Business Owner: Sales Tax Law Unfair for Local Companies
By: KARK's Marci Manley
Updated: February 18, 2013
"We have to compete so we have to take everything into perspective," he said as the clicking, scraping, and brewing of Spokes shop in the background.
Mat Seelinger can tell you that winning in the retail industry requires a lot of moving parts.
"They will really like my bike but know they can get my bike less expensive on the Internet," he said. "Everything makes a difference, from shipping costs to taxes. People want to find the least expensive option."
And he believes sales taxes are ripping into Spokes and other local shops' sales.
Current tax law allows online and catalog retailers to skip collecting sales tax if they are operating out of state.
"I shop online, and there are some sites that I buy from that have a location there, so they will charge me, but other sites don't," said online shopper James Rowland.
Customers are supposed to pay the tax on those online purchases to the state themselves, under sales and use tax law in Arkansas.
"I didn't even know there was a form to fill out to pay sales tax or anything like that on stuff I buy online," Rowland said.
"I just thought it was taken and added onto, like regular, everyday purchases," said fellow online shopper Hillary Haley.
Seelinger believes he misses out on business, because customers see the no-sales-tax price as a savings online.
"It makes a huge difference because everyone is trying to save the buck," he said. "I see it every day where people are shopping in my store, and comparing my prices to what they can find online."
Arkansas' Third District Representative Steve Womack (R) has asked Congress to consider giving states the option to require online retailers to collect the tax. He believes the Marketplace Fairness Act of 2013 would level the playing field for shop owners like Seelinger.
"It would definitely make it a lot better for everyone," Seelinger said. "Not just my business, but businesses across the board who have to face this. It's just not fair."
The Marketplace Fairness Act is one federal law Seelinger stands behind to keep out-of-state companies from riding off with his customers.
