FreedomWorks – On behalf of our activist community, I urge you to contact your representative and urge him or her to cosponsor the No Regulation Without Representation Act, H.R. 2887, introduced by Rep. James Sensenbrenner (R-Wis.). The bill would codify a 1992 Supreme Court decision preventing cross-border taxation when a business does not have a physical location in which the consumer resides.
In the 1992 case Quill Corp. v. North Dakota, North Dakota led a state suit against the Quill Corporation to pay for a sales tax on goods that the company shipped into the state. At the time, Quill had no employees or any physical presence in the North Dakota, but the state argued that since the company made sales in that state, it should have to pay a use tax.
The Supreme Court sided with Quill and decided that since it had no physical presence in that state, it did not have to be subject to that tax. The decision in the case has protected Internet-based commerce, prevented revenue-hungry states from taxing sales from out-of-state businesses or merchants.
The No Regulation Without Representation Act would codify Quill into law, setting up the guidelines for what would count as having a physical presence in the state and that only those institutions could be taxed. Out of state sellers could not be taxed. This would be a win for small businesses that sell goods and services outside of their current state and prevent a rise in prices.
The No Regulation Without Representation Act would help small businesses, protect employers, and prevent a future tax increase on these goods. For this reason, I urge you to contact your representative and ask him or her to cosponsor the No Regulation Without Representation Act, H.R. 2887.
Adam Brandon, President, FreedomWorks