[Congressional Record (Bound Edition), Volume 158 (2012), Part 1]
[Senate]
[Pages 976-977]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        PETITIONS AND MEMORIALS

  The following petition or memorial was laid before the Senate and was 
referred or ordered to lie on the table as indicated:

       POM-64. A joint memorial adopted by the Legislature of the 
     State of Washington requesting the adoption of federal 
     legislation relative to sellers, regardless of nexus, 
     collecting states' sales tax; to the Committee on Finance.

               Substitute Senate Joint Memorial No. 8009

       To the Honorable Barack Obama, President of the United 
     States, and to the President of the Senate and the Speaker of 
     the House of Representatives, and to the Senate and House of 
     Representatives of the United States, in Congress assembled:
       We, your Memorialists, the Senate and House of 
     Representatives of the State of Washington, in legislative 
     session assembled, respectfully represent and petition as 
     follows:
       Whereas, The 1967 Bellas Hess and the 1992 Quill United 
     States Supreme Court decisions denied states the authority to 
     require the collection of sales and use taxes by out-of-state 
     sellers that have no physical presence in the taxing state; 
     and
       Whereas, This puts local, in-state sellers, whether 
     electronic or brick and mortar, at a competitive disadvantage 
     in making sales, because they must collect the sales tax and 
     most remote sellers do not collect sales tax; and
       Whereas, The combined weight of the inability to collect 
     sales and use taxes on remote sales through traditional 
     carriers and the tax erosion due to electronic commerce 
     threatens the future viability of the sales tax as a stable 
     revenue source for state and local governments; and
       Whereas, The following federal legislation has been 
     introduced in the United States Congress to grant states the 
     authority to require all sellers, regardless of nexus, to 
     collect those states' sales and use taxes:
       (1) The Main Street Fairness Act of 2011 (S. 1452 sponsored 
     by Senators Richard Durbin, Daniel Akaka, Daniel Inouye, Tim 
     Johnson, Jack Reed, and Sheldon Whitehouse; and H.R. 2701 
     sponsored by Representatives John Conyers, Jr., Michael 
     Capuano, Jesse Jackson, Henry C. ``Hank'' Johnson, Jr., Heath 
     Shuler, Adam Smith, and Peter Welch);
       (2) The Marketplace Fairness Act of 2011 (S. 1832 sponsored 
     by Senators Michael Enzi, Lamar Alexander, Roy Blunt, John 
     Boozman, Bob Corker, Richard Durbin, Tim Johnson, Mark Pryor, 
     Jack Reed, and Sheldon Whitehouse); and
       (3) The Marketplace Equity Act of 2011 (H.R. 3179 sponsored 
     by Steve Womack, Michael Capuano, Judy Chu, Eric A. ``Rick'' 
     Crawford, Theodore E. Deutch, Mario Diaz-Balart, John J. 
     Duncan Jr., Renee L. Ellmers, Gene Green, Carolyn B. Maloney, 
     Betty McCollum, Brad Miller, Kristi L. Noem, Ted Poe, Dennis 
     Ross, Heath Shuler, Jackie Speier, and Peter Welch); and
       Whereas, It is estimated that Washington would realize up 
     to $170.3 million in state and local taxes in the 2011-2013 
     biennium, and $483.0 million in state and local taxes in the 
     2013-2015 biennium, if it had the ability to require remote 
     sellers to collect our state's sales and use taxes; and
       Whereas, Since 1999, state legislators, governors, local 
     elected officials, state tax administrators, and 
     representatives of the private sector have worked to develop 
     a Streamlined Sales and Use Tax Collection System for the 
     21st century; and
       Whereas, On November 12, 2002, state delegates unanimously 
     ratified the Streamlined Sales and Use Tax Agreement, which 
     substantially simplifies state and local sales tax systems, 
     removes the burdens to interstate commerce that were of 
     concern to the Supreme Court, protects state sovereignty, and 
     is consistent with the introduced federal legislation; and
       Whereas, The Streamlined Sales and Use Tax Agreement 
     provides the states with a blueprint to create a simplified 
     and more uniform sales and use tax collection system that 
     when implemented, allows justification for Congress to 
     overturn the Bellas Hess and Quill decisions; and
       Whereas, Washington State enacted legislation in 2007 to 
     bring this state's sales and use tax statutes into compliance 
     with the Streamlined Sales and Use Tax Agreement; and
       Whereas, By November 30, 2011, 24 states: Arkansas, 
     Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, 
     Minnesota, Nebraska, Nevada, New Jersey, North Carolina, 
     North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, 
     Tennessee, Utah, Vermont, Washington, West Virginia, 
     Wisconsin, and Wyoming, representing over 40 percent of the 
     total population of the United States enacted legislation to 
     bring their state's sales and use tax statutes into 
     compliance with the Agreement; and
       Whereas, Over 1,700 businesses have voluntarily registered 
     under the Streamlined Sales and Use Tax Agreement to collect 
     and remit sales and use taxes; and
       Whereas, The legislature of Washington and our colleagues 
     in the other states have shown the resolve to acknowledge the 
     complexities of the current sales and use tax collection 
     system, have worked with the business community to formulate 
     a truly simplified and streamlined collection system, and 
     have shown the political will to enact the necessary changes 
     to make the streamlined collection system the law; and
       Whereas, Until Congress and the President enact federal 
     legislation, participation by remote sellers is only 
     voluntary and thus states are unlikely to close the revenue 
     gap between what is owed on remote transactions and what is 
     collected; and
       Whereas, Governors and state legislatures have made the 
     difficult choices to reduce spending and where necessary to 
     raise revenue during the recent ``great'' recession to close 
     the $417 billion cumulative budget gaps; and
       Whereas, After closing $417 billion in budget gaps for 
     fiscal years 2009-2011, the estimated budget shortfall for 
     states in fiscal year 2012 will be $82 billion and for fiscal 
     year 2013 will be $67 billion; and

[[Page 977]]

       Whereas, Federal legislation would provide fiscal relief 
     for the states by enabling collections of taxes that are 
     already due;
       Now, therefore, Your Memorialists respectfully pray that: 
     The members of our congressional delegation join as 
     cosponsors of the introduced federal legislation and support 
     the Act's swift adoption by the Congress of the United 
     States; and that President Barack Obama sign the legislation, 
     upon its passage by Congress. Be it
       Resolved. That copies of this Memorial be immediately 
     transmitted to the Honorable Barack Obama, President of the 
     United States, the President of the United States Senate, the 
     Speaker of the House of Representatives, and each member of 
     Congress from the State of Washington.

                          ____________________