May 6, 2013 CONGRESSIONAL RECORD — SENATE S3081 long as it’s a fair fight. Also, the bill is not portunity for us to have Republicans communities where they will still be asking for a new tax; it’s asking that the ex- and Democrats together on the floor able to help out some of the charitable isting tax is applied fairly and uniformly and supporting a bill that has the endorse- organizations and activities that would doesn’t put the burden on the consumer to ment of business and labor and local of- have to go by the wayside if this bill reimburse the state. That’s not too much to ask. ficials all across the United States. It were not to pass. is clearly an idea whose time has come. I look forward to working with peo- [From the Northwest Herald, May 2, 2013] I hope we can pass it with a good ple on the House side. I wish to thank WHAT’S FAIR FOR BUSINESS strong vote and encourage our friends Senator DURBIN, Senator ALEXANDER, (Editorial Board) in the House to take it up quickly. and Senator HEITKAMP, particularly, I close by thanking my colleague for all of their efforts on this bill. I The scenario described by Play It Again Sports’ owner Bob Ruer happens all too often from Wyoming. He has been a great thank Senator HEITKAMP for her per- in local businesses. partner in this effort. He came to it be- sistence over 22 years and knowing the A customer comes into his Crystal Lake fore I did. I replaced Senator Dorgan intricacies of how it works on the Ca- store, looks around, maybe tries out the after Senator Dorgan’s retirement and nadian border, as well as having been wares, and then heads home to buy the same tried to keep this moving forward. involved in the original case where the product online. Why? Because Internet re- Today is our day for a vote. I thank Supreme Court challenged us to fix tailers aren’t required to collect sales tax at him for all of his hard work on his side this problem. the buyer’s local rate. of the aisle. Today we have a chance to fix this U.S. Sen. Dick Durbin, D–Ill., is pushing to I yield the floor. problem. I ask my colleagues to vote end that with the Marketplace Fairness Act. We support Durbin’s effort and encourage The PRESIDING OFFICER. The Sen- for the bill. lawmakers in Washington to pass the act. ator from Wyoming. I yield the floor. The legislation would put the initial costs Mr. ENZI. Mr. President, I thank all f of the people who have participated, on the states to provide retailers with the CONCLUSION OF MORNING appropriate software to collect taxes. Inter- particularly Senator DURBIN who has net retailers with less than $1 million in an- helped to coalesce things, Senator BUSINESS nual sales would be granted an exemption. ALEXANDER who came up with the idea The PRESIDING OFFICER. Morning Opponents of the bill, including large on- for having a shorter bill, only 11 business is closed. line retailers such as eBay and Over- pages—never see it in the Senate— f stock.com, have taken issue with the $1 mil- lion exemption and suggested it should be written in plain English, and it is MARKETPLACE FAIRNESS ACT OF bumped higher. States rights. 2013 The bill has the support of big-box stores This does not cause the Federal Gov- such as Walmart, Best Buy and Target and ernment to do anything. What it allows The PRESIDING OFFICER. Under online giant Amazon. is for the States to do what they have the previous order, the Senate will re- Beyond the unlevel playing field for busi- already passed laws on. I can see this sume consideration of S. 743, which the nesses, the situation causes the state of Illi- from the standpoint of an individual. I clerk will report. nois to lose out on a great deal of revenue. know in Wyoming if you buy some- The assistant legislative clerk read Now, Illinois taxpayers are on an honor thing on the Internet and you are not as follows: system when it comes to paying state sales A bill (S. 743) to restore States’ sovereign tax for online purchases. Residents are sup- charged a tax, you are supposed to fill out a form and send it in. That is a dif- rights to enforce State and local sales and posed to note the sales tax they owe from use tax laws, and for other purposes. Internet purchases on their state income-tax ficult thing to do, hard to even keep return. Durbin estimates that only 5 percent track of. This will eliminate that prob- Pending: of Illinois taxpayers do so. Gov. Pat Quinn lem of individuals wanting to pay the Reid (for Enzi) amendment No. 741, of a said the state stands to collect an additional tax but not knowing exactly how to do perfecting nature. $200 million annually in sales-tax revenue if Durbin amendment No. 745 (to amendment it. No. 741), to change the enactment date. the bill passed. I know it from the standpoint of a This is not a tax increase. It’s not a new The PRESIDING OFFICER. Under small businessman, if they had the ex- tax. These sales taxes and tax rates are al- the previous order, all postcloture time perience of somebody coming in, trying ready in place. is considered expired. This is a needed law to level the playing on the goods, finding out exactly what Under the previous order, amend- field for local businesses who’ve been good they want, the color, the style, the ment No. 745 is withdrawn. corporate citizens, hired local employees and feel, everything, and then ordering it The question is on agreeing to paid property taxes that support local on the Internet. The even more ironic schools and other taxing districts. amendment No. 741, offered by the Sen- part of it is when they have a problem ator from Nevada, Mr. REID. Mr. DURBIN. Mr. President, what is with it, they bring it back to the local Mr. ALEXANDER. Mr. President, I happening with Internet sales? They retailer to fix it. ask for the yeas and nays. are growing dramatically. Listen to I have seen it from the standpoint of The PRESIDING OFFICER. Is there a these numbers. In 2012 online sales ac- a mayor. I know in Wyoming at least sufficient second? counted for $225 billion in sales in 30 percent and up to 70 percent of the There appears to be a sufficient sec- America. In the next 5 years it will revenue of the municipalities comes ond. double to $435 billion. It is an endeavor from the sales tax. That is on a declin- The clerk will call the roll. that has become part of our lives. What ing basis at the moment. That is not The assistant legislative clerk called we are asking in this bill is that those only what they run the city’s streets the roll. selling on the Internet be treated the and snow removal on; a lot of the po- Mr. DURBIN. I announce that the same as those selling on the corners of lice, the fire protection, even education Senator from New Jersey (Mr. LAUTEN- our streets, to make sure the brick- is affected by the sales tax. BERG) and the Senator from Alaska and-mortar businesses have a level I have seen it from the standpoint of (Mr. BEGICH) are necessarily absent. playing field. That is all we are asking. a legislator as well. I know when we Mr. THUNE. The following Senators This bill contains no new Federal passed those taxes, we did not say: are necessarily absent: the Senator tax, no new State and local tax. What Okay, we want to discriminate against from North Carolina (Mr. BURR), the it does is collect taxes already owed. It the local business that pays the prop- Senator from Texas (Mr. CORNYN), the simplifies the system by saying there erty tax, hires people locally, and par- Senator from South Carolina (Mr. GRA- will only be one taxing entity that ticipates in all the community stuff. If HAM), and the Senator from Kansas identifies the taxes to be charged in you are out of State, we are going to (Mr. MORAN). every single State, one audit from each let you off the hook. Further, if present and voting, the State. It tries to provide for the retail- No legislator ever passed a bill like Senator from Texas (Mr. CORNYN) ers the basic software they need to get that. This is one that corrects all of would have voted ‘‘nay.’’ the job done. those things and brings fairness to the The PRESIDING OFFICER (Mr. DON- This is a fascinating bill. For those marketplace. I think it will make a NELLY). Are there any other Senators who follow the Senate, it is a rare op- significant difference, particularly in in the Chamber desiring to vote?

VerDate Mar 15 2010 02:02 May 07, 2013 Jkt 029060 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\CR\FM\A06MY6.006 S06MYPT1 smartinez on DSK6TPTVN1PROD with SENATE S3082 CONGRESSIONAL RECORD — SENATE May 6, 2013 The result was announced—yeas 70, we passed in the Senate. We want to order. That is what we should be doing nays 24, as follows: meet with the House and work out our around here. [Rollcall Vote No. 112 Leg.] differences. That is what we have done My friend from Texas is like the YEAS—70 here for two centuries. We should do it schoolyard bully. He pushes everybody Alexander Fischer Murphy on this bill. around and is losing, and instead of Baldwin Franken Murray I ask unanimous consent that the playing the game according to the Bennet Gillibrand Nelson Senate proceed to the consideration of rules, he not only takes the ball home Blumenthal Grassley Portman Calendar No. 33, H. Con. Res. 25; that Blunt Hagan with him but changes the rules. That Pryor the amendment which is at the desk, Boozman Harkin Reed way, no one wins—except the bully who Boxer Heinrich Reid the text of S. Con. Res. 8, the budget tries to indicate to people that he has Brown Heitkamp Risch resolution passed by the Senate, be in- Cantwell Hirono won. We are asking the Republicans to Rockefeller Cardin Hoeven serted in lieu thereof; that H. Con. Res. play by the rules and let us go to con- Sanders Carper Isakson 25, as amended, be agreed to, with the ference. Casey Johanns Schatz motions to reconsider being considered Schumer I don’t think it takes a lot of wiz- Chambliss Johnson (SD) made and laid on the table; that the Coats Kaine Sessions ardry to figure out that we know how Cochran King Shelby Senate insist on its amendment, re- the American people feel about what Collins Klobuchar Stabenow quest a conference with the House on they want done in this country. They Coons Landrieu Thune the disagreeing votes of the two Corker Leahy Udall (CO) want us to get on a pathway of growth Cowan Levin Udall (NM) Houses, and the Chair be authorized to and economic vitality. It has been hin- Crapo Manchin Warner appoint conferees on the part of the dered. Donnelly McCain Warren Senate, all without intervening action The Republicans have things they Durbin McCaskill Whitehouse or debate. Enzi Menendez want to do. We have things we want to Wicker The PRESIDING OFFICER. Is there Feinstein Mikulski do. Why can’t we sit down as reason- objection? NAYS—24 The Senator from Texas. able men and women and work out our Ayotte Inhofe Roberts Mr. CRUZ. Mr. President, reserving differences? That is what a conference Barrasso Johnson (WI) Rubio is all about. Baucus Kirk Scott the right to object, one of my concerns Coburn Lee Shaheen is that this conference report could be I object to what my friend suggests. Cruz McConnell Tester used to pass a reconciliation bill that It is actually fairly ridiculous, if you Flake Merkley Toomey would increase the debt ceiling without want the truth: Before we go to con- Hatch Murkowski Vitter ference, determine what you are going Heller Paul Wyden sufficient input from the minority party and without addressing the fun- to do or not do in the conference. That NOT VOTING—6 damental structural spending problems is not how we do things around here. Begich Cornyn Lautenberg we have in the Federal Government The PRESIDING OFFICER. Objec- Burr Graham Moran that are leading to our unsustainable tion is heard. The amendment (No. 741) was agreed debt. I believe this concern is well Is there objection to the original re- to. founded in history in that reconcili- quest? The Senator from Texas. UNANIMOUS CONSENT REQUEST—H. CON. RES. 25 ation bills have been used to increase Mr. CRUZ. Mr. President, I was not The PRESIDING OFFICER. The ma- the debt ceiling at least three times— aware we were at a schoolyard. jority leader. in 1986, 1990, and in 1993. So for that Mr. REID. Mr. President, is there an Mr. REID. Mr. President, this after- reason, reserving the right to object, I objection or no objection? Let’s hear noon I offered a consent agreement ask consent that the leader modify his about it. We have had enough. dealing with the budget. I withdrew request so that it not be in order for Mrs. BOXER. Regular order. that because we did not have anyone the Senate to consider a conference re- here to object, and I had an inkling port that includes tax increases or rec- Mr. CRUZ. Reserving the right to ob- there would be an objection if a Repub- onciliation instructions to increase ject. lican were here. taxes or to raise the debt limit. Mr. REID. Mr. President, there is no We have been asked to move with The PRESIDING OFFICER. Is there such thing. regular order. We have done that. We objection to the modified request? The PRESIDING OFFICER. Is there have done our very best to do that. Mr. REID. I would make a comment objection? People wanted amendments. We have before making a decision on that. Mr. CRUZ. Yes. I object. done our best to have bills with amend- The PRESIDING OFFICER. The ma- The PRESIDING OFFICER. The ments. We have been asked, let’s do as jority leader. clerk will read the bill for a third time. much work as we can with committees, Mr. REID. The Senate considered the The bill was ordered to be engrossed and we have done that. We have bills budget—and that is an understate- for a third reading and was read the reported out from the committee. ment. We voted on more than 100 third time. Those are the bills we have handled amendments, as I mentioned a few here, with rare exception. minutes ago. It was hard. The votes IMPLEMENTATION Now we have had our Republican were hard. The Senate passed its budg- Ms. COLLINS. Mr. President, I rise friends saying for months and months, et. It should now go to conference, that to speak on the Marketplace Fairness let’s do things with regular order. We which the Senate passed. It is our Act. I applaud Senator ENZI for his know how hard it was to get a budget budget. The Senator from Texas was on many years of work on this legislation, passed. We have had over 100 amend- the losing side. He had his view and it of which I am a cosponsor. This bill ments on which we actually voted. We lost, but now he wants us to agree by rectifies a fundamental unfairness in were here until 5 o’clock in the morn- consent to adopt the losing side’s view our current system. Right now, out-of- ing. We got a budget, even though—you or else he is not going to allow us to go State Internet sellers, so-called remote know, we have been through this be- to conference. sellers, have an advantage over Main fore. We do not need to go into more For more than two centuries, I re- Street businesses. Main Street busi- detail. We had a law signed by the peat, the two bodies have been able to nesses have to collect sales taxes on President of the United States that go work out their differences. The Sen- every transaction. Because remote sell- gave us our budget allocations for sev- ate passes something. The House passes ers don’t have to charge this tax, they eral years. But we decided to do a reso- something. You talk about regular enjoy a price advantage over the mom- lution. It didn’t have to be signed by order, that is it. We are able at that and-pop businesses that form the back- the President. I am glad we did. It was time to sit down and talk about the bone of our communities. This bill hard. Senators MURRAY and SESSIONS differences. The debt ceiling—he wants would allow States to collect sales did a good job allowing us to move for- to talk about that. He wants to talk taxes on remote sales, thereby leveling ward on that, so now it is time to go about taxes. We are happy to do that, the playing field with Main Street forward. We have a budget resolution but let’s do it in the context of regular businesses.

VerDate Mar 15 2010 03:01 May 07, 2013 Jkt 029060 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\CR\FM\A06MY6.004 S06MYPT1 smartinez on DSK6TPTVN1PROD with SENATE May 6, 2013 CONGRESSIONAL RECORD — SENATE S3083 It is important to recognize that this many years working on this legislation McCaskill Reed Stabenow Menendez Reid Thune bill does not authorize any new or and strongly believe that leveling the Mikulski Rockefeller Udall (CO) higher tax, nor does it impose an Inter- playing field for Main Street busi- Murphy Sanders Udall (NM) net tax. It simply helps ensure that nesses is the right thing to do. We Murray Schatz Warner taxes already owed are paid. must implement the solution to that Nelson Schumer Warren Portman Sessions Whitehouse I would like to engage Senator ENZI problem in a reasonable manner, and I Pryor Shelby Wicker in a colloquy regarding the manner in agree with the Senator that the 1-year which the bill is to be implemented. As delay she proposes is appropriate to do NAYS—27 introduced, the bill would require some this. Ayotte Heller Risch Barrasso Inhofe Roberts businesses to start collecting sales Ms. COLLINS. I would also like to Baucus Johnson (WI) Rubio taxes in as little as 90 days. I hope that note that the collection of sales taxes Coburn Kirk Scott my colleague from Wyoming would online will be new not only for many Crapo Lee Shaheen agree that is too short a time period, Cruz McConnell Tester retailers, but also for consumers who Flake Merkley Toomey and I appreciate the fact that he has are used to the current system. It is Grassley Murkowski Vitter offered an amendment that includes a important to implement the new law Hatch Paul Wyden 6-month delay. I believe, however, that correctly, from the outset, for these re- NOT VOTING—4 a delay of at least 1 year is needed to tailers and their customers. Begich Lautenberg allow businesses time to implement In this regard, I believe that it is also Cornyn Moran the new systems and software nec- important to make sure that the im- The bill (S. 743), as amended, was essary for compliance. I do appreciate plementation of the new law does not passed, as follows: that the Senator from Wyoming ex- disrupt the busy holiday season. For empted small businesses with sales this reason, I believe that States S. 743 under $1 million, as I had urged. should be prohibited from exercising Be it enacted by the Senate and House of Rep- Nevertheless, from a covered seller’s their new authority under the Market- resentatives of the United States of America in perspective, complying with the Mar- place Fairness Act during the last Congress assembled, ketplace Fairness Act requires more quarter of the first year after enact- SECTION 1. SHORT TITLE. than just installing new software. Mul- ment. This Act may be cited as the ‘‘Marketplace Fairness Act of 2013’’. tichannel retailers—those who sell on- Mr. ENZI. I think both the proposals line, through catalogs, over the phones, SEC. 2. AUTHORIZATION TO REQUIRE COLLEC- made by my friend from Maine are TION OF SALES AND USE TAXES. and in stores—have their own unique commonsense items that will improve order processing systems. Tax collec- (a) STREAMLINED SALES AND USE TAX the Marketplace Fairness Act. As this AGREEMENT.—Each Member State under the tion software must be programmed to bill moves through the legislative proc- Streamlined Sales and Use Tax Agreement is link to each component of their order ess, I suggest my colleagues on both authorized to require all sellers not quali- processing systems. This step alone sides of the aisle—and in both Cham- fying for the small seller exception described could involve considerable program- bers—adopt a 1-year delay in imple- in subsection (c) to collect and remit sales ming time for each online retailer. mentation and prohibit States from be- and use taxes with respect to remote sales Each retailer’s tax department, or ginning to exercise their new authority sourced to that Member State pursuant to outside consultants, will be required to the provisions of the Streamlined Sales and to require the collection of sales taxes Use Tax Agreement, but only if any changes research and develop a comprehensive during the holiday season. understanding of the unique sales and to the Streamlined Sales and Use Tax Agree- The PRESIDING OFFICER. Under ment made after the date of the enactment use tax policies in every State where the previous order, the question is on of this Act are not in conflict with the min- their online customers reside to make passage of S. 743, as amended. imum simplification requirements in sub- sure the programming for their tax col- Mr. REID. I ask for the yeas and section (b)(2). A State may exercise author- lection software is correct. That in- nays. ity under this Act beginning 180 days after volves answering a number of questions the State publishes notice of the State’s in- The PRESIDING OFFICER. Is there a tent to exercise the authority under this for each State. sufficient second? The differing treatment of athletic Act, but no earlier than the first day of the There appears to be a sufficient sec- apparel provides a great example of the calendar quarter that is at least 180 days ond. after the date of the enactment of this Act. complexity involved. In some States, The clerk will call the roll. (b) ALTERNATIVE.—A State that is not a clothing and athletic footwear are ex- The bill clerk called the roll. Member State under the Streamlined Sales empt from tax. In others, they are ex- Mr. DURBIN. I announce that the and Use Tax Agreement is authorized not- empt only up to a certain price level. withstanding any other provision of law to Senator from Alaska (Mr. BEGICH) and Yet other States make a distinction require all sellers not qualifying for the the Senator from New Jersey (Mr. LAU- between clothing and footwear used for small seller exception described in sub- TENBERG) are necessarily absent. athletic purposes—which they tax—and section (c) to collect and remit sales and use Mr. THUNE. The following Senators clothing and footwear used for general taxes with respect to remote sales sourced to are necessarily absent: the Senator that State, but only if the State adopts and purposes—which they do not tax. In from Texas (Mr. CORNYN) and the Sen- implements the minimum simplification re- those States, systems must be pro- ator from Kansas (Mr. MORAN). quirements in paragraph (2). Such authority grammed to correctly treat articles The PRESIDING OFFICER. Are there shall commence beginning no earlier than that can be viewed as either athletic the first day of the calendar quarter that is any other Senators in the Chamber de- apparel or general clothing, depending at least 6 months after the date that the on the user. Board shorts, sneakers, siring to vote? State— and windbreakers are just a few exam- The result was announced—yeas 69, (1) enacts legislation to exercise the au- ples of common items that give rise to nays 27, as follows: thority granted by this Act— substantial complexity. [Rollcall Vote No. 113 Leg.] (A) specifying the tax or taxes to which such authority and the minimum simplifica- YEAS—69 Retailers will need to invest addi- tion requirements in paragraph (2) shall tional hours in tax analyst and pro- Alexander Cochran Heinrich apply; and grammer time to ensure their systems Baldwin Collins Heitkamp (B) specifying the products and services are able to address these issues Bennet Coons Hirono Blumenthal Corker Hoeven otherwise subject to the tax or taxes identi- seamlessly. Even with a 1-year delay, Blunt Cowan Isakson fied by the State under subparagraph (A) to retailers will have to begin early, and Boozman Donnelly Johanns which the authority of this Act shall not move quickly, to implement the Mar- Boxer Durbin Johnson (SD) apply; and Brown Enzi Kaine (2) implements each of the following min- ketplace Fairness Act. Burr Feinstein King Mr. ENZI. I thank my friend from imum simplification requirements: Cantwell Fischer Klobuchar (A) Provide— Cardin Franken Landrieu Maine, and wholeheartedly agree with (i) a single entity within the State respon- her conclusion that we must ensure Carper Gillibrand Leahy Casey Graham Levin sible for all State and local sales and use tax that the Marketplace Fairness Act is Chambliss Hagan Manchin administration, return processing, and au- correctly implemented. I have spent Coats Harkin McCain dits for remote sales sourced to the State;

VerDate Mar 15 2010 02:02 May 07, 2013 Jkt 029060 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\CR\FM\G06MY6.030 S06MYPT1 smartinez on DSK6TPTVN1PROD with SENATE S3084 CONGRESSIONAL RECORD — SENATE May 6, 2013 (ii) a single audit of a remote seller for all (1) such persons are related to the remote under the sourcing rules under paragraph (7), State and local taxing jurisdictions within seller within the meaning of subsections (b) in which the seller would not legally be re- that State; and and (c) of section 267 or section 707(b)(1) of quired to pay, collect, or remit State or local (iii) a single sales and use tax return to be the Internal Revenue Code of 1986; or sales and use taxes unless provided by this used by remote sellers to be filed with the (2) such persons have 1 or more ownership Act. single entity responsible for tax administra- relationships and such relationships were de- (6) REMOTE SELLER.—The term ‘‘remote tion. signed with a principal purpose of avoiding seller’’ means a person that makes remote A State may not require a remote seller to the application of these rules. sales in the State. file sales and use tax returns any more fre- SEC. 3. LIMITATIONS. (7) SOURCED.—For purposes of a State quently than returns are required for non- (a) IN GENERAL.—Nothing in this Act shall granted authority under section 2(b), the lo- remote sellers or impose requirements on re- be construed as— cation to which a remote sale is sourced re- mote sellers that the State does not impose (1) subjecting a seller or any other person fers to the location where the product or on nonremote sellers with respect to the col- to franchise, income, occupation, or any service sold is received by the purchaser, lection of sales and use taxes under this Act. other type of taxes, other than sales and use based on the location indicated by instruc- No local jurisdiction may require a remote taxes; tions for delivery that the purchaser fur- seller to submit a sales and use tax return or (2) affecting the application of such taxes; nishes to the seller. When no delivery loca- to collect sales and use taxes other than as or tion is specified, the remote sale is sourced provided by this paragraph. (3) enlarging or reducing State authority to the customer’s address that is either (B) Provide a uniform sales and use tax to impose such taxes. known to the seller or, if not known, ob- base among the State and the local taxing (b) NO EFFECT ON NEXUS.—This Act shall tained by the seller during the consumma- jurisdictions within the State pursuant to not be construed to create any nexus or alter tion of the transaction, including the address paragraph (1). the standards for determining nexus between of the customer’s payment instrument if no (C) Source all remote sales in compliance a person and a State or locality. other address is available. If an address is with the sourcing definition set forth in sec- (c) NO EFFECT ON SELLER CHOICE.—Nothing unknown and a billing address cannot be ob- tion 4(7). in this Act shall be construed to deny the tained, the remote sale is sourced to the ad- (D) Provide— ability of a remote seller to deploy and uti- dress of the seller from which the remote (i) information indicating the taxability of lize a certified software provider of the sell- sale was made. A State granted authority products and services along with any product er’s choice. under section 2(a) shall comply with the and service exemptions from sales and use (d) LICENSING AND REGULATORY REQUIRE- sourcing provisions of the Streamlined Sales tax in the State and a rates and boundary MENTS.—Nothing in this Act shall be con- and Use Tax Agreement. database; strued as permitting or prohibiting a State (8) STATE.—The term ‘‘State’’ means each (ii) software free of charge for remote sell- from— of the several States, the District of Colum- ers that calculates sales and use taxes due on (1) licensing or regulating any person; bia, the Commonwealth of Puerto Rico, each transaction at the time the transaction (2) requiring any person to qualify to Guam, American Samoa, the United States is completed, that files sales and use tax re- transact intrastate business; Virgin Islands, the Commonwealth of the turns, and that is updated to reflect rate (3) subjecting any person to State or local Northern Mariana Islands, and any other ter- changes as described in subparagraph (H); taxes not related to the sale of products or ritory or possession of the United States, and services; or and any tribal organization (as defined in (iii) certification procedures for persons to (4) exercising authority over matters of section 4 of the Indian Self-Determination be approved as certified software providers. interstate commerce. and Education Assistance Act (25 U.S.C. For purposes of clause (iii), the software pro- (e) NO NEW TAXES.—Nothing in this Act 450b)). vided by certified software providers shall be shall be construed as encouraging a State to (9) STREAMLINED SALES AND USE TAX AGREE- capable of calculating and filing sales and impose sales and use taxes on any products MENT.—The term ‘‘Streamlined Sales and use taxes in all States qualified under this or services not subject to taxation prior to Use Tax Agreement’’ means the multi-State Act. the date of the enactment of this Act. agreement with that title adopted on No- (E) Relieve remote sellers from liability to (f) NO EFFECT ON INTRASTATE SALES.—The vember 12, 2002, as in effect on the date of the State or locality for the incorrect collec- provisions of this Act shall apply only to re- the enactment of this Act and as further tion, remittance, or noncollection of sales mote sales and shall not apply to intrastate amended from time to time. and use taxes, including any penalties or in- sales or intrastate sourcing rules. States SEC. 5. SEVERABILITY. terest, if the liability is the result of an granted authority under section 2(a) shall If any provision of this Act or the applica- error or omission made by a certified soft- comply with all intrastate provisions of the tion of such provision to any person or cir- ware provider. Streamlined Sales and Use Tax Agreement. cumstance is held to be unconstitutional, (F) Relieve certified software providers (g) NO EFFECT ON MOBILE TELECOMMUNI- the remainder of this Act and the applica- from liability to the State or locality for the CATIONS SOURCING ACT.—Nothing in this Act tion of the provisions of such to any person incorrect collection, remittance, or non- shall be construed as altering in any manner or circumstance shall not be affected there- collection of sales and use taxes, including or preempting the Mobile Telecommuni- by. any penalties or interest, if the liability is cations Sourcing Act (4 U.S.C. 116–126). SEC. 6. PREEMPTION. the result of misleading or inaccurate infor- SEC. 4. DEFINITIONS AND SPECIAL RULES. Except as otherwise provided in this Act, mation provided by a remote seller. In this Act: this Act shall not be construed to preempt or (G) Relieve remote sellers and certified (1) CERTIFIED SOFTWARE PROVIDER.—The limit any power exercised or to be exercised software providers from liability to the term ‘‘certified software provider’’ means a by a State or local jurisdiction under the law State or locality for incorrect collection, re- person that— of such State or local jurisdiction or under mittance, or noncollection of sales and use (A) provides software to remote sellers to any other Federal law. taxes, including any penalties or interest, if facilitate State and local sales and use tax the liability is the result of incorrect infor- compliance pursuant to section 2(b)(2)(D)(ii); The PRESIDING OFFICER. The ma- mation or software provided by the State. and jority leader. (H) Provide remote sellers and certified (B) is certified by a State to so provide f software providers with 90 days notice of a such software. rate change by the State or any locality in (2) LOCALITY; LOCAL.—The terms ‘‘locality’’ MORNING BUSINESS the State and update the information de- and ‘‘local’’ refer to any political subdivision Mr. REID. Mr. President, I ask unan- scribed in subparagraph (D)(i) accordingly of a State. and relieve any remote seller or certified imous consent that the Senate now (3) MEMBER STATE.—The term ‘‘Member proceed to a period of morning busi- software provider from liability for col- State’’— lecting sales and use taxes at the imme- (A) means a Member State as that term is ness, with Senators allowed to speak diately preceding effective rate during the used under the Streamlined Sales and Use therein for up to 10 minutes each. 90-day notice period if the required notice is Tax Agreement as in effect on the date of the The PRESIDING OFFICER. Without not provided. enactment of this Act; and objection, it is so ordered. (c) SMALL SELLER EXCEPTION.—A State is (B) does not include any associate member f authorized to require a remote seller to col- under the Streamlined Sales and Use Tax lect sales and use taxes under this Act only Agreement. RECOGNIZING SERVICE OF if the remote seller has gross annual receipts (4) PERSON.—The term ‘‘person’’ means an CHARLES HOUY in total remote sales in the United States in individual, trust, estate, fiduciary, partner- Mr. REID. President, today I rise to the preceding calendar year exceeding ship, corporation, limited liability company, $1,000,000. For purposes of determining or other legal entity, and a State or local recognize one of Congress’ longest-serv- whether the threshold in this section is met, government. ing and loyal staffers, Charlie Houy. the gross annual receipts from remote sales (5) REMOTE SALE.—The term ‘‘remote sale’’ After three decades of service under of 2 or more persons shall be aggregated if— means a sale into a State, as determined Senators Ted Stevens, John Stennis

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