Why is there no mechanism in the initial phases of this project to garner sales tax revenue from Internet purchases, which was the one thing everybody agrees needs to happen?
Federal constitutional Commerce Clause restrictions on States’ authority to impose tax collection duties on out-of-state retailers that do not have physical presence in the taxing state currently prevent any State from enacting such a mechanism. One of the goals of the Streamlined Sales Tax Project, of which Kansas is a participant, is for States to show progress in making their sales tax laws more uniform, so that Congress will authorize States that have made sufficient progress to enact such a mechanism. Destination sourcing is one of the uniformity requirements that States applying for membership in the Agreement must implement.
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