S.Amdt. 754

SA 754. Mr. HATCH submitted an amendment intended to be proposed by him to the bill S. 743, to restore States' sovereign rights to enforce State and local sales and use tax laws, and for other purposes; which was ordered to lie on the table; as follows:

On page 11, strike lines 18 through 23 and insert the following SEC. __. TERMINATION OF AUTHORITY.

No State shall be authorized to require sellers to collect and remit sales and use taxes with respect to remote sales sourced in such State after the date that is 5 years after the date of the enactment of this Act.

SEC. __. REQUIREMENT FOR 3-YEAR STATUTE OF LIMITATIONS.

No State shall be authorized to require sellers to collect and remit sales and use taxes with respect to remote sales sourced to that State under subsection (a) or (b) of section 2 unless such State adopts and implements a requirement providing that no proceeding in court may begin for any failure by a remote seller to collect or remit sales and use taxes under the authority of this Act after the date that is 3 years after the date on which such tax was required to be remitted.

SEC. __. STUDY ON COSTS OF COMPLIANCE.

(a) In General.--The Comptroller General of the United States shall conduct a study on--

(1) the costs incurred by remote sellers in complying with any requirements imposed by States pursuant to the authority granted under this Act; and

(2) whether, and under what circumstances, the authority granted under this Act allows States to impose taxes on financial transactions or contributions to retirement savings vehicles.

(b) Report.--Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall report to the Committee on Finance of the Senate and the Committee on the Judiciary of the House of Representatives on the results of the study conducted under subsection (a).

SEC. __. EXCEPTION FOR DIGITAL GOODS.

(a) In General.--The authority granted under section 2 shall not apply to remote sales of digital goods.

(b) Digital Goods.--For purposes of this section , the term “digital good” means any good or product that is delivered or transferred electronically, including software, information maintained in digital format, digital audio-visual works, digital audio works, and digital books.

SEC. __. REQUIREMENT FOR REMOTE SELLER COMPENSATION.

(a) In General.--No State shall be authorized to require sellers to collect and remit sales and use taxes with respect to remote sales sourced to that State under subsection (a) or (b) of section 2 unless such State adopts and implements a requirement providing a remote seller compensation for the collection and remission of sales and use taxes in an amount not less than the applicable percentage of the amount of such taxes collected by the remote seller.

(b) Applicable Percentage.--For purposes of subsection (a), the applicable percentage is--

(1) for any tax collected during the period of beginning on the date the State first exercises the authority under this Act and ending on the date that is 2 years after such date, 10 percent;

(2) for any tax collected during the period beginning on the first day after the period described in paragraph (1) ends and ending on the date that is 2 years after such date, 8 percent;

(3) for any tax collected during the period beginning on the first day after the period described in paragraph (2) ends and ending on the date that is 1 year after such date, 6 percent; and

(4) for any tax collected after the period described in paragraph (3) ends), 0 percent.

SEC. __. INCREASE AND INFLATION ADJUSTMENT TO THRESHOLD FOR SMALL SELLER EXCEPTION.

(a) Increase in Threshold.--Section 2(c) shall be applied by substituting “$10,000,000” for “$1,000,000”.

(b) Inflation Adjustment.--

(1) In general.--In the case of a calendar year beginning after 2013, the $10,000,000 amount under subsection (a) shall be increased by an amount equal to--

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year, determined by substituting ‘calendar year 2012' for ‘calendar year 1992' in subparagraph (B) thereof.

(2) Rounding.--If any amount as adjusted under paragraph (1) is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.