Leveling the Playing Field

Leveling the Playing Field

by Cara Griffith

... [T]he Marketplace Fairness Act of 2013, would give states the option to require out-of-state online retailers to collect sales and use taxes if they adopt the Streamlined Sales and Use Tax Agreement or they adopt specific simplification requirements provided for in the bill. The legislation would also prohibit states from requiring remote sellers with less than $1 million in annual remote sales to collect sales and use tax.

I generally think there is a need for this legislation...

But is there really a need for a small seller exception?...

... [T]he Marketplace Fairness Act of 2013 purports to require simplification before states can burden retailers with sales tax collection and remittance requirements (whether it achieves simplification is a debate for another day). So if simplification is required and the goal of the legislation is to level the playing field, then why provide any exception at all? Why not let all sellers, regardless of their size, compete on the same level?

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View Cara Griffith's opinion in its entirety on the taxanalysts® Blog.

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