"Congress should act swiftly to address critical issues regarding sales tax simplification and taxable presence," said Mark Nebergall, president of the Software Finance and Tax Executives Council. "Simplifying sales taxes, the cornerstone to achieving the needs of remote sellers, traditional retailers, and state and local governments, depends on the passage of uniform, predictable and clear laws throughout the country. This process should be facilitated by NCCUSL, a neutral third-party created to provide exactly this function."

SoFTEC supports action by the Congress that would assign the National Conference of Commissioners on Uniform State Laws (NCCUSL) to undertake the process of drafting a uniform sales and use tax act. The formal incorporation of NCCUSL into the simplification process would ensure the participation of all interested parties and foster an environment of accountability and openness. Without the facilitation of a neutral third-party, SoFTEC predicts that simplification legislation eventually passed by states will not achieve the uniformity, predictability or clarity to accomplish neutrality of the tax collection burden.

Until simplification is achieved, SoFTEC also supports Congress passing legislation to draw 'bright lines' around rules that determine taxable presence. Businesses face tremendous uncertainty in terms of when their activities within a state might trigger tax obligations. Such rules need to be clarified to protect businesses from costly litigation when states seek tax liability from vendors who have not known of an obligation to collect.