For the first time in my life, I have to say that it is not as much fun to own a business in Kansas. As a life long resident, this pains me greatly. Nine years ago, my wife Cherrie started a gift basket business, Best Regards. We have continued to grow our business and now have added a cookie bakery and five employees. The new Destination Based Sales Tax will be devastating to our business. We will find a way to survive, because we have to⎯this is our life.

I had a client order 21 gift baskets to thank clients for their business. He has done this on a regular basis. His clients this time are located in Overland Park, Leawood, Kansas City, Olathe, Stillwell, Shawnee and Lansing. My accounting software (Peachtree) requires me to create seven different invoices, one for each taxing jurisdiction. I have no idea what sales tax to charge for Stillwell, it is not in the book, and I don't have time wait on hold with the Department of Revenue. My client will not be happy about the cost and trouble of having to process seven different invoices.

My best guess is that we will triple the amount of paperwork if we maintain our previous level of sales. I have had several business owners tell me I have nothing to worry about, the Governor declared a six-month moratorium until 2004. This is not true, The Governor said she wanted to, but could not. She stated that this is the law of the land, but enforcement will be delayed. However, the Department of Revenue (the enforcer) tells me that they will not penalize any business for errors as long as we make a  “good faith effort.” They expect businesses to begin compliance immediately!

The State of Kansas has imposed a program, with very little notice, that requires us to collect sales tax on behalf of over 750 sales tax jurisdictions (according to one paper). The state of Kansas currently has a tax calculator online to help businesses. Try entering Shawnee Mission, Bonner Springs, Stanley or Stillwell, it doesn't help. A representative of the Department of Revenue informed me they are working on a downloadable database of every single address in the state with appropriate sales tax and jurisdiction codes. According to my software company (Peachtree) it will be at least 2005 before it will be able to use any such database.

In conclusion, I think that a source-based sales tax is fair and just. This way, the sales tax collected goes to the city and county that supports the business. Under the new system, sales tax money will now go to over 750 other taxing jurisdictions that do absolutely nothing to support my business. The big Internet retailers will love having states like Kansas raising the compliance bar so high, because they alone have the resources to comply and survive. Yes, overall this is our problem not yours, but I hope that you care and can make your elected officials care. They need to call a special session and find a better way or at least delay implementation.

Robert Duensing is co-owner with his wife, Cherrie, of Best Regards Gift Baskets & Cookie Bakery. The company has gifts for any occasion, with the best chocolates, cookies, salty snacks and nuts from around the United States. Best Regards can deliver gift baskets, gift bags, custom-painted ceramic bowls or gift boxes anywhere in the Kansas City area or nationwide. For more information about Best Regards Gift Baskets & Cookie Bakery, call (913) 782-1505 or visit them online at www.makethemsmile.com.