Recently a lot of communities are focusing attention on the "discount" currently being given to online retailers.
In South Dakota, for example, the 137 year old Retailer Association (established to face the encroachment of the Sears-Roebuck Catalog) is suing Remote Retailers Over Sales Tax.
Of course that discount is, in New Mexico, approximately 7%, depending on which community you live in.
Duane Trythall, a former President of KeepItQuerque and long time member, brought this to my attention recently. He had written to his state senator and suggested KeepItQuerque do so as well. The Board of KeepItQuerque has determined collection of appropriate State, County and Municipal Sales Tax from "remote, online vendors" is in the best interests of New Mexico Business owners and the rest of our citizens.
Now is the time to respectfully approach your State Senator and Representative with your support for implementing a means ot tax - and collect - taxes on online purchase. With the Legislative Session beginning next month, and with the Sate coffers in dire conditions, our representatives must find revenue and KeepItQuerque suggests finding it by reducing the unfair advantage held by remote vendors who are siphoning revenues from our state that would otherwise re-circulate within New Mexico among New Mexicans.
- increasing New Mexico Gross Receipts Revenue - without increasing the tax burden on New Mexicans
- eliminating an unfair advantage of online operations
- providing stimulation to New Mexico's economy through increased incentive to Buy Local!
Here is the contents of my e-mail to Senator Cisco McSorley (and similar to the one I addressed to Representative Sheryl Williams Stapleton - (D) - Minority Whip); please feel free to use any portion you like, but by all means please write - and ask your friends to write -asking the State to charge sales taxes for online purchases at the retailer level.
A means of increasing local tax revenues without burdening local taxpayers.
Good Morning Senator,
Thank you for your service to our community.
New Mexico is obviously facing some difficult budget issues and I am confident that there are many places to trim our bloated government to save some money.
On the other hand, there is probably a need to raise some additional revenue and I am a strong advocate of doing that by taxing internet sales.
As a member of the Board of Directors of KeepItQuerque the information on how online sales are damaging our local economy arrive in my inbox daily. So it makes absolutely no sense to exacerbate the challenges of our local business owners by giving internet sellers a 7% advantage. This is all the more true because local businesses provide local employment and pay payroll, property, gross receipts and income tax in New Mexico. Local retailers also buy office furniture and office supplies locally: utilize local accountants, attorneys, printers, web designers etc.
If the internet sellers can compete on a level playing field, fine.
Otherwise we are subsidizing them to gut our local economy.
The optimum solution would, of course, be to fix our broken gross receipts tax at the same time. Absent the ability to do that, at least leveling the playing field with the internet sellers by charging them the same tax our local businesses pay is a good place to start.
Thank you, again, for your long service to our state,
Clifton Chadwick
