Prepare Now for The Marketplace Fairness Act
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Since May 2013, there has been a lot of talk and discontent about the Senate approving the Marketplace Fairness Act. This Act will grant states the right to require online and catalog retailers, regardless of location, to collect sales tax at the time of a transaction; the same way that physical retailers are already required.
Take note: The law only impacts those retailers generating at least $1 million in sales outside of the states where they have physical operations.
While the House is moving more cautiously than the Senate, the Marketplace Fairness Act will arguably help the numerous states facing significant budget shortfalls. In fact, many state governors are putting extra pressure on congressional leaders to pass the bill so they can start collecting this new revenue immediately. Adversaries of the bill suggest that these states have a spending problem rather than a revenue problem. For more information about your state representative’s position, visit The House of Representatives.
Regardless of your personal or political ideologies, if you have an online or catalog revenue stream, it is vital to take the appropriate actions to prepare your business, large or small, for the pending sales tax reform.
Sales Tax Calculation Service for Online Shopping
Our real-time web service API, DOTS FastTax, provides sales and use tax for US and Canadian addresses. DOTS FastTax integrates directly into your shopping cart system and can be configured to manage multiple sales and use tax lookups by street address, postal code, or city/county/state. To ensure that only the most accurate tax rates are returned, DOTS FastTax service utilizes our address validation service behind the scenes to validate the full-street addresses to the ZIP+4 level.
If you are curious as to how consumers feel about the Marketplace Fairness Act, Mashable has a short, informative infographic outlining those in favor and those with disapproval.