We are a small, vertically integrated (from raw material to finished goods) manufacturer based in Michigan. We sell our goods via our eCommerce platform within the United States, and leverage Avalara to assist with managing sales and use taxes for the states that we achieve nexus with. It doesn’t sit right with me that we need to pay one service organization in order to pay more money in taxes. It is near impossible to navigate SUT manually due to the constantly changing landscape at the state, county, city, town, special jurisdiction, and “fee” levels. This extra draw on our resources is burdensome to allow us to grow our business, employ more team members, and pull in more revenue from other counties (currently 20% of our revenue). My proposal, via DOGE, is to flatten and simplify the reporting to the state level only, after which the state governments need to put in the mechanisms to handle to county, city, town, etc level distributions. To be clear, I understand the need for sales taxes to be collected by states as eCommerce grows, and the ability to collect tax revenue from brick-and-mortar stores is shrinking. However, we need assistance to make it easier for us to manage.
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we need simpler sales tax structure!