Marketplace Fairness Act Update
Just a mere 3 weeks ago I wrote about the gaining momentum for the recently reintroduced Marketplace Fairness Act 2013 (MFA 2013) and there have already been new and newsworthy developments. If you run an eCommerce business or your business sells products through Amazon, you know that if passed, the MFA 2013 will give states the authority to compel online sellers to collect state sales tax even when the sellers do not have nexus in that state.
Following is a recap of the MFA 2013 events time line, highlights of the Act and what to expect next.
February 14, 2013: Congress reintroduced the MFA 2013
March 23, 2013: The Senate approved bill (A symbolic budget amendment, not binding law).
April 11, 2013: The bill passed a second vote 10 to 1 in the Senate Finance and Tax Subcommittee. In anticipation of the vote, a coalition of brick and mortar retail store owners assembled in Washington, D.C. to voice their support for the bill and advocate for a favorable vote.
Highlights of the MFA 2013
In order for a state to exercise authority under the Act, it must be a Member State under the Streamlined Sales and Use Tax Agreement or, if not a Member State, adopt and implement the minimum simplification requirements stipulated in the Act.
A state is authorized to require a remote seller to collect sales and use taxes under this Act only if the remote seller has gross annual receipts in total remote sales in the United States in the preceding calendar year exceeding $1,000,000.
The next steps in the approval process and enactment of this law are still a bit unclear but you can be sure we’ll stay on top of any activity. In the meantime, if you have any questions about nexus and the impending legislation, contact me at 619-819-0252 or online.
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This post was written by Profit Wise Accounting