New York Technology Council Executive Director Donn Morrill and Matthew Evans, Manager of Public Advocacy for CompTIA, discuss the goings-on in Washington and what is being done to help small and mid-sized technology companies survive this difficult economic climate.

1. Federal Action Briefing
What is Congress doing to help technology companies?
December 12, 2011
@nytechcouncil

2. 2011 Sponsors

3. Special Thanks

4. Upcoming Events
Thursday Dec 15 – Holiday Cocktail Reception
Please join us as we celebrate the holiday season with a
three-hour, open bar reception.
Thursday Jan 5 – New Techniques for Protecting Cloud Data
A review of new research that will lead to safer data
storage in the cloud.
Monday Jan 9 – Cutting Edge Technology Showcase
A demonstration of awe-inspiring technology available
today.

5. Agenda
Internet Sales Tax
Crowd Funding
Payroll Tax Cuts
Cyber Security
Immigration Reform

6. Currently
45 States Have a Sales / Use Tax

7. Currently
States with sales tax also have a use tax
- Equivalent of a sales tax but onus falls on buyer, not seller
States prohibited from requiring out-of-state
sellers to collect sales tax unless there is nexus
- Store, warehouse, sales office, etc…
In the dark days before the Internet…..

8. The “Quill” Case
VS.

9. The “Quill” Case
Quill had no physical presence in ND
Quill DID provide customers with software to
check inventory availability
ND claimed nexus and tried to force Quill to
collect sales tax
The Supreme Court struck down ND’s efforts

10. Issues
Fairness in competition
State and local revenue
Use tax not enforced

11. Complications
Regional rates
Categorization of taxable items
Regional filing requirements
2008 NYS Internet taxation law
- Claims that affiliates achieve nexus
- Exemptions for sales under $10k

12. What Now?
H.R. 3179 – “Marketplace Equity Act”
Exemptions
• Total sales under $1 million
• In-state sales under $100k
“Simplification” Clauses
• Only states can collect tax, not regions
• Must use one of three rate schedules
•Blended
•Max
•Regional provided sufficient s/w solution

13. What Now?
Enzi-Durbin-Alexander bill – “Marketplace
Fairness Act”
Exemptions of $500k instead of $1mm
“Simplification” Clauses
• Single state agency must collect all taxes
• Uniform rate
• States must provide s/w to simplify process