ATA Testifies to Senate on State Tax Nexus
On April 25, 2012, the U.S. Senate Finance Committee held a hearing on a variety of issues concerning state and local revenues and taxation. Much of the hearing focused on the efforts of the states to impose requirements on direct marketers – both on-line and by catalogue – to collect sales taxes, and the efforts of the direct marketers to escape such requirements, specifically through the Business Activities Tax Simplification Act (BATSA – H.R. 1439 in this Congress). More generally, several groups of state officials reminded the Senators that state finances have not recovered from the recent recession. ATA has submitted testimony for the record of the hearing, directing the Senate’s attention to the very significant problems for motor carriers connected with the efforts of states to impose their corporation taxes on motor carriers with very little business within their borders. The ATA testimony emphasizes the need for a federal solution to this area, and that such a solution, while it would represent a great savings to the motor carrier industry in tax compliance costs, would not necessarily affect aggregate state revenues much if at all. ATA has drafted legislative language to that effect, and is hopeful of its early introduction in Congress. The ATA testimony is here.