Mike BellNASHVILLE – A top Tennessee lawmaker says it’s up in the air as to what action a legislative panel will take today on Gov. Bill Haslam’s proposed rule to require out-of-state retailers with no physical presence here to collect state and local sales taxes on internet purchases.
“What happens [today] is anybody’s guess right now, whether they came forward with approval or disapproval,” Senate Government Operations Committee Chairman Mike Bell, R-Riceville, said Tuesday, noting he feels conflicted himself over the issue with small mom-and-pop stores at home urging him to back the rule.
Meanwhile, another key lawmaker, House Government Operations Committee Chairman Jeremy Faison, R-Cosby, who had previously stated he was inclined to oppose the rule, said, “They are bringing a valid argument for the state to be able to enforce businesses out of this state to collect sales tax.
“It has definitely hurt our local mom-and-pop businesses – and it is not a new tax,” Faison said. “This is a tax that’s already on the books.”
The Department of Revenue’s proposed rule, which would apply to out-of-state internet retailers and catalog sellers with sales exceeding $500,000 annually, is scheduled to come up for a hearing before the Joint Government Operations Committee, which is made up of House and Senate panel members.