Federal Action BriefingWhat is Congress doing to help technology companies?

December 12, 2011@nytechcouncil

2011 Sponsors

Special Thanks

Thursday Dec 15 – Holiday Cocktail Reception Please join us as we celebrate the holiday season with a three-hour, open bar reception.

Thursday Jan 5 – New Techniques for Protecting Cloud Data A review of new research that will lead to safer data storage in the cloud.

Monday Jan 9 – Cutting Edge Technology Showcase A demonstration of awe-inspiring technology available today.

Upcoming Events

AgendaInternet Sales Tax

Crowd Funding

Payroll Tax Cuts

Cyber Security

Immigration Reform

Currently

45 States Have a Sales / Use Tax

Currently

States with sales tax also have a use tax - Equivalent of a sales tax but onus falls on buyer, not seller

States prohibited from requiring out-of-state sellers to collect sales tax unless there is nexus

- Store, warehouse, sales office, etc…

In the dark days before the Internet…..

The “Quill” Case

VS.

The “Quill” Case

Quill had no physical presence in ND

Quill DID provide customers with software to check inventory availability

ND claimed nexus and tried to force Quill to collect sales tax

The Supreme Court struck down ND’s efforts

Issues

Fairness in competition

State and local revenue

Use tax not enforced

Complications

Regional rates

Categorization of taxable items

Regional filing requirements

2008 NYS Internet taxation law- Claims that affiliates achieve nexus- Exemptions for sales under $10k

What Now?

H.R. 3179 – “Marketplace Equity Act”

Exemptions• Total sales under $1 million• In-state sales under $100k

“Simplification” Clauses• Only states can collect tax, not regions• Must use one of three rate schedules

• Blended• Max• Regional provided sufficient s/w solution

What Now?

Enzi-Durbin-Alexander bill – “Marketplace Fairness Act”

Exemptions of $500k instead of $1mm

“Simplification” Clauses• Single state agency must collect all taxes• Uniform rate• States must provide s/w to simplify process