Internet Sales Tax

[Shooby]

This sucks.. Supreme Courts ruled 5-4 to allow states to charge sales tax on online sales from companies that do not operate in their state!

Many small business may not sell to all states moving forward. Paying each state , and each county and each municipality will overwhelm small business.

https://apnews.com/332abb7455cb4b60...nline-shoppers-can-be-forced-to-pay-sales-tax

 

[Jill NYC]

Agreed, but what about the small businesses that are brick and mortar only that already have to charge taxes and compete with the Internet only stores? They have been losing business for years. People come into their stores, get customer service and learn all about products (touch, try on, test out, etc) then leave and buy it online so they don’t have to pay tax.
Shouldn’t it be a fair playing field?

 

[Shooby]

Agreed, but what about the small businesses that are brick and mortar only that already have to charge taxes and compete with the Internet only stores? They have been losing business for years. People come into their stores, get customer service and learn all about products (touch, try on, test out, etc) then leave and buy it online so they don’t have to pay tax.
Shouldn’t it be a fair playing field?

If people are going into your stores and buying that item else where, the store is doing something wrong. Maybe implement online price matching. Personally, I hate the price gouging brick and mortar stores put on their items. If the MSRP is $100, dont charge $120. THats what makes me leave the store and buy online. Tax is basically the same as shipping charges. I dont think this leveled anything but put a burden on all the smalll business trying to sell online by forcing them to buy new costly software to manage each Town, City and state or hire accountants to do it.

possibly soon, you will go online to buy a puffco peak and that site will note ship to your state because your state adopted this new rule and the shop doesnt want to handle all state taxes. But this rule doesnt stop at just state taxes online, it could affect your income tax as well.

This is from ATR President.

"Today the Supreme Court said 'yes—you can be taxed by politicians you do not elect and who act knowing you are powerless to object.' This power can now be used to export sales taxes, personal and corporate income taxes, and opens the door for the European Union to export its tax burden onto American businesses—as they have been demanding.

 

[just_the_flu]

I dont think this leveled anything but put a burden on all the smalll business trying to sell online by forcing them to buy new costly software to manage each Town, City and state or hire accountants to do it

...i did not read the article but this does not make sense to me... wouldn't they just charge their local tax not the buyers local taxes??

...for example, it would be no different than if i went to the states (any state) and bought something off the shelf...

 

[Shooby]

...i did not read the article but this does not make sense to me... wouldn't they just charge their local tax not the buyers local taxes??

...for example, it would be no different than if i went to the states (any state) and bought something off the shelf...

No. your online transaction taxes are supposed to be paid by the consumer on your tax returns. When you buy on Amazon and anywhere else online, you are charge your local state tax. Not the local state tax of where the store was located in.

This is why this will hurt the small business doing national sales and not Amazon. Amazon has been collecting taxes on all products they sell direct for the past year or two. On top of that, Amazon has the employees and money to create a department to handle this but most small business dont have either the money or people to accommodate this change.

Its extremely unfair and a burden for the retailers to keep track of each customer's residency state.


Even sellers on Ebay and Etsy will have to collect tax on transactions. Paypal doesnt even have an option to collect tax and may small business use Paypal for transactions.

We just might have to go back to good ole barter days..

 

[ghostofcyberx13]

The physical stores have a major advantage over Internet stores and that is being able to physically deal with the product itself. This works especially good for checking out large appliances or just picking up a new pair of "Kicks"(shoes) which I recently purchased at a local REI Outdoor Store. Later.

 

[analytika]

Sadly, Amazon profits from the taxation of interstate commerce.

Bezos has built the premiere solution for state governments to collect sales tax, and even voluntarily subjected all its customers buying from Amazon directly -- not 3rd party via Amazon -- to sales taxes about two years ago.

Already the sole provider to multiple state governments, he's going for 50 out of 50 in 2018.

 

[wkndwarrior]

Feels like big websites used this to bury brick and mortar ...now big e commerce is in ever state and paying taxes now that they have buried all the store fronts and this is a bit of a reversal to now put all the medium/small commerce in check and snuff out competition.

Sure feels like there should be some sale minimum to apply this (like 5 million). Noone is going to be able to deal with the tax implications of all the states but larger systems/selling platforms and its almost going to force everyone into paying way more on top of taxes. I am thinking of small time things like roasted coffee I get from a state away/etc. They are probably going to have to go through an Amazon storefront or some other system as managing all this alone will be too complex now.

 

[Shooby]

Feels like big websites used this to bury brick and mortar ...now big e commerce is in ever state and paying taxes now that they have buried all the store fronts and this is a bit of a reversal to now put all the medium/small commerce in check and snuff out competition.

Couldnt agree more. Mom and pop's brick and mortar shop trying to do some online sales cannot compete against these online giants like amazon and are forced abandon their online shop and go back to retail sales only.

Letting the big get bigger and no one else to challenge.