Survey: West Des Moines Businesses Want Sales Tax for Web Businesses

Would you like to participate in West Des Moines Patch’s Small Business Survey? Fill out this 30-second form. Your participation will be noted in stories, but your responses will remain confidential.

Brick-and-mortar business owners  are at a competitive disadvantage because they collect sales tax, while many online merchants do not, according to the results of the inaugural survey for the West Des Moines Patch Small Business Forum.

The hyperlocal Patch Small Business Forum is based on the results of a survey e-mailed to the owners or managers of local businesses. Our first forum represents the responses from six businesses of those that have agreed to take part.

Half of respondents said they strongly agree that brick-and-mortar businesses are at a competitive disadvantage when compared with Internet-based businesses. Two businesses somewhat agreed with the statement, and one somewhat disagreed.

“The Internet will be the death of the small bricks-and-mortar business,” wrote one survey respondent.

“Keep business local, but also keep an even playing field,” wrote another. “It is just too easy to google a need and know you are saving money on the sales tax.”

Iowa’s Congressional Delegation Not Doing Enough 
Half of respondents also somewhat agreed that Iowa’s congressional delegation is not doing enough to move forward the Marketplace Fairness Act, which was introduced in Congress in November by a bipartisan group of senators.

Other survey respondents split on the question, with one saying they strongly agree, one saying they somewhat disagree and one saying they strongly disagree that the congressional delegation is doing all it can to move the legislation forward.

Should Internet-based businesses be subject to the same sales tax rates as bricks-and-mortar business? Discuss in comments.

The measure would level the playing field between Internet-based businesses and bricks-and-mortar retailers, and is currently in the Senate Finance Committee. Iowa’s Chuck Grassley is on the committee. 

Internet Taxes Won’t Slow Property Tax Increases
The National Retail Federation estimates that state and local governments across the nation lose $24 billion a year to untaxed Internet sales. 

Respondents generally did not think that taxing Internet sales at the same rate as sales in brick-and-mortar stores would stave off property tax increases by cities, schools, counties and other local entities.

A third of respondents said they somewhat agree that property tax increases would be offset, another third said they somewhat disagree, one strongly agreed and one strongly disagree.

“This will not deter other taxes from increasing,” said one respondent. “Our government may say that it would work that way, but I don’t believe it would.”

Participating West Des Moines businesses are:

• ,
• The Florist on 5th

Would you like to participate in West Des Moines Patch’s Small Business Survey? Fill out this short form.