The death of internet sales...

[RED]

The Supreme court has, apparently, just put tens of thousand businesses out of business by not allowing them to sell over state/county/city borders without collecting the sales tax for that particular Zip code. (A great thing for brick and mortar businesses). The unintended consequences that everybody seems to miss is the accounting nightmare that will result. If you understand the simple fact that sales taxes are not only collected by States, they are collected, by counties, cities and even differing precincts or neighbor hoods. In Columbia MO, there are 4 different tax rates depending where the store is located.

If this stands, Joe Blow, who has a thriving business selling paper flowers on ebay, will have to account for and mail checks to 50 different States, and thousands of various cities and other entities. He will go broke having to send $.12 to city of Bugtussle KY, $.27 to Bugscuffle TN, and $.06 to Toad Suck, AR.

For years I paid city taxes on my land line telephone. I lived 10 miles outside the city limits of Boonville MO. My only connection with the town was the zip code. I didn't benefit from any service provided by the city. I finally went to the City Council meeting and asked them a simple question: "How much sales tax receipts does the City get each year from AT&T. " You would have thought I dropped a bomb on the town... no one could answer that but they checked on it, and it turned out to be ZERO. At&T had been collecting from $5 up from every household with a telephone in the zip code for 20 years but had never paid anything to the city. The "City Tax," was removed from my bill. (I still believe it was probably sent to the State, but who cares do you?)

[S.A. Boggs]

My take was a state sales tax would be collected, did I miss something? Still 50 different entries to deal with is a problem of some magnitude. When will this take affect anyone know?
Sam

[bruce]

Have personally benefited from the sales tax free system that once prevailed. Have always wondered ... why should brick and mortar businessmen be put at a economic disadvantage? Why should customers be allowed to avoid sales tax on their purchases? If I travel to a state and buy a item, I pay the sales tax. If I purchases that same item via internet sale, why should I be allowed to avoid that sales tax? Sincerely. bruce.

[dogtag]

Cities and counties do not collect Sales Taxes, that is the
sole province of the State Equalization Board.
If the Cities want to collect their share of taxes, they'll
have to go to Court, but if the seller has no presence in
that particular City - they'll be out of luck.

[Sandpebble]

The Supreme court has, apparently, just put tens of thousand businesses out of business by not allowing them to sell over state/county/city borders without collecting the sales tax for that particular Zip code. (A great thing for brick and mortar businesses). The unintended consequences that everybody seems to miss is the accounting nightmare that will result. If you understand the simple fact that sales taxes are not only collected by States, they are collected, by counties, cities and even differing precincts or neighbor hoods. In Columbia MO, there are 4 different tax rates depending where the store is located.

If this stands, Joe Blow, who has a thriving business selling paper flowers on ebay, will have to account for and mail checks to 50 different States, and thousands of various cities and other entities. He will go broke having to send $.12 to city of Bugtussle KY, $.27 to Bugscuffle TN, and $.06 to Toad Suck, AR.

For years I paid city taxes on my land line telephone. I lived 10 miles outside the city limits of Boonville MO. My only connection with the town was the zip code. I didn't benefit from any service provided by the city. I finally went to the City Council meeting and asked them a simple question: "How much sales tax receipts does the City get each year from AT&T. " You would have thought I dropped a bomb on the town... no one could answer that but they checked on it, and it turned out to be ZERO. At&T had been collecting from $5 up from every household with a telephone in the zip code for 20 years but had never paid anything to the city. The "City Tax," was removed from my bill. (I still believe it was probably sent to the State, but who cares do you?)

is this all part of the fewer regulations and less tax deal ?.... or was that not for everyone ? ..... just askin

[dogtag]

My question is : How will it affect those who have a resale certificate.
Would say New Jersey honor a resale cert. from Calif ?

[RED]

is this all part of the fewer regulations and less tax deal ?.... or was that not for everyone ? ..... just askin

The less tax deal, as you call it, was a reduction on FEDERAL TAXES. Here we are talking about collecting STATE, CITY, and LOCAL SALES taxes and has nothing to do with the FEDERAL government.

[S.A. Boggs]

is this all part of the fewer regulations and less tax deal ?.... or was that not for everyone ? ..... just askin

From my understanding this has been a long standing thing that states have tried to get the Supremes to change, nothing anything any Presidential administration has a say about. States "need" the lost revenue mainly, in Ohio there is a declaration on the state tax form if you bought over the net. The state expects you to volunteer the information. Years ago I learned two very important rules 1] NEVER VOLUNTEER!, 2] Always refer to rule #1
Sam

[Sandpebble]

The less tax deal, as you call it, was a reduction on FEDERAL TAXES. Here we are talking about collecting STATE, CITY, and LOCAL SALES taxes and has nothing to do with the FEDERAL government.

Well ... just a polite question Red.... who is actually implementing these new regulations.... a collective 50 states ?

[RED]

Well ... just a polite question Red.... who is actually implementing these new regulations.... a collective 50 states ?

Now that's a good question and I don't have a good answer. It is going to up to each State, and the laws will vary widely. If the State wishes to, they can create am entirely new tax that only applies to out of State buyers. Who would vote against that as long as somebody else is the one having to pay the tax? My guess is taxes on interstate sales will skyrocket.

[Rock]

If I travel to a state and buy a item, I pay the sales tax. If I purchases that same item via internet sale, why should I be allowed to avoid that sales tax?

Which begs the question; why is there a difference between purchasing something while standing in front of a cash register of a store and doing the same over a computer screen? Wouldn't it be a lot simpler to just pay the sales tax of the state where the business is located? It would sure make life a lot easier for the businesses.

[S.A. Boggs]

Which begs the question; why is there a difference between purchasing something while standing in front of a cash register of a store and doing the same over a computer screen? Wouldn't it be a lot simpler to just pay the sales tax of the state where the business is located? It would sure make life a lot easier for the businesses.

Won't work, your idea makes too much sense.
Sam

[Clark Howard]

Tax collectors are largely lazy dems. They will go for the low-hanging fruit of the large retailers. Collectors will rely on a set fee or percentage for each taxpayer in the home state to cover small, everyday purchases. Then the states will waste the money, and search for more. Regards, Clark

[RED]

Which begs the question; why is there a difference between purchasing something while standing in front of a cash register of a store and doing the same over a computer screen? Wouldn't it be a lot simpler to just pay the sales tax of the state where the business is located? It would sure make life a lot easier for the businesses.

The difference is the shipping costs. If I buy something that has to be shipped, that adds to the cost and on many things can be as much or more than the cost of the product... I love JJ's microwavable pork rinds. If I were in the State they are produced I would pay about a 10% tax. But, if I order them, the shipping cost is the same as the purchase price.

There is no such thing as "free shipping." Shipping costs money and one way or another the buyer pays it and it is more on many items than sales tax. The brick and Mortar guys will love this law. Midway Arms, Brownells, etc, will suffer... Suddenly they will become more expensive than Bass Pro, Cabela's, Academy etc. on the same products. Ebay sellers will be the ones hit the hardest.

[JOHN COOK]

[QUOTEThe difference is the shipping costs.][/QUOTE]]

Well I don't know. I purchase a lot from Amazon and I have Prime. Yep I know it cost to have prime. I just purchased 1000 feet of Cat 5 wire and I was charged tax. Same 1000 feet at Lowes was $85.00 . Amazon price delivered to my front door $49.95. Lowes price did not include SC tax. Prime cost me about $100.00 a year which I will recoup in a year. My wife and I like to purchase from Amazon. Original equipment gas tank cap was $69.00 at local dealer, Amazon $12.95. Cap was causing a engine light alarm. ,... Just my 2 cents.....

john