Tax & Accounting Blog

Main Street Fairness Act Introduced in Congress

Indirect Tax, Sales and Use Tax, Sales Tax Nexus August 24, 2011

On July 29, 2011, the Main Street Fairness Act was introduced in both houses of Congress.   There are actually two identical bills:  H.R. 2701, introduced in the House of Representatives and S. 1452, introduced in the Senate.  Under the proposed legislation,  member states of the Streamlined Sales and Use Tax Agreement (SSUTA) would be authorized to require remote sellers such as Internet retailers with no physical presence in the state to collect and remit state and local sales and use taxes.

There are currently 24 full and associate member states in the SSUTA: Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming.

Proponents of the bill state that the legislation will level the playing field between out-of-state sellers and traditional local retailers.

Similar legislation has previously been introduced but not passed.