Shaheen: Internet tax would have big impact on Somersworth small business

03/172015

Somersworth, NH — A proposed federal tax on Internet sales could cost a Somersworth company $2,000 a month and thousands more just to set up a way to collect the tax.

U.S. Sen. Jeanne Shaheen (D-NH) visited TradePort USA in Somersworth Monday to highlight the impact of the Marketplace Fairness Act, which would allow states to compel online and catalog retailers, no matter where they are located, to collect sales tax at the time of a transaction.

Shaheen said it's basically a tax on the Internet and it would have a real impact on small businesses.

According to TradePort Vice President Sam Biddle, the company's business model is reverse logistics, or what happens to a product after it's sold.

They take products that are returned under warranty or at the end of a lease and find the best way to repurpose it.

"Our value is in being able to take that product and put it in the hands of a second consumer," Biddle said. "So it doesn't go into a landfill."

Shaheen said TradePort would be hit hard because so much of their sales are online.

"If they have to enforce this legislation, they will have to deal with 9,600 different taxing entities in 46 states," said Shaheen.

Biddle said there are software packages available, which cost about $2,000 a month, once they have been set up.

"It could take up to three months of development time," Biddle said. He added that an employee would need to be assigned and spend about one-third of their workday to monitor the process.

Shaheen said the idea on Internet sales tax is particularly troubling to New Hampshire small business because there is no sales tax and therefore no infrastructure in place.

"We would be asking these small businesses to collect taxes from 46 states," Shaheen said. "They would be subject to auditing by those states. So it creates a real difficult hurdle."

Shaheen said there are five states that don't have a sales tax and the senate has been looking at exempting those five states with an amendment to the bill.

The fact that New Hampshire doesn't have a sales tax in place creates a real challenge according to Shaheen.

"The money in a most of those states goes back to the state, or the municipality, but that's not true in New Hampshire," Shaheen said. "So that's one of the real problems, we think we are unfairly disadvantaged by this kind of a tax."

Shaheen said a vote could come in the next few weeks.

About TradePort:
For a decade, TradePort has offered an outsourcing service for asset recovery, third-party logistics, and reverse logistics for consumer electronics. Our New England warehouse and headquarters offers reverse logistics, consumer electronics test and repair, manufacturer warranty negotiation, Internet marketing and resale.

We have established our own quality standard for preparing merchandise for resale called TradePort's Product Evaluation Process (PEP). Our expertise lies in consumer electronics asset recovery, reverse logistics, merchandising and marketing. Our trade-in and recycle program delivers value to your customers by providing sustainable options while being environmentally responsible. TradePort is ISO 9001 : 2008 certified. For more information visit: www.tradeportusa.com

Media Contact:
Allyson Kimball, Director of Marketing & Communication
TradePort
22 Canal Street, Suite 125
Somersworth, NH 03878 603-692-2900
akimball@tradeportusa.com
TradePort

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