The Congressman introduced the No Retroactive Online Taxation Act of 2018 Nov. 29, a new online sales tax bill that would prohibit states from imposing sales tax collection duties on remote sellers for any sale that occurred prior to June 21, 2018—the day the U.S. Supreme Court delivered the Wayfair decision.
Sensenbrenner has been the most active federal lawmaker in the online sales tax field since the Wayfair ruling. In September, he filed the Online Sales Simplicity and Small Business Relief Act of 2018 (H.R. 6814), a which would also ban retroactivity and would require all states to push back online sales tax law implementation dates to Jan. 1, 2019.
As of Nov. 1, 23 states have seen online sales tax enforcement laws go live.
Sensenbrenner told Bloomberg Tax in September he was he was “very confident” that H.R. 6814 would be considered by the House by the end of 2018. The bill hasn’t moved since its introduction.
The U.S. Supreme Court’s groundbreaking ruling in South Dakota v. Wayfair tossed out Quill Corp. v. North Dakota, the Supreme Court’s 1992 physical presence threshold for when states could tax remote sales. The majority in the 5-4 ruling suggested strongly that South Dakota’s law requiring remote sellers that meet thresholds of $100,000 in annual in-state sales or 200 transactions to collect and remit sales tax would pass constitutional muster.
The court didn’t rule on the validity of South Dakota’s law in the absence of Quill, but that hasn’t stopped states from passing their own versions of it.