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Supreme court ruling on sales tax and internet stores!

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Forum topic by bonesbr549 posted 06-21-2018 05:28 PM 3257 views 0 times favorited 33 replies Add to Favorites Watch
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bonesbr549

1576 posts in 3263 days


06-21-2018 05:28 PM

Well on top of the news earlier this week on tarrifs on tools, now comes the news that internet providers that had been exempt in most cases from having to collect sales tax, now they are subject to collection.

Great news for the brick and mortar stores, and to states, but bad for your wallet.

I know I personally have tried to always tried to support local stores and yes that meant paying sales tax.

https://www.usatoday.com/story/news/politics/2018/06/21/supreme-court-allows-sales-taxes-online-purchases/699556002/

-- Sooner or later Liberals run out of other people's money.


33 replies so far

View woodbutcherbynight's profile

woodbutcherbynight

5669 posts in 2605 days


#1 posted 06-22-2018 02:03 AM

It was only a matter of time.

-- Live to tell the stories, they sound better that way.

View JCamp's profile

JCamp

873 posts in 747 days


#2 posted 06-22-2018 02:08 AM

Hated to see it come but it’s a wonder it already hadn’t been in place. Online dealers were getting a lot of business cause they were “ cheaper” and it was really unfair to the mom and pop shops.
Plus government is always out to get every penny that they can.

-- Whatsoever thy hand findeth to do, do it with all thy might

View Gene Howe's profile

Gene Howe

11056 posts in 3625 days


#3 posted 06-22-2018 12:07 PM

Reading between the lines of the story, it’s going to be a legal mess for years. A boon for lawyers.

-- Gene 'The true soldier fights not because he hates what is in front of him, but because he loves what is behind him.' G. K. Chesterton

View xeddog's profile

xeddog

210 posts in 3204 days


#4 posted 06-22-2018 03:24 PM

The states would be able to get billions of dollars every year. Who didn’t see that one coming?

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splintergroup

2418 posts in 1419 days


#5 posted 06-22-2018 04:01 PM

I’m glad for the local businesses. Often when shopping, one had the choice of buying local, but paying the sales tax, or shopping on-line and paying for shipping (even “free” shipping is rolled into the costs). At least tax money goes into the community (or politicians pocket) versus shipping money which goes to UPS.

Of course there is the problem now of small on-line business having to deal with submitting tax payments and forms to all the different localities. I’m sure some places will offer a service to take care of this (for a ‘nominal’ fee), but it is yet another bureaucracy expense eventually paid by the consumer.

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fivecodys

1219 posts in 1832 days


#6 posted 06-22-2018 06:02 PM


It was only a matter of time.

- woodbutcherbynight

Yep!

-- I always knew I would grow old, But I expected it to take longer!

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Kazooman

1236 posts in 2149 days


#7 posted 06-22-2018 06:13 PM

Most states require individuals to pay the tax anyway. In some the sales tax on an item purchased from an out of state vendor is termed a use tax. By law it is supposed to be reported and paid along with the filing of the income tax form. Many individuals conveniently “forget” about this and do not pay the required taxes. That is why the states want the seller to collect the fees.

https://www.forbes.com/sites/ashleaebeling/2013/04/15/the-tax-you-probably-forgot-to-report/#5a0eb37d18aa

There is no free lunch.

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bondogaposis

5086 posts in 2547 days


#8 posted 06-22-2018 06:53 PM

Fortunately I live in a state that does not have a sales tax. I sure as heck won’t pay it to other states.

-- Bondo Gaposis

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BroncoBrian

847 posts in 2155 days


#9 posted 06-22-2018 10:03 PM

States with sales tax will get more money: True
A boon for lawyers: Yes
Good for local business/retail: Not so fast

In this case, supply and demand are not changing, but total-price-paid increases. Constant supply and demand combined with an increased cost usually lead to an increase in price sensitivity. Your budget does not change, you do not want more or less of “stuff”, but you have to pay more for it.

There is a better argument that consumers will be more price sensitive, thus driving them to online sources. You could argue that the gap in retail vs online prices will decrease, but this gives the advantage to the online seller. They can spare margin that local businesses do not have and the consumer has less to money to lose.

In either case, consumers move to online sources because it is convenient and reliable. History is full of unintended economic consequences. If retailers are pushing for this law, they may be in for a disappointment.

-- A severed foot is the ultimate stocking stuffer.

View Dhuff's profile

Dhuff

14 posts in 461 days


#10 posted 06-22-2018 10:25 PM

As an owner of both a retail and online business this will be almost impossible to implement. We are a mom and pop business literally. We (my wife that is) spends countless hours every month reporting state and local sales taxes as it is. This will add unimaginable amount of time to an already ridiculous situation. I keep hearing the argument that software can handle the extra burden, but at what cost to the business. Just using the zip code to calculate local taxes doesn’t work. How many of you have a zip code from the nearest city or town but don’t live within the city limits? Not to mention that some items are taxed a different rates within certain jurisdictions. This just opened a can of worms that no one wants to deal with.

View BroncoBrian's profile

BroncoBrian

847 posts in 2155 days


#11 posted 06-22-2018 10:41 PM



How many of you have a zip code from the nearest city or town but don’t live within the city limits? Not to mention that some items are taxed at different rates within certain jurisdictions. This just opened a can of worms that no one wants to deal with.

- Dhuff

Yep, when taking delivery, I am only taxed at the state and country rate, not city or MUD. I pay 2.5% less tax on a car than someone with my zip code a mile south of me. That will not be so simple!

Isn’t this only a state tax though? I don’t image the systems are in place for more than that. If CO is 2.9%, the anything shipped to CO is taxes at 2.9% only. Or do you also have to sort out the local taxes?

-- A severed foot is the ultimate stocking stuffer.

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Dhuff

14 posts in 461 days


#12 posted 06-22-2018 11:08 PM

From what I have read this will open the door all the way to the city level. The specific South Dakota law specifies a $100,000 in sales or 200 transactions minimum that will give most small businesses a break but that doesn’t make that law for every other state. Besides a politician with the chance to get more tax revenue?

View clin's profile

clin

954 posts in 1192 days


#13 posted 06-22-2018 11:50 PM



Fortunately I live in a state that does not have a sales tax. I sure as heck won t pay it to other states.

- bondogaposis

The online sellers will be collecting your state tax, not theirs. So if your state has no sales tax, you won’t pay any online. Doesn’t matter where the seller is.

This will be a headache for small sellers. There’s no way a small business can possibly file and pay sales tax in all 50 states. Not too mention the many variations in local taxes added on to state taxes. Small sellers will simply ignore this out of necessity.

However, I know I’ve heard of putting some sort of limit so that below some sales level you don’t have to do this. This of course would require each state to agree to this or perhaps a federal law that defines it for all states. But the only way states will get money from small sellers is to make the process very easy. Because even easy x 50 is very hard.

It’s not to say that a state couldn’t catch a small seller avoiding this, but I know I’d take my chances versus spending 99% of my time trying to deal with the state tax of 50 different states.

-- Clin

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builtinbkyn

2653 posts in 1137 days


#14 posted 06-22-2018 11:52 PM

Just more money for them to be irresponsible with.

-- Bill, Yo!......in Brooklyn & Steel City :)

View Rayne's profile

Rayne

1104 posts in 1736 days


#15 posted 06-23-2018 03:00 AM



As an owner of both a retail and online business this will be almost impossible to implement. We are a mom and pop business literally. We (my wife that is) spends countless hours every month reporting state and local sales taxes as it is. This will add unimaginable amount of time to an already ridiculous situation. I keep hearing the argument that software can handle the extra burden, but at what cost to the business. Just using the zip code to calculate local taxes doesn t work. How many of you have a zip code from the nearest city or town but don t live within the city limits? Not to mention that some items are taxed a different rates within certain jurisdictions. This just opened a can of worms that no one wants to deal with.

- Dhuff

Yep, I understand the whole zip code thing. I don’t own a business, but I do have to remind some businesses and online forms to webmasters that my zip code does not belong to the county that is listed just about everywhere. It’s a pain to make sure they are charging the right tax to the right county, even though my zip code says otherwise.

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