Monday, May 15, 2017

House Raises Retailer Tax On All Sales Taxes

  The Oklahoma House of Representatives just passed a 1% tax on the retailers who  are required to collect and transfer sales taxes. It was a key feature of the collecting burden that our state placed on each retailer. In return for collecting and holding this money, the retailer was allowed a 1% discount for all the manpower and capital risk involved in being that agent for the state.
  As a result, all retailers are now going to be held responsible for all the risks and manpower. But no reimbursement will compensate businesses for the servitude. 
  By a technicality, the house leadership determined that  HB2367 is not a tax increase, even though real people know that it definitely is. the hike will likely start in July, if it becomes law.
  This added risk borne on the backs of our own retailers is one of many factors harming the economic environment. It will either be passed on to the consumers or deplete the competitiveness of our brick & mortar shops who already face stiff competition from web commerce giants like Amazon.
  Earlier this year our governor struck a special deal with Amazon whereby they claim that some sales taxes will voluntarily be collected. It's not known if Amazon will still get their sizable cut of the sales tax they charge Oklahomans; or if this will potentially break the deal that was just made.


from Sooner - Editorial

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