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Senators criticize Internet sales tax bill

July 17. 2014 10:42PM

New Hampshire Sens. Jeanne Shaheen and Kelly Ayotte on Thursday each criticized an upcoming attempt to pass an Internet sales tax by attaching the proposal to a bill that would ban taxes on Internet sales.

The senators said Thursday that the bill, the Marketplace Fairness Act, would force New Hampshire companies to collect a sales tax for other states that have a sales tax. A moratorium on new taxes on Internet sales is set to expire Nov. 1.

Both said they are concerned that the bill is proposed to be attached to the Internet Tax Freedom Act, which passed the House and would extend the moratorium.

“The Internet Tax Freedom Act could pass the Senate and the House today with strong bipartisan support, yet based on the action earlier this week, the Senate may be asked to consider a bill that includes new tax burdens on small businesses,” Shaheen, D-N.H., said in a statement. “That’s right, on a bill that’s meant to keep the Internet free from taxation, there is an effort to impose new tax collection burdens on Internet retailers. That not only doesn’t make sense, I think it’s just wrong.”

“It’s wrong that the Majority Leader is pushing forward with an online sales tax bill by attaching it to the Internet Tax Freedom Act, which should be voted on by itself,” Ayotte, R-N.H., said in a statement. “While we should take up and pass the Internet Tax Freedom Act right away, it makes no sense to pair it with the Internet sales tax collection bill, which obviously undermines Internet freedom.”

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