FreedomWorks, along with several other free market-minded organizations, signed a letter in strong opposition to HB 19. The bill would require online retailers outside of the state to tax Wyoming customers.
This bill not only raises consumer concerns, as they will be the ones fronting the bill for this tax, it also raises concerns for the local startup companies located in Wyoming. Small business will not be subject to collecting the sales tax as long as they don’t conduct $100,000 in sales or 200 separate transactions in Wyoming annually.
The bill aims to protect the local economy and small business, but the tax will squander economic growth and inhibit free enterprise within the state.
Furthermore, in the 1992 U.S. Supreme Court case Quill Corp. v. North Dakota, ruled that retailers outside of state lines could not be required to collect sales tax. The unconstitutionality of the bill is a major red flag just as other states attempting to collect a similar tax have ended up with lawsuits.
Regrettably, the bill passed the state House earlier this week and awaits a vote in the Senate.