April 14, 2014

(Washington, D.C.) – As millions of Americans prepare for Tax Day, U.S. Senator Jeanne Shaheen (D-NH) is reiterating her opposition to online sales tax legislation that could have costly implications for small businesses in New Hampshire and other non-sales tax states. Shaheen, who has been a leading voice for small business in non-sales tax states and has filed multiple amendments to legislation before Congress to exempt New Hampshire from the regulations, spoke out against legislation that would allow states to require out-of-state businesses to collect sales taxes. 

“As people all across the country complete the annual task of filing their tax returns, Washington ought to be considering ways to cut red tape and bureaucratic obstacles,” Shaheen said. “Online sales tax legislation would impose new and unnecessary burdens on New Hampshire small businesses, at no benefit to Granite Staters or our economy, and I will continue fighting to make sure the online sales tax bill never becomes law.”

Online sales tax legislation that passed the U.S. Senate last year would force New Hampshire small businesses to collect sales taxes for the first time. New Hampshire is one of five states that does not collect sales tax, however, an Internet sales tax would mandate all internet retailers to collect taxes for other jurisdictions – potentially placing a serious burden on these small businesses.

“As small business owners we are looking to take advantage of new markets and customers on the Internet. However, if Internet sales tax legislation is passed, we would be forced to collect taxes for 46 states and thousands of municipalities across the country,” said Michele Holbrook, founder and owner of Michele's Totally Awesome Gourmet Popcorn based in Epsom, New Hampshire.  “We just cannot afford the resources for that task. It will most surely and severely impact our bottom line and stunt our business growth.”

Shaheen, who has been outspoken in her opposition to the Senate’s online sales tax legislation and has filed multiple amendments to exempt New Hampshire from any new regulations, has led an ongoing effort to fight the legislation. Most recently, Shaheen wrote a letter to Chairman of the House Judiciary Committee, expressing her deep concern about online sales tax proposals and urging the Chairman to exempt businesses in states without a sales tax from potential new tax regulations.