As the Marketplace Fairness Act (MFA) picks up momentum in Congress, it’s no surprise that businesses across the country are trying to figure out what it means to them. If passed, this legislation grants states the authority to require certain non-exempt remote sellers to collect sales tax.
The MFA would not override current state and local statutes surrounding product and service taxability, tax holidays, exemptions, or related rates, boundaries and rules. Existing nexus laws would not change due to this legislation. The stated purpose of the MFA is to “restore the States’ sovereign rights to enforce State and local sales and use tax laws….” The bill, as currently written, would authorize states to require remote sellers to collect and remit sales tax in accordance with state and local laws, as long as those states are in full compliance with the Streamlined Sales Tax Agreement, a member of the SST, or implement a minimum set of simplification measures.
The current state of MFA legislation
How it may impact your business
The potential schedule to comply. It could be sooner than you think.
Ways to be ready prior to enactment
Dianne, NM
"Current and relevant topic! Gross receipts tax is one of the most complex taxes. It's not always intuitive and is higher risk for error for CPA's. The speaker knew the subject well and indicated the "heads up" on what CPA's need to know in order to not get surprised by audit letters from states with gross receipts tax. State governments are finding ways to extract more sales tax now that the world is more virtual. He also addressed this subject with thorough and relevant knowledge. This course is a must for any CPA that prepares business tax returns since preparing an income tax return begs the question to the client about proper reporting of sales/gross receipts tax if one is doing a thorough job."Yipfung, NJ
"Yes. I really enjoyed the webinar. The updated information I learned from the webinar helped me in my work and in explanning the new sales tax laws to my clients. I actually missed the last session and I ended up watching the recorded one. I decided to sign up again this time (of course the free of charge helps a lot). I found out it is different when you attend a live session. It allows you to participate the polling question and to engage the session and the topic. Your company was referred to me by one of my partners in my firm. I really enjoyed the webinar."james, NJ
"Expanding Sales Tax is the "next frontier" for cash starved States and local governments; regardless of MFA. Given that "the best defense is a great offense", ALL Tax Practitioners have a professional duty to evaluate each of their clients potential exposure AND help them formulate an cost effective and appropriate response ... the class is an excellent way to begin this process"Joyce, OH
"After participating in this webinar, I am really happy that my company recently invested in the sales tax and certification programs offered by Avalara! We are in the process of implementation and once completed, I will feel much more confident that we are collecting and remitting all the sales taxes that we should be."Allen, DC
"As a former tax practitioner I found many businesses and individuals unfamiliar with the sales and use tax reporting requirements in States of residence and business situs. This presentation was an excellent refresher on the complexities of this subject and the need for professional responsibility."Linda Qbq, CA
"Your webinars are the best! I always learn so much. You have webinar partners that help the presenter to know when his screen is not being shared, or there's any other problem. You always correct any problems within 10 seconds. That has to be a record. Thanks so much."Lee, NE
"Thank you for your presentation. I will continue to follow Avalara as The Marketplace Fairness Act of 2013 works it's way through the House as this is by far the most understandable information that I can share with my clients, that I have found to date."Charles, NY
"I learned what I expected to learn from the webinar. The presenter seemed quite knowledgeable and the (onscreen) material was most relevant. I would not hesitate to recommend this course to my colleagues."
Avalara
Vice President of U.S. Tax Policy and Government Relations
webinars@avalara.com
(615) 598-4337
Scott Peterson is Avalara’s Vice President of U.S. Tax Policy and Government Relations. Prior to Avalara, he was the first Executive Director of the Streamlined Sales Tax Governing Board—an organization devoted to making sales tax more straightforward and more uniform for the benefit of businesses. Scott also spent 10 years as the Director of the South Dakota Sales Tax Division and 12 years providing research and legal writing for the South Dakota Legislature.