Anti-tax group says internet tax bill could cost businesses thousands
internet tax bill
As Congress continues to debate the Marketplace Fairness Act, opponents and supporters of the internet tax bill continue to release new information for their causes. An anti-tax group, the True Simplification of Taxes, just released a study saying this new law could cost businesses thousands in extra startup and administration costs.
This law would require online businesses to install new software to track sales for tax purposes. While states would provide the software for free, businesses would be responsible for setting up the software as well as paying fees and auditing expenses throughout the year.
This study looked at the cost estimates for medium sized businesses, those with internet sales between $5 million and $50 million a year. The study estimated that these businesses would need to pay somewhere between $60,000 and $260,000 in extra costs each year. The authors of this study said that they thought state governments should compensate businesses for these costs as well.
Supporters of the MFA said that this study overstates costs and is merely a smokescreen for online businesses that have gotten used to not collecting sales taxes.
Read more at PC World
Lucinda Rowlands has been the general manager at Zip2Tax since 2010. She has extensively researched sales and use tax regulations in order to help small businesses navigate complicated tax rules.