|
Idea # 3 - Tell your legislators about
sales tax inequities
David Guidry - Lakeside Camera
Photoworks - Metairie, LA. USA -
http://www.lakesidecamera.com
Gents-
I have gotten the ball rolling locally
with this letter. I sent it to our
esteemed Parish President and all of his
council - registered mail. I sent it to
our local big dog talk radio host. I
sent it to the local Shop Local.org do
gooders. I spoke with representatives of
LED (Louisiana Economic Development).
While the law hasn't changed, I doubt
our council will vote for a sales tax
increase. We all have to start
somewhere.
Notice that I also sent an illustrated
cover page to
add some
cartoon-like clarity.
On the New Yorker Cover, where David
has placed a note "killing us," the
upstairs tenant of the beleaguered
bookstore is signing for a non-taxed
package from the internet competitor
Amazon.com
May 15, 2009
Aaron F. Broussard, Jefferson Parish
President
1221 Elmwood Park Blvd., Suite 1002
Jefferson, LA 70123
Dear Mr. Broussard,
My name is David Guidry and I am the
second generation owner/operator of
Lakeside Camera Center. We've operated a
retail camera and photo specialty store
in Jefferson Parish since 1972. I have a
specific reason for writing you today.
Not too long ago, I heard mention the
possibility of raising the Jefferson
Parish sales tax. Our sales tax without
a corresponding enforcement of the "use
tax" is the single greatest impediment
to the growth and survival of my
company.
The rise of the internet as a robust
delivery platform for goods and services
has been a game changer for brick and
mortar retailers. I'm not sitting around
wishing for the "good old days". I'm no
Luddite. Rather, I'm frustrated that our
local and state governments cause
homegrown businesses to suffer a
competitive disadvantage to online
outfits in Brooklyn, N.Y. and all points
beyond our borders. I realize that our
Police Department and other necessary
public services require revenue and I am
proud to contribute. However, I want you
to do everything you can to enforce the
"use tax" on internet purchases from
vendors who exist outside of Jefferson
Parish and the State of Louisiana. You
folks set the tax where you need to but
level the playing field and stop eating
your own.
Canon has a popular camera called the 5D
mk II. The camera body sells for $2699.
Lakeside Camera Photoworks sells this
camera for the exact same price as B&H
Photo in New York. B&H is the best known
seller of camera equipment in the United
States. We buy this camera for $2370. We
pay for the camera in full when we order
it. If all goes well and we are able to
avoid further price erosion, we make a
gross margin of just over 13%. Out of
the $329 in gross margin, we must pay
and train our salespeople, pay
utilities, pay rent, insurance,
advertising and on and on.
If a resident of Jefferson Parish
purchases a camera from Lakeside Camera
Photoworks they will pay $2,935
inclusive of taxes. If they send the
money over the internet, they will pay
$2699. Most popular internet sellers can
afford to give free shipping - they do
not have to shoulder the cost of a
physical showroom. My company is at a
$239 price disadvantage as a result of
the sales tax. I assure you, you would
be shocked at the revenue that Jefferson
Parish and Lakeside Camera are losing as
a result of this situation. Everyday
someone evaluates our display models and
gains valuable pre-purchase information
from one of our salespeople only to
leave with the intent of saving money by
purchasing online.
Mr. Broussard, the solution is already
on the books. Enforce the "use tax" and
the Parish and State will gain a revenue
source it is already due. Enforce the
use tax and the businesses in your
Parish can compete on the merit of their
service and the competitive nature of
their pricing strategy. From May 1, 2008
to April 30, 2009 our Metairie location
contributed over $196,000 in sales and
property taxes to Jefferson Parish.
Level the playing field and my
contribution will go up - I promise.
Since 1972, we have employed local
people - graduates of Orleans,
Jefferson, St. Charles, St. Tammany and
St. Bernard schools. Graduates of LSU,
Tulane, Loyola, Southeastern,SUNO and
more have gotten their start at
Lakeside. Whenever a local institution
or interest requests a donation, we
always offer something. We pay taxes to
the local authorities. We live here, we
work here. We are you. Did you know that
buying local delivers 3 times the
economic benefit compared to the same
purchase made at a chain retailer (or
worse, the internet). Why? Because local
businesses bank locally, hire local
accountants, attorneys and designers,
and advertise in local media. Jefferson
Parish gets zilch from sales to B&H
Photo and the like. The money leaves and
it never comes back.
I welcome the opportunity to speak with
you or in any forum on this topic. Its a
real problem for all of us.
Sincerely,
David Guidry
Editors' note:
How are you going to get your local
legislation to level the playing field?
Or doesn't it matter to you?
We want to hear from you! |
At
Photokina 2008 I first saw the Noritsu
D502 Duplex Inkjet printer. The fact
that it could print on both sides of a
photo inspired me. Noritsu had a
photo studio at the trade show booth
where they were taking photos of guests
wearing kimonos. 
The next step was my
business card for PMA 2009, which again
was a big hit because of its novelty.
Due to the quality of the printing from
the D502 system, the first question from
everyone in the photo industry is "what
is this printed on?". Needless to say
the topic of the Noritsu D502 high
quality duplex printer is just the
beginning not the end. I have been
handing out the cards ever since. I
don't mention that it's double-sided,
just leave it for the person receiving
my card to look at the other side. To my
surprise I've noticed most people check
the back of a business card. 
