No Regulation Without Representation Act of 2016

No Regulation Without Representation Act of 2016

This bill prohibits a state from imposing sales and use tax obligations or assessments on a person who is not a purchaser or seller with a physical presence in the state during the calendar quarter for which the obligation or assessment is imposed.

The person must be physically present for a state to: (1) impose obligations for collecting a sales, use, or similar tax or for collecting related information; (2) assess such a tax on a person; or (3) treat a person as doing business in the state for the purposes of such a tax.

A person is physically present if the person's business activities in the state include:

• owning or leasing certain property in the state;
• having one or more employees, agents, or independent contractors in the state specifically soliciting product or service orders from customers in the state or who provide on-site design, installation, or repair services on behalf of the remote seller; or
• maintaining an office in the state with at least three employees.

Physical presence does not include: (1) certain referral agreements, (2) presence for less than 15 days in a year, (3) delivery and product placement services offered by an interstate or in-state common carrier, or (4) Internet advertising services provided by in-state residents which are not exclusively directed towards or exclusively soliciting in-state customers.

The bill specifies that U.S. district courts have original jurisdiction over civil actions to enforce this bill.