Online Sales Tax

[gme]

the SD law did have an exemption for small online businesses, hopefully the feds will follow suit, wrote my congressman this morning

 

[LarryDScott]

Unless something has changed: any item delivered across state
lines, by interstate commerce, that item is not taxable. LDS

 

[carlsbad]

Unless something has changed: any item delivered across state
lines, by interstate commerce, that item is not taxable. LDS

Tell California that. They expect you to pay sales tax on any purchases you make from out of state. It is a line on the income tax form. I believe many other states have the same.

 

[carlsbad]

They call it use tax:

https://www.ftb.ca.gov/individuals/use-tax.shtml

 

[gme]

Unless something has changed: any item delivered across state
lines, by interstate commerce, that item is not taxable. LDS

Unfortunately something has changed, big time;
https://www.rollcall.com/news/policy/supreme-court-overturns-1992-sales-tax-ruling

 

[gme]

Tell California that. They expect you to pay sales tax on any purchases you make from out of state. It is a line on the income tax form. I believe many other states have the same.

Believe it or not I had one of the CA State Board of Equalization goons show up at my shop once wanting to know where I buy my tools and supplies

 

[odie]

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.

What it really boils down to is ,Marty Jackley South Dakotas Attorney general, figured out another was to screw us out of more money and piss it away on more unneeded or unwanted programs and welfare.

 

[dickn52]

Because you are buying it in Florida. Look at it this way- your computer becomes a tiny little retail outlet for Brownells, Midsouth, Midway, or whoever. Your computer is in Florida. You wouldn't expect to pay Missouri taxes at a Florida Bass Pro because it's a Missouri-based company, would you? Maybe this seems a bit less significant to me because I'm in Montana- no sales tax .

In some states, there used to be a mechanism for getting a refund or exemption on out-of-state sales tax, but it was a huge hassle and raised red flags with the audit Gestapo. I don't know if there is still something like that or not.

I see your point, but I don't agree with it. The point of sale and location of the goods determines when the actual sale took place. Not the delivery point. Just another opinion and trying to keep the upcoming poop storm down to a minimum. Can you imagine Midway trying to charge me sales tax for my location, State-County and city? 35 miles away the sales tax is actually different due to county add on taxes.

 

[Legionnaire]

Well, I know at least one online retailer (I can't remember which one) has asked me via their order form whether I live inside or outside the city limits of my mailing address, no doubt because of the differential tax rate (I'm inside, more's the pity).

 

[hogpatrol]

I see your point, but I don't agree with it. The point of sale and location of the goods determines when the actual sale took place. Not the delivery point. Just another opinion and trying to keep the upcoming poop storm down to a minimum. Can you imagine Midway trying to charge me sales tax for my location, State-County and city? 35 miles away the sales tax is actually different due to county add on taxes.

The first part isn't always true. If I buy a car in Delaware, where there is no sales tax, and I live in PA and need to get PA tags, I have to pay the PA state sales tax. The inverse is true. I bought a small trailer (that requires tags) in PA and tagged it in Delawre. I paid no PA sales tax and no Delaware SALES tax.

Aside from that, the ruling is for South Dakota for businesses doing over 100k of sales.
The hope is Congress and/or the states legislatures will exempt small businesses with a gross below a certain threshold.
Small retailers can read this as a notice to FLOOD YOUR CONGRESSPEOPLE'S phones, emails and letters with a request for exemption. Call them and tell them you're going to lay off people, that pay taxes on their income, and whatever else you can come up with that will reduce economic activity in your state. Remember, squeaking wheel gets the grease.

Having said that, if I were a small online retailer in one of the affected states, I'd have already been on the phone with my U.S. and state congresspeople.

 

[6ShotsOr5?]

I feel the pain for all those who live in some cases hundreds of mile from a store with any decent inventory. On the other hand, I’m jealous of those same people for other reasons. Maybe it’s time for route firearm supply salesmen — I’ll be at this intersection every other Tuesday night from 6-8 pm, and I’ve got a whole bunch of brand H powders and brand B bullets on my truck... Bring your credit card, driver carries less than $50 cash...

 

[people]

if the state catches you doing that wont it cause you problems or it it fine to do that?

I am sure they will want me to think so. Burden of proof is on the state not me.

 

[pirate ammo]

I am sure they will want me to think so. Burden of proof is on the state not me.

you need to rethink that,,

 

[timeout]

Lets say a gun costs 1000 new. The normal mark up on that is $100! Yep that's it. and the small shop doesn't have the revenue to negotiate tinny credit card rates like these internet places (buds example) so they are going to lose 3% taking that 100 profit down to $70! !

Better check your math. I know the new math may be different, but back in the stone ages when I went to school, 3% of $100 was $3, not $30.
I'm wrong!! The 3% is the total fee on $1000. My mistake!!!

 

[pirate ammo]

Better check your math. I know the new math may be different, but back in the stone ages when I went to school, 3% of $100 was $3, not $30.

$3.00 is correct,but there are other fees in there also,,don't get to $30.00,but still a killer..

 

[Legionnaire]

It's 3% of the $1,000 price of the gun, not 3% of the $100 margin.

 

[timeout]

It's 3% of the $1,000 price of the gun, not 3% of the $100 margin.

I see your point. My bad!!

 

[pirate ammo]

It's 3% of the $1,000 price of the gun, not 3% of the $100 margin.

I see your point. My bad!!

we are all backing up here,me too

 

[Trophied]

Sales tax and profit have nothing to do with each other. The entity collecting the sales tax doesn't care one whit if the entity paying it is profitable at all, they just want to be shown the money! Therefore, if the total remittance is $1000, and the seller makes 10% profit of the total sale, then a 3% sales tax does indeed eat $30 of his profit. I know of no one that stays in business that is foolish enough to base their profit on the total remittance and not on their cost. But wait for it, the spending sprees by the states are coming on the heels of this windfall. That way they don't have to reduce their spending to save taxpayers money, they can just claim they are doing sooooo much more for you! And the tax due on the sale is going to be based on the point of RECEIPT, not the point of SALE, so it's no longer technically a sales tax, it's now a user tax. Think about it, why would South Dakota sue to have it based on the point of sale. That state is not exactly the hotbed of internet sales activity as far as I know. Hopefully this will show people just how much government at all levels is really costing them, because now no one can escape it.

 

[hoz53]

The first part isn't always true. If I buy a car in Delaware, where there is no sales tax, and I live in PA and need to get PA tags, I have to pay the PA state sales tax. The inverse is true. I bought a small trailer (that requires tags) in PA and tagged it in Delawre. I paid no PA sales tax and no Delaware SALES tax.

Aside from that, the ruling is for South Dakota for businesses doing over 100k of sales.
The hope is Congress and/or the states legislatures will exempt small businesses with a gross below a certain threshold.
Small retailers can read this as a notice to FLOOD YOUR CONGRESSPEOPLE'S phones, emails and letters with a request for exemption. Call them and tell them you're going to lay off people, that pay taxes on their income, and whatever else you can come up with that will reduce economic activity in your state. Remember, squeaking wheel gets the grease.

Having said that, if I were a small online retailer in one of the affected states, I'd have already been on the phone with my U.S. and state congresspeople.

last years tax bill discontinued about all the individual business tax deductions making it harder to be an employee in many cases and the tax cut part of the bill basicly financed stock buybacks for big business on the backs of the people - now they make it more difficult for a small business to stay in business- as if it isnt difficult enough allready- getting to be very few places to turn to make a go of it.