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Published on Friday, July 21, 2017

Marketplace fairness and streamlined sales tax mitigation estimates updated

EHB 2163 included a state version of a long-standing AWC priority, the Marketplace Fairness Act that takes effect on January 1, 2018. The Department of Revenue (DOR) recently released updated estimates of impacts to cities for the local sales tax revenues expected from out-of-state internet retailers, which are now estimated to be $40.9 million for 2017-19.

These revised estimates also include updated estimates for Streamlined Sales Tax (SST) mitigation, which will include the new sales tax revenues in the existing calculation of net losses for jurisdictions impacted by the 2007 change to destination-based sourcing of sales taxes. For more information see the DOR spreadsheet. Under EHB 2163, this mitigation will be phased out by October 2019.

The Mitigation Advisory Committee will help DOR determine the impacts of EHB 2163 on jurisdictions receiving SST mitigation. The committee had already scheduled its annual meeting on July 24 via conference call. AWC plans to participate in the meeting with the city representatives, and a review of EHB 2163 has been added to the committee’s agenda for discussion.

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