Internet sales tax would hurt many small businesses in Utah

December 1, 2014

Earlier this week Mace Brasher, owner of Jester’s Jerseys, a small online athletic apparel retailer, wrote an opinion piece featured in the Salt Lake Tribune. In the article Mr. Brasher describes how he started the business simply as a way to supplement his income and recounts how it has grown to employee 7 full-time employees who have moved from his living room to a local warehouse space. He also outlines the danger the current Marketplace Fairness Act (MFA) poses to his small, entrepreneurial business:

“Proponents of the MFA claim that it promotes a "fair" playing field among offline and online businesses.” says Mr. Brasher. “However, they fail to acknowledge that the MFA would actually thwart competition for businesses like mine. Although the MFA would exempt any business with less than $1 million in sales, this arbitrary definition is a blatant misrepresentation of small business. My business falls above the $1 million threshold, but I should not be placed in the same category as large retailers.” As Mr. Brasher points out, as currently written the Marketplace Fairness Act would require small tech-enabled businesses across the country to become tax collectors for over 9,600 tax jurisdictions. For many of these small businesses, they would be forced to collect taxes in states where they have no physical presence or no right to vote.

Mr. Brasher also points out that “Even though proponents of the bill claim that there is software available that would make it easy for us to comply, we would still be threatened with costly audits and litigation in states that are thousands of miles away from where we live and work. Accurately collecting sales tax requires so much more than a few simple clicks of the mouse. These new responsibilities would inhibit our ability to expand and serve customers.”

Read Mr. Brasher’s full opinion piece in the Salt Lake Tribune.

Tell your members of Congress to oppose passing Internet sales tax legislation in the current “Lame Duck” period of Congress.