In testimony so far this morning on HB 581, the “nexus” bill regarding sales taxes:

Liz Hatter of the Idaho Chamber Alliance spoke in support of the bill. “This is a fairness issue in the business world,” she said. “It requires all sellers to pay sales tax. … The Idaho Chamber Alliance does not view HB 581 as a new tax or a tax increase. ... This bill helps level the playing field.”

Russ Hendricks of the Idaho Farm Bureau spoke against the bill. “Farm Bureau does have a policy, we oppose the collection of use tax ... on out-of-state goods,” he said. “Our members do recognize that use tax is required right now, it’s on the books.” The use tax is the tax that Idahoans are required to report and pay on their income tax returns on their online purchases; it’s 6 percent, the same as the sales tax. “Our members would prefer to see us working the other way, doing away with use tax,” he said. “That’s what we would ultimately like to see.”

Pam Eaton of the Idaho Retailers Association spoke in favor. “This is a bill that modernizes Idaho’s law to match how retail is done today,” she said. “Brick and mortar stores are no longer just brick and mortar stores, and online sellers are no longer just an online warehouse that fulfills orders. There are now lots of selling channels, there’s lots of affiliates, there’s distribution centers all over the nation. … Retail is not the same it was.” She said, “Our laws need to change to keep up with how business is done today. … This is a fairness issue. It levels the playing field. Current law disadvantages the Idaho retailers by 6 percent right off the top. These businesses are the businesses that employ our citizens. They’re the ones that pay additional income taxes, property taxes, they support our communities.”

Eaton said, “This is not a new tax. It’s already owed. … It’s taking the responsibility off of the citizens and putting it on the retailers.” She added, “By not acting, we’re sending a message that online retailing is more important than our brick-and-mortar stores – it’s OK to send business out of state.”