Wyoming House Approves Internet Sales Tax
The Wyoming House of Representatives has given final approval to a bill that demands the collection of sales taxes on internet purchases made from companies outside of the state.
The vote in favor of House BiIl 19 Tuesday was 45-14 with one absent.
There is some question as to whether the state can enforce the collection. The U.S. Supreme court in the 1992 case of Quill vs. North Dakota ruled states cannot force the collection of sales taxes from businesses that are not physically located within their borders.
But South Dakota recently passed a law mandating collection of sales taxes on internet purchases, and that law is expected to test whether the Quill decision still stands. Some supporters of internet sales tax collections say they think the Quill decision will be overturned in court.
Supreme Court Justice Anthony Kennedy in 2015 seemed to say he thinks the Quill decision is outdated.
Supporters of the Wyoming sales tax collection bill say it actually is not a new tax because the state already mandates sales tax collections on internet purchases.
Wyoming residents making such purchases are supposed to fill out paperwork with the state and pay the tax, but that law isn't being enforced.
Supporters of House Bill 19 say it would put the burden of collecting the tax on the seller instead of the buyer. They also argue that with the state facing major revenue challenges, it can't afford to let the money that would be generated by online sales tax collections be ignored.
The bill now moves on to the Wyoming Senate. If senators give final approval after three readings the bill would then go to Governor Matt Mead, who would then decide whether to approve the measure or issue a veto.