Internet Taxation

DMA Opposes New Alternative Sourcing Proposal Before Streamlined Sales Tax Governing Board
In a Sept. 12, 2007, letter to the Streamlined Sales Tax Governing Board, DMA expressed its strong opposition to the �Alternative Sourcing Proposal,� a complex, tiered taxing protocol that would further complicate interstate commerce for businesses and customers. The Proposal will be considered by the Streamlined Sales Tax Governing Board at its Sept. 19�20 meeting in Kansas City.

House Judiciary Examines Internet Access Tax Moratorium

Representatives Anna Eshoo (D-CA) and John Campbell (R-CA) testified the week of July 27, 2007 before House Judiciary�s Subcommittee on Commercial and Administrative Law in support of their own legislation that seeks to make permanent the Internet Tax Moratorium.

Rep. John Conyers (D-MI.), the chairman of the House Judiciary Committee commented at the hearing, �It sounds like just about everybody's in agreement mostly that we've got to extend the moratorium and perhaps make it permanent.�

There was discussion on the mandatory sales tax collection, but was generally agreed upon that this additions to the legislation at this point could slow the bill down, preventing Congress from meeting the November 1, 2007 deadline to extend or make permanent the moratorium. The bill was scheduled for mark-up before the Judiciary Committee, but was postponed until after August recess.

Subcommittee on Commercial and Administrative Law
Hearing on the Internet Tax Freedom Act 07/26/2007

Testimony of George S. Isaacson, Esq. Tax Counsel for the Direct Marketing Association Before the Senate Finance Committee Subcommittee on International Trade (July 25, 2006).

Testimony of George S. Isaacson, Esq. Tax Counsel for the Direct Marketing Association Before the United State House of Representatives Committee on the Judiciary Subcommittee on Commercial and Administrative Law

The Streamlined Sales and Use Tax Agreement Is Not Meaningful Simplification

Setting The Record Straight: The Modest Effect Of Ecommerce On State And Local Sales Tax Collections
This 2007 study updates and confirms DMA�s 2003 findings (below) that of uncollected sales taxes arising from Internet-based remote commerce are very modest, contrary to claims made by state and local officials.

A Current Calculation of Uncollected State Sales Tax Arising from Internet Growth
Analysis, based on U.S. Department of Commerce data, demonstrating that previous proclamations about the amount of potential state tax losses due to online sales were, at best, wildly overstated.

The Truth About Online Sales Taxes:
New Analysis Based on Department of Commerce Data Demonstrates Previous Studies Are Unreliable as the Basis for Congressional Action

Internet Taxation
Number of Tax Rates Could Balloon from 7,600 to 15,200