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CONCURRENT RESOLUTION IN SUPPORT OF SALES AND

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USE TAX TRANSACTIONAL EQUITY

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2016 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Wayne A. Harper

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House Sponsor: Brad L. Dee

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8     LONG TITLE
9     Committee Note:
10          The Revenue and Taxation Interim Committee recommended this resolution.
11     General Description:
12          This concurrent resolution of the Legislature and the Governor urges the United States
13     Congress to pass the Remote Transactions Parity Act, H.R. 2775, legislation for fair,
14     uniform, simplified, and constitutional collection and remittance of state and local sales
15     and use taxes by both in-state and remote sellers.
16     Highlighted Provisions:
17          This resolution:
18          ▸     urges Congress to pass, without delay, the Remote Transactions Parity Act, H.R.
19     2775, for the fair, uniform, simplified, and constitutional collection of state and
20     local sales and use taxes due; and
21          ▸     affirms that, through passage of the legislation, Congress will:
22               •     foster consistent standards for in-state and remote sellers who are obligated to
23     collect state and local sales and use taxes, providing equal, consistent, and fair
24     treatment among traditional brick-and-mortar retailers, brick-and-click retailers,
25     catalogue retailers, and Internet-only retailers; and
26               •     require similarly situated purchasers to pay the same sales and use tax rates,
27     regardless of which type of retailer they make their purchases from and

28     regardless of where that retailer is located.
29     Special Clauses:
30          None
31     

32     Be it resolved by the Legislature of the state of Utah, the Governor concurring therein:
33          WHEREAS, United States Supreme Court decisions in National Bellas Hess v.
34     Department of Revenue, 386 U.S. 753 (1967), and Quill Corp. v. North Dakota, 504 U.S. 298
35     (1992), require a seller to have a physical presence in a taxing state before the state may require
36     the seller to collect and remit sales and use taxes on transactions that occur within that state;
37          WHEREAS, the United States Supreme Court also declared in the Quill Corp. v. North
38     Dakota decision that Congress "has the ultimate power" under the commerce clause of the
39     United States Constitution to resolve "whether, when, and to what extent" the states may
40     require sales and use tax collection and remittance on remote sales;
41          WHEREAS, states and localities that use sales and use taxes as a revenue source may
42     not collect revenue from some portion of remote sales commerce under the current Supreme
43     Court rulings;
44          WHEREAS, since 1999, various state legislators, governors, local elected officials,
45     state tax administrators, and representatives of the private sector have worked together to
46     develop standards, protocols, and tax systems that mitigate the burdens addressed in Quill
47     Corp. v. North Dakota;
48          WHEREAS, between 2001 and 2002, 40 states enacted legislation expressing their
49     intent to simplify the states' sales and use tax collection systems and to participate in
50     discussions to allow for the collection of states' sales and use taxes;
51          WHEREAS, Utah has been a leader in demonstrating the political will to make
52     meaningful state sales and use tax reform and encouraging state membership in the Streamlined
53     Sales and Use Tax Agreement;
54          WHEREAS, 24 states, including Utah, have joined the Streamlined Sales and Use Tax
55     Agreement and have refined their state laws accordingly;
56          WHEREAS, the actions of these states provide justification for Congress to enact
57     legislation to allow states to require remote sellers to collect the states' sales and use taxes;
58          WHEREAS, the end consumer is responsible for paying the statutorily due sales and

59     use tax and the retailer is the state-appointed collector of sales and use tax;
60          WHEREAS, the enactment of legislation by Congress that allows states to require
61     remote sellers to collect the states' sales and use taxes is necessary to treat all sales transactions
62     the same regardless of whether they are done by an in-state, remote, or online retailer;
63          WHEREAS, Congress has had sufficient time to address the requirements of Quill
64     Corp. v. North Dakota and the states have acted to minimize the additional burdens on
65     businesses by implementing automated software to calculate tax rates imposed by each tax
66     jurisdiction;
67          WHEREAS, empowering states to collect sales and use taxes on in-state and remote
68     sales is consistent with the Tenth Amendment to the United States Constitution and is a states'
69     rights issue;
70          WHEREAS, requiring remote sellers to collect sales and use taxes may broaden Utah's
71     sales and use tax base and potentially enable the Utah Legislature and the Governor to lower
72     sales and use tax rates;
73          WHEREAS, the Utah Legislature has repeatedly passed resolutions over the last 10
74     years calling upon Congress to pass legislation supporting Tenth Amendment rights and
75     allowing states to collect the sales and use taxes due from all transactions;
76          WHEREAS, the United States Senate heeded that call by overwhelmingly passing the
77     Marketplace Fairness Act of 2013, but the United States House of Representatives failed to
78     consider or vote on the legislation;
79          WHEREAS, any federal legislation should be fair to both in-state and remote sellers
80     and purchasers, whether such legislation requires sales and use taxes to be collected on a point
81     of sale or point of delivery basis;
82          WHEREAS, the Remote Transactions Parity Act of 2015, H.R. 2775 (the Remote
83     Transactions Parity Act), is currently introduced in the United States House of Representatives
84     and satisfies Quill;
85          WHEREAS, passage of the Remote Transactions Parity Act is intended to foster
86     consistent treatment of and standards for in-state and remote sellers in collecting and remitting
87     already due sales and use taxes;
88          WHEREAS, the small remote seller phase-in as set forth in the Remote Transactions
89     Parity Act needs to treat all retailers the same, including retailers using an electronic

90     marketplace;
91          WHEREAS, passage of the Remote Transactions Parity Act or the Marketplace
92     Fairness Act is the top priority of the National Governors Association and the National
93     Conference of State Legislatures; and
94          WHEREAS, passage of the Remote Transactions Parity Act is a top priority of the
95     Retail Industry Leaders Association, the International Council of Shopping Centers, the Farm
96     Bureau, the Chamber of Commerce, the United States Conference of Mayors, and other major
97     associations:
98          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah, the
99     Governor concurring therein, urges and calls upon the United States Congress to pass, without
100     delay, and the President of the United States to sign, the Remote Transactions Parity Act,
101     which provides for the fair, uniform, simplified, and constitutional administration of and
102     collection of state and local sales and use taxes due.
103          BE IT FURTHER RESOLVED that Congress, in the Remote Transactions Parity Act,
104     treat all retailers and small sellers the same in the small remote seller phase-in, including
105     retailers using an electronic marketplace.
106          BE IT FURTHER RESOLVED that the Legislature and the Governor call upon each of
107     Utah's members of Congress to actively support, to cosponsor, and to vote in favor of the
108     Remote Transactions Parity Act and for Utah's members of the Senate to do the same once the
109     legislation reaches the Senate.
110          BE IT FURTHER RESOLVED that the Legislature and the Governor affirm that,
111     through passage of the Remote Transactions Parity Act, the United States Congress will foster
112     consistent standards for in-state and remote sellers who are obligated to collect state and local
113     sales and use taxes, providing equal, consistent, and fair treatment among traditional
114     brick-and-mortar retailers, brick-and-click retailers, catalogue retailers, and Internet-only
115     retailers and require similarly situated purchasers to easily pay the sales and use taxes due,
116     regardless of which type of retailer they make their purchases from and regardless of where that
117     retailer is located.
118          BE IT FURTHER RESOLVED that the Legislature and the Governor urge all members
119     of Utah's congressional delegation to vote in favor of the Marketplace Fairness Act of 2015, S.
120     698, should that legislation be presented for a vote.

121          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Majority
122     Leader of the United States Senate, the Speaker of the United States House of Representatives,
123     the chair and cochair of the Senate Finance Committee, the chair and cochair of the House
124     Judiciary Committee, and the members of Utah's congressional delegation.






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