Washington—The Direct Marketing Association testified before the Congressional Internet Caucus here on July 17 and 18, reiterating mailers’ positions on sales tax laws and Internet access taxes. Specifically, the DMA said that if Congress grants the states broad interstate tax collection authority, it needs to simplify the 7,600 tax codes in effect across the U.S.
“It’s imperative for Congress to require the states to substantially simplify their sales tax systems, under parameters which Congress establishes,” testified Frank Julian, Federated Department Stores’ operating vice president/tax counsel and chairman of the DMA Use Tax Committee, “and then to evaluate the states’ simplification plan before granting them broad tax-collection authority.”
Julian outlined two key components of a state sales-tax simplification: one sales tax rate per state for all commerce—online, direct, and retail; and “bright line” nexus standards for business activity taxes.
The DMA also expressed its support for legislation proposed by Rep. Bob Goodlatte (R-VA) on July 17 that calls for an extension on the ban of Internet access taxes.