Marketplace Fairness Act

!Fair or not?

By: The Solar Biz

What is the Marketplace Fairness Act?

it grants states the authority to compel online and catalog retailers to collect sales tax

states are only granted this authority after they have simplified their sales tax laws

there are two options…

Option 1:

A state can join the 24 states that have already voluntarily

adopted the simplification measures of SSUTA. The goal of

SSUTA (Streamlined Sales and Use Tax Agreement) is to

make sales tax collection easy. 44 states and over 85

businesses have adopted to SSUTA. States that have

complied with SSUTA will have collection authority on the

first day of the calendar quarter that is at least 90 days

after enactment.

Option 2:

States can meet five simplification mandates listed in the bill. These mandates include:

1. Notify retailers in advance of any rate changes within the state.

2. Designate a single state organization to handle sales tax registration, fillings, and audits.

3. Establish a uniform sales tax base for use throughout the state.

4. Use destination sourcing to determine sales tax rates for out-of-state purchases

5. Provide free software for managing sales tax compliance (and hold retailers harmless for any errors that result from the systems).

In 1967, Bellas Hess was passed: out-of-state retailers were shielded from the obligation to collect sales tax, based purely on the notion that it would place too much of a burden on their businesses

In 1992, Quill was passed: reaffirming Bellas Hess.

“ Our decision is made easier by the fact that the underlying issue is not only one that Congress may be better qualified to resolve, but also one that Congress has the ultimate power to resolve. No matter how we evaluate the burdens that use taxes impose on interstate commerce, Congress remains free to disagree with our conclusions.”

Today

the retail world is a very different place

it is easier to keep track of a few thousand local tax rates

this Act could help states that are facing budget shortfalls

i n r e a l i t y

This bill would put a huge burden on every small company.

Only large corporations have the resources to comply.

This bill would cripple the few small businesses left.

The Solar Biz

Small companies like The Solar Biz are doing their best to aid our planet. The Solar Biz aims to improve the sustainability of our earth by providing solar energy for all of it’s customers. !Read more: http://solarbiz.org http://thesolarbiz.org

Don’t fall for the Marketplace

“Fairness” Act!