Washington Information Network
Washington's resource for political activity and issues important to retail industry professionals. Distributed to 2,800 subscribers
April 3, 2013
Washington Retail Association Newsletter
 Staff Contacts

 Jan Teague

President/CEO

360.943.9198, ext. 19

[email protected]

 

Mark Johnson

Vice President of Government Affairs

360.943.9198, ext. 15

[email protected]

 

Tammie Hetrick

Vice President of Retail Services (RASI)

360.943.9198, ext. 13

[email protected]  

 

Jim Szymanski

Director of Public Affairs
360.943.9198  ext. 12

 

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In This Issue...
Small business tells its story about unfair competition
House hears business licensing bill
Cities, counties support Retro scheduling bill
WRA commentary on Inslee's new taxes published online
WRA co-sponsors three free webinars this year
Legislature heads toward adjournment
Senate unveils $33.2 billion budget
WRA urges retailers to reject court settlement on swipe fees
Oregon promotes no sales taxes in commercial, video
WRA shipping service redesigns, improves websites
Thursday webinar scheduled regarding health care law
Beer, oil industries protest Inslee's tax proposals
Temporary health exchange website launched
Kreidler has heart surgery
Research Council annual dinner set for June 4
Homeland Security issues new I-9 hiring form
Free disaster survival seminar in Bremerton, April 11
Safety tip

Small business tells its story about unfair competition

By Jan Teague, President/CEO

 

This past Thursday U.S. Representative Suzan DelBene invited me to meet with her and Kirkland reporters during a small business tour to talk about online retailers not collecting the state's sales taxes.  I was reminded why our small retailers are having so much trouble competing with out-of-state online retailers who don't collect taxes on sales.

 

These small retailers have to buy enough product to stock their shelves.  They pay ahead of time and incur shipping costs.  Once the shelves are stocked, people come in and find what they are looking for and may stand right in the store with their cell phone and shop for the same item online.  Often the item comes right from a warehouse and the customer gets a lower price and doesn't pay the state's sales tax. 

 

In one bicycle store, the owner said that he can spend an hour helping a customer with an expensive bike that needs to be fitted to the customer, then the customer goes online and orders the bike. In this digital age the trend is expected to continue.  These small retailers need help with this situation and the Main Street Fairness Act being considered by Congress will help by requiring online retailers to collect sales taxes like traditional retailers do.

 

I appreciated Representative DelBene working on this issue and it makes perfect sense.  She was Washington State's Department of Revenue Director prior to her election last fall and now sits on the House Judiciary Committee where the Main Street Fairness bill is expected to be heard.  DelBene has signed on as a sponsor.  It's great for Washington State to have her in that position because DelBene really understands the issue, particularly the tax revenue losses that the state continues to see because taxes from online sales aren't getting collected.

 

State residents are required to pay sales tax on their purchases.  That is how we fund the state's services that these same residents use.  But there is no way to enforce having online customers send in their tax obligations.  It must come from the online retailer who should collect it when the sale is made.    

 

Representative DelBene pointed out during the tour that the bill now being considered is the first step to getting businesses the competitive relief they need. There is an exemption in the bill that online retailers who do $1 million or less business a year would not have to collect sales tax.  Online retailers argue that it would be too hard to do for a small online retailer who does business in a lot of states. 

 

But DelBene believes that the technology to make it extremely easy is just around the corner.  The burden will melt away.  At that point Congress can take up the exemption threshold and fully level the playing field.   

House hears business licensing bill

By Mark Johnson, VP Government Affairs

 

Yesterday the House Appropriations Committee heard Senate Bill 5656, requiring cities to join either the state or city-run portal business licensing services by 2019, prime sponsored by Senator John Braun (R-Centralia).  WRA supports this bill.

 

One of the major complaints by businesses, especially smaller businesses, is that getting a business license and paying your B and O tax is unnecessarily complex, lacks conformity and transparency and is difficult to navigate.  Testifying at the hearing along with Senator Braun was Senator Mark Mullet (D-Issaquah), a small business owner.  He expressed the difficulty with working to adhere to the existing requirements as a small business owner.

 

Centralizing administration of these services will make it easier and faster for businesses to comply.  Fifty-five cities have already joined the state system.  Several are in the city portal system.  Having a 2019 requirement date gives cities plenty of time to adopt one of the two systems.

 

We encourage the legislature to approve SB 5656.

Cities, counties support Retro scheduling bill

 

Tammie Hetrick, WRA's VP of  Retail Services, testified this week during a House hearing on SB 5112 that would allow Retrospective Rating programs to schedule medical examinations and refer for vocational services under supervision of the Department of Labor and Industries.

 

WRA backs the bill because it would improve the efficiency of processing workers' compensation cases, speed claims and save insurance costs in the system.

 

"The bill received good testimony and a lot of support," Hetrick reported. "We received good support from cities and counties."

 

Hetrick is hopeful the House Committee on Labor & Workforce Development will advance the bill to a vote of the entire House. The Senate passed the bill early in February.

 

Under the current proposal, Retrospective Rating programs would conduct a pilot program subject to review and possible renewal in 2016. It resulted from a series of reforms the 2011 Legislature believed were necessary to speed resolution of claims and to save money. All exams in the state-fund are currently scheduled exclusively by L&I.

 

Though the outcome for the bill is unknown, Hetrick said results may not be known until shortly before the Legislature's scheduled April 28 adjournment.

WRA commentary on Inslee's new taxes published online

 

WRA President/CEO Jan Teague authored an opinion piece this week calling into question Gov. Jay Inslee's proposal to repeal a non-resident sales tax exemption currently offered in Washington State.

 

Teague wrote that a repeal is bad policy that would damage economic development and threaten retail jobs prior to the retail industry recovering from the recession. State Employment Security data show there are approximately 6,200 fewer retail jobs in the state compared with January, 2008.

 

In some cases, repealing the exemptions would add hundreds of dollars of cost to the price of more expensive items and discourage sales in Washington State, particularly for small Southwest Washington businesses along the border with Oregon, Teague wrote.

 

Visit Washington State Wire to read Jan's article. The Washington Research Council also posted Jan's article on its website. 

WRA co-sponsors three free webinars this year

 

WRA is offering members three free webinars this year in cooperation with the Council of State Retail Associations.

 

To register ahead of time, click on the following links:

 

*Intro to Social and Mobile Media Marketing, on April 24 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

 

*How small retailers can recognize and prevent shoplifting, on May 21 - 6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or 9:30 a.m. MT / 8:30 a.m. PT (Webinar 2)

 

*Intermediate Mobile and Social Media Marketing, on June 27 -  6:30 a.m. MT / 5:30 a.m. PT (Webinar 1) or  9:30 a.m. MT / 8:30 a.m. PT (Webinar 2).

  

Please contact Jan Teague, WRA's President/CEO, if you have questions at 360-943-9198, Ext. 19 or a [email protected].

Legislature heads toward adjournment

 

Today is Day 80 of the Legislature's scheduled 105-day session.

 

WRA is narrowing its work down to key bills of importance to members before the Senate and House release their versions of a new state budget in the next few days. Many bills remain in flux in the final few weeks of the session with details changing by the hour.

 

Here's a summary of the key bills WRA is watching whose outcomes appear more certain:

 

*HB 1422, SB 5517, to expand beer and wine tasting locations. Both have proved popular with legislators. The Senate this week sent the House bill to the Rules Committee. It already has passed the House. The Senate bill is in House Rules and has already passed the Senate. WRA supports both bills as a new business opportunity for retailers.

 

*HB 1294, flame retardant ban. The bill has passed the House and is before a Senate committee for further action. WRA is working to remove an expensive clause that would require companies to perform more chemical testing.

 

*SB 5178, flash mob robberies. The bill to curb mass, spontaneous robberies organized on social media has passed the Senate and is scheduled for a hearing today in a House committee. WRA supports the bill.

 

*HB 1971, E-911 prepaid wireless tax. A House committee has recommended passage of a bill that would require retailers to collect a fee at the point of sale. WRA is urging defeat of the bill while working to retain a 5-cent reimbursement for retailers if they wind up being required to collect the fee.

Senate unveils $33.2 billion budget

 

Leaders of the state Senate today unveiled a $33.2 billion budget proposal without business tax extensions or proposals to end a variety of tax incentives.

 

The plan proposes $1.5 billion in new funding for K-12 education. It went to the Senate Ways and Means Committee for further discussion this afternoon.

 

Today's proposal will be followed by a budget proposal from the House of Representatives in the coming days. The legislature then will work to reconcile the proposals in time for the scheduled April 28 adjournment date for the current session.

 

Unlike Gov. Jay Inslee, who has proposed university tuition increases of up to 5 percent in his budget suggestions, the Senate proposal would cut tuition by 3 percent.

 

Read the entire budget proposal here.

 

Source: TVW

WRA urges retailers to reject court settlement on swipe fees

New website speeds response for retailers

 

WRA President/CEO Jan Teague is asking members to reject a proposed court settlement with Visa and MasterCard regarding fees they charge retailers who do business with those creditors.

 

A new website launched by a coalition of business groups who agree with WRA makes it easier for retailers to opt out of the settlement. Go to http://www.merchantsobject.com to learn more and register opposition to the settlement.

 

Retailers should have received a 27-page notice from Visa and MasterCard regarding a lower court decision on transaction fees. The National Retail Federation, Retail Industry Leaders Association and WRA consider it a bad settlement and are urging retailers to reject the terms before a May 28, 2013 court deadline for objecting to the deal.

 

In exchange for minor financial relief for fees paid, retailers would waive all rights to further litigation against Visa and MasterCard.

 

The settlement notice includes a form Teague urged members to fill out stating that they object to the settlement. By opting out the settlement, retailers lend weight to attempts to negotiate terms more favorable to retailers.

 

To opt out of the proposal, retailers must submit an attached letter to the settlement administrator by May 28. The attachment includes both a letter to object to the settlement and another one-page form to opt out of receiving any payment.

 

At a minimum, WRA is asking that retailers submit a letter of objection that will help when the appeal is heard on the terms of the settlement this fall. The letter of objection can be submitted and will not change a retailer's settlement payment should a retailer want to settle now.

 

It must be mailed to Payment Card Interchange Fee Settlement, P.O. Box 2350, Portland, Oregon 92708-2350 and postmarked by May 28. Retailers are urged to keep a copy of the opt out letter for their records.

Oregon promotes no sales taxes in commercial, video

 

Legislators who will vote on WRA-backed bills this session to waive or contain sales taxes should watch a commercial that has been airing in Washington by Travel Portland.

 

The 15-second commercial that recently has been on major Washington tv stations encourages visitors to shop in Oregon because it doesn't have a sales tax. Tourism promoters in Oregon know the same reality as WRA: lack of a sales tax is an incentive to stretch budgets and to shop.

 

WRA supports HB 1329 and SB 5529 that would allow a sales tax holiday weekend starting this year for back-to-school items. A study shows it would raise government revenues by encouraging shoppers to buy other items on which there is a sales tax.

 

WRA opposes HB 1273, which would repeal the sales tax exemption for out-of-state residents. This tax break has proven to be an effective incentive for Oregon residents to shop across the Columbia River if they work in Vancouver, and similarly for Spokane retailers.

 

Sources: You Tube, Washington Legislature

WRA shipping service redesigns, improves websites

 

The company offering WRA members shipping discounts this week announced several improvements to its website and shipping procedures.

 

Our national partner, PartnerShip, unveiled a new company website and an improved, separate shipping website.

 

The new company website includes new content, live chat, an employee directory and the ability to buy discounted shipping supplies. The new shipping site has streamlined the enrollment process.

 

As a WRA member, you could begin saving up to 27 percent on select FedEx shipping services by joining a new shipping service free of charge.

 

And considering new annual shipping rate increases from major carriers, it's a good time to check out WRA's agreement with PartnerShip, a national freight management company committed to reducing shipping costs particularly for small businesses.

 

Savings from the new shipping program can, of course, help you to offset the cost of your WRA membership dues.

  

The program is available to all WRA members with no minimum shipping requirements or obligations. Enrolled customers can save up to 27 percent on select FedEx services and at least 70 percent on less-than-truckload freight shipments arranged through PartnerShip.

 

"The new WRA Shipping Program makes a great addition to our menu of services designed to save our members money," said WRA President/CEO Jan Teague. "This program is clearly advantageous to all WRA members."

Thursday webinar scheduled regarding health care law

 

WRA members are encouraged to register for an upcoming free webinar that will offer an overview of requirements related to national health care reform, the Affordable Care Act that takes effect next year.

 

Neil Trautwein, a national expert in health care reform for the National Retail Association, will moderate the discussion.

 

Regulations related to the act are being made public rapidly and with little advance warning. It's important for retailers to understand their obligations under this law to avoid possible penalties.

 

Click here to register for the webinar, to be held from 10 a.m. to 11:30 a.m. (West Coast time) on Thursday, April 4. The presentation is free to all NRF members and members of WRA.

Beer, oil industries protest Inslee's tax proposals

Newspapers accuse Inslee of breaking campaign pledge

 

The state's beer industry is protesting Gov. Jay's Inslee's proposal to make a temporary beer tax permanent and more widespread.

 

At the same time, state oil refiners are opposing Inslee's proposal to eliminate a tax incentive on "extracted fuel" that's worth about $40 million per biennium. The Olympian newspaper reported the dispute with refiners in this article.

 

Inslee wants to extend a temporary beer tax set to expire on July 1, make it permanent, and expand it to craft beers. Brewers say that raising prices will threaten their livelihoods and be counterproductive to helping the state's financial struggles.

 

Visit End The Beer Tax Now for more information.

 

Newspapers around the state also have begun challenging Inslee on his tax proposal as a betrayal of his campaign pledges against raising taxes. Inslee denies the claims and says he doesn't consider extending existing taxes or repealing tax exemptions as raising taxes.

 

Regardless, newspapers in Walla Walla (subscription required) and Chehalis (subscription required) disagree with Inslee in their editorials.

Temporary health exchange website launched

 

The Washington Health Benefit Exchange this week launched a website to begin answering questions about how health care reform will work in the state. The new site will evolve into the online portal where customers will be able to compare policies available to them.

 

Washington is one of a dozen states that elected to establish its own health care exchange accessible through the website, www.wahbexchange.org. The site will begin enrolling customers on Oct. 1 for health insurance policies that will take effect on January 1, 2014.

 

The new temporary site will "re-launch" in the same location later this year.

 

Any questions or comments about the site or the enrollment process can be directed to [email protected] or by calling 360-407-4100.

Kreidler has heart surgery

 

State Insurance Commissioner Mike Kreidler underwent heart surgery this week, according to newspaper reports.

 

Kreidler, 69, had bypass and valve-replacement surgery at Providence St. Peter Hospital in Olympia, according to a report in the Tacoma newspaper. He is reported to be well on the road to recovery.

 

Kreidler was re-elected in November to a fourth term.

 

Sources: Seattle Times, Tacoma News Tribune

Research Council annual dinner set for June 4

 

Bill Bishop, co-author of a book that details how modern demographics explain recent elections, will headline the Washington Research Council's annual dinner on June 4 at the Bellevue Club.

 

Bishop co-authored The Big Sort, which describes America as increasingly clustered into culturally and politically homogenous communities even as the nation becomes increasingly diverse. Scholars and politicians alike cite Bishop's findings to explain modern election trends and outcomes.

 

For more details about the dinner, visit Research Council, contact [email protected] or call 206-467-7088. A 5:30 p.m. reception will precede the event.

Homeland Security issues new I-9 hiring form

 

By May 7 of this year, employers must shift to using the U.S.Citizenship and Immigration Service's new employment eligibility verification form.

 

The new, longer form is available now for employers who want to get used to the new forms earlier than the deadline for switching over to the new format.

 

The new form is two pages instead of one and includes additional data fields, including an employee's foreign passport information (if applicable) and telephone and e-mail addresses. The immigration service also believes the instructions are clearer for employers and applicants to understand.

 

Visit form to print a copy of it. Visit notice to review the Federal Register announcement about the new form. 

Free disaster survival seminar in Bremerton, April 11

 

Kitsap County businesses are invited to a free disaster survival seminar on April 11 at the Kitsap Conference Center at Bremerton Harborside.

 

The seminar aims to help businesses prepare for and respond to disasters ranging from floods to earthquakes. It is presented under the auspices of the Kitsap County Department of Emergency Management. Hours are from 9 a.m. to 3 p.m.

 

Many unprepared businesses don't survive disasters or they lose market share if they recover. The seminar will outline steps to maintain continuity through an interruption in service.

 

Pre registration is requested. To register and learn more, click on survive

Safety tip: (one in a series)

Learn how to write an accident prevention plan

 

Labor & Industries reports that about 110 employees a year are killed statewide in work-related incidents. Even when lives are not lost, workplace injuries are expensive.

 

Workers lose time and pay, the employer loses productivity, morale may suffer and it can be costly to train replacement workers.

 

Despite these costs, the Washington Industrial Safety and Health Administration reports that the lack of an accident prevention program is the most common rules violation that inspectors discover at companies. Regardless, most employers in the state are required to maintain an accident prevention program that employees can review. An APP could be the one thing that prevents an expensive accident.

 

Labor & Industries and WRA can help companies get started if they do not have a required accident prevention program related to the potential hazards of their workplace.

 

L&I has published a guide on its website that offers instructions on composing an accident prevention program. The state guide offers two templates for writing a safety program: one that meets state rules and regulations and another that exceeds state standards. The site includes examples of what content an accident prevention program should include, tips on avoiding certain mishaps and links to resources related to workplace injuries and prevention.

 

WRA's safety advisor, Maria Justin, also can help outline an accident prevention program for members and suggest safety meeting topics. Contact her at 360-943-9198, Ext. 21 or at [email protected]. 
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