Mfa feedback

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Internet Merchants Feedback On Marketplace Fairness Act Presented by: eMainStreet Alliance & e-Business Express

Transcript of Mfa feedback

Page 1: Mfa feedback

Internet Merchants Feedback On

Marketplace Fairness Act

Presented by:

eMainStreet Alliance &

e-Business Express

Page 2: Mfa feedback

Myths of MFA

No Impact on Merchants under $1M

Compliance Software is Free

Software Will Make Compliance Easy

Single Jurisdiction for Compliance

Audit

Page 3: Mfa feedback

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.

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MFA Remote Seller Sales and Use Tax Collection Process for Single Order

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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

Page 6: Mfa feedback

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

Page 7: Mfa feedback

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

Page 8: Mfa feedback

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

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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

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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

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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

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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

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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

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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

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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

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Merchant Recommendations

Single tax rate on Internet sales

Single federal entity to report and

file sales tax

eMainStreet Alliance participation

in process