Marketplace Fairness Act
On March 22, a non-binding test vote on an amendment to the Marketplace Fairness Act was easily passed by a Senate vote of 75-24, an encouraging sign for supporters of sales tax fairness in the marketplace. The amendment, offered by Senate Majority Whip Richard Durbin, proposes that states be allowed to require out-of-state sellers to collect sales tax. Currently, states can only require collection by sellers who are based in their state or have a physical presence, like a store or a distribution center.
States are losing billions of sorely-needed dollars because of uncollectible online sales tax. Small businesses are faced with loss of revenue from sales because it’s cheaper for consumers to buy non-taxed products online. A leveling of the playing field is needed so that all retailers – whether in-store, catalog, or online, can compete with equal opportunity.
New legislation in this direction would require some adjustments; states would have to simplify their tax codes, for example, but overall, both states and small businesses would benefit.
With this legislation moving forward, now would be a perfect time for you to get your eCommerce store set up. If you want to know more about eCommerce, we’re here to answer your questions. Call us now at 425-672-4806 or email us for more information