Hal Stevens, a small business owner in Edmond Oklahoma, recently expressed his concerns with the so-called Marketplace Fairness Act to his local newspaper.  In his letter, Mr. Stevens explains that the small seller exception included in the legislation is arbitrary and will not adequately protect businesses, like his own, from becoming “unpaid tax collectors” for thousands of jurisdictions nationwide.  Mr. Stevens also expresses his concern with how the Marketplace Fairness Act will affect his ability to grow, compete and create jobs in the future.

Bobby Housos, owner of Elusive Wildlife in Conroe, Texas, recently submitted a letter to The Courier of Montgomery County expressing his concerns with the Internet sales tax bill that is currently pending in Congress.  Over the past few years, Mr. Housos has had the ability to expand his business operations, even in the midst of the economic downturn.  However, he is concerned about his ability for future growth if the so-called Marketplace Fairness Act becomes law and his business will be forced to become a tax collector for thousands of taxing jurisdictions nationwide.

Last week, Congressman Jim Sensenbrenner (R-WI) introduced the Business Activity Tax Simplification Act, which prohibits states from trying to impose business activity taxes on businesses located outside of their borders.  As more and more sales are transacted over the Internet, businesses both large and small have been affected by a lack of clarity of when a state can impose business activity taxes on an out-of-state business.  This bill would give clarity and certainty for businesses and protect them from the imposition of additional tax burdens.

John Feigenbaum, owner of David Lawrence Rare Coins, recently submitted a letter to the editor of Hampton Roads to express how damaging the so-called Marketplace Fairness Act would be to his business if the proposal were enacted into law.  Feigenbaum explains that it would be extremely burdensome to collect and pay taxes to thousands of ever-changing jurisdictions.  In addition, he expresses his concerns with becoming a tax collector for businesses where he doesn’t even have any physical presence.

Last week, Senator Kelly Ayotte (R-NH) sent a letter to the leaders of the Senate Finance Committee calling for any tax reform proposal to keep the Internet free from burdensome tax requirements and restrictions, including new Internet sales taxes.  The Senate Finance Committee is in the process of determining their priorities for comprehensive tax reform this Fall and have called on Senators to express their priorities for what should and should not be included in the final reform package.