Tri-Cities Talk: Would An Online Sales Tax Help Local Businesses?

Welcome to Tri-Cities Talk—a regular feature in which we ask our Facebook fans to share their views on current issues facing Geneva, Batavia and St. Charles.

Every week, we get the conversation started by taking a look back at a question we asked the Tri-Cities community in recent days on local Patch Facebook pages.

The U.S. Senate has been considering the Marketplace Fairness Act, which would require businesses with more than $1 million in annual Internet or catalog revenue to collect sales tax for online purchases and send them to the state where the buyer resides. A Huffington Post report cites a National Conference of State Legislatures estimate that states collectively lost $23.3 billion in sales tax revenue in 2012 due to online sales.

Supporters say the bill would help retailers battle a practice called showrooming, when shoppers survey goods at a brick-and-mortar local store but then buy it from an online competitor. Ad Week cites Placed and Gartner research that 60 percent of customers use traditional retailers to examine items they intend to buy online. 

Opponents say it would harm small business by making them tax collectors and "put them in a position of having to purchase software to calculate sales taxes," according to the Huffington Post report.

That brings us to this week's question:

Would the Marketplace Fairness Act benefit brick-and-mortar businesses in the Tri-Cities?

Take a look at what people had to say and join the conversation in the comments section. 

Bill Koc: Not likely. Internet prices are generally cheaper. — Batavia Patch Facebook

Bruce R. Tison: That could add literally hundreds of forms and remittances to be made each month. Too bad that there can't be one Internet sales tax that was easy to administer and would also be easier to audit. The playing field should be leveled, but it could possibly backfire. — Geneva Patch Facebook

Debbie Stack Kasprzak: NO! This will only hurt small businesses and entrepreneurs. The government needs to get less involved rather than more involved. I have a small business, online website. This will only destroy my chance to sell all across the US plus be a pain to manage with having to pay taxes in all 50 states separately. Only the large corps will be able to keep selling online, the small business man will not be able to keep up. Most businesses today have websites and sell online but only the large ones will be able to still be able to manage the online sales once the government gets their hands involved. I don't see how it is fair to the small business owner, seems like they get punished for trying to succeed. — St. Charles Patch Facebook

Patrick Binning: No, taxes more than likely will get passed along to the consumer which will increase the total cost of said goods. I am willing to bet many small businesses in the Fox Valley purchase supplies for their business via retailers such as Amazon and others, with this tax, even though the purchase would be a write-off, it comes off their bottom line. Personally I have faith that businesses both large and small are much more efficient and wise about spending their money than Government's ability to do so. — Batavia Patch Facebook

Ed Bianchina Jr: How about enough taxes! — Geneva Patch Facebook

Jill Harder: As a local small business owner, I feel this may level the playing field a bit. Why should Internet companies be exempt and other businesses that provide jobs and pay local taxes are not? Local small businesses also support the community in other ways such as sponsoring local club events, kids' teams, etc. — Batavia Patch Facebook

Laurel Stanard Flinn: How can you guarantee the taxes paid come back to your community? Just another governmental way to suck the life out if businesses — Batavia Patch Facebook

Tim Tumminaro: Well there goes the free universe of the Internet. Glad i saw it before the greedy politicians got their hands on it. If Illinois could benefit from it great but with 4 of the last 5 governors doing time i hardly see our debt going down i mean really tollways is my best example of it. — Batavia Patch Facebook

Nell Thelin Novak: It's a sin tax that is intended to change consumer behavior. If we tax cigarettes and liquor higher and higher the intent is to change behavior (and make money on those that don't). This is the same thing - the intent is to encourage consumers to buy locally, while collecting taxes from those that don't. It evens the playing field as well. — Batavia Patch Facebook

So what's your take? Tell us in the comments. 

CLICK HERE TO SEE WHAT YOUR NEIGHBORS HAD TO SAY IN PAST TRI-CITIES TALKS.