Congressman Kim Leads Bipartisan, Bicameral Effort to Help Online Businesses Navigate Wayfair Decision

WASHINGTON, DC – Today, Congressman Andy Kim (NJ-03) led a bipartisan, bicameral letter to the Comptroller General of the Government Accountability Office (GAO) asking for an updated comprehensive study on the impact the South Dakota v. Wayfair Supreme Court decision has had on how American small businesses are taxed.

The letter is co-led by House Small Business Committee Chairwoman Nydia Velázquez (NY-07) and signed by Senator Ron Wyden (D-OR), Congresswoman Sharice Davids (KS-03), Congressman Ben Cline (VA-06), and Congressman Jason Crow (CO-06).

“The coronavirus crisis has brought many small businesses to the breaking point, and we should be doing everything we can to lift unreasonable burdens off of their shoulders so they can focus on keeping their doors open and keep people in their jobs,” said Congressman Kim. “I’m proud to stand with this bipartisan group from the House and Senate to shine a light on this issue, and look forward to seeing how we can use the updated GAO data to find real solutions for our small businesses.”

Together, the members ask the GAO to, “update its November 2017 report on estimated revenue and compliance costs related to interstate sales and use tax” in order to better reflect the increased costs incurred by businesses to comply with the decision. These costs often include, “software costs, start-up and administrative costs, filing, audit and assessment compliance costs, and costs associated with research and liability.”

“Clarifying exactly what is happening with remote sales tax collection is critical to moving forward new legislation to address these problems. Increased compliance and collections will lead to greater receipts with less confusion and difficulty,” said Hamilton Davison, President & Executive Director of the American Catalog Mailers Association (ACMA). “We applaud Rep. Andy Kim and the other members who signed this letter asking the GAO to look into this important issue.”

Earlier this year, Congressman Kim chaired a hearing of the House Small Business Committee’s Subcommittee on Economic Growth, Tax, and Capital Access, entitled, “South Dakota v. Wayfair, Inc.: Online Sales Taxes and their Impact on Main Street”. The hearing focused on the impact to small firms as a result of the decision in South Dakota v. Wayfair regarding online sales taxes. In Wayfair, the Supreme Court overturned a previous ruling where it determined that states could only collect sales tax from businesses that had brick and mortar locations in those states.

The complete letter to the Comptroller General of the GAO can be found by clicking here