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NTU Joins Coalition Opposing Online Sales Tax Proposal in Utah

by Brandon Arnold / /

Dear Utah State legislator:

On behalf of our organizations and the millions of citizens we represent, we write in strong opposition to the online sales tax proposal currently being considered in the Utah state legislature. This misguided plan (SB 65) is a nuisance reporting requirement in order to give Utah tax collectors information that they'd then use to collect use tax, and would create host of economic, logistic, and Constitutional problems. 

Allowing states to assert tax authority on businesses outside their borders is also constitutionally suspect and practically unwise. It's constitutionally suspect because the interstate commerce clause exists precisely to empower Congress to prevent such activities and because Supreme Court precedent underscores the importance of physical presence. It's practically unwise because it would subject Utah businesses to the tax collectors of states that don't share its generally solid conservative governance, like California, New York, and Illinois.

Despite proponents’ claim to the contrary, online sales tax would impose high costs of compliance on businesses, especially small businesses and individual sellers. Keeping constantly-changing rates, bases, and collection methodologies, would be very challenging for remote sellers, and may even prevent some from selling to Utah consumers. This is a much higher collection standard than bricks-and-mortar sellers, which are only required to collect at the rate of their physical location.

We oppose efforts to impose tax collection and reporting requirements on businesses without a physical presence in the state, including measures like SB 65 and others like it. 

Sincerely,

Evelyn Everton, Utah State Director
Americans for Prosperity
 
Grover Norquist, President
Americans for Tax Reform
 
Wayne Brough, PhD, Chief Economist and VP for Research
FreedomWorks
 
Lisa Nelson, CEO
The Jeffersonian Project, an affiliate of the American Legislative Exchange Council
 
Brandon Arnold, Executive Vice President
National Taxpayers Union
 
Andrew Moylan, Executive Director and Senior Fellow
R Street Institute
 
George David Banks, Executive Vice President
American Council for Capital Formation
 
Sean Noble, President
American Encore
 
Peter J. Thomas, Chairman
Americans for Constitutional Liberty
 
Norm Singleton, President
Campaign For Liberty
 
Timothy H. Lee, Senior Vice President of Legal and Public Affairs
Center for Individual Freedom
 
Tom Brinkman Jr., Chairman
Coalition Opposed to Additional Spending and Taxes (COAST)
 
Jessica Melugin, Adjunct Fellow
Competitive Enterprise Institute
 
Katie McAuliffe, Executive Director
Digital Liberty
 
Jonathan Haines, Director
Federalism In Action
 
George Landrith, President
Frontiers of Freedom
 
Andrew Clark, President
Generation Opportunity
 
Mario H. Lopez, President
Hispanic Leadership Fund
 
Seton Motley, President
Less Government
 
Daniel Garza, Executive Director
The LIBRE Initiative
 
David Williams, President
Taxpayers Protection Alliance
 
Judson Phillips, Founder
Tea Party Nation