Now that the supreme court has ruled on States
collecting sales tax today, on out of state sales, does this mean that the tax man is going to be looking at the form???
Anything you do online is public knowledge and subject to scrutiny by whoever wants to scrutinize you.
Mike, I seriously doubt that as long as it is considered a private sale. The tax man doesn't have the time or resources to police all personal sales. I'm pretty sure that it is for commercial sales, however it could impact personal sales on sites like Ebay. They could potentially add it to the fees that they collect on every sale. Just my $0.02, doesn't really mean I'm right. - Matt
My guess however Matt, is that you are.
Each State has its own sales tax law and rules.The ruling is that the company selling something "out of state" now needs to pay the state any sales tax charged or collected. An individual selling something needs to collect sales tax on all sales that are subject to sales tax. Some sales may not be subject to sale tax under that states rules. Usually isolated sales are not subject to sales tax.
While I have never even come close, I think Ebay has some sorta tax collecting in place if you go over $10,000 in yearly sales. Oregon at this point does not have sales tax so if anything it would be income tax.
The new law will exempt sellers having less than $100,000 in annual sales or fewer than 200 transactions in the state. Seems to be aimed at the big guys. I have to collect 9% state and local taxes on sales in my store and I have lost many sales to the internet because of this disparity. Buyers considering the purchase of higher priced items, say 2-4000 dollars, often actually tell me they would like to deal locally but the 2-400 dollars in tax savings sends them online. So it will level the playing field to a degree.
A step backwards as far as I am concerned. If something is used,tax was paid on it when new.I am yet to understand how they feel you owe more tax when resaleing a used item.
I have always looked on ebay and if I go to pay and it has sales tax added,I back out and go to the next vendor. Me paying sales tax to california or any state I don't live in is taxation without representation. If I aint bad mistaken there was a little tea party up north about that very issue a good while back.
This is going to be far reaching: states like
California, New York, New Jersey, Illinois, high tax states will not stop at anything to get money. In our state DMV does monitor sales and has a list
they put together on what a vehicle should sell for,
and if it is out of line with there list they send
you a letter asking why. In the past there was a place on the Certificate asking what the price you payed, now you have to have a Bill of sale??? They
have stated in the past they contract with a private company to monitor all sights where sales are. This company produces a book now for them about sales on trailers, motor homes, ECT. and you will pay sales tax on there book price, not at a lower price you said you payed. Think Twice!!!!
not all states are stupid.
Wonder how or if it will effect Oregon outlets as we currently do not have sales tax. If I cross the Columbia to Washington I can sign a statement I am from Oregon and not pay the Washington tax. The large retailers here have all most half the cars with Washington plates. Last Wednesday the new Walmart opened heard they did a third of a million business that day
When you fill out your CA income tax form, there is a line to report your out-of-state purchases that you didn't pay sales tax on, so you can then pay the tax!
In order to get a vendors space at Hershey, you have to get a PA sales Tax number and yes you must send in a sales tax report. At one time if you were a jobber for MAC"S you had to have a sales tax number or paid NY sales Tax. It was not a Mac's, thing it was a NY thing. There are many swap meets that made you report sales tax. Not a new thing . Dan
They have tried to break the taxpayer before and didn't get the job done.
Well I would think the large company's will start moving their warehouse's to states with low or no sales tax to continue to help the American people to be able to afford things.
I am also looking at doing more of what I started a year or so ago.Buy the lawnmower parts and such that I can directly from china and cut out the middle man and the tax man. Amazing how much gets added to the price of a item when it goes thru so many hands.
A laser handheld thermometer at Harbor freight is 30 bucks roughly.Online on ebay from china,9.99 free shipping.
Safty-sun glass's. 9.99 and up at wally world. 1.65 a pair off ebay from china.Have to wait a while but just order before your old 1's are past using.
I just can't wrap my mind around it being "ok" to tax someone without representation.
I have not had a chance to carefully review the court case, but usually the tax collected is where the sale is made. If you are in California, and sell to someone in Iowa. The tax collected is the Iowa rate, and the money goes to Iowa. Your tax money stays in your state. Understand that without taxes, you would have to do with out a lot of things, like schools, police, fire departments, etc. Who wants to give that up?
We Live Free and Die in New Hampshire.
No sales or income tax but we have a hotdog tax and high real estate taxes.
If you live in an affluent town with expensive homes you have to “donate” money to less affluent towns for their schools.
In 27 years our tax bill went from under $2000 a year to over $10,000 and we done no additions and no upgrades.
At least we can register the T and A for about $100 a year.:-)
If you live in Mass, Maine or Bernie land and live near the border you shop in NH for a bit of savings.
If you live in NH and work in another state your double-screwed.
I don’t know if it costs a lot to die in NH but there is nothing free about living here.
I can't even begin to imagine how difficult this will be for the business owner. Now the business owner will be required to collect taxes for good sold to individuals in every state? Not to mention, the sales tax rates vary from city to city.
In California alone, there are over 1,785 different sales tax rates currently on the books. The state minimum sales tax rate is 7.25%. The city of Corona is 7.75%. The cities of Hawthorne, Long Beach and Pico Rivera are 10.25%. This is not unique to the state of California. Many other states have a similar additional sales tax added to the state minimum tax rate.
Even if they require the retailer to collect the minimum standard tax rate for every state, that is 50 payments to be made to each state quarterly! What a mess!
In the long term I think there will have to be alot of changes to this idea.It is just not practical in the long term for small business's. Book keeping is hard enough already.
Sears and others have went belly up.And I guess some folks blame the no tax thing for online sales for it.I blame it on the company's not pricing their items competitively.
When the huge mark up on a item becomes so obvious to a online shopper,why would he pay more to a store that happens to be standing in town instead of far away?
go to wally world and price a pair of sun glass's. Then go to this link and find them for much less? why would I want to go to wally world and pay 10 times as much for them?
https://www.ebay.com/itm/Mens-Cycling-Sunglasses-Driving-Vintage-Outdoor-Sports- Eyewear-Glasses-UV400-CJ/321431151889?ssPageName=STRK%3AMEBIDX%3AIT&var=51029822 4773&_trksid=p2057872.m2749.l2649
What a mess is right! Government and lawyers are getting their noses into EVERYTHING that can hurt business and finally they will blame business for mismanagement as their out when it doesn't work. China and other foreign countries will murder us since their governments actually subsidize to help their local business take advantage of the silly capitalism killing laws that are being foisted upon us. $100,000 in annual sales will be easy to hit as inflation continues and when a company has to refuse a sale near year end they will likely just close their doors once they hit the bogey number in sales and start to make sales as another company. The sales tax has so many variations and so many crooked state governments that they may very well have sounded the death knell for start up business in general. Illinois is already a disaster for business and having to charge IL sales tax when someone buys something they most certainly won't buy it if the source for it is in IL and they have to pay IL high sales tax when purchased in their different home state. IL business won't have a chance unless they are the sole source for it. Business will migrate to the state that has the lowest sales tax or most likely just buy it direct from China since Chinese government will kick in money to cover the shipping to the USA. Dark day and a coming nightmare unless this law is somehow made uniform for all and I mean with Chinese sources included in the balancing act. Why can't our government just stay out of business and provide only defense and stable banking. The "right to regulate commerce" clause is a disastrous legacy that was given to these self seeking politicians.
One time about twenty years ago a tax lady came around at the end of Chickasha and wanted sales tax on what you sold. I think it was 8.25%. Most vendors probably had memory loss as to actual sales,but that was the last time that happened. If I sell at the Tri-state swapmeet in Denver in February,Denver sends me a form to pay on what I sold there. I presume greedy Pennsylvania still collects some on sales there after you risk your life through narrow lane construction zones on the turnpike getting there in bad weather.
No need to be so upset; it's not personal, it's just business.
When business people are elected to public office they run the country as a business. It is not about people, not about compassion, it is all about efficiency and profit.
With all of these additional tax dollars flowing into all of the individual states coffers America will be able to afford to be Great Again.
I think you guys are making this harder than it is. We work in Iowa and Missouri. Different counties in Iowa use to have different tax rates, and different in Missouri. Our Quick Books software is programmed to collect different rates, for different places. It then keeps track of it all, and posts a report at the end of the month, as to how much goes where. It is not the end of the world, but in fact, much more equitable for all involve. Just because you haven't been paying the tax, doesn't mean you don't owe the tax. Most states have tax laws that stipulate, if you buy something on Amazon or E-Bay, etc, you are supposed to send in the sales tax. If you choose to break the law and not send it in, that is your decision. I guess, leave it to the rest of the law abiding citizens, and the ones that support the local business to bear the brunt of the tax burden.
Save your receipts! Texas has a little known form to fill out to recoup overages in sales tax paid. Most sales software is setup to use a zip code to determine a buyer's tax rate. The problem is many don't "reside" in the taxing authority's boundary corresponding to that zip code.
For instance; My zip code puts me in a city/county/state sales tax rate of 8.25%. But that is incorrect as I don't live within the city's boundary and shouldn't be liable for their tax. When I was charging sales tax on my sales, the state certified my taxing rate at 6.75%.
If you want to make it hard on the states that charge sales tax, start flooding them with sales tax refund forms.
Of course, I'm speaking for Texas. Other states may vary.
I don't really know but it is my understanding that this applies to state taxes only and not to counties, cities etc. I agree with Michael Thomas that it isn't that complicated an issue and should have been done years ago. One form of business shouldn't have a legal advantage over another. If it does involve every geographic taxing entity it will involve a lot of book keeping for the big sellers but relatively no more than for the little guy.
Agreed John - to a point. The devil is in the details. CBS reported this morning that if total internet sales were below $10,000 per year and there were less then 200 separate transactions, the seller likely would be exempt. Here's the devil - what if you sold $20,000 worth of stuff over the course of the year? If there were transactions with many people in different states, you would potentially have a tax liability to as many as 45 states. Presumably these states would want what they consider their money more then once per year. This could turn into a mountain of paperwork. A real can of worms.
The myth of taxes.
We do not need taxes.
Lets build a new park.
There are a lot of grants out there and the money is free.
Lets get a grant for a new fire truck.
There are plenty of grants out there.
Well folks we are lowering taxes.
As a mater of fact we are eliminating taxes.
Let's build a new a new community centre... we can get a grant. Let's fix the road. Lets get a new side walk. Lets get that free government money...
Sorry folks all our community development programs and social programs are stopped.
Well we no longer collect taxes...Yea!!!!
I doubt any reasonable person denies the need for taxation. The vexation is in regards to the proportion of a persons income the ever growing government seems to require. An analogy, if I may. Let's look at a household income as a pie. A part of the pie is set aside perhaps for the church; another for savings and retirement. Living expenses will use up a large chunk of course as will various other things. Now we need the streets, parks, sidewalks, police, national security and so on--those essential government services, so lets say every one contributes 20% of their pie for those services. Here it comes. Next year the government says, "Oh, our population has grown so we need more money for blah blah blah." The fact that more pieces of pie are coming in doesn't seem to enter the equation. Beyond that, those people in "public service" are enjoying retirement benefits, vacation time, sick leave and so on way beyond that which those who pull the wagon will ever have that the level of frustration among those in the private sector continues to rise. Look around among the people you know and consider what percentage work for some government entity--the government itself, school teachers, firemen, police, military, state run medical facilities and so on and compare that to the number who work in the private sector. At some point the cart will turn over.
Think we certainly need to wait to see what laws are passed to clarify the rules. Taking the ruling literally makes it impossible to calculate the proper tax. For example yarn or cordage is taxable in two Eastern states if used for a blanket but not for a sweater. The dust hopefully will settle.
My solution will be to make sure I am under the limits. Otherwise all sales to companies like Langs or Snyder's.
Usualy sale from businesses
Some regard private enterprise as if it were a predatory tiger to be shot ...others look upon it as a cow that they can milk ...only a handful see it for what it really is ...the strong horse that pulls the whole cart ...Winston Churchill
Sales tax can be considered to be the most fair tax. If you don't buy anything, you don't pay any tax. Those folks that think they have to have everything, pay taxes. Those of us who can grow their own food, make their own clothing, walk where they need to go, or barter for what they need, don't pay any tax. Those rich folks we all hear about, they are the ones that spend a lot of money, they would pay a lot of tax.
If you don't buy, you don't pay any tax. Face it, anything you buy for your Model T is just for fun anyway. You don't really need it. Pay the tax, like those rich folks.
I will respectfully disagree with Michael Thomas. The sales tax is an extremely regressive tax. Certainly if you can afford a new Bentley convertible the sales tax is no big deal, but if you are poor it hits you harder then if you are not. Regardless of income, we all need some minimum level of food, clothing, and shelter; the unavoidable portion of the sales tax takes a larger proportion of the income of a low-income family then it does of a high-income family. I hate income taxes, but a flat income tax with a reasonable exemption for basic living expenses is the fairest - it hits everybody with the same percentage of disposable income. The reality is that we all can't grow our own food, make our own clothing, and walk where we want to go.
Speaking of sales taxes - Massachusetts decides what the value of a used car is regardless of what you actually paid. I got hit with a sales tax on $3,000 more then I paid for my T. At their book price I never would have purchased it.
John Codman, At least Massachusetts doesn't tax food, clothing (under a certain dollar amount), and prescription drugs. Here in Alabama just about everything is taxed but motor oil and pesticides. Here is a good article on how the SCOTUS ruling isn't a good thing. https://yellowhammernews.com/calling-scotus-sale-tax-ruling-a-win-for-alabama-is -disingenuous-spin/?utm_source=Yellowhammer+Daily+Newsletter&utm_campaign=385f4b b05f-YH_Daily_Email_Sponsored_1_10_2018_COPY_01&utm_medium=email&utm_term=0_94d4 d4c544-385f4bb05f-68558265
While Oregon does not have a sales tax we do have income taxes. As a small business we buy our parts to re-sell from a state that has a sales tax, for example 8%. If we had to pay that, we would have to raise our customers cost by 8% to pay the tax that is no benefit to our buyers who do not live in that state. Mean while we still have to figure in OUR tax in the final cost so we can pay our income tax. Some of our customers live in Washington that has a sales tax, would this mean that we would also have to charge a sales tax based on were the customers live in Washington and pay to the state of Washington those moneys that they lost because of loss of sales to Oregon raising the price again by what ever % that might be?
As an Ebay seller would I have to collect sales taxes for the location were the buyer lives and pay those moneys to that taxing district?
I am not up on tax code and I am not against bartering, but I think it is still a form of income and is taxable on some levels. Like the example of the BIG swap meet in Pennsylvania, someone having a yard sale in Washington technically has to pay sales tax on goods sold. This has come up because as one of the clubs putting on the Portland Swap Meet in discussions about IF we had to move it, the next best place would be in Clark County up in Washington just across the river from Portland.
I received this from Ebay this morning;
The U.S. Supreme Court has announced their decision on the S. Dakota v. Wayfair case, overturning the long-standing rule that states could not tax businesses or sellers outside of that state's borders. Now is the time for Congress to act on legislation that protects small businesses.
And we need your help.
We are asking you to join us and digitally sign our petition to show our political leaders that you stand against new Internet tax burdens that could permanently damage U.S. small businesses like yours. The petition takes less than a minute to complete. We will soon be delivering this petition to President Trump, key members of Congress, and select state governors so we need you to participate now.
eBay has always supported tax policy that is fair to entrepreneurs, artisans, and small businesses. Rest assured that eBay will continue to fight this battle on your behalf!
If you are a legitimate business you should have a resale exemption certificate. I don't understand all this. I thought all this says is that if you sell at a certain level to customers out of state you have to collect the taxes for that state. At this point I don't believe it includes any thing beyond state taxes
Ok look at it this way, Ebay is based in California, all sales transactions pass thru California even if the sale was between two people in different states. Sold goods on/thru Ebay surpass the $100,000 limit. Is this why they ask sellers to sign the petition because they would now have to collect sales tax from me the buyer in Oregon and distribute the tax received to the state I bought from or maybe charge me California sales taxes on all sales that pass thru?
I think that some Ebay business/sellers do charge sales taxed for good sold in the same state now.
Even if there is a limit of $100,000, what taxing district will not be looking for a way to get around that to their advantage.
All this because leaders in office cannot balance a budget and stick to it! It’s overspending on their part and no one wants to cut anything so, us taxpayers have to pay dearly for it!
Death & (from) Taxes