| USA. State Business Tax Fairness Bill moves closer to passage |
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| Thursday, 29 June 2006 | |
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NMMA news: The House Judiciary Committee yesterday approved a bill to stop unfair state taxes imposed on businesses that do not have a physical presence in that state, clearing the measure for consideration by the full House of Representatives before the end of the summer. The nation’s largest recreational marine trade group, the National Marine Manufacturers Association (NMMA), praised the committee’s approval of H.R. 1956, the Business Activity Tax Simplification Act (BATSA), and emphasized the need to pass this important legislation to clearly define an ambiguous area of law. “The Judiciary Committee’s approval clears an important hurdle in our effort to pass BATSA,” said Monita Fontaine, NMMA Vice President of Government Relations. “BATSA sets forth clear, specific standards to govern when businesses should pay business activity taxes to a state, and ends capricious and ambitious standards that more or less hold manufacturers hostage at the borders.” In ever increasing examples, recreational boat manufacturers are having shipments of boats impounded at a states’ border where state taxation officials allege that manufacturers owe business taxes to the state. In these cases, officials claim that companies have established a business presence, or “nexus,” because they offer warranty repair reimbursements to independent dealers in the state. In some cases they demanded more than $200,000 in fines, interest and back taxes that had to be wired to the state before the boats were released by officials at the weigh station. The purpose of BATSA is to clarify the term “presence” so businesses will know which activities trigger nexus in a state. The bipartisan legislation would significantly reduce room for interpretation of “presence,” to the point that a “bricks and mortar” facility would be required in a state before a company would be required to pay state income, franchise or sales taxes. The bill is sponsored by Reps. Bob Goodlatte (R-Va.), and Rick Boucher (D-Va.), and is identical to companion Senate legislation introduced by Senators Charles E. Schumer, George Allen (R-Va.), Mike Crapo (R-Idaho), Jim DeMint (R-S.C.), Tim Johnson (D-S.D.), and John Thune (R-S.D.). “The incidents that have ensnared our members are an example of unfair taxation by revenue hungry state-governments who pursue out-of-state companies as a way to raise money without taxing residents,” said Thom Dammrich, NMMA President. “It’s important for Congress to pass BATSA and clear up the ambiguity that traps so many honest manufacturers.” NMMA is part of an influential group of trade associations, businesses and interest groups advocating for the passage of the Business Activity Tax Simplification Act (BATSA) in the 109th Congress. NMMA’s coalition partners include, among others, the American Bankers Association, American Electronics Association, Chevron Texaco, Citigroup, Microsoft, Sony, and the U.S. Chamber of Commerce. |
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| Last Updated ( Thursday, 29 June 2006 ) |
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