Shaheen Calls on Small Business Administration to Develop Plan for NH Businesses Impacted by SCOTUS Internet Sales Tax Ruling

June 28, 2018

(Washington, DC) – Today, U.S. Senator Jeanne Shaheen (D-NH) sent a letter with Senator Ron Wyden (D-OR), the lead Democrat on the Senate Finance Committee, to the Small Business Administration (SBA) calling on the federal agency to develop a plan for firms that will be impacted by the South Dakota V. Wayfair Supreme Court ruling that imposes a mandatory internet sales tax collection requirement. The Supreme Court ruled that New Hampshire businesses that sell online must collect sales taxes on behalf of the more than 12,000 state, county and city tax jurisdictions across the United States.

The Shaheen-Wyden letter to SBA Administrator McMahon reads in part, “The internet has helped small businesses flourish by creating a more level playing field that allows them to reach new customers across the world. Until last week, these online small businesses were also protected from being forced to collect sales taxes in states where they have no physical presence. As a result of the South Dakota v. Wayfair decision, small businesses will now be forced to navigate a maze of red tape and tax regulations.” The letter continues, “We must do everything in our power to protect these small businesses that create jobs and contribute to our economic growth.”

The letter can be read in full here.

Senator Shaheen successfully led efforts to stop the Marketplace Fairness Act, which was first introduced in 2011 to impose these internet sales tax collection requirements. Earlier this year, Shaheen introduced legislation opposing the Marketplace Fairness Act with a group of Senators from states that also do not collect sales tax, and like New Hampshire, would face significant obstacles if a collection requirement is mandated. In April, Shaheen joined a bipartisan, bicameral group of members of Congress to file an amicus brief in the South Dakota v. Wayfair case, in opposition to South Dakota’s argument. Additionally, the Supreme Court’s dissenting opinion on the case cites a Government Accountability Office report that was requested by Senator Shaheen detailing the burdens that a sales tax collection requirement will place on small businesses.