Senator Dick Durbin and U.S. Representatives John Conyers and Peter Welch introduced a bill (the Main Street Fairness Act) last week that would be a federal solution to the state advertising tax nexus situation.
The legislation is co-sponsored by Senators Tim Johnson and Jack Reed in the Senate and Representative Heath Shuler in the House.
I never thought I’d say this, but I’m excited to see some new federal legislation.
In this case, I support the Main Street Fairness Act with the assumption that if it passes successfully, it will supersede the laws that have passed in states that established affiliate marketers as a tax nexus, resulting in online retailers kicking the affiliates out of their affiliate programs.
Two states (Rhode Island and Colorado) that have enacted these laws have started repeal processes, noting that no additional revenue was collected and small businesses were harmed, according to Modern Main Street.
More details on the federal online sales tax bill at http://www.pcmag.com/article2/0,2817,2389490,00.asp.