Main Street Fairness Act

Local News

Linking old and new retailing

Raymond Bellia sees himself as the poster boy of 21st century entrepreneurs: His $1 million-a-year online police equipment company launched with a single sale on eBay, and the money he’s making is now going into his first bricks-and-mortar store.
The 28-year-old New Hampshire small businessman credits e-commerce for his success, but thinks the investment in his new storefront is a smart complement.
“Online retail is a much more competitive marketplace,” said Bellia. “There's a lot more comparative shopping going on. It helps to also operate a store, to be in both places.”
He's wary of federal legislation compelling online retailers to start collecting sales taxes — like bricks-and-mortar stores do — on cyberspace transactions made in states and municipalities with sales taxes.
“It would hurt my business,” said Bellia. “There are too many taxes as it is. Why should government be taking even more money from us?”
Sales taxes, after all, are a foreign concept to Bellia. In New Hampshire, where he works and lives, there isn’t one. Only four other states share that distinction: Alaska, Delaware, Montana, and Oregon. A patchwork quilt of sales tax rates and rules abound in the other 45 states. Kentucky, for example, collects 6 percent, but exempts food; Oklahoma collects 4.5 but exempts prescription drugs. Indiana has a single, statewide rate while neighboring Illinois lets local governments piggyback their different rates.
Legislation introduced in the last seven sessions of Congress has aimed at streamlining the sales tax to make it more uniform across the U.S., and to compel online retailers to collect on transactions made in states with a sales tax.
E-commerce advocates have pushed back, fearing federal efforts will make compliance more complicated and costly.
“It's going to crush small online retailers,” said Carl Szabo, policy director for NetChoice, a coalition of online retailers. “If small business is the backbone of the American economy, why would you want to do anything to stifle it?”
Raymond Bellia launched his small business, Granite State Police Supply, through eBay, a NetChoice member. He used the online shopping site to sell a used bulletproof vest given to him by a police officer friend, then quickly realized he could develop a business from selling used law enforcement equipment.
Bellia eventually expanded to include new equipment and decided to open a bricks-and-mortar store when several New England police chiefs told him they wanted to see the gear before they bought it.
“Some people,” said Bellia, “just don't want to buy online.”

October 22, 2011

CNHI News Service/MS The Picayune Item Picayune Item Sat Oct 22, 2011, 08:09 PM CDT

WASHINGTON — Sen. Dick Durbin, D-Ill., introduced the Main Street Fairness Act in the U.S. Senate; Rep. John Conyers, D-Mich., filed a similar bill in the House.

The legislation would change current law that requires only online retailers with a physical presence in a state to collect and remit sales taxes in those states and municipalities that impose them.

Similar bills have been introduced in the past, prompted by a 1992 U.S. Supreme Court case (Quill Corp. vs. North Dakota) that said out-of-state catalog companies faced an undue burden in having to collect and remit the myriad of sales taxes.

The court encouraged Congress to find a solution, but none have passed even though catalogs delivered through traditional mail have been largely replaced by Internet sales transactions.

The Main Street Fairness Act creates a national framework for collection of sales taxes by online and traditional retailers, but in its current form it would only apply to the 24 states that have joined the Streamlined Sales Tax Governing Board; a coalition of state government officials working to standardize the various sales taxes. Other sales tax states can join the board at will. There is an exemption in the legislation for “small seller” online businesses. The Streamlined Sales Tax Governing Board would determine who qualifies as a small seller. This provision is aimed at making it easier for small, startup online businesses to get off the ground without being burdened by sales tax collection and remittance costs.

Sponsors say it is important to note that the legislation doesn’t create a new tax on consumers. They are already obligated to pay the sales tax in the states where they reside for purchases made online. But the vast majority (less than 5 percent) of consumers ignore this honor system “use tax” responsibility to advise the state and local governments of their purchases and remit the tax on their own.

For specifics about the Main Street Fairness Act to to: http://www.gpo.gov/fdsys/pkg/BILLS-112s1452is/pdf/BILLS-112s1452is.pdf.

For more information on the Streamlined Sales Tax Agreement, go to www.streamlinedsalestax.org.

The 24 states that have signed the Streamlined Sales and Use Tax Agreement:

Arkansas Georgia Indiana Iowa Kansas Kentucky Michigan Minnesota Nebraska Nevada New Jersey North Carolina North Dakota Ohio Oklahoma Rhode Island South Dakota Tennessee Utah Vermont Washington West Virginia Wisconsin Wyoming

Text Only

Local News

PMHS GRADUATION
Picayune Memorial High School held its graduation ceremony Thursday night where the school’s valedictorian Jared Christopher Bates, left, and salutatorian Bryce Austin Warden gave their speeches.

May 26, 2012 1 Photo
POPLARVILLE GRADUATION
Poplarville High School held its graduation ceremony Thursday night where the school’s valedictorian Rebecca Starke, left, and salutatorian Meagan Whitworth gave their speeches to the graduating class, parents and friends.

May 26, 2012 1 Photo
Local man paralyzed by juvenile shooting
Medical personnel were teaching a local man how to swallow again on Saturday after his spinal cord was severed by a .22 caliber bullet, fired by one of three juveniles, on Thursday.

May 26, 2012
Potential bridge replacement fund shortage draws discussion
Despite a lengthy agenda for Pearl River County supervisors Wednesday the board handled many of the items with a straight up and down 5-0 vote.

May 26, 2012
Glade Woods dies
Funeral services for Earl Glade Woods , 75 of Picayune, are Monday at 11 a.m. at First Baptist Church of Picayune. Woods passed away on Friday.

May 26, 2012 1 Photo
MHP on patrol for holiday
Even though there has been a remarkable reduction in the number of fatalities in Mississippi over the past seven years, last year’s Memorial Day Weekend was particularly deadly.

May 26, 2012
POLICE MEMORIAL
City employees were out at the Picayune Police Department memorial Thursday morning doing some upgrades to it.

May 25, 2012 1 Photo
ACCIDENT ACCIDENT — Emergency personnel responded to this accident Thursday morning on South Haugh Avenue.
May 25, 2012 1 Photo
Supervisors support sales tax proposal
The Pearl River County Board of Supervisors unanimously supports District 1 Supervisor Anthony Hales proposal for a 1-percent county sales tax.
Hales had outlined his proposal at two earlier meetings of the board of supervisors and the other four members voiced their support for the idea at Wednesday’s meeting.

May 25, 2012
Lawrence sentenced to 57 months for child porn
Picayune native Clifford Lawrence has been sentenced to four years and nine months in prison for possession of child pornography.

May 25, 2012
More Local News Headlines

Local News

Search Results

Linking old and new retailing

Main Street Fairness Act

Site Map

Contact Us