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Internet Sales Tax Could Lead to Higher Prices

Posted By Kelsey Harris On May 28, 2013 @ 4:24 pm In Ongoing Priorities | Comments Disabled

Newscom [1]

Newscom

If the House [2] approves the Marketplace Fairness Act, Villa Lagoon Tile [3] won’t be out of business, but it might be forced to raise its prices.

In an interview [4] with National Public Radio, owners Lundy Wilder and Dave Perry talked about the “tremendous burden” the Internet sales tax will create for their business.

Their custom cement tile company, based in Gulf Shores, Alabama, relies mostly on Internet sales because its Cuban-style tile is more popular in coastal states like Florida, Texas, and Washington.

Perry and Wilder would be required to keep up with 9,646 tax jurisdictions [5] and keep track of every state they sell to, a task they told NPR they currently don’t do.

“It would be more of an administrative nightmare for us than anything,” Perry said.

Perry said his biggest challenge would be complying with the “complications that go along” with the Internet sales tax.

While the Marketplace Fairness Act offers free software to business owners to help with record keeping, Perry and Lundy fear the “steep learning curve” their bookkeeper would face.

Lundy also said they might “lose some residential sales” because of the tax.

Listen to the full interview here. [4]


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2013/05/28/internet-sales-tax-could-lead-to-higher-prices/

URLs in this post:

[1] Image: http://blog.heritage.org/wp-content/uploads/personal-computer-cyber.jpg

[2] House: http://blog.heritage.org/2013/05/09/infographic-boehner-and-small-business-owners-agree-internet-sales-tax-is-bad-for-everyone/

[3] Villa Lagoon Tile: http://www.villalagoontile.com/

[4] interview: http://www.npr.org/2013/05/07/181789940/tile-business-owners-web-sales-tax-would-be-a-nightmare

[5] 9,646 tax jurisdictions: http://blog.heritage.org/2013/04/23/internet-sales-tax-overstock-ceo-explains/

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