Shaheen Statement on SCOTUS Internet Sales Tax Collection Requirement Ruling

June 21, 2018

(Washington, DC)— U.S. Senator Jeanne Shaheen (D-NH) issued the following statement in response to the Supreme Court’s ruling on South Dakota v. Wayfair, Inc., which overturns a previous Court decision that protected New Hampshire small businesses from being forced to collect sales tax for other states. The Supreme Court’s decision was 5-4. This will force New Hampshire small businesses to collect tax for 46 other states and more than 12,000 taxing jurisdictions across the country:

“This is a disastrous decision for New Hampshire’s economy and does not take into account the day to day challenges of running a small business,” said Shaheen. “New Hampshire small businesses do not have the time or resources to become tax collectors for other states. This decision creates mountains of red tape for small businesses in New Hampshire and across the country, hurting their ability to grow and create jobs by selling on the internet.”

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. In addition, the Court’s dissenting opinion 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.