Oppose SB 2298 - Internet Sales Taxes - North Dakota | Council For Citizens Against Government Waste

Oppose SB 2298 - Internet Sales Taxes - North Dakota

State Action

North Dakota Legislative Assembly

Finance and Taxation Committee

600 East Boulevard

Bismarck, North Dakota 58505

 

Dear Senator,

On behalf of the more than 4,500 members and supporters of the Council for Citizens Against Government Waste in the state of North Dakota, I urge you to oppose SB 2298, regarding the taxation of sales from remote sellers.

SB 2298 would impose significant burdens on remote sellers by creating expensive regulatory compliance costs and forcing them to collect and remit taxes to a state in which they do not have a physical presence.  Most states that collect a sales tax have a use tax to collect that tax on remote sales, which is paid to the state at the time the taxpayer files income taxes.  The amount of tax owed is calculated based on the amount of untaxed purchases made during the tax year.

On May 26, 1992, the U.S. Supreme Court ruled in Quill v. North Dakota that if a company did not have a “physical nexus” within the state, that state could not require the company to collect sales taxes from a customer.  Therefore, if North Dakota ultimately decides to pass SB 2298, the state opens itself up to costly litigation at the taxpayers’ expense based on the Quill precedent.

The Quill case, along with the Commerce Clause, makes it clear that taxing power must be limited by state borders.  SB 2298 would wipe away this constitutional limitation and force businesses to navigate a complex web of taxing jurisdictions.  It would dramatically raise compliance costs for companies that do not have a physical presence in the state.

We urge you and your fellow legislators to oppose SB 2298, which would set a dangerous precedent for retailers wanting to do business in the state of North Dakota.

Sincerely,

Tom Schatz

President, CCAGW

Issues/Topics: 

Sign Up For Email Updates


Optional Member Code