MFA Software Integration to Cost up to $290,000 for Small Businesses
Today the eMainstreet Alliance sent a letter to the House of Representatives emphasizing that, while major retailers are still pushing to passage of the Marketplace Fairness Act, the costs to comply with the MFA are overly burdensome, and the MFA, as written, does not comply with ANY of Chairman Goodlatte's seven principles of remote sales tax collection.
The MFA crushes small businesses with tens of thousands of dollars in compliance costs by turning them into tax collectors for 9,600 different tax jurisdictions. An independent, non-commissioned study by TruST found that integration costs for small to mid-sized businesses will range from $57,500 to $290,000. Faced with such a heavy burden, some small businesses have said they will be forced to close their doors. The findings of the TruST study are consistent with eMainstreet business estimates of the costs their businesses will incur should the MFA go into effect.
Additionally, MFA does not meet any of the remote sales tax principles set out by Chairman Goodlatte:
“Chairman Goodlatte spelled out seven reasonable and common sense principles to guide any discussion of remote use tax collection legislation. The MFA fails all seven principles. One principle insists that any solution be “tech neutral”. This is an important safeguard for small businesses. Businesses should not be required to implement any third-party software to collect and/or remit sales taxes. We understand that proponents of the MFA are pressuring lawmakers to ignore both the clear meaning of Chairman Goodlatte’s principles as well as the heavy burdens the MFA imposes on businesses. Please do not be deceived by special interests - the MFA is unwise and destructive legislation.”
To read the full letter, click here.