Oregon’s Legislators Challenge Economic Nexus
Oregon – U.S. Senators, Ron Wyden, and Jeff Merkley reintroduced legislation that would stop states with a sales tax from creating red tape for small businesses in Oregon. This bill is a result of last year’s Supreme Court ruling in South Dakota v. Wayfair, Inc.
“Small businesses in Oregon have been tied up in a sea of red tape since the Supreme Court’s decision in Wayfair allowed other states to require them to collect sales tax on online purchases,” said Wyden, ranking Democrat on the Senate Finance Committee. “Our bill would prevent small businesses from having to comply with onerous requirements, allowing them to focus on growing and hiring.”
“Small business owners in Oregon should be able to focus on making their businesses a success—without facing unnecessary hurdles when it comes to selling their products online,” said Merkley. “We need to respect the will of Oregonians, and make sure our small businesses aren’t forced to navigate thousands of tax jurisdictions in other states.”
The Wayfair decision allows states to collect sales tax from out of state businesses even if the business does not have a physical presence. This bill would freeze any implementation of new laws until January 2021. It would create an exemption for a company that earns less than 10 million per year and bans the retroactive collection of sales tax prior to the Wayfair decision.
Oregon does not have a sales tax, and many small businesses are struggling to try to implement the new sales tax law.
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