AlibabaOriginally Posted by JoshKeller
Alibaba
I guess SD will use their newfound income to hire enough people to attempt to enforce/collect said taxes from a few million little on-line retailers that end up owing them $7.50?
For some reason, I see a huge problem with enforcing this across the board.
I think the new secret color is "A-Rig"..........
100% agree with you on this. The smaller companies wont be able to afford the accountants to keep up with everything.
Burden us with origin based taxation, not destination based. How can my one person business possibly afford (time/manpower wise) to file tax in all 50 states, every month?
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Who is John Galt?
If the South Dakota rule is applied, then most small guys won't have to worry.
"South Dakota is leading the legal charge, passing a law requiring the collection of sales tax on Internet vendors with at least 200 yearly transactions or $100,000 in sales to its residents."
It's how the U.S. Govt has been "creating jobs" for years.
I think the new secret color is "A-Rig"..........
So if I have it all shipped to NH like I always do I still won’t pay any per the stare tax ??
It's worse than that. Even if you can you are now subject to 50 times the potential to make a mistake that brings goon accountants down on your head, or they make a mistake with the same results. SD is unlikely to employ enough revenuers to chase down every little online retailer, but some of the money hungry states will use it as a reason to crawl up every single internet store's anus looking for a nickel. Open an internet store and welcome those folks into your life. No thank you!
The county adds more tax on top of the state tax. Do you think the state is going to share? I do believe right now local business pay the state there share and the county there share.
Do you think a small business will be tasked with personally sending a check/payment to every county in the US that has bought from them? That could literally be thousands of checks per year.
Everything I've read has suggested so. I'm sure there will be services that will do that for us. Intuit will probably come out with one, as will some others, but then we have to absorb the fee for that, and they won't be cheap. The accounting and bookkeeping industry is probably creaming their pants right now.
For the items I do sell on Amazon (self fulfill, not via their website), they will take care of that (I don't sell much on there right now, but I do remember a recent sale, maybe to South Dakota, where they had a note that tax was charged, but they were remitting on my behalf).
See why Amazon loves it? It encourages me to sell on their site, where they get a hefty cut of it, rather than my own site.
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Who is John Galt?
Small "Mom and Pop" brick and mortar businesses may see a small benefit from this ruling due to the "equal playing field" as you put it, however small and mid-size companies that have a large percentage of online sales will be hurt tremendously. This ruling may force these businesses to reduce the number of places they sell and ship to since they aren't equipped to handle the increased administration of calculating taxes for 30-50 states (and countless counties and municipalities). Since this will give customers less choice, and by default reduce competition in the online marketplace, large online retailers such as Walmart and Amazon, who are able to staff an office of employees that can efficiently track sales and make sure these taxes are being paid, will have a huge advantage! ... on a side note, they will be able to charge higher prices as well due to the reduced competition. Win Win for Amazon!
I would prefer to eliminate ALL sales taxes, now THAT would create a level playing field. There is one huge benefit to states that have higher sales tax rates though; the people living in other states being forced to pay these high taxes online won't have the ability to vote the representatives out of office... Just another case of taxation without representation.
Last edited by Bub; 06-21-2018 at 12:52 PM.
I forsee only one check per quarter to each State, what remains to be seen is how each State will be responsible for figuring the tax due to each County and each city. That burden may fall to each State or each State will standardize each County and city at a certain amount which would be very difficult to do. Each State might just collect the State portion and tell the Counties and cities to fend for them selves on collections.
Why would they do that? The states we already collect tax in already force us to file and remit monthly, and already place the burden of figuring the local level taxes on us as well. What fantasy land do you live on that makes you think they will change the system they've already got?
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Who is John Galt?
Will be over 10000 checks per yr and yes they will have to.
They will need to collect state tax only. There are online retail software packages that handle that now and the software manufacturer keeps up with the percentages. They will not have to collect county, city, municipal, parish, township or whatever local taxes in your area. What is claimed is that local shops cannot compete when online retailers are not having to charge tax. But they do charge shipping, even if they say it is free, their prices are inflated to cover it. So now do the local shops have advantage not having incur shipping costs?
I am betting that does not happen. There will be a procedure like Skeeterbait mentioned above.
I haven't seen the whole ruling, but all i've seen is that the States can now force you to collect the tax, it doesn't say who has to figure said tax. It could be very likely the States will have to have a role in telling you what to collect and remit. How could any business know every single city county and State tax rate without some assistance from each of those entities. Maybe the SCOTUS addressed that and maybe they didn't. I bet the ruling only pertains to State taxes and the other entities will be on their own to figure out how to collect what ever they want. I saw nothing addressing anything but State taxes.
What happens if you collect 50 cents sales tax from me and a day later your remittance is due, then three days later i return the item for full refund, will the State send you a check for 50 cents back? I see them going quarterly to make it easier on themselves.
I think it will be 1 state tax rate per state. What I do see happening is 2 things possibly. The logical next step is some big counties with big cities will want their share so that will go to the courts. Then I also see some politician running on the premise that they will raise the internet sales tax to help the brick and mortar businesses in the state to even the playing field.
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