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 DirectorAmericans for Prosperity Grover Norquist, PresidentAmericans for Tax Reform Wayne Brough, PhD, Chief Economist and VP for ResearchFreedomWorks Lisa Nelson, CEOThe Jeffersonian Project, an affiliate of the American Legislative Exchange Council Brandon Arnold, Executive Vice PresidentNational Taxpayers Union Andrew Moylan, Executive Director and Senior FellowR Street Institute George David Banks, Executive Vice PresidentAmerican Council for Capital Formation Sean Noble, PresidentAmerican Encore Peter J. Thomas, ChairmanAmericans for Constitutional Liberty Norm Singleton, PresidentCampaign For Liberty Timothy H. Lee, Senior Vice President of Legal and Public AffairsCenter for Individual Freedom Tom Brinkman Jr., ChairmanCoalition Opposed to Additional Spending and Taxes (COAST) Jessica Melugin, Adjunct FellowCompetitive Enterprise Institute Katie McAuliffe, Executive DirectorDigital Liberty Jonathan Haines, DirectorFederalism In Action George Landrith, PresidentFrontiers of Freedom Andrew Clark, PresidentGeneration Opportunity Mario H. Lopez, PresidentHispanic Leadership Fund Seton Motley, PresidentLess Government Daniel Garza, Executive DirectorThe LIBRE Initiative David Williams, PresidentTaxpayers Protection Alliance Judson Phillips, FounderTea Party Nation