Bill urging tax simplification passes unanimously
(Phoenix, State Capitol) --- The Arizona Senate has passed SCM 1003, a Memorial urging Congress to enact uniform national legislation to simplify sales tax collection. The Memorial passed unanimously.
The need for uniform legislation follows the U.S. Supreme Court's decision two years ago in South Dakota v. Wayfair. That ruling meant states could require businesses to collect taxes from transactions in the state, regardless of whether they had a physical presence in the state. That has led to a patchwork of various state laws on how to collect that tax.
During Thursday's Senate vote, the sponsor of SCM 1003, Sen. Vince Leach, was joined by Brad and Hillary Scott of Prescott. They have a small business and need to know how to be compliant with the new requirements.
"The unanimous passing of SCM 1003 is great news for small businesses across Arizona," said Mr. Scott. "The collection, filing, and remittance of sales tax should not be an activity that could potentially cause businesses to close, but due to the complexity of trying to navigate and comply with 50 states’ rules and regulations, it could be. Since the South Dakota v Wayfair decision in June of 2018, our 30-person company has spent more than $183,500 and 3,800 hours to collect just $79,250 in sales tax."
Uniformity and simplicity across states' policies will allow Scott's company and other small businesses to return to their regular business while remaining compliant with tax law.