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Published on Monday, November 13, 2017

Streamlined sales tax studies

EHB 2163 imposes new requirements on more out-of-state internet retailers to collect sales tax or report customer sales, and notify customers for use tax purposes. The bill also created a study of potential impacts to cities receiving mitigation. The Streamlined Sales Tax mitigation advisory committee will be working with DOR to determine impacts for mitigation and is meeting later this year to discuss DOR’s implementation plans. As part of that process, DOR has been collecting questions from cities on implementation of EHB 2163 and other aspects of mitigation impacts. If your city has additional questions, please email them to Valerie Torres.

The operating budget also included a DOR study on the impacts of destination sourcing and marketplace fairness on jurisdictions with concentrations of warehousing by November 2018 to provide information on potential policy recommendations to the Legislature before mitigation ends in October 2019. AWC will be appointing an advisory group of impacted cities, business representatives, and ports to look at the policy implications of the economic impact and to make recommendations that will be included in DOR’s report. Interested cities are welcome to attend the meetings to monitor the group’s discussions and work. If you would like to be added to a distribution group for meeting information, please contact Andrew Pittelkau.

Meanwhile, the Supreme Court has been asked to review a South Dakota law enacted as a direct challenge to the 1992 Quill case that determined that physical presence was required for sales tax collection requirements to be imposed on out-of-state retailers under the commerce clause of the U.S. Constitution. South Dakota and several amicus briefs by national organizations representing state and local governments have asked the Supreme Court to accept review to overturn the 1992 decision. For more information see NLC’s breakdown of the issue.

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