Dive Summary:

• Despite many proponents throughout the retail industry, the Marketplace Fairness Act of 2013 could cause severe conflicts for smaller online merchants to meet compliance standards.
• Online merchants which generate over $1 million per year in annual sales outside their designated home state will begin collecting sales tax up front.
• If passed into law, the bill could cost many smaller, independent merchants thousands in software updates and accounting fees – a potentially devastating impact on companies which operate on thinner profit margins.

From the article:

Natalie Mai, a small business tax attorney in Oklahoma City, doesn't represent Krauss. But she said many online shops of similar size won't be able to bear the cost of compliance. Even storefronts that only deal with one sales tax rate have a difficult time when business gets overwhelming and ledgers get messy. "If you're a mom-and-pop shop online, I doubt you'll be able to stay in business," she said.