DMA Sets Internet Sales Tax Webinar

The Direct Marketing Association has announced its Regulatory & Legislative Update webinar will be held on Thursday, November 4, 2010 from 1:00 – 2:00 p.m. Eastern Time. Registration is free for the webinar.

According to the DMA, several states have either passed or are considering legislation that will require companies that conduct business on the Internet to either collect sales taxes or report sales by the states’ residents to those companies.

In it’s decision in Quill Corp v. North Dakota, the US Supreme Court [see Quill Corp. v. North Dakota, 504 US 298 (1992)] determined that physical presence, or nexus, is required before states can require businesses to collect sales taxes.

In its webinar registration information, the DMA states that it, “believes the Internet should remain free from burdensome taxes in order to ensure its continued growth and viability.” However, with many states facing severe financial conditions in the current economy, many are looking for ways to increase their tax revenues.

Unfortunately, these attempts will undermine steps to strengthen Internet commerce. By requiring businesses to collect and remit taxes from over 7,000 jurisdictions could have a disastrous impact on Internet commerce.

The DMA believes that attempts by states redefine the nexus are not only poor tax policy, but also unconstitutional.

Because many companies that sell over the Internet may have only an advertising relationship, the DMA believes that a nexus does not exist and, therefore, those companies should not be compelled to report or remit sales taxes.

The DMA webinar will cover changes that have occurred in New York, California, Florida and North Carolina. They will also look at upcoming changes from Colorado, Ohio, and Oklahoma.

Members from DMA’s Government Affairs team along with other industry experts will be presenting the webinar. You can register at DMA’s website.

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Posted by John Timmons on Oct 13 2010. Filed under Business News, Featured News, Marketing News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.