The House Judiciary Committee considers a bill that would allow states to tax online retailers that don’t have a physical presence in that state. The proposed legislation would exempt businesses that don’t make over $500,000 in sales. Tennessee Governor Bill Haslam & Utah’s State Representative Wayne Harper were among the witnesses at the hearing, as was online governance specialist Steve DelBianco.
Retailers currently pay taxes to states where they have a physical store. The proposed legislation would exempt businesses that don’t make over $500,000 in sales.
Several witnesses argued that the $500,000 limit would be too small, since for online retailers, that could be a business with as few as one employee.
Rep. Lamar Smith (R-TX) chairs the hearing.