U.S. Senator Kelly Ayotte (R-NH) said she would continue to fight online sales tax legislation, which passed the Senate today by a vote of 69 to 27 and now moves to the House of Representatives for consideration. Senator Ayotte has led efforts in the Senate to stop the so-called "Marketplace Fairness Act" (S. 743) from becoming law.
"The fight doesn't end here," said Senator Ayotte. "As this legislation moves to the House, I will continue my efforts to protect New Hampshire's online retailers from being forced to become tax collectors for other states."
Ayotte has led the fight to protect New Hampshire Internet businesses from online sales tax legislation. She has taken to the Senate floor several times in opposition to this bill, bringing the concerns of New Hampshire online retailers to the debate on Capitol Hill. Last year, she introduced a bipartisan resolution expressing the sense of the Senate that no federal legislation should give states the authority to impose any new burdensome or unfair tax collecting requirements on Internet businesses and entrepreneurs.
Under current Supreme Court precedent, absent a sufficient connection, a state cannot force out-of-state Internet businesses to collect and remit sales taxes. For example, when a customer in Illinois buys a product from an online vendor based in another state that has no physical presence in Illinois, authorities in Illinois cannot currently compel the out-of-state vendor to send it the Illinois tax on that sale. However, cash-strapped states looking to plug budget holes continue to push for a new law that would force online retailers to collect sales taxes for jurisdictions nationwide.