New York—A newly formed group of direct marketing organizations is claiming that proposed federal bills, allowing states to impose sales tax collections on purchases from out-of-state e-commerce companies, unduly burden e-commerce vendors.
The American Catalog Mailers Association, the Direct Marketing Association, the Electronic Retailers Association and e-commerce advocacy group NetChoice have formed the True Simplification of Taxation (TruST) coalition. They charge that current bills that would allow states to collect sales tax on e-commerce purchases would create a burden on e-commerce vendors by their having to comply with some 9,600 taxing jurisdictions in the U.S.
“It is time for states to simplify their sales tax regimes," said Jerry Cerasale, DMA senior VP-government affairs. "This is not the time for e-commerce to be bogged down with unfunded tax-collecting burdens that will harm economic growth and job creation."
The formation of TruST appears to be a concession by these marketing organizations that some form of sales tax law imposed on e-commerce companies is inevitable. The new tack is to urge uniform taxing models across taxing jurisdictions, rather than to oppose all efforts by states to impose sales tax on e-commerce purchases.