DMA Takes Issue With Marketplace Fairness Act
Says it would compel online retailers to become unpaid tax collectors; brick and morar retailers say bill is needed to level playing field
By John Eggerton -- Broadcasting & Cable, 3/19/2013 11:14:38 AM
The DMA is opposed to the Marketplace Fairness Act, which imposes an Internet sales tax collection obligation on businesses DMA says should not be part of the Federal Budget.
The Act would allow states that had simplified their own sales tax laws to require online retailers to collect sales tax at the time of a the transaction.
"The Senate should not take this dubious road without full consideration," said Jerry Cerasale, DMA's senior VP of government affairs, in a statement. "State sales taxes are a morass of complicated definitions, rates, thresholds, tax holidays, filing procedures, registration procedures, etc. Endorsing throwing ecommerce into that briar patch without full consideration is wrong and should be avoided."
By contraast, the National Retail Federation (NRF) is all for Congress considering, and passing, the Marketplace Fairness Act as part of the budget bill.
"As the retail industry evolves and digital commerce becomes a more prominent portion of total retail sales, it is critical that the tax laws not discriminate between similar businesses based on how their products are distributed," said the NRF. This collection disparity has tilted the competitive landscape against local stores creating a crisis for brick-and-mortar retailers around the country and in your state. The Marketplace Fairness Act addresses the crisis by removing the constitutional limitation on states' authority to collect sales and use taxes from remote sellers. This legislation will level the playing field, while protecting small businesses from complicated laws in other states with a healthy small business exemption."
Nice try but old argument. Internet merchants, such as myself, enjoy the benefits the many services, programs and infrastructure that guarantee goods from out of state arrive upon our customers' doorsteps safely. The infrastructures is many states are funded by honorable sales tax donations. i am honored and grateful to offer my customers the convenience of collecting the accurate dales tax at time purchase and remit to their jurisdictions to benefit them. Technology freely available easily automates sales processing to any of the 10,000 different tax jurisdictions making it simpler than processing shipping to over 40,000 different zip codes. The same API technology enabling CC processing and real time shipping now automates sales tax processing in shopping carts and checkout platform eliminating merchants from the burden of integration.
Sten Wilson - 3/20/2013 1:28:37 AM EDT
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