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 saw completely destroys the SBE for a TON of businesses.

Inexplicably, the new paragraph states that you are treated the same as a business that exceeds $10 million in sales and can’t be exempt from the law if your company “utilizes an electronic marketplace for the purpose of making products or services available for sale to the public”.

This is INSANE!

So some small company who also happens to list some products on Ebay,  Amazon or Etsy now no longer qualifies for any small business exemption, no matter how small they are and will be required to bear the full regulatory burden of the RTPA 180 days after passage.  Just because they list through a marketplace.  And really, what does that newly added definition even mean in the real world?  Yes, it’s defined, but it’s a bit vague.

This is a TERRIBLE last minute addition to the bill that will dramatically affect the number of affected retailers, enrich CSPs and wipe out some smaller retailers.  I can’t believe that this hugely impactful section wasn’t in the March bill draft and has now been added as almost an afterthought.

 

” (3) ELECTRONIC MARKETPLACE.—The term ‘‘electronic marketplace’’ means a digital marketing
platform where—(A) products or services are offered for
sale by more than 1 remote seller; and (B) buyers may purchase such products or
services through a common system of financial transaction processing.”

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

china 1

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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Remote Transaction Parity Act sure has a LOT of new CSP protections

As covered in our previous Revolving Door From Government –  Part 2, we covered Taxometry and their very recent hires. It sure was good luck that Taxometry hired former Legislative Director Mike Jerman.  Mr. Jerman was the Legislative Director for Representative Chaffetz (Utah) who by a stunning coincidence steered and/or wrote the “MFA 2.0″ Remote Transaction Parity […]

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Revolving Door From Government – Part 2

A 2015 update for some new finds today regarding a new possible CSP – Taxometry. I guess it’s not a total surprise when people switch from the private sector to the public side… but boy it seems to be a revolving door.  Reading the who’s who in the Streamlined Sales Tax papers, I occasionally forget […]

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Amazon collecting sales tax – now up to 74% of population

Some new states added to the list, according to this Internet Retailer article. “Once Illinois comes on board on Sunday, Amazon will collect sales tax in 24 states, including from eight of the top 10 most populated states. Ohio and Michigan are the only states in the top 10 where Amazon does not collect sales […]

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Cow Pie with a bow on it! – “Remote Transaction Parity Act” MFA 2.0

Again, with the names of bills that mean the exact opposite.  MFA 2.0. First, the Marketplace Fairness Act – which would never create fairness for anyone (well covered on this blog) Now, after yet another year of defeat, it’s time to rebrand!  Why bother to truly start over and address the House Judiciary’s fairness principles […]

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Grasping At Straws – Alibaba

There’s an article in The Hill today  about the pro-Marketplace Fairness Act proponents doing a big push on some Alibaba themed ads.  The Alliance for Main St. Fairness (Walmart, big box retail chains..) produced the spots which will be running on the news shows this week.  The Hill states: “The ad marks the beginning of […]

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