WASHINGTON – Mark Ducharme, CFO and vice president of Monterey Boats, spoke about the negative impact tax nexuses on the recreational boating industry during a House of Representatives subcommittee meeting yesterday, the National Marine Manufacturers Association said in a statement.
Ducharme’s testimony was part of the House Judiciary Committee's Subcommittee on Commercial and Administrative Law hearing on the Business Activity Tax Simplification Act of 2008 (BATSA).
Ducharme testified at the hearing on behalf of the recreational boating industry. He spoke about the negative impact tax nexuses in Michigan and New Jersey have on his company in states where Monterey does not have an established “bricks and mortar” presence.
“When the taxing arm of each state does not consistently apply the law or provide clear guidance on activities requiring registration as an out of state corporation and potential tax obligation we are at a distinct disadvantage, not only with domestic manufacturer’s but foreign manufacturer’s as well,” Ducharme said in his testimony.
The testimony outlined Monterey’s experience with nexus taxing in Michigan, New Jersey and Washington. Ducharme concluded legislation should lead to consistent application of the meaning of “doing business in a state” and give all parties clarity regarding their obligations.
NMMA has been actively working to educate the House Judiciary Committee on the need to hold fair and open hearings on the Business Activity Tax and state tax nexus issues and the increasingly negative impacts a patchwork of ever-changing state standards has on small businesses across the United States. BATSA would ensure a level and fair playing field, allowing small businesses to plan for a standard taxing certainty and pay business activity taxes to states that provide them with direct benefits and protections, NMMA said.
- For more of the latest news, click here.