TUCSON, Ariz. – The Streamlined Sales Tax Governing Board Inc.’s executive committee Jan. 29 approved the hiring of lobbyists, one firm and one individual, to aid in passage of anticipated congressional legislation that would make the voluntary sales tax collection system mandatory.
The executive committee, meeting here, hired Charles B. Sewell, a veteran Washington, D.C., political consultant, to work full time. It also agreed to hire the D.C. firm Clark Lytle & Geduldig on a limited contract.
Clark Lytle’s contract is to run through the end of April, while Sewell’s is open-ended.
Duties of the two will be divided, explained Joan Wagnon, past president who co-chairs the board’s advocacy committee. Clark Lytle & Geduldig is to work to gain Republican support for the federal legislation in Congress.
Sewell, meanwhile, is to put together a more extensive campaign to win passage of the legislation through what Wagnon described as a “grass-tops,” as opposed to a “grassroots,” effort.
The “grass-tops” effort to be designed by Sewell will seek to enlist the support of governors, state legislators, and key supportive businesses in presenting the case for passage of the streamlined bill in Congress, according to a streamlined document dated Jan. 29.
The selection was made based on interviews with prospective applicants conducted in Washington Jan. 10.
Federal Legislation Re-Introduction in February.
The executive committee meeting was held concurrently here with the National Conference of State Legislatures’ Executive Committee Task Force on State and Local Taxation of Communications and Electronic Commerce.
At the Jan. 30 NCSL session, Governing Board President John Doyle (D) of West Virginia and Executive Director Scott Peterson gave an update on the proposed federal streamlined legislation.
The Sales Tax Fairness and Simplification Act was introduced in the 110th Congress as H.R. 3396 by Rep. William Delahunt (D) of Massachusetts and as a Senate bill, S. 34, by Sen. Mike Enzi (R) of Wyoming.
Doyle told the NCSL gathering he expects the legislation to be re-introduced either Feb. 23 or 24.
Peterson noted the governing board has become a full member of the streamlined coalition on Capitol Hill that is seeking to pass the federal legislation.
He elaborated on Wagnon’s remarks the day before on the hiring of the two lobbyists to help the governing board and coalition get the legislation passed.
Sewell’s task, Peterson said, will be to coordinate efforts on legislation, identifying who has been contacted and who needs to be contacted.
Sewell’s belief is that the streamlined sales tax effort is positioned badly in the eyes of most members of Congress. Opponents of streamlining have defined the issue as one that, if adopted, would harm small business and create a domino effect of taxing the Internet.
Peterson signaled a more aggressive advocacy stance, telling the gathering, “We’re going to stop letting our opponents define us.”
Doyle agreed, saying, “the most damaging charges made against Streamlined” have been that it amounts to a tax increase, and a bid to tax the Internet, both of which he disputed.
Peterson noted that as of Dec. 31, 2008, 1,156 retailers have registered under the streamlined program. From October 2005 through December 2008, about $317 million has been collected from among the 22 states participating in the streamlined project, he said.
