The Fair Tax Act, Part XXVIII
Moving into some very specific details about how a business would have to comply with the FairTax, we find a lot of rules that are similar to how big businesses handle state sales taxes today:
SEC. 501. MONTHLY REPORTS AND PAYMENTS.
`(a) Tax Reports and Filing Dates-
`(1) IN GENERAL- On or before the 15th day of each month, each person who is–
`(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
`(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.
`(2) CONTENTS OF REPORT- The report required under paragraph (1) shall set forth–
`(A) the gross payments referred to in section 101,
`(B) the tax collected under chapter 4 in connection with such payments,
`(C) the amount and type of any credit claimed, and
`(D) other information reasonably required by the Secretary or the sales tax administering authority for the administration, collection, and remittance of the tax imposed by this subtitle.
This sets forth a requirement for a monthly filing for any business of taxes, mitigated with credits, by the 15th of each month. The report may vary a bit from state to state as necessary.
(b) Tax Payments Date-
`(1) GENERAL RULE- The tax imposed by this subtitle during any calendar month is due and shall be paid to the appropriate sales tax administering authority on or before the 15th day of the succeeding month. Both Federal tax imposed by this subtitle and confirming State sales tax (if any) shall be paid in 1 aggregate payment.
`(2) CROSS REFERENCE- See subsection (e) relating to remitting of separate segregated funds for sellers that are not small sellers.
Note the bit about conforming state sakes tax paid together. If a state takes on a FairTax-style system, businesses can simplify payment even further, paying one entity (state treasury) each month. There is more to follow about large sellers, which have special requirements for payment (much as they do today in most states).
