HR1185 99TH GENERAL ASSEMBLY

HR1185 LRB099 21492 MST 47734 r

HOUSE RESOLUTION

WHEREAS, In the case of National Bellas Hess, Inc. v. Department of Revenue, 386 U.S. 753 (1967), the United States Supreme Court held, in relevant part, that Congress alone has the power to regulate and control the taxation of commerce, which is conducted between a business that is located within one state, and a customer who is located in another state and who communicates with and purchases from the business using only remote means; and

WHEREAS, The United States Supreme Court established in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), that a state government cannot, of its own accord, require out-of-state retailers to collect sales tax on sales within the state; and

WHEREAS, The United States Supreme Court also announced in Quill that Congress could exercise its authority under the Commerce Clause of the United States Constitution to decide whether, when and to what extent the states may require collection of sales tax on remote sales; and

WHEREAS, The State of Illinois and municipalities within this State receive significant operating revenue from sales taxes collected by brick-and-mortar businesses and online vendors with a nexus to the State and from use taxes on purchases made online through vendors without a brick-and-mortar location in the State; and

WHEREAS, The tax collection loophole for online retailers deprives local governments of revenue that could be used to fund necessities such as schools, police and fire departments, and other important infrastructure; and

WHEREAS, The Marketplace Fairness Act, S. 698, 114th Cong. (2015), and subsequently the Remote Transactions Parity Act, H.R. 2775, 114th Cong. (2015) proposes to provide states with the authority to require out-of-state retailers, such as online and catalog retailers, to collect and remit sales tax on purchases shipped into the state; and

WHEREAS, The State of Illinois has enacted the Simplified Sales and Use Tax Administration Act, 35 ILCS 171, which is in compliance with the Marketplace Fairness Act, S. 698, 114th Cong. (2015); and

WHEREAS, Since 1999, various state legislators, governors, local elected officials, state tax administrators, and representatives of the private sector have worked together to develop standards, protocols, and tax systems that mitigate the burdens addressed in Quill Corp. v. North Dakota; and

WHEREAS, Between 2001 and 2002, 40 states enacted legislation expressing their intent to simplify their sales and use tax collection systems and to participate in discussions to allow for the collection of state sales and use taxes; and

WHEREAS, 24 states have joined the Streamlined Sales and Use Tax Agreement and have refined their state laws accordingly; and

WHEREAS, The end consumer is responsible for paying the statutorily due sales and use tax and the retailer is the state-appointed collector of sales and use tax; and

WHEREAS, The enactment of legislation by Congress that allows states to require remote sellers to collect state sales and use taxes is necessary to treat all sales transactions the same regardless of whether they are done by an in-state, remote, or online retailer; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge Congress to pass, without delay, the Remote Transactions Parity Act of 2015, which provides for the fair, uniform, simplified, and constitutional administration of and collection of state and local sales and use taxes due; and be it further

RESOLVED, That suitable copies of this resolution be sent to the Majority Leader of the United States Senate, the Speaker of the United States House of Representatives, the Chair and Co-Chair of the Senate Finance Committee, the Chair and Co-Chair of the House Judiciary Committee, and all members of Illinois Congressional Delegation.