Death and taxes that is...
High Court: Online Shoppers Can Be Forced To Pay Sales Taxes
Anyone surprised?? Fess up now!! =;-p
High Court: Online Shoppers Can Be Forced To Pay Sales Taxes
Anyone surprised?? Fess up now!! =;-p
OT: I knew this was coming, why such is a certainty...
- Thread starter Gaimcock
- Start date
Technically it's been hurting local store owners.
A lot of things you can buy locally can be purchased online 3-8% cheaper.
I buy a lot of things online. It will simply make me re-evaluate whether i purchase online or locally.
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anon_n4c0cp5zhdxn7
Guest
Didn't really seem fair as they originally said the taxes were due but it was up to the buyer to declare them on their taxes. Who would do that?
That's going to become a huge headache if sellers are responsible to pay taxes to the states where the buyer is. Seems easier to go by where the seller is.
That's going to become a huge headache if sellers are responsible to pay taxes to the states where the buyer is. Seems easier to go by where the seller is.
I haven't bought a new gun locally in 10 years, always online. Even with shipping and the transfer fee I came out cheaper than walking into any local brick and mortar gun store and buying the same gun. It's not the tax savings that's killing local business, it's the charging me retail plus 15-25% and then another 3% if I pay with a credit card.
If I'm not mistaken (and I might be - it's happened once or twice before), that's due to their B&M presence in Cayce.
And to answer the OP, I'm not surprised at all. 'Twas only a matter of time. The gubment gonna get "theirs".
True. But don't forget about the 38 states that allow local (i.e. city and county) sales taxes.
Be interesting to watch how all this pans out. =;-p
SC already requires you to pay taxes on items purchased online or brought in state and taxes not paid. The SC tax form requires to declare. I always add up what I’ve purchased online and what taxes were charged and report accordingly when I file. Amazon doesn’t charge taxes on all purchased and sometimes doesn’t charge the fully amount. Yes, it means I have to pay those taxes, but who am I (or anyone for that matter) to complain about undocumented workers, welfare recipients, etc. not paying taxes if I’m not paying my legal share. We all know our roads and bridges need a lot of help, as does the education system, I will gladly pay taxes instead of hoping those things get fixed for free.
The gas taxes alone should/could pay for roads and bridges. You'd be surprised how much tax you pay on a gallon of gas. Something like $.65 federal and state combined, if not more.
Buy real estate in Utah, Wyoming, Alabama, and New Mexico.
Companies would be buying up new server farms in those states.
The programs have existed for years to be able to determine how much is owed to each state and locality within the state. And, yes, purchaser's are supposed to pay a "use" tax if no sales tax.....it's always been there but usually only enforced against companies who bring in equipment from out of state to use in another state.
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anon_n4c0cp5zhdxn7
Guest
Might be easy for a big online business to take care of the state specific sales taxes but I doubt that is the case for smaller online stores.
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anon_n4c0cp5zhdxn7
Guest
I get that but there could be an argument on which state should the sales tax be due. The online store is operating in NC, the buyer is in SC. Why isn't NC getting the sales tax, that's where the store is? I can see both sides of the argument. Logistically, it would be easier for the store owner to pay NC sales taxes for everything he sells.
Intuit, Thompson Reuters, FedTax, Vertex and several others have programs that calculate it for you based on the zip code or actual physical address (most accurate) and print reports to file....and have automatic filing programs. Really, it's not that hard....and hasn't been for a while.
Sale is deemed to originate where the customer is located.
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anon_n4c0cp5zhdxn7
Guest
But they still have to make payments to the states on a regular basis, don't they?
Yes....as does any business. They do it on a regular basis for other taxes also. Computers can print the checks as the print the state specific reports....computers are a wonderful thing and have made all this so much easier.
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anon_n4c0cp5zhdxn7
Guest
I get the current rules. Just saying there could be an equal argument to say it's where the store is and now with the ruling, logistically, seems like it would simpler if they changed it to where the store is.
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anon_n4c0cp5zhdxn7
Guest
Now your talking about keeping up and paying taxes for 50 states, on a regular basis. My math could be off but that sounds 50X more complicated.
I just don't think that will be as easy for smaller online stores, IMHO.
Then the state in which the customer resides will charge a "use" tax. Same as buying a car in NC and then registering that car in SC. And the customer will be taxed twice.
Honestly, with the computer programs that exist now, it's not that hard. The one program that most online retailers seem to use, TaxJar, already has this capability. They just haven't had to use it before.Now your talking about keeping up and paying taxes for 50 states, on a regular basis. My math could be off but that sounds 50X more complicated.
I just don't think that will be as easy for smaller online stores, IMHO.
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anon_n4c0cp5zhdxn7
Guest
If they change the law that stipulates an online transaction occurs where the physical store is, and that state is due the appropriate taxes, they could surely make sure the buyer is double taxed.
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anon_n4c0cp5zhdxn7
Guest
As someone who has run a small, privately owned company, it never turns out that easy. Especially if you're having to write checks to 50 states, every quarter. I'm sure it's would be easier for larger companies, that have account payable depts.
Each state is an independent taxing authority.....and depending on state law, counties and cities can be also. Until the issue of online sales arose, the federal government refused to get involved with state and local tax unless they were discriminatory in some fashion. They were attempting to increase the use on online sales...and it worked, perhaps too well.
As have I. And it may limit small business from selling OOS to a degree. Middle size and larger companies shouldn't have an issue. If I were selling a lot to many areas, I would definitely have a signature print automatically on the program.
Honestly, the biggest issue is the additional cost of compliance. Additional mailing fees, printing costs, and, perhaps, additional personnel and the programs (if you don't already have one). The programs that exist update regularly for jurisdictional tax changes, so typically you only have to buy one...but they aren't cheap.
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amen to this. I always wonder when the government will start dipping in this fund for something else i.e social security. I don't trust many of them.
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anon_n4c0cp5zhdxn7
Guest
This isn't the government "dipping in this fund", it's the federal government not restricting state and local governments from enforcing it's own tax laws....which the federal government really did for the first time with this law. They essentially preferred one type of retailer over another....and it wasn't exactly fair.
I would say that the origination state of the product should get the state tax.
Let's say a company in Georgetown, SC builds a hammock to sale on Amazon.
They could have an agreement to ship part of their inventory a holding location for Amazon in Charlotte, NC to make logistics much quicker.
The sales tax should go to Georgetown, SC. Not Charlotte, NC. Not the location of the buyer. Not the hosting of any server.
I'm sure that gets more complicated for larger distributions/brands when they might have manufacturing plants all over the place including overseas.
Now if Amazon became true owners of the inventory instead of facilitating the logistics... that's a whole bigger discussion.
Gawd all mighty, the more i type. The more this gives me a headache. Micro/Macro, this is a problem with all exports/imports.
I would imagine the biggest problem is the cost of logistics. (And why Amazon is killing everyone) Amazon has perfected the concept of 'just in time' inventory and the maintenance of their supply lines.
In Charlotte, I can get same day delivery for a lot of things and it's only a matter of time until I order something and a drone is going to be plopping down in my front yard in less than an hour after an order.
Try studying State and Local Tax as part of an LL.M. program. One of my two theses was on this particular subject...State Taxation of ECommerce. The other was State Taxation of Deferred Retirement Benefits of Former Residents. Both were published....yippee.
Taxes are a forced exaction, not a voluntary contribution.
Supposedly Benjamin Franklin said that.
Supposedly Benjamin Franklin said that.
The important part of of all this to me is that no matter how complicated of an issue this is with regards to who pays who and where, online retailers should never have a competitive advantage over traditional brick and mortar stores ... thats based on a tax "loophole"
The mear existence on online shopping has just about ruined the real stores out there so why continue to give them ammo.
Finally, sales tax revenue has to come from sales which im sure means its fallen off recently. People should have to pay sales tax no matter how they buy an item.
The mear existence on online shopping has just about ruined the real stores out there so why continue to give them ammo.
Finally, sales tax revenue has to come from sales which im sure means its fallen off recently. People should have to pay sales tax no matter how they buy an item.
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Probably already are since there isn't a massive road reconstruction going on and the tax has been in place a year now.
You’d be surprised at how much is needed to fix current roads and deficient bridges and the current gas tax in SC won’t come close to covering it sustainably.
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