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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     General Description:
10          This concurrent resolution of the Legislature and the Governor urges the United States
11     Congress to pass the Remote Transactions Parity Act of 2015, H.R. 2775, legislation
12     for fair, uniform, simplified, and constitutional collection and remittance of state and
13     local sales and use taxes by both in-state and remote sellers.
14     Highlighted Provisions:
15          This resolution:
16          ▸     urges Congress to pass, without delay, the Remote Transactions Parity Act of 2015,
17     H.R. 2775, for the fair, uniform, simplified, and constitutional collection of state
18     and local sales and use taxes due; and
19          ▸     affirms that, through passage of the legislation, Congress will:
20               •     foster consistent standards for in-state and remote sellers who are obligated to
21     collect state and local sales and use taxes, providing equal, consistent, and fair
22     treatment among traditional brick-and-mortar retailers, brick-and-click retailers,
23     catalogue retailers, and Internet-only retailers; and
24               •     require similarly situated purchasers to pay the same sales and use tax rates,
25     regardless of which type of retailer they make their purchases from and
26     regardless of where that retailer is located.
27     Special Clauses:
28          None
29     


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

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

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

114     regardless of which type of retailer they make their purchases from and regardless of where that
115     retailer is located.
116          BE IT FURTHER RESOLVED that the Legislature and the Governor urge all members
117     of Utah's congressional delegation to vote in favor of the Marketplace Fairness Act of 2015, S.
118     698, should that legislation be presented for a vote.
119          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Majority
120     Leader of the United States Senate, the Speaker of the United States House of Representatives,
121     the chair and cochair of the Senate Finance Committee, the chair and cochair of the House
122     Judiciary Committee, and the members of Utah's congressional delegation.