Shaheen And Ayotte Fight Online Sales Tax

Apr 24, 2013

New Hampshire’s U.S. senators don’t often see eye to eye, but this week they’re teaming up trying to defeat a bill that would force businesses to collect online sales tax for the first time.

New Hampshire is one of just five states with no sales tax, which is why the state’s senators are up in arms over legislation that would force some Granite State businesses to collect online sales tax for other states. The legislation only applies to businesses with out of state sales of one million dollars, but critics say the businesses it hits would be burdened collecting money for as many as nine thousand different tax jurisdictions.

Democratic Senator Jeanne Shaheen has introduced an amendment to exempt New Hampshire and other states without a sales tax from the bill.

“They’re going to be put in the position – at least the internet businesses – of having to collect taxes for the 49 other states when they don’t have to collect taxes in New Hampshire and we don’t think that’s fair.”

Republican Senator Kelly Ayotte says the legislation will make some New Hampshire businesses the “tax collectors for the nation.” But the Granite State’s senators seem to be in the small minority – on Wednesday the Senate voted 75 to 22 to move the bill one step closer to final passage.