Lawmakers will look at online sales tax bill

Legislature Chamber

Lawmakers are set to be discussing an online sales tax proposal in legislature on Tuesday.

Sen. Dan Watermeier introduced the bill saying the tax is already required, but only a small amount of people pay it when filing their income tax return.

Last year the bill passed the first round of voting but it was stalled after that.

"This year the public is much year engaged, the public gets it, the fact that we have a lack of revenue and I think just in general the public understands this is not a new tax, you owe the tax for the past 25-years you just chose not to pay it,” Sen. Watermeier said.

Other states, including South Dakota, have found similar proposals unconstitutional.

Sen. Watermeier said that's based on a 1992 U.S. Supreme Court decision that could be overturned this year.

He said he's amended the bill accordingly.

"We addressed with the AG, there was an AG opinion on it. He said if we make our bill contingent on the Quill decision being overturned than we'd be constitutional. So that's what we did we wrote our bill stating that the collecting and remitting part of this bill is based off of the supreme court overturning the Quill decision,” Sen. Watermeier said.

Watermeier said the bill will put the state at an advantage by immediately requiring collection once the supreme court makes its decision.

According to the Department of Revenue, requiring collection of the tax would bring in $30-to-$40-million per year.

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