---
title: Consumers Speak Out About the Internet Sales Tax Law
description: Endicia recently surveyed the consumer’s responses to the Internet Sales Tax Law and created this infographic to display the findings.
image: https://blog.miva.com/hubfs/internet_sales_tax_endicia.jpeg
---

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# Consumers Speak Out About the Internet Sales Tax Law

By Miva | May 17, 2013

- [Ecommerce Selling](https://blog.miva.com/tag/ecommerce-selling)

![What internet sales tax means for small ecommerce business](https://blog.miva.com/hubfs/internet_sales_tax_endicia.jpeg)

### Before You Read On...

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The Marketplace Fairness Act of 2013 was recently met with [approval from the U.S. Senate](https://blog.miva.com/latest-news-senate-passes-the-marketplace-fairness-2013) and is currently being reviewed by the House.  If the Marketplace Fairness Act of 2013 is passed, Ecommerce businesses will have increased overhead costs, new sales tax reporting requirements, increased risk for lawsuits and tax audits, potential loss of sales, and a competitive disadvantage in the marketplace.  Academic studies have estimated that more than $12 billion additional sales taxes will be collected from Ecommerce stores each year, if this bill is passed, according to CNN.

## The Consequences If It Passes

- It will keep small Internet companies small forever. Online companies will never grow past the $1M threshold because they will be punished severely for passing it.

- It will cripple mid-sized Internet companies so they cannot compete with Amazon, Walmart, Best Buy and other large supporters of the bill. Small and mid-sized companies will not be able to afford the cost of compliance and the barrage of audits from all 50 states and many will eventually be forced out of business.

- The cost of compliance for small and mid-size online businesses that do survive will significantly reduce their earnings and imperil the livelihoods of all who work for these businesses.

- And much, much more …

 

[Endicia](https://www.endicia.com/) recently surveyed the consumer’s responses to the Internet Sales Tax Law and created this infographic to display the findings.  Their biggest finding from the consumer reaction to the bill was that 60% of shoppers said that they would change their online shopping habits if it gets passed.  This would mean that 60% of your customers could potentially be lessening or stopping their shopping on your website all together.  Of this 60 percent Endicia found that 44 percent they would buy less online, 12 percent said they would buy more from their hometown stores, and 4 percent said they would purchase more from big retail chains.

![Consumers will buy less if internet sales tax goes into effect](https://blog.miva.com/hs-fs/hubfs/endicia_infographic.jpeg?width=777&name=endicia_infographic.jpeg)

The Marketplace Fairness Act of 2013 would affect online retailers making more than $1 million in annual sales; the money collected would be used to fund local and state governments.

Help ensure that the Internet sales tax bill is fixed or defeated: Write to Your Congressman Today.

*photo credit: [davidrossharris](https://www.flickr.com/photos/davidrossharris/2424595836/) via photopin cc*

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