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DMA Argues against Streamlined Sales and Use Tax

The Direct Marketing Association argued against a bill making the Streamlined Sales and Use Tax Agreement mandatory, in a U.S. Senate subcommittee hearing July 25.

The SSUTA lets remote sellers (those selling via the internet, telephone or catalog) voluntarily collect sales taxes from people or businesses in member states. For the agreement to take effect, 10 states needed to enact legislation; so far, 19 states have done this, according to DM News. The bills would let the states that voluntarily become members of the SSUTA require remote sellers to charge sales and use tax.

The DMA’s tax counsel, George S. Isaacson, testified that “taxation without borders results in cost, complexity, confusion and conflicts,” according to the article, and he said that the SSUTA conflicts with constitutional provisions to prevent state and local tax laws from hindering interstate commerce.

The DMA believes that the SSUTA creates a barrier to entry for small businesses and a barrier to growth for midsize businesses seeking an expansion to their customer base.

Related story:
DMA Unhappy with Proposed Sales Tax Bills