Online Sales Tax

[dsculley]

If a business collects tax and does not send it to the appropriate authority that constitutes tax fraud. I don't think very many people would be willing to risk that over the small amount collected in sales tax.

As was said, it is up to the states to implement any changes. I expect most will. I prefer this to my state raising the income tax rates. I also like that this helps level the playing field for small local businesses. In the past, you could justify the shipping cost for online orders by saying that was about what the sales tax would have been if bought locally. No longer. I expect this will affect UPS & Fedex as well.

The South Dakota law that prompted the decision exempted out of state online businesses that sold less than $100,000 in the state. If other states use that model then many small businesses will be exempt and will not have to do anything to their website.

I shop at home in small businesses whenever possible anyway. I may go to Walmart once a year or so. I do shop online and will continue to do so as I can't always find what I need locally.

 

[sdean]

You think you were saving money. Your county and state were making that loss back some other way. Plus you were paying shipping.

 

[joshb]

You think you were saving money. Your county and state were making that loss back some other way. Plus you were paying shipping.

I live in Delaware. Delaware has no sales tax!! Whoopee, right? This new law won't affect ME because EVERYTHING that I buy that's delivered to me in Delaware is free of tax! The downside is, Delaware charges an 8 1/2% tax on ALL of my income.

 

[NorCalMikie]

You want to try a different brand of powder. You buy "one pound" local. Cost about $30.00 + tax. Maybe $1.50/$2.00? So close to $33.00/$35.00 out the door.
You can get it "online" for $22.00 + shipping + Hazmat.
Shipping anywhere from $10.00 to $15.00
Hazmat maybe another $25.00?
So your "online deal" just cost you somewhere around $60.00.
You tell me where you saved the $$. And how much did it cost you to drive your car/truck to the store to shop local??
And if you can't afford to pay the taxes, you can't afford to play the game.
NO SUCH THING AS A FREE LUNCH!!

 

[dickn52]

When you buy at home, you get taxed so why not pay when you buy away from home?

When I'm in California I pay California rates. When I'm at home in Florida I pay local rates...so why would I pay Florida rates for something I buy from a California company?

 

[dickn52]

I guess the supreme court is going to pick up
the tab to revamp an order form page, to implement
these changes for online businesses. If a person cant
work on his own business pages, it cost serious money
to go to a web developer to change anything.
This will put a lot of small operators out of business.

If this goes through and it may already have, when
you pile on Sales Tax on top of shipping charges, there
are no deals anymore. LDS

All that is in there when they say..."Kansas residents pay???% sales tax" Big issue will be someone like Midway trying to get the tax revenues correct to the states involved. Multiple rates and even within the state different sales taxes due to 'add ons' in a county or whatever. Quick solution is to pay the sales tax at the company location rate and let that State keep it. IF I'm travelling you can bet the sales clerk is NOT asking me where I live so they can charge me 7.5% instead of California's 9%.

 

[tmwinds]

If your state has a income tax you were already required to pay your state rate on all out of state internet purchases. You were on an honor system to report all untaxed out of state internet purchases and pay the taxes due annually when you filed your state tax forms. Since hardly anyone was paying, the seller will be forced to collect and submit it to the state. Not only will you have to pay the tax, you will also see prices increase to cover the additional cost to the seller.

 

[fatheeler]

as a manager of a small business I would offer this when I first moved to the town I now live in our local post office got about 6 pallets of parcels a day now they get about 10 pallets in just 2.5 years, our town is dying empty boxes where there where once stores. my store I have to charge city sales tax so on an item that cost 1000.00 that is 80.00 with free shipping and all the other perks that a warehouse with very few employees can provide it is hard to compete. the one interesting thing is when a customer gets ready to buy they don't talk to the person at the warehouse they come and talk to me, then they go buy at the online warehouse, people don't give a damm or value customer service or employee knowledge any more

 

[fatheeler]

so I would about time on leveling the playing field

 

[muleman69]

When you buy at home, you get taxed so why not pay when you buy away from home?

I don't get it? why would you pay your state taxes when you bought out of the state? The state you are in had nothing to do with the transaction?

 

[muleman69]

I always wonder if these online retailers that are collecting tax are actually sending it where it needs to go, or just getting a little extra put into their pocket.

Lot of truth than poetry to this. Spot on

 

[ratbuster]

State sales tax agencies do not have the resources to audit retailers across the entire nation. The only way to effectively audit a retailer for sales tax remittance is go to their place of business and spend days physically perusing sales records; that is not going to happen enough to be effective. It will also require retailers to register as sellers and file a return with every state. I believe many smaller retailers will collect the tax and not remit it.

 

[Just Say Moe]

It helps to keep your local businesses in business.

It helps your local business with no inventory, now have even less inventory. And continue to charge 2x the internet price. Now that the playing field is "leveled," nothing with change. And the states will be pissing in their pants to spend all of that "new" money on crap, and..... nothing will change.

 

[JFrank]

I live in Delaware. Delaware has no sales tax!! Whoopee, right? This new law won't affect ME because EVERYTHING that I buy that's delivered to me in Delaware is free of tax! The downside is, Delaware charges an 8 1/2% tax on ALL of my income.

Is that their state tax ?

 

[tmwinds]

I don't get it? why would you pay your state taxes when you bought out of the state? The state you are in had nothing to do with the transaction?

Because you live in that state and everyone that buys locally pays a sales tax to support that state and the services that it provides to everyone that lives there including you. Take a few minutes to think about it. What if everyone bought across state lines and your state collected no sales tax. What would happen? The state would either go bankrupt or they would raise taxes on other things to survive.

 

[ireload2]

Why?
Because this country was founded on fighting taxes.
You can get in line and pay my share if you like paying taxes.
Some of you guys must be government employees.

When you buy at home, you get taxed so why not pay when you buy away from home?

 

[ireload2]

I get many bargains online. Maybe you are just a poor shopper.

You want to try a different brand of powder. You buy "one pound" local. Cost about $30.00 + tax. Maybe $1.50/$2.00? So close to $33.00/$35.00 out the door.
You can get it "online" for $22.00 + shipping + Hazmat.
Shipping anywhere from $10.00 to $15.00
Hazmat maybe another $25.00?
So your "online deal" just cost you somewhere around $60.00.
You tell me where you saved the $$. And how much did it cost you to drive your car/truck to the store to shop local??
And if you can't afford to pay the taxes, you can't afford to play the game.
NO SUCH THING AS A FREE LUNCH!!

 

[JohnHenry]

Is that their state tax ?

The top DE personal income tax rate is 6.6%. Social Security is not taxed and up to $12,500 in individual pension and retirement income is excluded for those 60 and older.

 

[tmwinds]

Why?
Because this country was founded on fighting taxes.
You can get in line and pay my share if you like paying taxes.
Some of you guys must be government employees.

No, not quite correct. It was "No taxation without representation". You are represented if you vote. No, I don't like paying taxes and I think our govt. could do much better with the money we send them but that's another story for another day.

 

[carlsbad]

as a small business trying to stay afloat,,I will comment no further on this,,

Think about the implementation. The small business will be required to file sales tax reports in all states where sales took place, sending in the sales tax they have collected plus feds, plus DC. Anything I missed? Enjoy filling out your 52 tax reports.