The Washington state Legislature is proposing to force small businesses with no presence in the state to collect and remit sales taxes by giving them the impossible choice — collect sales taxes and increase prices to consumers, or compromise the privacy of Washington buyers by disclosing their names, addresses and online purchase information to the Washington Department of Revenue.
As a small business owner, I’m troubled by this proposal.
Those lobbying for the policy claim it “levels the playing field,” and helps struggling mom-and-pop businesses. However, many small businesses are turning to the internet to reach new customers and grow their businesses, both online and on Main Street.
The playing field is already level. Under current rules, all businesses with property or employees in Washington state, whether they are brick-and-mortar or web-based, are required to collect the state’s sales tax.
If Washington leaders are serious about protecting consumers’ privacy and growing small businesses, they should abandon this questionable scheme and focus on finding real solutions to fund the state budget.
