Congress will return from its annual summer recess after Labor Day, after which they are scheduled to be in session for four weeks in September and then another four weeks after the November election. It is this post-election “lame duck” session which carries the highest risk for the passage of Internet sales tax (IST) legislation. 

We previously reported to you that the Senate is expected to vote on the Marketplace Fairness Act or the Remote Transactions Parity Act during the lame duck session.  We still expect that vote to happen. We do not yet know how the House of Representatives will respond to the Senate vote.  It is possible that if the bill passes the Senate, the House could also take it up and pass it before adjourning for the year. The Obama Administration has previously stated that it “strongly supports” the bill, so we would expect the President to sign it into law should Congress pass it. If that happens, the earliest that states could start enforcing sales tax collection would likely beJanuary 1, 2018. 

Of course, it is equally possible that the House refuses to vote on a controversial bill in a rushed timeframe. Those decisions should become clearer once Congress returns to work. We will keep you informed as we learn more.