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Mfa feedback Presentation Transcript

  • 1. Internet Merchants Feedback On Marketplace Fairness Act Presented by: eMainStreet Alliance & e-Business Express
  • 2. Myths of MFA  No Impact on Merchants under $1M  Compliance Software is Free  Software Will Make Compliance Easy  Single Jurisdiction for Compliance Audit
  • 3. What we’ve learned…  MFA Disincentive for Small Business Growth  Compliance Reporting with 46 States – Potential for Audit Increase 4,500%  Compliance Cost for “Free” Software Projected from $20k - $300K  Software Solutions Address a Select Number of Shopping Carts – Accounting, Order Entry Fullfillment Systems Outside Scope.
  • 4. MFA Remote Seller Sales and Use Tax Collection Process for Single Order
  • 5. Marketplace Fairness Act Feedback  Surveyed 1,100 clients and partners  Their response: Overwhelmingly against the Market Place Fairness Act  High cost to administrate  Competitive disadvantage  Disincentive to grow  Negative impact on their business and the industry
  • 6. MobileHomePartsStore.com  Sells replacement parts for mobile homes  Pate Peele established Mobile Home Parts Store in 2002  Had to learn how to cost effectively source and ship a wide variety of mobile home parts  Today they sell more than 4 million mobile home parts per year and lead their industry  For Mobile Home Parts Store, compliance with the Marketplace Fairness Act will result in layoffs
  • 7. Client Comments: CabinPlace.com  Sells rustic cabin décor  Founded in 1999 by Dave Buxengard  Started in his garage  He and his wife struggled working full time jobs as he worked on his dream  Today CabinPlace sells over 1 million annually  Marketplace Fairness Act cost of compliance could cripple Dave’s business
  • 8. American Carnival Mart  Sells wholesale carnival supplies  Founded in 1997 by Bobby Dawson  Today they sell over 3 million in carnival supplies annually with 18 employees  For Fun Carnival, the Marketplace Fairness Act means staff layoffs
  • 9. InTune Guitar Picks, Inc.  Founded in 2000 This act will only hurt small businesses and give larger businesses an edge…This would be a tremendous step in the wrong direction in helping small businesses grow. -Bert LeCato www.intunegp.com “ ”
  • 10. MindConnection, LLC It assumes there are no real costs associated with e-Commerce. Nothing could be farther from the truth. You have your server fees, security seals, ad campaigns, SEO, content writers, web developers, blogging, tweeting, etc., plus you have to deal with a host of other problems brick & mortars do not. -Mark Lamendola www.MindConnection.com “ ”
  • 11. AllergicPet.com A small business cannot possibly bear the burden of having to file sales tax returns in every taxing jurisdiction throughout the United States. We strongly oppose this legislation because it will put us and other small online retailers out of business. -Suzanne Gorlitsky www.allergicpet.com “ ”
  • 12. DG Cedar Oil It seems it would be a task of unreasonable burden for very small businesses such as the one I operate. Although my business is not currently doing a million or more in annual revenue, it could stifle possible future growth. -Wayne Gresham dgCedarOil.com “ ”
  • 13. FishWest.com We should be able to charge a single tax rate for online sales that is put into a single hopper. Then the states and other entities can figure out how to divide it up. Don’t put that burden on small businesses. -Dustin Carlson www.fishwest.com “ ”
  • 14. Delutti, Inc. I would like to see the exemption level raised to $5 million, or even $10 million in annual sales before a company should have to comply. $1 million in annual sales is not much money when you consider costs of goods, labor, insurance, marketing, shipping costs, and other overheads…there really isn’t that much left over. -Cale Reeder cozywinters.com “ ”
  • 15. Lori’s Gulf Shoppe We also have a brick & mortar store where we are only required to pay taxes for the state that we reside in, even though our customers come from all over the country and world. I don’t understand how this is any different than an online store. Because of this new act, most small companies like ours will be forced to hire a fulltime person just to manage this additional part of our online business. -Dustin Carlson www.fishwest.com “ ”
  • 16. Merchant Recommendations  Single tax rate on Internet sales  Single federal entity to report and file sales tax  eMainStreet Alliance participation in process