Sales tax out of state

[Cavman]

Hope this doesn’t pass!
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[Bob Denman]

I believe that the ruling says that States CAN require online vendors to collect Sales Tax for out of State purchases...

We'll have to see where this all ends up.

[UtahPete]

I believe that the ruling says that States CAN require online vendors to collect Sales Tax for out of State purchases...We'll have to see where this all ends up.

Some states are already forcing Amazon to collect sales tax. Utah is one of them.

[Orange Spyder Man]

government wants EVERY PENNY they can squeeze out of you ....

[2Paw]

As it stands now when you make a purchase online or otherwise from out of state, You are supposed to pay the tax to your own state. How many of you have ever done that or do you consider it tax free? Just because the merchant doesn't collect the tax doesn't make it tax free.
This is something I learned when our small business went through a sales tax audit a few years ago.

[2Paw]

I think this would put a lot and I mean a lot of small business owners out of business simply because they do not have and can't afford the manpower it would take to administer this. At least in Texas the business owner is designated as a tax collector and mus collect the tax, keep track of it and then pay it to the state. Imagine if you had to do this for 50 states not to mention all the different counties with different tax rates. I could see this requiring a team of some size to do this.

[BoilerAnimal]

Some states are already forcing Amazon to collect sales tax. Utah is one of them.

Just placed an order with Amazon yesterday and had to pay Illinois sales tax.

[UtahPete]

I think this would put a lot and I mean a lot of small business owners out of business simply because they do not have and can't afford the manpower it would take to administer this. At least in Texas the business owner is designated as a tax collector and mus collect the tax, keep track of it and then pay it to the state. Imagine if you had to do this for 50 states not to mention all the different counties with different tax rates. I could see this requiring a team of some size to do this.

I think that's pretty much true of every state that has sales tax. When they start drilling that down to the county level, it will be pretty much the death knell of small internet businesses, unless EVERY state and county grants the SAME exemption to EVERY small internet business. What a friggin' nightmare!

Sounds like a full employment bill for tax accountants everywhere!

[blitzkreig]

You are supposed to pay the tax to your own state. How many of you have ever done that or do you consider it tax free? Just because the merchant doesn't collect the tax doesn't make it tax free.

LOL ... and electric vehicles are to remit voluntarily the road tax as it isn't collected at the pump.

[SPECTACUALR SPIDERMAN]

hope it does pass, it will then make it an even playing field when competing against internet pricing

[Bob Denman]

At least for a while; we might be able to "shop around", and see who is, and who isn't: collecting the taxes...

[UtahPete]

I think that's pretty much true of every state that has sales tax. When they start drilling that down to the county level, it will be pretty much the death knell of small internet businesses, unless EVERY state and county grants the SAME exemption to EVERY small internet business. What a friggin' nightmare!

It will be very difficult, if not impossible for states to enforce this against any but the largest internet retailers. I think small internet retailers don't have a thing to worry about for many years, if ever, with or without statutory exemptions from the states.

[Joe T.]

I think this would put a lot and I mean a lot of small business owners out of business simply because they do not have and can't afford the manpower it would take to administer this. At least in Texas the business owner is designated as a tax collector and mus collect the tax, keep track of it and then pay it to the state. Imagine if you had to do this for 50 states not to mention all the different counties with different tax rates. I could see this requiring a team of some size to do this.

I am sure there will be simple software which all a merchant has to do is enter the zip code of the buyer and the tax will be calculated immediately. Keeping track of the actual counties where the tax goes could be problematic but I am sure some wiz kid will mae that easy too.

Joe T.

[wd8ajj]

Taking to a few of my small retailers out of state that it would actually cost them more to charge the tax than not to. Most say they will not. Would have to raise prices on all items due to accounting costs, mailing and msc government paperwork, that it would hurt there bottom line. A few satiated that if enforced would shut down totally and let Amazon have it. Another way government wants to get rid of small operations and only support the mega corporations. Figure in 10 years most small shops will be forced out of bushiness by government and blame Amazon, Walmart to cover there socialism tactics that government wants.

[fatenhappy]

Hope this doesn’t pass!
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In fact this is type of thing is what our Federal government in Australia is implementing, effective July 1st this year. Anything at all regardless of the minimal amount now purchased overseas (and that is even for personal use). Previously it was capped to be allowed if for personal consumption and up to a $1000 AUD concession.... (not applicable and no tax)

We have for better than 20 years now had a Goods and Services Tax (GST) of 10% nationally on anything made or any service provided. They government make a monza from that, but the loop hole has always been from buying via sites like Amazon, Greedy-bay, anything from other countries really etc … Apparently not any more … come July 1 they too all have to pay the GST of 10% … As an aside a lot of Europe have similar … The British have their VAT etc and others have other similar … I've always noticed when buying from France (and some times Germany) they never drop their 'optional' VAT type tax although it is exempt to overseas purchases.

I guess everyone is getting greedier these days …

[kep-up]

I think this SUCKS!!!!

Those of us on fixed income should be paying less tax, not more, and should be able to shop wherever we can save a bit of money. In fact, ANYONE should be able to shop wherever to save some money. If the flippin various governments would get their fingers out of our pockets, there would be no need for any "underground economy".

Our PA state government hasn't approved a budget on time for years yet continues to piss money down rat holes without any plan or accountability whatsoever. We have the largest and highest compensated legislature in the country. Now they want even more so they can try to flood the ratholes. We have the highest gasoline tax in the country as well as arguably the worst roads. The turnpike commission gets about $40 to drive a car from east to west, but has to give about half of that to the general fund for road maintenance throughout the state.

I'm gonna stop now. My blood pressure is rising...………..

[Cavman]

Georgia has 159 counties. There can be different sales tax rates among the counties. Retailers can have fun with that nightmare!

I recently made a purchase of ham radio gear. If I bought it from a store that is nation wide with a store in GA, I would have paid a sales tax. But I purchased from a different store in Ohio, thus no sales tax and saved some bucks. It took and extra day to ship it too. I wasn’t in a hurry to get it. I still buy ham gear from the store in GA.

[UtahPete]

I am sure there will be simple software which all a merchant has to do is enter the zip code of the buyer and the tax will be calculated immediately. Keeping track of the actual counties where the tax goes could be problematic but I am sure some wiz kid will mae that easy too. Joe T.

Accounting software will become more expensive to deal with this, but that cost is negligent. The real problem for small businesses doing business outside their brick and mortar location is filling in the forms for every tax jurisdiction in the country where they happen to have even one customer.

Back in the '90s, in Pennsylvania, a buddy and I were launching a startup biomedical service business. He was Operations and I was everything back-office. I literally had to spend a few days every month completing the paperwork for sales tax in all the little tax jurisdictions in Pennsylvania, whether or not we had done any taxable business there that month (some were quarterly). The paperwork burden created by every little burg on our tiny business was ridiculous.

Earlier in my career, I was the accounting manager for an insurance company in San Francisco that did business throughout the country. We had to file annual reports with every county in Georgia (over 100 of them), and pay a tax on whatever business we did in each of those jurisdictions. Once again, the money involved was miniscule, but the paperwork burden was horrendous. But, you had to do it, because the penalties imposed for failing to register, file and pay far exceeded the taxes imposed.

There is no consistency between states as to what they impose sales tax on and what they don't. Some tax services, some don't. Some exempt food and pharma, some don't.

Believe me, this is potentially a very big deal. Software is not going to fix it.

[LeftCoast]

I am sure there will be simple software which all a merchant has to do is enter the zip code of the buyer and the tax will be calculated immediately. Keeping track of the actual counties where the tax goes could be problematic but I am sure some wiz kid will mae that easy too.

Joe T.

Having worked for a very large payroll company for a long time you are probably right. The hard part will be keeping those rates updated whenever a jurisdiction changes them.

[RinconRyder]

I am sure there will be simple software which all a merchant has to do is enter the zip code of the buyer and the tax will be calculated immediately. Keeping track of the actual counties where the tax goes could be problematic but I am sure some wiz kid will mae that easy too.

Joe T.

It is impossible to keep a table of sales tax obligations by ZIP Code as cities (and other taxing jurisdictions) have different rates within a given ZIP. There are also other considerations such as products that are exempt, or at different rates, in the different jurisdictions. There are also exemptions based upon the seller and/or buyer.

[ARtraveler]

So far, so good here (ANONYMOUS AS TO WHERE--I KNOW THEY ARE WATCHING).

I have also found that most of the products that want killer shipping because of ANONYMOUS, can be found on Amazon with free shipping--and without paying the extra for Amazon Prime.

I recently purchased a D'Angelico guitar. The main people, Musicians Friend, have free shipping to lower 48 but not to ANONYMOUS. Same item purchased from a supplier with free shipping all the way from New Jersey--and at the same price as MF. I did not even have to wait the full week. It arrived UPS second day air for free. The package weighed 64#--so that was a BIG saving.

Way to go Amazon.

[jcthorne]

I think this would put a lot and I mean a lot of small business owners out of business simply because they do not have and can't afford the manpower it would take to administer this. At least in Texas the business owner is designated as a tax collector and mus collect the tax, keep track of it and then pay it to the state. Imagine if you had to do this for 50 states not to mention all the different counties with different tax rates. I could see this requiring a team of some size to do this.

I actually do not think it will work out that way. The payment services (paypal, and cc processors) are already gearing up to handle the out of state tax collection and payment as a part of the cc transaction. Other than end user bottom line price going up by the amount of the tax, I do not see much actually changing.

I hate to pay more tax as much as the next guy, but I do see where the end result will be more fair between internet and B&M retailers.

[UtahPete]

http://theweek.com/articles/780427/i...ticle_8-780427

Today, almost 10 percent of all retail is conducted online, potentially falling into the conceptual lacuna of the "physical presence" standard.

The total number of taxing jurisdictions has exploded from 2,300 in 1967 to 12,000 today, 45 states have sales taxes of some sort, and thousands of local governments do as well.

No one knows how much tax revenue is collectively lost from internet sales every year, but estimates range from $8 billion annually to as much as $40 billion.

State governments in particular are feeling the pressure, as more and more of their budgets are eaten up by health care and education costs, forcing cuts to other necessary services — a conundrum that could be alleviated by the extra sales tax revenue.

[Fat Baxter]

I am sure there will be simple software which all a merchant has to do is enter the zip code of the buyer and the tax will be calculated immediately. Keeping track of the actual counties where the tax goes could be problematic but I am sure some wiz kid will make that easy too.

Joe T.

I was reading something about this earlier. It's not so simple. Some states require you to register with them as a tax collection agency (more paperwork!). Some require quarterly reports, even if you didn't have any sales in that state for that quarter. Other require you get a permit/license (money, time). The list of minor nuisances is, in the aggregate, not insignificant. Oh, and audits!

So unless Congress gets off its ass* and establishes some threshholds that exempt smaller businesses, we may expect to see the collapse of many internet businesses.


* = Doubtful, as Congress only gets involved if there are opportunities for more power and/or graft.

Updated: I found the link to that article: https://www.americanthinker.com/blog...usinesses.html

[canamjhb]

Bought my Spyder on line and out of state. Arid-Zone-A had their hand out for the tax when it came time for me to title it. There is no escape.