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Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20170&cosponId=21459
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Senate of Pennsylvania
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: December 16, 2016 02:55 PM
From: Senator Lawrence M. Farnese, Jr.
To: All Senate members
Subject: Increasing Collection and Remittance of State Sales Tax by Online Retailers and Purchasers
 
In the near future, I will be introducing legislation to increase collection and remittance of state sales tax by online retailers and purchasers.

Currently, online retailers with a taxable presence are required to obtain a sales tax license to collect and remit Pennsylvania sales tax on sales delivered to Pennsylvania. If a retailer does not have a sales tax license and does not collect sales tax, the purchasers themselves are required to calculate and pay a use tax on their purchases from those out-of-state retailers.

My legislation will not create any new tax obligations, but is intended to increase the compliance rate for existing sales tax obligations. Modeled after Colorado’s statute relating to online retailers, which was recently upheld by the Tenth Circuit and denied review by the U.S. Supreme Court (See Direct Mktg. Ass'n v. Brohl, 814 F.3d 1129 (10th Cir. 2016), cert. denied, (U.S. Dec. 12, 2016), and cert. denied, (U.S. Dec. 12, 2016)), my legislation will require non-collecting online retailers to do three things:
  1. send a notice to purchasers informing them that they may be subject to Pennsylvania’s use tax,
  2. send Pennsylvania purchasers who buy goods from the retailer totaling more than $500 an annual purchase summary with the dates, categories, and amounts of purchases, reminding them of their obligation to pay use taxes on those purchases; and
  3. send the Department of Revenue an annual customer information report listing their customers' names, addresses, and total amounts spent.

Please join me in co-sponsoring this legislation.