Remote Transactions Parity Act (RTPA) – Will harm literally EVERY business in America

This is no hyperbole.  The RTPA will touch and harm every single business in America and allow 46 states to exert power over them even if they’re a tiny company in only 1 state.  To say this is an unprecedented overreach doesn’t begin to cover it.

This bill was essentially written by the Tax Certified Solutions Providers (related article here) and is crony capitalism at its worst.  The RTPA had a last minute addition to the March draft that I saw removed the Small Business Exemption (SBE) for any seller who sells through a “Marketplace”.  This is probably a huge percentage of online sellers.  Some prominent examples:

  • Amazon
  • Ebay
  • Etsy

So if you sell ANYTHING at all, any sales volume through a marketplace, no SBE for you!  Yes, channeling the Soup Nazi.

What I didn’t catch, is that after the standard SBE drops to $1 million in sales (not remote sales, any sales), it drops to zero anyway after 3 years of passing.

So every single business in America, regardless of how small they are or if they even sell across state lines, will be impacted by the RTPA.  This doesn’t just affect anyone who sells online, it affects everyone.

  • All of the compliance costs
  • All of the audit risks
  • All of the time wasted
  • All of the money flowing into CSP’s pockets
  • Even if you’re a 1 person company in 1 state.

 

This is a tax on every business in America.  It must be stopped!

 

And I guess it was hyperbole – 7 or 8 businesses will do very well if this horrific bill passes.  But we can’t all be the CSPs who basically wrote this bill.

Remote Transactions Parity Act – HUGE Small Business Exemption Change – Much Worse than MFA!

To recap, the Remote Transactions Parity Act (RTPA) is the Marketplace Fairness Act (MFA) 1.1.  Same fundamental flawed and broken structure.  But now I think the RTPA is actually much worse than the MFA. The RTPA has a Small Business Exemption (SBE), as does the MFA.  But new verbiage introduced since a March draft I […]

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Why Reports Of Huge State Sales Tax Losses Are So Wrong

With the latest report of Mississippi’s projected and utterly inflated “losses” from Ecommerce use tax not being collected, I thought I’d do a quick check. As mentioned before, the top vendors in Ecommerce are larger, stronger and are now the vast majority of ecommerce sales.  The big are getting bigger.  Researchers don’t generally understand this […]

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A Look Back At Inflated “Lost Sales/Use Taxes” Reports – Not Even Close To Reality

Just a quick post regarding the supposedly lost sales/use tax revenue.  There have been posts on the topic already regarding the guesswork and ridiculously inflated numbers of lost sales tax/use tax revenue being floated around due to remote (Internet mainly) sales.   The National Conference of State Legislatures quotes massive losses referencing the massively flawed […]

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Flawed Mississippi “Lost Revenue” Study

The latest ridiculous study about how much revenue is “lost” through unpaid use taxes just came out. The full report is here: http://www.mississippi.edu/urc/downloads/tax_revenue_remote_sales_2017.pdf While I’m sympathetic that hard numbers for many things are hard to come by, the assumptions used are so overstated that the report is certainly not even close.  Not only that, Amazon […]

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Amazon Now Collecting Sales Tax For 10 More States – Almost All The Population

According to Yahoo Finance (and elsewhere) “The states in which shoppers are now subject to sales taxes on Amazon purchases are Iowa, Louisiana, Mississippi, Missouri, Nebraska, Rhode Island, South Dakota, Utah, Vermont and Wyoming.” This brings the total to 39 states out of 45 that have a sales tax. Let’s make this easier: What tax […]

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Use Tax Education For More Revenue – A Natural First Step? Not for Utah

From the sounds of the shrieks coming from the states regarding use tax and the necessity of a law like the Marketplace Fairness Act (MFA), you’d think that the states have done everything possible to collect their “missing” revenue.  The states have thrown around unrealistic (and frankly nonsense) numbers about how much sales tax/use tax […]

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The Remote Transaction Parity Act Won’t Touch These Foreign Sellers – Part 2

Shortly after I wrote The Remote Transaction Parity Act Won’t Touch These Foreign Sellers, there was an article in the Wall Street Journal entitled “Borders Matter Less and Less in E-Commerce” which is an excellent example of the very problem MFA and RTPA won’t address, while hammering U.S. small businesses with compliance costs and audit risks. “E-commerce […]

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Myth of Declining Sales/Use Tax Revenue – Wisconsin Edition

Had a lovely talk with a Wisconsin employee and Streamlined States Governing Board executive.  I enjoyed our talk regarding our views on the MFA and even worse RTPA, but he did bring up a couple of chestnuts that I’ve covered before in the blog, such as the myth of declining revenue.  So in honor of […]

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The Remote Transaction Parity Act Won’t Touch These Foreign Sellers

The Remote Transactions Parity Act (RTPA) and the Marketplace Fairness Act have a gaping hole that will continue to taken of advantage of even if either bill passes.  Combine this with subsidized inexpensive shipping for the “developing country” of China – means that China will continue to ship direct to the US at prices no one […]

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Cyber Security & the Marketplace Fairness Act/Remote Transaction Parity Act

  Recent breaches in the last year have shown the perilous state of information security.  Frankly, the bad guys are winning.  A few recent breaches of note: Target Home Depot Anthem Blue Cross U.S. Office of Personnel Management A quote from the Washington Post on the recent US OPM breach that contained very sensitive information […]

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