|Login / Logout / Resources for Consumers / Create a FREE Online Account / Contact Us|
|Membership||Issues||Events||Professional Development||Who We Are||Contact|
DMA Testifies Against Streamlined Sales And Use Tax Agreement Before The Florida Senate Committee on Finance and Tax
February 5, 2009 — Testifying today before the Committee on Finance and Taxation of the Florida Taxation and Budget Reform Commission, the Direct Marketing Association (DMA) strongly urged the State of
While acknowledging the challenging, if not unprecedented, economic times for state governments and their need to cut costs and increase revenue, Jerry Cerasale, DMA’s Senior Vice President of Government Affairs, testified that, by joining the SSUTA, Florida would lose its sovereignty over its tax laws and not gain as much in uncollected sales tax income as proponents claim. Moreover, by joining the SSUTA, Cerasale explained that
Also in his testimony, which was delivered personally this morning in
Cerasale went on to say that the problem of uncollected sales tax is a self-correcting one, because after a company grows in size and prominence, it often becomes a multi-channel seller, with both Internet sales and the opening of retail stores. In terms of tax law, once a company opens a store, and, thus, has a physical presence in a state or “tax nexus,” the company is then required to collect sales tax on all Internet sales into the state.
“As companies grow in size, they frequently become ‘bricks & clicks’ operations,” said Cerasale. “Go to any direct marketing conference and see how much focus there is on how to reach customers and prospects in a multi-channel marketing environment. Multi-channel marketing is the wave of the future.”
Cerasale also told the Committee that DMA and its membership remain adamantly opposed to the SSUTA, and believe the Internet should remain free from burdensome taxes in order to ensure its continued growth and viability.
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents more than 3,400 companies from dozens of vertical industries in the
In 2008, marketers — commercial and nonprofit — will spend $176.9 billion on direct marketing, which accounts for 52.1 percent of all ad expenditures in the
The Power of Direct: Relevance. Responsibility. Results.
# # #