House Small-Business Committee Leaders Lament Wayfair Impacts

Millions of small businesses are faced with overwhelming and unfair tax compliance burdens because of the Supreme Court’s Wayfair decision (see 1807240040), said House Small Business Subcommittee Chairman Andy Kim, D-N.J. Ranking Republican Kevin Hern, Oklahoma, cited impacts on small-business owners in his state, during Tuesday’s hearing. Halstead Bead Finance Director Brad Scott said his Arizona company has spent $183,000 and more than 3,800 hours to collect less than $80,000 in sales tax. FindTape.com is registered in 30 states, which costs $600 monthly, testified President Kevin Mahoney. The bigger issue is the time it takes to reconcile the filings, typically about one or two days a month, he said. About half the states have followed South Dakota’s threshold of “more than $100,000 in sales or at least 200 separate transactions to the in-state market, while the other half adopted different thresholds,” said Grant Thornton Principal Jamie Yesnowitz, for the American Institute of Certified Public Accountants. South Dakota helped spark the court case. A lack of uniformity impairs business growth, said Yesnowitz. It has taken a year to comply and register and $75,000, said K-Log Vice President Linda Lester. Witnesses sought a uniform national standard.