Roundtable Weekly
Real Estate and Business Organizations Oppose Legislation Challenging Supreme Court Decision on Internet Sales Tax
September 21, 2018

The Real Estate Roundtable and seven other national trade organizations wrote to congressional leaders this week opposing legislation that reverses or limits the Supreme Court's June 22 decision in South Dakota v. Wayfair, which allows States to collect tax owed on remote internet sales purchases. (Wayfair Comment Letter, Sept. 17)

The Real Estate Roundtable and seven other national trade organizations wrote to congressional leaders this week opposing legislation that reverses or limits the Supreme Court's June 22 decision in South Dakota v. Wayfair, which allows States to collect tax owed on remote internet sales purchases.

  • Despite the high court's Wayfair ruling, a bipartisan quartet of House members led by Rep. Jim Sensenbrenner (R-WI) introduced legislation on Sept. 13 that would bar states from collecting taxes from out-of-state internet vendors until 2019.
  • Other bills would go even further in reversing the Wayfair decision.  They include the Stop Taxing Our Potential Act of 2018 (S. 3180), introduced by Sen. John Tester (D-MT) and the Protecting Small Business from Burdensome Compliance Costs Act (H.R. 6724). introduced by Rep. Bob Gibbs. The likelihood that legislation challenging Wayfair will get through the current Congress, especially with the mid-term elections fast approaching, is slim.  (Politico, Sept 17)
  • The business coalition letter to Senate and House leadership explains that over the better part of a decade, these industry groups "have undertaken significant efforts to establish economic parity between online and brick-and-mortar sellers that would better reflect the changing dynamics of today's omnichannel marketplace. For Congress to insert themselves post-ruling only creates additional uncertainty and further complicates the implementation process, while undermining the level playing field created by the Wayfair decision." 

The eight organizations conclude the letter by offering to work with Congress on any problems that may arise from state implementation of remote internet sales tax collection allowed by Wayfair.  (Roundtable Weekly, June 22)