Andrew Borakove, owner of Gongs Unlimited in Lincoln, Nebraska, recently submitted an op-ed on the so-called Marketplace Fairness Act that would require tech-enabled small businesses to comply with sales tax laws and regulations in states where they have no presence. Borakove, like many small business owners across the nation, is concerned about how he would compete with big-box retailers if he would be forced to become tax collectors for every jurisdiction in the United States.
“The MFA wants to change the current situation in which online retailers charge sales tax only to customers in their state. The MFA wants businesses to charge tax for every jurisdiction in the nation,” wrote Borakove. “Not only is this in a dicey area constitutionally, since I would be paying tax to other states where I’m not based and am not represented, but this would require an onerous amount of day-to-day work for a small business. That’s because there are more than 9,000 tax jurisdictions.”
Read Borakove’s op-ed and learn more about his concerns with the Marketplace Fairness Act.