Tag Archive for 4203

So You Want To Buy Something?

So far, second thoughts might keep the additional burdens of doing business in Michigan at bay.

I have lost some big sales in other states because of ‘Amazon Laws’ in the past few years.

Its an amazing thing that happens when your cost of doing business in a state goes up by 10%. (Michigan will be 6%) You lose customers, they pay more, or you eat the costs.  The first option is of course the worst of the three, but when profit margins range between 15-20%, 10 points represents at least HALF the profits, and can be discouraging to even attempting to sell.

California has some of the most used shipping ports, so its natural that many warehouses are located there. It also has quite a large population.  Our business has historically sold more to California customers, than those in Michigan. But a few years ago, I was notified by one of my suppliers who drop ships for me in that state, that unless they had an exemption form on file for the customers, they would have to charge an additional 10% for the product to cover THEIR tax liability; CA Sales tax being 8% and an additional 25% tax for assumed mark-up.

I had a choice.  I could in some cases ship product all the way here, then ship all the way back, and salvage a few pennies, OR I could simply find a supplier for similar product in other state warehouses willing to ship to California.  The unnatural commerce that had to evolve (and quickly), wound up raising the cost of doing business.  It raised the cost and in some cases slowed service for the customers in California who were STILL expected to report their ‘USE tax.’

You Betcha! (23)Nuh Uh.(2)

Crush The Little Guy.

Kowall and Verheulen play along with monster rent seeking bills.

Bills 4202 and 4303 are designed to do just that.

Every layer of regulation has a time cost.  Never mind that (PER THE LAW) our business already collects sales tax from those who buy retail in Michigan. The big box stores want us to go through enhanced reporting requirements and spend additional time in the entire process of collecting tax as a service to the state.  This form of rent seek is commonly used to suppress competition.

Kowall and Verheulen or anyone who votes for this are the enemy of the ‘small e-tailer.’

Period.

Kowall-Verheulen-Taxers

You Betcha! (21)Nuh Uh.(3)