All news

Shifting Sales Tax Compliance Burden Will Harm Small Businesses, Says CompTIA CEO

11/11/2011 10:44:35 AM

Washington, D.C., November 11, 2011 – A bipartisan group of Senators led by Dick Durbin (D-Ill.), Mike Enzi (R-Wyo.) and Lamar Alexander (R-Tenn.) has introduced The Marketplace Freedom Act, a bill giving states the authority to require that online sellers collect and remit state sales taxes. Todd Thibodeaux, president and chief executive officer, CompTIA, made the following statement about the legislation.

“We understand the need of states to address revenue collection based on legitimate sales taxes. However, we must balance the states’ authority to require businesses to collect foreign states’ sales taxes with the compliance burdens that would be foisted onto small businesses. These additional compliance costs to small businesses would have a negative effect on employment and economic growth.

“This legislation would require businesses with remote sales of more than $500,000 to collect state sales tax in each state that business has a single customer. This unrealistically low threshold would create a complicated and costly compliance burden for small businesses. It would discourage small businesses from pursuing interstate commerce opportunities at a time when business activity should be fostered and encouraged. The $500,000 exemption is simply too low.

“CompTIA urges the Senate to reconsider this legislation and define a more realistic exemption for small businesses that provides good and services across state borders.”

About CompTIA

CompTIA is the voice of the world’s information technology (IT) industry. As a non-profit trade association advancing the global interests of IT professionals and companies, CompTIA is the recognized authority for IT education and credentials and the primary advocate for IT businesses and workers. Through its foundation, CompTIA also enables disadvantaged populations to gain the skills they need for employment in the IT industry. CompTIA’s vision of the IT landscape is shaped by more than 25 years of global perspective and more than 2,000 members and 1,000 business partners. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.

CompTIA’s Public Advocacy group focuses on a broad array of issues affecting the IT industry, with particular emphasis on representing the interests of small and mid-sized IT companies and entrepreneurs. Areas of focus include workforce education and training, tax matters, access to capital, health IT, export promotion, procurement, cybersecurity and smart technologies.

Contacts:
Audrey Chang
The Harbour Group
202-295-8779

audrey.chang@harbourgrp.com

Steven Ostrowski
Director, Corporate Communications
CompTIA
630-678-8468
sostrowski@comptia.org

CompTIA