Remote Sellers Bill Soon to Become Law?

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A bill introduced earlier this year means you could soon be paying taxes on online sales if House Bill 19 passes the Senate.

It's a bill causing confusion, as some said it's actually illegal to collect the taxes.

News 13's Jenna Jackson explains why some said this bill could break existing laws.

If the sales from the Remote Sellers Bill become law, it would mean online businesses must pay taxes on Wyoming sales.

Senator Jeff Wasserburger shared, “You have to have $100,000 worth of sales, you have to have 200 transactions of sales within this state before you have to pay that sales tax.”

But some question the legality of it.

In 1992, the Supreme Court ruled in Quill Corp versus North Dakota, states are not allowed to collect taxes from a business without a physical location within the state, but others said this bill passes the test.

Buck McVeigh shared, “I think what we're trying to do more than anything or what this bill's intended to do is to kind of put a little bit more pressure on congress to act on this bill.”

Wyoming is joining the ranks of other states that have passed similar legislation in direct opposition to the 1992 ruling.

Wasserburger also said there is another lawsuit being moved by South Dakota at this time and essentially what the bill does is says Wyoming will enter into that lawsuit and probably file an amicus curiae brief in support of that.

In fact, all of us are supposed to pay those taxes from online sales already, but most people don't know the law.

“It is something in our statutes that we've had for a long time and so, I actually was unaware of it until I started talking about this bill,” said Senator Wasserburger.

Many argue this bill will help local retailers to even the playing field between their sales and those online.

But Senator Wasserburger said, “This is also an opportunity for the state to enhance revenue. Next year, I think they're predicting about a 60 to 70 million dollar shortfall. This would be 20 to 40 million per year.”

The bill passed its second reading in the senate on Tuesday.

The bill now moves on to the third reading and if it passes the third reading it will head to the Governor's desk to become law.