|Lawsuit Filing: Halstead Bead (PDF)||Video: Why Sales Tax Laws Need Reform For Small Business Prosperity||Release: NTUF Files Landmark Federal Lawsuit to End Sales Tax Nightmare for Small Businesses|
|NTUF's Response Briefs in Halstead Bead|
The more complex a given set of laws is, the harder it is for small businesses to keep pace with major corporations that have the resources to navigate around complex laws. That's the case with sales tax laws around the country. The way that states and localities treat online sales taxes has exploded in complexity in recent years. And that's why small businesses like Halstead Bead, Inc., are beginning to fight back.
I fear for the future of our small business and a lot of others.
- Halstead Finance Director Brad Scott
Halstead Bead is a family-owned jewelry and crafts wholesale business started fifty years ago in Prescott, Arizona. Today run by husband-and-wife team Hilary and Brad Scott, the business sells to customers around the country. But some states have made it nearly impossible for small businesses like Halstead to operate: In Louisiana, businesses are now expected to comply with different tax laws in 64 different parishes and file up to 750 tax returns every year. For large corporations like Home Depot that have the marketing and legal departments to comply, it's easy to do so. For businesses like Halstead, it's almost impossible.
The burden that Louisiana places on small businesses like Halstead Bead is so onerous that it should be considered unconstitutional. And that's why NTUF's Taxpayer Defense Center is representing Halstead Bead in a lawsuit against the state of Louisiana - in order to ensure that the kinds of businesses that can't afford massive legal teams can still sell to Louisianans.
“What the state’s sales tax structure does is cut off Louisianans from markets that other Americans have access to, and entrenches the power of the biggest companies in the U.S.,” says Hilary Halstead Scott, plaintiff in the suit and proprietor of Halstead Bead Inc. “When people can’t buy from small, family-run businesses, they turn to large companies that have the resources to meet the onerous compliance requirements. Louisiana’s sales tax rules reduce consumer choice and grow the power of big business.”
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