Governor Haslam’s Revenue Modernization Act Could See Major Changes For Tennessee’s E-Commerce

Startup and I.T entrepreneur Alex Lavidge is welcoming Governor Haslam’s sales tax proposals for internet goods and services.
 
He feels the bill could grow in-state customer bases for Tennessee’s I.T companies over  Silicon Valley startups.

Alex Lavidge, I.T Entrepreneur,"We see a lot of traction here with e-business with tech companies especially in Chattanooga where we have a gigabit fibre network over 600 square miles".

The proposal would see out of state businesses with more than half a million dollars worth of sales in Tennessee now pay franchise and excise taxes.

The law  would apply also to companies who have no physical presence in the volunteer state.

David Smith, Governor Haslam’s Office,"No new taxes are being proposed but again this bill seeks to level the playing field for sales and business taxes, especially between companies outside of Tennessee that do business here."

This could lead to hundreds of games, movie and video software used online subject to sales taxes for the first time.

Jake Brown, Hardware Specialist for TORCH,"If that software vendor does not have a presence in the state of Tennessee, then that is missed sales tax revenue so modernizing the tax law in this way would make vendors in Tennessee competitive with out of state vendors so it would be a very positive move".

        Accountants want more states to move their sales tax systems into the 21st century.

Kevin Rose, Partner, Henderson, Hutcherson and McCullough,PLLC, Accounting,"Understand and be able to comply with other states taxing system, that’s kind of my two cents, we would like to see more uniformity across the states as regards to the way they tax goods and services over the internet".

        The first wave of tax changes for internet business could become reality in July with more come into affect in January of 2016.    
    
     Alabama and Georgia and 20 other states have already introduced similar legislation.

For more information:
 http://www.tn.gov/governor/legislation/revenue-modernization.shtml