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Thread: Proposed online sales tax being debated in the Senate

  1. #1

    Default Proposed online sales tax being debated in the Senate

    I think if this passes and becomes law it will be a nightmare. I now pay sales tax on
    sites that have brick and mortar stores in Texas. I wonder how they will handle items
    that are tax exempt in various states. I buy adult diapers from IC suppliers now that
    are tax exempt in Texas. I've already had emails from ebay who's against it. I myself
    am not for it.

  2. #2

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    I think the better question is: how do the smaller retailers insure they have the processes in place to correctly calculate sales tax and get it paid to the appropriate agency? What's the legal basis for, say, the Oregon Revenue Department auditing a smaller crafter in Rhode Island?

  3. #3

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    This is revolting. The tax-me-more Democrats and the RINOs really don't care about their constituents, huh? I'll bet they are passing the bill so we'll find out what's in it like Nancy Pelosi said about Obamacare. The 2014 federal elections won't change a thing, so we'll have to go focus on elected liberty-minded candidates to our State Legislatures so they can nullify unconstitutional federal laws.

  4. #4

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    I'm actually for it. Best Buys is nearly bankrupt because buyers come into their stores, look at all the t.v.s, decide which has the nicest picture, and then order it online from Amazon just to skirt the sales tax. I like brick and mortar stores for many reasons. I bought my Korg Triton from our local music store. I paid $100 more than if I bought it on line, but I have a place to take it should it break. Most people order music equipment on line, and music stores have trouble staying in business. We lost our piano store several years ago.

  5. #5
    June

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    I'm for it as well. Overall, purchasing online to avoid a sales tax drains the amount of revenue from it, quite obviously. I rarely make big purchases from stores anymore because I have such great deals with Amazon and can obtain so many more products from the Internet than I can in local stores.

    A sale is a sale. I'm not sure why an online sale's tax wasn't addressed years ago.

  6. #6

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    Quote Originally Posted by June View Post
    A sale is a sale. I'm not sure why an online sale's tax wasn't addressed years ago.
    As an outsider it seems very odd that on-line selling in the US is exempt from sales tax - is that really correct?
    Is that the same for all distance selling - mail or telephone order for instance? I'm guessing this is due to some state / federal law snarl...
    Why can't the merchant just apply the same sales tax to the purchase that the customer would pay in their own state? That seems an easy fix.

  7. #7
    June

    Default



    Quote Originally Posted by MsClaraRiddle View Post
    As an outsider it seems very odd that on-line selling in the US is exempt from sales tax - is that really correct?
    Is that the same for all distance selling - mail or telephone order for instance? I'm guessing this is due to some state / federal law snarl...
    That is completely correct, with the exception of two or three states. I purchase online and only have to worry about shipping most of the time. I don't know if I'd use the term "snarl" as much as I'd use "loophole". E-commerce has only been around for about twenty years, and the original sales tax laws didn't cover it. We just haven't gotten around to mending it yet. If I recall correctly, mail-order and telephone purchases (do those even exist anymore? Lol) are exempt as well except for a few states. The proposed law is a federal tax, which is sovereign to all states.



    Why can't the merchant just apply the same sales tax to the purchase that the customer would pay in their own state? That seems an easy fix.
    That's essentially what this new law is requiring, I believe, unless they want to have a different tax rate for online purchases than in the store.

  8. #8

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    I've heard about this proposal, but I haven't seen much detail as to how it would be implemented. Here in Australia, we have one consistant national sales tax (GST), which is paid to the Australian Tax Office and then distributed to the states, making collection and lodgement quite easy. Having been involved in a number of small online business, though, it would be a logistical nightmare to have to calculate sales taxes in many different jurisdictions, and to deal with the added paperwork that would necessarily be involved.

    I'm not against the idea in principle, but I definitely wouldn't support a proposal that would add a ton of extra paperwork for small business.

  9. #9

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    If it goes through, I wonder if it will affect international online purchases too. At times I purchase online from the US since it can often be a bit cheaper. I live in Canada, and have been getting taxed online on national purchases as far back as I can recall.

  10. #10

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    Quote Originally Posted by MsClaraRiddle View Post
    As an outsider it seems very odd that on-line selling in the US is exempt from sales tax - is that really correct?
    Is that the same for all distance selling - mail or telephone order for instance? I'm guessing this is due to some state / federal law snarl...
    Why can't the merchant just apply the same sales tax to the purchase that the customer would pay in their own state? That seems an easy fix.
    The current tax laws only apply if you have a physical presence in the State in question. So, if I sell online and only have locations in Oregon and Rhode Island . . . I only have to charge Sales Tax in Oregon and Rhode Island (except, no Sales Tax in those states so I really don't; examples chosen with malice aforethought). The proposed legislation still exempts business that do less than US$1 million in business annually. I'm not sure that's the right cut-off, but the idea is good.

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