Use Tax Elimination Act

 

Use Tax Elimination Act

Summary

The use tax was created as a “counter-part” to the sales tax, and designed to capture tax revenue from sales made outside the state. As a result of the Supreme Court’s decision in Quill, the use tax is unenforceable since out-of-state sellers cannot be forced to collect that tax from in-state buyers. Even when use tax collection lines are placed on individual income tax returns, collections are paltry. The use tax has thus created a “nation of tax cheats.” In the name of simplicity and fairness, the use tax should be abolished.

Model Policy

{Title, enacting clause, etc.}

Section 1. {Title} This Act may be cited as The Use Tax Elimination Act.

Section 2. {Statement of Purpose.} It is the intent of the LEGISLATIVE BODY to eliminate use taxation in the state of {insert state}.

Section 3. {Amendment to state sales and use tax code.} {Insert Use Tax Sections from State Code} of the State Code are hereby repealed.

Section 5. {Severability clause.}

Section 6. {Repealer clause.}

Section 7. {Effective date.}

 

Approved by the ALEC Board of Directors September, 2002.

Reapproved by the ALEC Board of Directors on January 29, 2013.

Keyword Tags: Tax and Fiscal Policy Task Force, Tax reform

Task Forces