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Old 06-25-2018, 06:49 PM
 
Location: Denver CO
382 posts, read 108,132 times
Reputation: 1136

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Quote:
Originally Posted by TimAZ View Post
The difference is the small online business that sold and delivered the product to you is not located in your state. To get legal with your state, they have to open a tax account, fill out a bunch of forms, perhaps pay a fee. Then every month or quarter they have to file a return and pay whatever tax is due. What a pain in the a$$, especially for areas where the order volume is low and the profits won't even cover the overhead cost to deal with the tax paperwork.

I'm sure some sharpies will pop up to offer a service, probably a flat rate fee where they set you up in all 50 then skim a percentage off the top on sales.
Exactly, so the purchase did not take place in my state, therefore my state has no legitimate grounds to collect sales tax.

It's just another example of greedy money-grubbing governments doing everything they can to get their hands on more money that isn't theirs.
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Old 06-26-2018, 09:20 AM
 
Location: All Over
3,971 posts, read 4,216,531 times
Reputation: 3002
Quote:
Originally Posted by TimAZ View Post
The cost of compliance works both ways. How many states have enough staff to handle and process tens of thousands of new sales/use tax accounts? I'll bet that most states will set an exemption threshold so that Mary Joe doesn't have to pay that $2.44 she technically owes for selling a wristwatch on eBay.
North Dakota is kind of the example many states will likely follow. They say as long as you don't do over 20k in sales or over 200 transactions your excempt.

Here's what I wonder. So I wind up doing 205 transactions. Do I have to start collecting tax at 201 and pay on 201 to 205 or do they backtrack and want taxes on all 205 transactions, 200 of which I never collected on because I was under the limit so now I'm paying sales tax out of pocket for my customers?

I really wish the Federal Government would just impose some type of VAT tax, we all have one organization to pay and keep track of, adn they divy the money up to the states. This new system should states start enacting sales taxes for online vendors will be a huge headache.

There is a software that apparently tracks all of this and remits the payments to the states for you called TaxJar. I havn't personally used it but I think something like this is going to be a necessity for my ecommerce business.
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Old 06-26-2018, 10:05 AM
 
3,313 posts, read 2,357,719 times
Reputation: 5712
Thanks for the TaxJar info. It's a partial solution for our type of business, would still require a lot of time on our end. Kind of pricey at $25 per autofile plus the monthly collection fee.

I totally know what you mean about the # of transactions or amount per year. How would we know whether or not to tax the people of that state? We usually don't sell to Idaho, but last year got several new accounts there, it's not a state we would predict big sales.
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Old 06-26-2018, 03:59 PM
 
Location: Yucaipa, California
9,610 posts, read 17,741,496 times
Reputation: 6265
Quote:
Originally Posted by SportyandMisty View Post
Now that states will have the power to impose taxes on retailers in other states, I expect California now to impose an additional Carbon Tax on those retailers in other states... And to audit retailers in other states for compliance with CA Prop 65... and of course those audits will be required to be in-person in Sacramento...

Let Ten Thousand Regulators Bloom...
That's ca for you. Always sticking it to you.
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Old 06-26-2018, 04:15 PM
KCZ
 
1,568 posts, read 775,574 times
Reputation: 4365
Quote:
Originally Posted by MrRational View Post
All in all... this whole drama seems to be yet another example
of how we have outgrown our 18th century organization model for governance.

What do we need with 50 separate sets of rules and laws?
Let alone the addition divisions within each of the 50?

Because the people of NH don't want to live by the morass of laws that people in CA find acceptable. And we need laws for things that you people don't need/want, like snowplows and the complete absence of a sales tax.
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Old 06-27-2018, 10:17 AM
 
5,242 posts, read 2,394,613 times
Reputation: 5119
Quote:
Originally Posted by Joey2k View Post
Exactly, so the purchase did not take place in my state, therefore my state has no legitimate grounds to collect sales tax.

It's just another example of greedy money-grubbing governments doing everything they can to get their hands on more money that isn't theirs.

If you (and nearly everyone else) were paying your Use Tax (as required by law), this law change wouldn't have happened.
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Old 06-27-2018, 07:14 PM
 
Location: Denver CO
382 posts, read 108,132 times
Reputation: 1136
Quote:
Originally Posted by TaxPhd View Post
If you (and nearly everyone else) were paying your Use Tax (as required by law), this law change wouldn't have happened.
Bulls**t. My state has no legitimate claim to taxes on goods and services that were purchased in other states.
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Old 06-27-2018, 07:43 PM
 
5,242 posts, read 2,394,613 times
Reputation: 5119
Quote:
Originally Posted by Joey2k View Post
Bulls**t. My state has no legitimate claim to taxes on goods and services that were purchased in other states.

Actually, they do. Every state with a sales tax has a complementary Use Tax. Perhaps you are unaware of it, but that doesn't render your tax evasion OK.


From Investopedia:


Quote:
Use tax is a sales tax on purchases made outside one's state of residence for taxable items that will be used, stored or consumed in one's state of residence and on which no tax was collected in the state of purchase.
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Old 06-28-2018, 01:36 PM
 
Location: The Triad (NC)
26,924 posts, read 58,092,302 times
Reputation: 29401
Quote:
Originally Posted by Joey2k View Post
Bulls**t. My state has no legitimate claim to taxes on goods and services that were purchased in other states.
haha. You really believe that?

This sort of realization about what is real vs what you want to believe is real...
well, wouldn't it be great if the lesson were applied to the rest of the BS being spouted?
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Old 06-29-2018, 01:56 PM
 
Location: Denver CO
382 posts, read 108,132 times
Reputation: 1136
Quote:
Originally Posted by TaxPhd View Post
Actually, they do. Every state with a sales tax has a complementary Use Tax. Perhaps you are unaware of it, but that doesn't render your tax evasion OK.


From Investopedia:
I'm aware of it, just don't consider it legitimate.
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