FL S0126

Urges Congress to enact legislation authorizing states complying with the Streamlined Sales and Use Tax Agreement to require out-of-state sellers to collect sales and use tax.

Notes Supreme Court decisions in National Bellas Hess (1967) and Quill (1992) prohibit states from requiring tax collection by out-of-state sellers without physical presence, but acknowledge Congress may confer this authority.

Identifies estimated state revenue losses of $16.1 billion in 2003 from lack of authority, with Florida losing hundreds of millions annually.

Highlights tax inequity where in-state retailers must collect sales tax while remote sellers avoid it, and notes an unfair "digital divide" where higher-income households can avoid taxes through online purchases while low-income consumers bear a greater tax burden.

References the Streamlined Sales and Use Tax Agreement ratified November 12, 2002, by 35 states to simplify tax collection systems and the Main Street Fairness Act introduced in the 112th Congress to implement this authority.