Connecticut House Bill HB05545

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

An Act Concerning The Collection Of Sales Tax By Remote Sellers.

Impact

If enacted, HB 5545 would establish clear guidelines for when online retailers must collect sales tax based on their affiliations with in-state residents. This change is intended to level the playing field for local businesses that are subject to such taxes, potentially increasing state revenue from online sales. Supporters argue that this bill will help close tax loopholes that allow remote sellers to operate without contributing to the state's tax base, ensuring fair competition between local and online retailers.

Summary

House Bill 5545 concerns the collection of sales tax by remote sellers in the state. The bill proposes to amend existing statutes such that any retailer entering into an agreement with a resident of the state to refer customers online would be presumed to be conducting business within the state. Accordingly, this would make the retailer liable for collecting sales tax on purchases made by residents of the state. This legislation targets the growing sector of online retail, aiming to ensure equitable tax collection across various sales platforms.

Contention

Opponents of the bill may raise concerns regarding the administrative burden that this new tax requirement could impose on small or medium-sized retailers who operate online. There may be apprehensions about how this legislation could affect the partnership dynamics between local residents and online retailers. Additionally, critics might argue that the presumption of conducting business within the state due to affiliate agreements could lead to challenges in enforcement and compliance, particularly for retailers not physically present in the state.