Remote-Seller Sales Tax Bill Advances in Nebraska Legislature

Remote-Seller Sales Tax Bill Advances in Nebraska Legislature
Senator John McCollister

BEATRICE – Nebraska Lawmakers have advanced the so-called Remote Seller and Marketplace Facilitator Act to second round, on a 44-0 vote.

It requires out-of-state internet sales companies with at least $100,000 of sales in Nebraska, or 200 separate transactions, to collect and remit sales tax to the State of Nebraska.  The bill is modeled after a South Dakota law that survived a U.S. Supreme Court challenge.

Senator John McCollister’s priority bill includes Revenue Committee amendments, that were also adopted.

:13                  “under the law”

For sellers without a physical presence in the state whose sales are just below the thresholds, McCollister said collection would begin once those thresholds are reached, not on any sales before that in a given year.

Southeast Nebraska Senators Myron Dorn, Tom Brandt and Julie Slama all supported the bill.  Dorn, a member of the Appropriations Committee, says the figures being used by the committee estimate the bill would produce new tax revenue totaling $26 million is fiscal year 2019-20….and $30 million in fiscal year 2020-2021.

Dorn asked McCollister how the marketplace facilitator portion of the bill, plays out.

:46                  “pay the tax”

Although he supports the bill, Senator John Lowe said Nebraskans still need to back their local businesses, in a time when purchasing goods online is the trend.

:38                  “not supporting us”

McCollister is seeking the emergency clause for the bill, which if signed by the governor, would make the law go into effect this April 1st.

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