Byron Dorgan: “I rise today with Senator Enzi and others to introduce legislation to address the long-standing issue of how to see that…”

“I rise today with Senator Enzi and others to introduce legislation to address the long-standing issue of how to see that the sales and uses taxes which are owed on remote sales, i.e., items bought from companies outside of the State in which the purchaser lives, can be fairly collected. The Simplified Sales and Use Tax Act which we introduce today will allow the States to require collection only after they have dramatically simplified their sales and use tax systems. Collecting a sales tax in a face-to-face transaction on Main Street or at the mall is a relatively simple process. The seller collects the tax and remits it to the State or local government. But with remote sales--such as catalog and Internet sales--it's more difficult. States cannot require a seller to collect a sales tax unless the business has an actual location or sales people in the State. So most States, and many localities, have laws that require the local buyer to send an equivalent 'use tax' to the State or local government when he or she did not pay taxes at the time of purchase. The reality, of course, is that customers almost never do that.”