers utilizing
             64      state-provided or state-certified software in tax collection and remittance; 3) tax audit
             65      accountability to a single state tax audit authority; 4) elimination of interstate tax complexity by
             66      streamlining taxable good categories; 5) adoption of a meaningful small business exception so
             67      that small businesses that sell remotely are not adversely affected by the legislation; and 6) fair
             68      compensation to the tax-collecting retailer;
             69          WHEREAS, the Utah State Legislature and some of its sister legislatures in other states
             70      have acknowledged the complexities of the current sales and use tax system, have formulated
             71      varied alternative collection systems, and have shown the political will to make changes in
             72      their respective sales and use tax systems;
             73          WHEREAS, the enactment of legislation by Congress and the President that allows
             74      states to require remote sellers to collect the states' sales and use taxes, will facilitate the states'
             75      ability to enforce their current laws for collecting sales and use taxes on remote sales;
             76          WHEREAS, requiring remote sellers to collect the sales and use taxes may broaden
             77      Utah's sales tax base and potentially enable the Utah State Legislature to lower sales and use
             78      tax rates; and
             79          WHEREAS, empowering states to collect sales and use taxes on in-state and remote
             80      sales is consistent with the 10th Amendment to the United States Constitution and is a states'
             81      rights issue:
             82          NOW, THEREFORE, BE IT RESOLVED that the Utah State Legislature urges the
             83      United States House of Representatives and the United States Senate to pass, without delay,
             84      and the President of the United States to sign, federal legislation that provides for the fair and
             85      constitutional collection of state sales and use taxes.


             86          BE IT FURTHER RESOLVED that the Legislature of the state of Utah urges that, in
             87      passing such legislation, Congress consider the following principles: 1) state-provided or
             88      state-certified tax collection and remittance software that is simple to implement and maintain;
             89      2) immunity from civil liability for retailers utilizing state-provided or state-certified software
             90      in tax collection and remittance; 3) tax audit accountability to a single state tax audit authority;
             91      4) elimination of interstate tax complexity by streamlining taxable good categories; 5) adoption
             92      of a meaningful small business exception so that small businesses that sell remotely are not
             93      adversely affected by the legislation; and 6) fair compensation to the tax-collecting retailer.
             94          BE IT FURTHER RESOLVED that the Legislature of the state of Utah, recognizing
             95      that such legislation may not include all of these principles, declares that Congress's passage of
             96      the legislation will help create consistent standards for retailers forced to collect state sales and
             97      use taxes whether on a point-of-delivery basis or a point-of-sale basis, thus leveling the playing
             98      field between in-state and remote sellers.
             99          BE IT FURTHER RESOLVED that this resolution be sent to the President of the
             100      United States, the Majority Leader of the United States Senate, the Speaker of the United States
             101      House of Representatives, and to the members of Utah's congressional delegation.


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