Federal Action Briefing - Internet Sales Tax


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New York Technology Council Executive Director Donn Morrill and Matthew Evans, Manager of Public Advocacy for CompTIA, discuss the goings-on in Washington and what is being done to help small and mid-sized technology companies survive this difficult economic climate.

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  • Sponsorship opportunities are available for an invite-only cocktail reception following the Internet Society event. Meet Vint Cerf and the true founders of the Internet.Next General Meeting in July – “Technology Incubator Showcase”
  • Commerce Clause of US Constitution Article I Section 8
  • ND tried to force Quill to collect sales tax, stipulating that nexus was achieved because Quill provided clients with software to check product inventory.
  • i.e. NYC (4% state, .4.5% city, .375% MTA)
  • Federal Action Briefing - Internet Sales Tax

    1. 1. Federal Action BriefingWhat is Congress doing to help technology companies? December 12, 2011 @nytechcouncil
    2. 2. 2011 Sponsors
    3. 3. Special Thanks
    4. 4. Upcoming Events Thursday Dec 15 – Holiday Cocktail Reception Please join us as we celebrate the holiday season with a three-hour, open bar reception. Thursday Jan 5 – New Techniques for Protecting Cloud Data A review of new research that will lead to safer data storage in the cloud. Monday Jan 9 – Cutting Edge Technology Showcase A demonstration of awe-inspiring technology available today.
    5. 5. Agenda Internet Sales Tax Crowd Funding Payroll Tax Cuts Cyber Security Immigration Reform
    6. 6. Currently 45 States Have a Sales / Use Tax
    7. 7. Currently States with sales tax also have a use tax - Equivalent of a sales tax but onus falls on buyer, not seller States prohibited from requiring out-of-state sellers to collect sales tax unless there is nexus - Store, warehouse, sales office, etc…In the dark days before the Internet…..
    8. 8. The “Quill” Case VS.
    9. 9. The “Quill” Case Quill had no physical presence in ND Quill DID provide customers with software to check inventory availability ND claimed nexus and tried to force Quill to collect sales tax The Supreme Court struck down ND’s efforts
    10. 10. Issues Fairness in competition State and local revenue Use tax not enforced
    11. 11. Complications Regional rates Categorization of taxable items Regional filing requirements 2008 NYS Internet taxation law - Claims that affiliates achieve nexus - Exemptions for sales under $10k
    12. 12. What Now? H.R. 3179 – “Marketplace Equity Act” Exemptions • Total sales under $1 million • In-state sales under $100k “Simplification” Clauses • Only states can collect tax, not regions • Must use one of three rate schedules •Blended •Max •Regional provided sufficient s/w solution
    13. 13. What Now? Enzi-Durbin-Alexander bill – “Marketplace Fairness Act” Exemptions of $500k instead of $1mm “Simplification” Clauses • Single state agency must collect all taxes • Uniform rate • States must provide s/w to simplify process