Do your shopping now, Tax-free Internet shopping is about to go away.

[s0me0nesmind1]

First that argument held water 2+ decades ago. Today not so much. Today its easily done by computer software. Said software has to provided by every participating state FOR FREE.

Plus business with less than $1million in sales would be exempt.

Tax code changes by the day and is more complex than shit software will ever handle. What do you think accounting firms are for?

 

[Fern]

First that argument held water 2+ decades ago. Today not so much. Today its easily done by computer software. Said software has to provided by every participating state FOR FREE.

Plus business with less than $1million in sales would be exempt.

Are you saying this bill includes a provision requiring participating states to provide free software?

If so, that's going to be interesting. I'm not a programer type so maybe I'm imagining it all wrong, but I see a lot of difficulty in getting all these states' software to work in seamless integration with the existing sales software the many internet sellers use.

(And something like 50 stand alone apps for calculating the approx 9,600 (IIRC) different collection jurisdiction seems highly impractical.)

Fern

 

[Wreckem]

Tax code changes by the day and is more complex than shit software will ever handle. What do you think accounting firms are for?

LOLs you have no idea what you are talking about. Most state sales tax codes don't even change yearly. Nor are they all that complex for the most part. There are plenty of national retailers that already rely on automated computers and software. Its not that difficult with modern technology and software.

Its the 1990s, they want you back.

 

[Wreckem]

Are you saying this bill includes a provision requiring participating states to provide free software?

If so, that's going to be interesting. I'm not a programer type so maybe I'm imagining it all wrong, but I see a lot of difficulty in getting all these states' software to work in seamless integration with the existing sales software the many internet sellers use.

(And something like 50 stand alone apps for calculating the approx 9,600 (IIRC) different collection jurisdiction seems highly impractical.)

Fern

The software already exists, its not new software. There are many national retailers that already use these types of systems and software. Quite a lot use it actually. Its comical that people think this is an impossible task. They don't have tons of accountants pouring of sales taxes by jurisdictions. They have software vendors who provide updates as necessary. It is all automated.

 

[Fern]

Yes, I'm aware there is already (at least) one firm selling such software. I think you and I had this conversation previously.

But does the bill require the states to provide it (or some alternative) free?

Fern

 

[Wreckem]

Yes, I'm aware there is already (at least) one firm selling such software. I think you and I had this conversation previously.

But does the bill require the states to provide it (or some alternative) free?

Fern

Yes under the current bill the states opting in have to cover the costs of the software.

 

[WHAMPOM]

I have an idea that will fix all the problems with collecting state sales tax. Charge and collect the tax required by the state and to the state the internet seller resides in. This would really make internet sellers equal to retail stores that charge their state tax to any out of state person that walks into their physical premises to buy something.

 

[s0me0nesmind1]

LOLs you have no idea what you are talking about. Most state sales tax codes don't even change yearly. Nor are they all that complex for the most part. There are plenty of national retailers that already rely on automated computers and software. Its not that difficult with modern technology and software.

Its the 1990s, they want you back.

...I work for a company that makes it's money off the complexity of the tax code - and the fact that it changes every day.... nice try brohemian rhapsody, I'm proud to make you look retarded

 

[piasabird]

I suppose I could fly to Vanns buy the TV and have it shipped back. They have no sales tax there. What a racket. How about people that buy the TV for you in person then they ship it to you just to avoid the tax.

 

[piasabird]

A new racket. Buy the gear in a tax free state and then drop ship it for the owner. Perfectly Legal.

 

[Wreckem]

...I work for a company that makes it's money off the complexity of the tax code - and the fact that it changes every day.... nice try brohemian rhapsody, I'm proud to make you look retarded

You keep referring to the tax code. I can only assume you mean the IRS tax code. We aren't talking about the IRS tax code. This bill has NOTHING TO DO WITH THE IRS OR THE IRS TAX CODE. The IRS and IRS tax code have nothing to do with state sales taxes.

We are talking about state sales taxes. State sales taxes DO NOT CHANGE EVERY DAY. Nor are they that complex. Most don't even change annually.

You are the flipping moron to keep insisting this is impossible. There are dozens upon dozens of national retailers that ALREADY DO WHAT WE ARE FUCKING TALKING ABOUT AND IT IS ALL DONE VIA AUTOMATED COMPUTER SYSTEMS AND SOFTWARE.

You seriously underestimate how far we have come in data collection and processing. I can only imagine Westlaw would be a complete and total mind fuck for you. It would be akin to the matrix for you. You should unplug your computer and never use it again, the technology is beyond your comprehension it seems.

 

[Brainonska511]

A new racket. Buy the gear in a tax free state and then drop ship it for the owner. Perfectly Legal.

Hardly.

 

[Michael]

This is not a difficult probem to solve via software.

Companies that sell cash registers don't seem to have any issue keeping up on what sales taxes to charge. I have always thought this to be a red herring when you take a look at how business is actuall done today.

It is just look-up by zip code. If the states ignore the municipalities, it is just one rate for the whole state for the sttes that charge sales tax.

The provison of the states providing the software was probaly to shut up that being cited as a reason not to do it.

regards,

Michael

 

[Uhtrinity]

http://www.kpvi.com/content/news/st...et-sales-tax-bill/nuKmUjEPwUeF3Kbds-Ub-g.cspx

My states Senators both Republicans voted against it. I don't agree and think it is rather shortsighted on their part. Guessing they are in the pockets of big internet business.

 

[lothar]

Loophole found?

Here's going to be the inconsistency the way this will now work -which is, if you buy it online and you're sitting in the state of Pennsylvania, you buy it from someone from Oklahoma online, you have to collect sales tax. If you call a small business in Oklahoma on the telephone and ask them to ship it to you, they won't have to collect sales tax.

http://www.npr.org/2013/05/06/181499345/ebay-ceo-web-sales-tax-would-create-administrative-burden

Also, I wonder how this new law will work with "Fufilled by Amazon" items.
Amazon will obviously only charge sales tax on products that it directly sells to it's customers meaning it will still be up to the 3rd parties selling the "Fufilled by Amazon" items to charge a tax if they want?

 

[Wreckem]

Loophole found?

http://www.npr.org/2013/05/06/181499345/ebay-ceo-web-sales-tax-would-create-administrative-burden

Also, I wonder how this new law will work with "Fufilled by Amazon" items.
Amazon will obviously only charge sales tax on products that it directly sells to it's customers meaning it will still be up to the 3rd parties selling the "Fufilled by Amazon" items to charge a tax if they want?

Actually. There is a lot of misinformation about the bill.

It does NOT ONLY apply to online sales, it applies to ALL remote sellers. Remote sellers being defined as " a person that makes remote sales in the State." Remote sale = a sale into a State in which the seller would not legally be required to pay, collect, or remit State or local sales and use taxes unless provided by this Act." and of course the definition of person is "an individual, trust, estate, fiduciary, partnership, corporation, limited liability company, or other legal entity, and a State or local government."

It covers all means of remote sales. The only "loophole", which is the built in small business exception is buying from a merchant that does less than $1million in sales.

People need to read the bill. Its kind of obvious from that interview the Ebay guy hasn't even read it.

One his statement you quoted is not accurate. And two he goes on and on about audits and calculations which are also completely WAY off base if you actually read the bill. Again its obvious the Ebay CEO hasn't read it. He is just fear mongering.

As for collection on items fulfilled by Amazon, that would come down to if the third party(much like it does with ebay) has gross sales totaling $1million or more.

 

[Fern]

I have an idea that will fix all the problems with collecting state sales tax. Charge and collect the tax required by the state and to the state the internet seller resides in. This would really make internet sellers equal to retail stores that charge their state tax to any out of state person that walks into their physical premises to buy something.

I don't think they can do that. I believe it would then qualify as a direct tax instead of a use tax. No direct taxes allowed under the Constitution (other than the income tax which required an amendment to implement).

Now, it's a use tax because it's charged to the person, and paid to their state, who is going to 'use it'. Their state is considered to have a right to the tax because it's assumed the product will be used in that state. ('Consumption' is probably the correct term.)

Fern

 

[Fern]

A new racket. Buy the gear in a tax free state and then drop ship it for the owner. Perfectly Legal.

No, that's completely wrong.

The tax is charged to, and paid to, the state of the purchaser.

So, even business located in a non-sales tax state will have to charge and collect sales tax when the product is sold to a resident of a state with a sales tax.

Fern

 

[EagleKeeper]

For those that want to pay for the drop shipping; the amount of small size items will most likely be much more than the sales tax would be.

Example;
$100 video card w/ 7% tax rate = $7
USPS shipping priority with insurance $6

$200 video card w/ 5% tax rate = $10
USPS shipping priority with insurance $8

This does not compensate the third party for their time.

Realize that the cost of shipping from the seller has already been calculated into the overall bill. most get a discount from UPS/FedEx, etc.

Your reshipper does not get such discounts - pays the full price.

And you need to find a re-shipper in a sales tax free state to use. Preferably as close to you as possible.