As part of a proposed budget plan, Washington would tax remote sales in contravention of the US Supreme Court decision in Quill. 1/10 #waleg
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The Quill decision requires business have a physical presence in a state as precondition of state requiring them to collect sales tax. 2/10
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Of course consumers owe use tax even if sales tax isn't collected & compliance is low so states are legitimately looking for solutions. 3/10
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But every state deciding on its own what remote transactions are subject to sales tax in that state is not a solution; it's confusion. 4/10
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Several states are challenging Quill right now. Some postpone enactment of provisions pending litigation; Washington would plow ahead. 5/10
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The proposal also taxes all marketplace sales regardless of who seller of record is. So a 3rd-party seller on Amazon implicates Amazon. 6/10
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There's also a component for referrers. Very broad. Right now, Amazon remits sales tax in all states w/ SUT, but only on its own sales. 7/10
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And plenty of other retailers don't go that far, and legally don't have to without physical presence (think employees or facilities). 8/10
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If this passes, it's going to court. WA not alone; lots of states are champing at bit to challenge Quill. But if stayed: revenue ?s. 9/10
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