Footwear Insight

12 • Footwear Insight ~ July/August 2018 THE FOOTWEAR EYE N avigating the new "fair and bal- anced" sales tax playing field for online and local retailers, created by a June U.S. Supreme Court ruling, will require sellers to take a closer look at their cus- tomers' tax exemption status, the assorted tax rules of the states where they conduct transactions and a close examination of the categories of products they market. With tax laws and regulations varying from state to state, both sellers and buyers now need to clarify how sales tax rates apply in particular business uses and what customers and types of transactions might be exempt from sales tax collection. For now, at least, navigating online tax collecting and reporting responsibility will remain a difficult task despite the 5-4 ruling by the U.S. Supreme Court that upholds a 2016 South Dakota law requiring online merchants with more than $100,000 in annual sales or 200 transactions within a state to collect sale taxes from customers. The National Retail Federation continues to believe federal legislation remains necessary to spell out specific details on how sales tax collection will take place rather than leave the taxing issue for each state to interpret. But at this juncture, it's highly unlikely the matter will be addressed by Congress before the upcoming holiday season or November mid-term elections. There are a number of areas online sellers now need to be cognizant of in regard to sales tax collection. Foremost among them is the fact that online mar- ketplaces are now considering more states liable for process- ing sales tax on transactions. Additionally, a manufacturer- purchased product for use on a factory floor may now be subject to sales tax if it is not directly involved in the produc- tion process. Despite the potential pitfalls surrounding implementation, the movement to secure widespread online sales collection, prompted by the Supreme Court ruling, was praised by both the Outdoor Industry Association and the National Sporting Goods Association. In a Supreme Court brief filed earlier this year, various trade organizations maintained the lack of uniform tax collection is "inflicting extreme harm and unfairness" on local retailers by "distorting the retail market in favor of absentee e-commerce." — Bob McGee footwearinsight.com Internet Sales Tax Rules and What They Mean for Retailers Celebrating 25 Years of U.S. Manufacturing with Kamik STRATEGY MADE IN USA KAMIK FOOTWEAR RECENTLY CELEBRATED the 25th anniversary of its Littleton, NH, factory with a special event honoring Kamik employees and local business partners. Founded in 1898, the outdoor footwear brand chose Littleton as the home for its first U.S. fac- tory back in 1993 and Kamik execs say they are looking forward to a future of producing even more American-made products and local jobs for their community. "I still can't believe it was 25 years ago that Kamik started its U.S. manufacturing right here. It all seems like yesterday. I never thought that one day we would even outgrow this building that was too big initially. We now have a second sewing plant down the street. To this day, we have produced over 23 million pairs of Made in the USA footwear in the most sustainable way," says Joe Bichai, Kamik's VP-manufacturing. O The Kamik team in Littleton.

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