SCOTUS will hear a case on internet sales tax

[brushsjigs]

[QUOTE=nikldac;9018968]. All businesses would have to collect "That Amount" of sales tax on all orders and maintain records of amount and state the sale was shipped

That would require additional people in the office to keep track. Much like the doctors offices now having extra personnel to keep up with the red tape for O-care. Someone is going to have to pay their wages. There goes pricing thru the roof and the ones that cant afford the extra staff will have to close. Then it will be just the big box shops.

[richg99]

If the States that do collect sales taxes would agree to take a little less, and share what they get with their own communities, an ONLINE sales tax could be collected.

Hypothetically, let's say that STATE ABC's sales tax is now 6%. And, the various smaller entities like counties; cities; school districts and other taxing bodies add 2% more on average. That means that a NON-ONLINE purchaser in that State would pay 8%.

When I, as a resident of STATE ABC buy something ONLINE, the online vendor would charge me (7) Seven percent. That exact amount per State would be determined by what the actual State and Local taxes were, less 1 percent.

The vendor would have to keep track of which State and charge the 7 % (or whatever each State determines as is their ONLINE rate) to each purchaser. The vendor would have to also keep track of the zip code of each purchaser, and the amount that he spent. Far less of a burden than trying to keep track of thousands of taxing bodies and rates, under the present proposals. 52 rates, and zipcodes/amounts.

Why the one percent difference? The Less One Percent would be in place to keep all local residents from paying the highest tax, even though their particular community taxes less than a big city, for example. All residents should NOT be paying the highest rate, and the local communities should retain the right to set their tax rates without interference from other taxing bodies.

Upon receipt of the Seven Percent from the retailer, (and a listing of sales by zipcodes) the State would pass-through the amount that each County; School District; city etc. would be entitled to, based on their local tax rates. Let's say that the average percentage was 1.9% to all of those entities. The State, therefore, would keep 5.1% instead of their wanted 6%.

The difference is.....now, the State gets 5.1% on all of those sales, instead of NOTHING.

What I can see as a future issue is...a local community goes hog wild and raises its local portion by some amount that exceeds the highest original rate when the deal was struck. Too bad, they don't get to raise their rates on ONLINE PURCHASES. They can raise them all they want on their local purchasers, but not on ONLINE buyers.

I may be missing something, of course.

Yes, we as buyers would be paying more in taxes, but, at least, ALL of those taxes would be going to our own State and local taxing bodies. If we didn't want to pay those taxes, then we'd vote to bring in politicians who would work to lower the tax rate, not just raise it every year.

Someone has to pay for whatever we get. There is no free lunch.

What do you think???

[nikldac]

Why would states that have no sales tax agree to suddenly collect your "standard sales tax of 6.75%"? My state has no sales tax and we do quite well with our neighboring states consumers traveling over the border to go shopping.

Basscatfrank ....what taxes do you have to pay in NH that is needed to compensate for the sales tax you don't collect. How high is your property tax or income tax. Unless I'm wrong; I don't remember hearing much about states on the east coast bragging about how cheap it is to live in their state.

[nikldac]

The people representing each of the states wouldn't be able to agree what to have for lunch, let alone a uniform sales tax rate. Besides, in Ohio and perhaps other states, counties can add on additional sales tax amounts to the state sales tax rate.

Jeff....can't argue with you on that. I'm strictly referring to online sales "tax". Leave the standard state/county sales tax the same on local purchases. I don't believe there will be much in lost sales for only 1 or 2 % difference between local and online sales.

[lakefolk]

Not here. You pay the tax when you register it here. Even if bought in different county or state. The tax is paid when you register it.

same here

[nikldac]

[QUOTE=brushsjigs;9019072]

. All businesses would have to collect "That Amount" of sales tax on all orders and maintain records of amount and state the sale was shipped

That would require additional people in the office to keep track. Much like the doctors offices now having extra personnel to keep up with the red tape for O-care. Someone is going to have to pay their wages. There goes pricing thru the roof and the ones that cant afford the extra staff will have to close. Then it will be just the big box shops.

Brushsjigs--- you're partially correct.....mostly regarding big box shops...primarily Amazon.

Most companies selling any quantity online are computer literate and use sales/inventory/ar software programs for sales and tracking info. Most can do a print off in various categories of their sales for the day, week, month or year. Since they have to enter the address on every order, it's captured on their computer system. Sending a report shouldn't be too big of a job without adding much expense for providing that additional information.

What primarily concerns me is how Amazon works and has captured the market at the expense of local dealers. We have companies that list our products on Amazon, Spotify, WalMart, etc., who are not authorized dealers. They buy from our dealers and competitors, ship the products to big box warehouses, low-ball the price and only get paid by Amazon if it's sold. A number of them do not have a store or warehouse but rather, work from their home or do it as a side job. As long as they get a few % profit, they're happy.

Amazon doesn't cover a large portion of their on-hand inventory cost as these so-called dealers fund "THEM" by purchasing inventory and shipping it to a Amazon warehouse. Amazon doesn't care what someone sells products for since they will be paid a percentage no matter who sells it. Dealers who are required to fund their own inventory are at a disadvantage because they also must pay rent, utilities, employees, taxes, etc., and are forced to make sure their profit margin covers all of their cost. Add all of this and also a reduction in collection of sales tax; you can easily see where this is going to become a major problem to local dealers. While dealers may not carry everything you would like to see; they do offer us the chance of see and feel some of the products we buy. When is the last time you went into a big box store to see a product...BPS excluded...LOL.

Bringing the sales tax in line will....help your state and also, your local dealers. Imagine not having ANY local tackle dealers around when you're on vacation and need some of those hot baits, rods or reels and you have to order them online as the local dealers aren't there anymore.