| Subject: | The State Of New Jersey |
| Date: | April 1, 2005 |
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RoadNarrows gains permission to sell to government agencies including academic institutions in the State of New Jersey. This, in of itself, is nothing significant except that it reflects on the sad state of interstate commerce laws vis-a-vìs the new world of internet trade. (Well, its not really that new anymore, is it?) A significant portion of many states' revenues are generated by sales tax. But how do you collect sales tax if the buyer resides in New Jersey and the seller (moi) resides in Colorado. For New Jersey (and other states) the solution is to require registration with the Department of the Treasury of the buyer's state so that taxes may be collected. But to register with the Treasury, a state business registration certificate is required. To get a business registration certificate requires a unique company name in New Jersey and a local address. Now keep in mind RoadNarrows LLC was organized in Colorado and is registered with both the state government of Colorado and with the Federal Treasury. So, at least in theory, any state could use this information to authenticate who we say we are, authorize operation in their state, and collect taxes. But instead, we are required a local presence. To do this, either:
Now let me stress that RoadNarrows is not picking on the the State of New Jersey. That would make no business sense. Each state has its own, sometimes arcane rules. What is needed is a fair, uniform set of national laws that enable sales tax to be collected rightfully by each state and for legitimate businesses to operate unburdered by unnecessary bureaucracies and costs. Thats a win-win situation. World peace would be nice also. |
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