darthluke12694
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Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 9:32 pm

Many people buy online because there is no sales tax, which makes me ask, do you agree with paying sales tax online?

In Tennessee, Amazon is required to start collecting sales tax starting in 2014. However, Amazon has sent out notices to customers in TN who have bought items on Amazon that they are "required" to pay sales tax for items already bought. According to the law, it is "required", but since Amazon doesn't report the sales to TN, TN has no way of forcing you to pay the sales tax owed.

I'm unsure if the law only applies to Amazon, or all online retailers. I believe it is just Amazon.

Many people disagree with paying sales tax online, although there are many benefits. The state would gain millions of dollars in revenue. If the prices are similar after tax online, it might encourage people to shop locally.

So what are your thoughts on this issue? Should the internet be a "tax free" zone? Or should online retailers be forced to collect sales tax?
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DeltaMD90
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 9:58 pm

I am generally anti-tax... try keep America healthy and safe but not much more, and tax as little as possible and people keep their money, attract businesses...

That being said, I don't really see how online companies can really be "exempt." Neither the customer nor the online store exist in some virtual reality, their earnings and expenses are reported somewhere, I think they should pay tax like anyone else in the jurisdiction. I will, however, continue to try and tax as little as possible, but I don't think online should be an exception
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Flighty
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:14 pm

Sales taxes should be reduced to compete with other legal commerce. Otherwise it is natural that local businesses will be devastated...

Best Buy is in the fight of its life right now because of this issue. Of course police and fire need to be paid. Property taxes are a good way to do that. Income taxes are also a fine way to do that, at the state level.
 
nws2002
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:24 pm

In most states the customers already owe the tax, it is just called a use tax and the customer is supposed to report it either with their income tax return or through some other process.
 
darthluke12694
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:33 pm

Quoting nws2002 (Reply 3):
In most states the customers already owe the tax, it is just called a use tax and the customer is supposed to report it either with their income tax return or through some other process.

Yes, I believe Tennessee has something similar to that. In fact, that is what Amazon is doing now to TN residents. However, I don't think the companies are required to report the sales to the state, therefore the state doesn't get the tax. It is up to the consumer to pay the tax or not.

Quoting Flighty (Reply 2):
Income taxes are also a fine way to do that, at the state level.

Except for the states with no income tax, such as Tennessee. That is another issue that I didn't think of until just now. Tennessee has no income tax, but has one of the highest income taxes in the country (7%, plus an additional 1.5%-2.75% for city and county tax). I suppose that states with no income tax need the revenue from sales tax to compensate for no income tax.
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Mir
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:34 pm

Quoting darthluke12694 (Thread starter):
In Tennessee, Amazon is required to start collecting sales tax starting in 2014. However, Amazon has sent out notices to customers in TN who have bought items on Amazon that they are "required" to pay sales tax for items already bought. According to the law, it is "required", but since Amazon doesn't report the sales to TN, TN has no way of forcing you to pay the sales tax owed.

I'm unsure if the law only applies to Amazon, or all online retailers. I believe it is just Amazon.

There are two problems here. One is if this tax applies only to Amazon (it should apply to any online retailer, or brick-and-mortar store that sells stuff online). The other is that Amazon is basically enabling tax evasion.

If the jurisdiction question is difficult, just make it a federal sales tax - some people have been clamoring for that for some time - and you can reduce (though not eliminate) income tax rates accordingly. But I've got no issue with sales taxes being paid on online purchases.

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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:41 pm

I think that tax should only be collected if you are a resident of the state that the item was sold in. If you live in another state the taxes needn't be paid.
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fr8mech
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:49 pm

Quoting darthluke12694 (Thread starter):
So what are your thoughts on this issue? Should the internet be a "tax free" zone? Or should online retailers be forced to collect sales tax?

If you're OK with paying sales tax at a brick and mortar place, then paying it to TN, via Amazon shouldn't phase you one bit.

Quoting darthluke12694 (Thread starter):
In Tennessee, Amazon is required to start collecting sales tax starting in 2014. However, Amazon has sent out notices to customers in TN who have bought items on Amazon that they are "required" to pay sales tax for items already bought. According to the law, it is "required", but since Amazon doesn't report the sales to TN, TN has no way of forcing you to pay the sales tax owed.

Here in KY, you are supposed to report any purchases made online, or out of town (if you didn't pay sales tax there) and pay the Caesar his due. Of course, short of a physical inspection or tracking you through online retailers and/or your credit card usage, there is no way to enforce this.

Quoting darthluke12694 (Thread starter):
I'm unsure if the law only applies to Amazon, or all online retailers. I believe it is just Amazon.

It should be everyone. Otherwise, Amazon is being targeted by government action and potentially enriching other online merchants.
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darthluke12694
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:50 pm

Quoting Mir (Reply 5):
There are two problems here. One is if this tax applies only to Amazon (it should apply to any online retailer, or brick-and-mortar store that sells stuff online). The other is that Amazon is basically enabling tax evasion.

I agree with you. It should apply to everyone. I believe it is only Amazon though because of the numerous Amazon facilities they have here in TN.
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fr8mech
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:53 pm

Quoting darthluke12694 (Reply 8):
I agree with you. It should apply to everyone. I believe it is only Amazon though because of the numerous Amazon facilities they have here in TN.

As I understand it, under current law, if a retailer exists in your state, the state can collect sales tax, even though they participate only in online sales. It could well be that Amazon has been able to skate because they act as a middle man, but not a retailer? A very thin excuse, if that's the case.
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:56 pm

From the point of view of local commerce, it's exceedingly unfair that sales taxes are applied to brick-and-mortar stores, but not online stores. If there is going to be sales tax, it should be applied to all purchases.

The issue is: should the applicable online sales tax be from the state in which the merchant is located or from the state in which the customer is located? I would submit that the latter makes more sense.
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 10:58 pm

I recently bought a Seattle Seahawks Elite Home Jersey (Doug Baldwin #89) from Nike.com for $250. (You know, one of those almost real game jerseys) Nike taxed me $10 for the jersey, but the shipping was free.

Generally, I am against online sales to be taxed. I don't see the need to have online sales tax when the product you buy is not from your State, even though your State wants the taxes from it. I think it is ridiculous. It is just a money grabbing thing and an "entitlement" issue on the State's part.

And don't get me started on the Death/Inheritance Tax. That one is wayyyyyyyy BEYOND stupid.

[Edited 2013-01-15 15:02:22]
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:00 pm

I am not quite sure why a sales tax for an online purchase should be paid at the recipient's shipping address, instead of the retailer's HQ or warehouse of origin. If I lived in the U.S., near a state border, surely, if I crossed the state border and went to a brick-and-mortar shop to buy something, surely I'd be paying the tax in the location of said brick-and-mortar store, even if I took it home to the state next door?
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fr8mech
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:09 pm

Quoting AirframeAS (Reply 11):
Generally, I am against online sales to be taxed. I don't see the need to have online sales tax when the product you buy is not from your State, even though your State wants the taxes from it. I think it is ridiculous. It is just a money grabbing thing and an "entitlement" issue on the State's part.

Actually, I see it as more of a 'leveling the playing field" type argument. Your run of the mill brick and mortar place has to charge sales tax, why shouldn't the online retailer?
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:12 pm

Quoting fr8mech (Reply 13):
why shouldn't the online retailer?

Because the online retailer has no idea where the product is going to come from if they have 15 shipping warehouses around the country. That is the problem.

Another problem is that the online retailer isn't doing a face-to-face transaction as well.
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GuitrThree
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:14 pm

Quoting Flighty (Reply 2):
Best Buy is in the fight of its life right now because of this issue.

No, not really. Not even close

Sure, some people shop online for the tax savings, but the majority do it because of the price differences. Sites like Buy.com, Amazon, and other's offer the same products for much less. I bought my camera kit on Buy.com because it was $200 cheaper than Best Buy, who wouldn't honor the buy.com price. That was BEFORE the tax savings (shipping was free). The problem with Best Buy and every other big box electronics stores is that they have to have many many physical locations, with many many employees, and a high stock level.. THAT'S Best Buys issue. Not saving a few dollars on taxes. If that's what they are claiming, no wonder they are in trouble.

And it's not just electronics. I needed a new Headlight assembly for my Envoy. Found it on Amazon for $44 after shipping, and yes, no tax. The EXACT SAME PART from the EXACT SAME BRAND NAME (aftermaket) was close to $200 at all of the local brick and mortar Auto Parts store. The tax savings was meaningless.

That being said, I don't see how a state (where the buyer is located) can charge sales tax on an item that was sold in another state. I do, however, see where a state (where the seller is located) can make the retailer charge tax. Tax collected should be from the location where the item was bought, not shipped to.
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connies4ever
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:25 pm

Quoting darthluke12694 (Thread starter):
Many people buy online because there is no sales tax, which makes me ask, do you agree with paying sales tax online?


In Canada, our value-added tax (national) is applied on-line as well as at the checkout.

Quoting darthluke12694 (Thread starter):
So what are your thoughts on this issue? Should the internet be a "tax free" zone? Or should online retailers be forced to collect sales tax?

No and yes. As DocLightning pointed out, no tax online penalises local bricks-and-mortars outfits.
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:28 pm

Quoting GuitrThree (Reply 15):
I don't see how a state (where the buyer is located) can charge sales tax on an item that was sold in another state. I do, however, see where a state (where the seller is located) can make the retailer charge tax. Tax collected should be from the location where the item was bought, not shipped to.

I see what you are saying, I think I can agree with this. My Nike.com order should have been tax free since Nike itself is based in Oregon, a sales tax free state. I should be able to take advantage of that right off the bat. But they still charged me $10 sales tax. That makes no sense.

If I buy a product in the State of California, I'll be happy to pay sales tax to that State since that is where it came from. It supports their economy. Now if I buy a product from a Sales Tax Free State (like Oregon or Alaska(?) for example), then I should have my order tax free.

I don't know, I am now feeling 50/50 on this issue.... It really depends on the situation.
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Flighty
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:37 pm

Quoting GuitrThree (Reply 15):
Tax collected should be from the location where the item was bought, not shipped to.

Actually, the law has it other way around. IIRC, people who buy from Amazon are obligated to pay the sales taxes to the state where they personally reside, if they get around to it. Of course, nobody does it, this isn't open to new legal theories really.

As far as I know, Best Buy officially matches Amazon prices 100% if you bring it to their attention. I know Target does.
See here: http://techcrunch.com/2013/01/08/tar...bestbuy-com-toyrus-com-year-round/

But if you are buying a $700 TV, that is 50 bucks in sales taxes Target or Best Buy will charge you, that Amazon will not. It is the elephant in the room for these guys.
 
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:45 pm

Quoting GuitrThree (Reply 15):
I do, however, see where a state (where the seller is located) can make the retailer charge tax.

US sales tax system is a complete mess. IIRC there are some 3,500 different schedules depending on product and location including such fun rules as tax only collected on the first x dollars of each item. E.g. if I have a business located in Ft Lauderdale and and someone buy things in my store the rate is 6% but if I ship it to Miami-Dade the rate is 7% but that extra 1% is only for the first 5,000 on any item. So if I sell two items for 5,500 each the tax is (5,500 x 6% + 5,000 x 1%) x 2 = 760 but if I make a package of the two items then the tax is (11,000 x 6% + 5,000 x 1%) = 710. It s crazy.

That said the principle is that you pay the tax where the item(s) is delivered. Something that follows how it is done in international trade.
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darthluke12694
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RE: Do You Agree With Online Sales Tax?

Tue Jan 15, 2013 11:53 pm

Quoting GuitrThree (Reply 15):
That being said, I don't see how a state (where the buyer is located) can charge sales tax on an item that was sold in another state. I do, however, see where a state (where the seller is located) can make the retailer charge tax. Tax collected should be from the location where the item was bought, not shipped to.

I agree. I don't see how it is fair where if I was to buy something online from New York, yet Tennessee would charge the sales tax. New York would be getting ripped off on sales tax.

I think we would be better off with some sort of universal online sales tax, but I can't see that happening.
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tz757300
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:25 am

This is one of the few times it's actually nice to live in DE (0%).

But I am for it. If you are buying a product from somewhere that has sales tax, tax it like it was being bought there in person.
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:33 am

Quoting tz757300 (Reply 21):
If you are buying a product from somewhere that has sales tax, tax it like it was being bought there in person.

   Agreed. It shouldn't matter where the purchaser is residing in.
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:34 am

As far as I know, if an online retailer has ANY business presence in a state, they are required to collect sales tax in that state. For example, Amazon has a call center in GFK. Hence, I need to pay sales tax. However, if I order it as a gift and ship it to another state where they don't have a presence, no tax is charged.
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cmf
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:35 am

Quoting AirframeAS (Reply 22):
Agreed. It shouldn't matter where the purchaser is residing in.

It doesn't. It matters where the goods are delivered.
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:45 am

Quoting cmf (Reply 24):
It matters where the goods are delivered.

No, it should not. It matters where the goods either 1) Are shipped from or.... 2) The state where the HQ is collecting the money. The sales taxes, IMO, should go to the State where the company has their HQ base to support THAT State's economy.
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rfields5421
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:47 am

For what ever reasons, sales tax is the major funding source of most states.

For online retailers to be exempt from the collection of sales tax on sales to people in a state deprives the people, the children of the state, from money needed for essential services. And causes other taxpayers in the state to have to pay an unfair burden of the taxes.

Quoting fr8mech (Reply 7):
It should be everyone. Otherwise, Amazon is being targeted by government action and potentially enriching other online merchants.

Amazon is targeted because (1) they have a physical presence in Tennessee, that fulfills orders for Tennessee residents. We went through the same thing here in Texas with Amazon. And (2) they are big enough to make it worth the state's efforts to go after them for sales tax.

Small sellers might get away with not collecting sales tax, because enforcement is too expensive.

Quoting AirframeAS (Reply 14):
Another problem is that the online retailer isn't doing a face-to-face transaction as well.

What has that got to do with the price of sweet potatoes. The online retainer and the brick and mortar retailer are no different legally.

Or are you saying the online retailer should not have to live up to the legal requirements for providing services for payment rendered the same as a brick and mortar retailers.

Quoting AirframeAS (Reply 17):
I think I can agree with this. My Nike.com order should have been tax free since Nike itself is based in Oregon, a sales tax free state. I should be able to take advantage of that right off the bat. But they still charged me $10 sales tax. That makes no sense.

Was your Nike product shipped from a warehouse in Oregon?

I'm pretty sure it was not.

One thing I'm familiar with is purchase of large, expensive bus type RVs. Many people here in Texas will create an Oregon corporation and purchase their RV in Oregon. License and insure it in Oregon. To save sales taxes - which can be quite a bit of money on a $500-800,000 RV.

However, they find they have to pay the sales tax before they can sell the RV/ trade it in - in Texas and most other states.
 
rfields5421
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:51 am

Quoting AirframeAS (Reply 25):
.... 2) The state where the HQ is collecting the money.

I'm sure the state of Arkansas would love to collect sales taxes on all sales at Walmarts worldwide.
 
AirframeAS
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 12:59 am

Quoting rfields5421 (Reply 26):
Was your Nike product shipped from a warehouse in Oregon?

No, it was not. It was shipped from a warehouse in Florida, which I was completely surprised about. That probably explains why I paid $10 in FL sales tax, if that is what it was. I have a hard time believing that it was CO sales tax. But I think it should be no sales tax since Nike is based in Oregon.

Quoting rfields5421 (Reply 27):
I'm sure the state of Arkansas would love to collect sales taxes on all sales at Walmarts worldwide.

Not gonna happen. If you purchase something in a WA Wal-Mart in person while a HI resident, for example, you pay WA sales tax. This is because you are buying something in person, rather than online. Now, if you buy something from Wal-Mart.com, then the Arkansas sales tax should apply, IMO, because that is where Wal-Mart is HQ'd.

Quoting rfields5421 (Reply 26):
What has that got to do with the price of sweet potatoes. The online retainer and the brick and mortar retailer are no different legally.

Or are you saying the online retailer should not have to live up to the legal requirements for providing services for payment rendered the same as a brick and mortar retailers.

What I am saying is that the taxes should be at the State where the company's HQ is in, not at the purchaser's State of residence since that is where the money is going to. See above.
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Fabo
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:03 am

Quoting darthluke12694 (Reply 20):
I agree. I don't see how it is fair where if I was to buy something online from New York, yet Tennessee would charge the sales tax. New York would be getting ripped off on sales tax.

The one problem I see with this is - all the e-shops would register in Oregon, and there you go.

The idea is, (or at least is should be), to minimise the current "unfair advantage" that these e-commerce outlets hold against local shops.
The principle I think this should be based around is "customers physical location at the moment of purchase (or delivery of the stock) shall be regarded as place of purchase re. sales tax and other regulations". In brick-and-mortar shops this is working right now.

You are at the store, you make a purchase, you are "delivered" the goods, and that is a very definite place of purchase. One would not argue (unless I am massively misinformed about the sales tax system) that a seat of a company is in a different state, therefore you should pay that states sales tax on a location in your state.

Similarly if you make a purchase online, with delivery to a specific place (home, workplace), the adress of delivery serves the purpose of a "shopping place" for the customer, as in, "this is where I obtain the merchandise"


Sorry if my rambling is a little incoherent, it is 2AM here and I start to realize I better go to sleep.
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rfields5421
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:13 am

Quoting AirframeAS (Reply 28):
What I am saying is that the taxes should be at the State where the company's HQ is in, not at the purchaser's State of residence since that is where the money is going to. See above.

So you believe online retailers should be given a strong business advantage over brick and mortar stores?

That the small business man get the shaft because the big corporation has better lawyers - to pick the best states for the corporate HQ?

The lack of online retailers paying sales taxes is the biggest anti-small business issue facing the US today.

More so than any federal taxes issues.
 
AirframeAS
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:19 am

Quoting rfields5421 (Reply 30):
So you believe online retailers should be given a strong business advantage over brick and mortar stores?

What I am saying is this, in case you cannot read:

Quoting AirframeAS (Reply 28):
What I am saying is that the taxes should be at the State where the company's HQ is in, not at the purchaser's State of residence since that is where the money is going to.

  

Quoting rfields5421 (Reply 30):
The lack of online retailers paying sales taxes is the biggest anti-small business issue facing the US today.

I don't care. I am not shopping at a small business if the product is not available through them.
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N867DA
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:23 am

I am surprised online retailers have been able to push back for so long--it's about time tax is collected from online retailer! Tax should be collected by the retailer and sent to the jurisdiction of the purchaser. I thought this is how it's been for decades with mail-order catalogs and telephone sales? I remember hearing "If you live in California, New York, Massachusetts, or Texas add sales tax." on TV ads in the mid 1990s, well before electronic retailing took off.

This isn't a 'new' thing; it's updating the law to match technological progress!
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Tugger
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:27 am

Quoting darthluke12694 (Thread starter):
So what are your thoughts on this issue? Should the internet be a "tax free" zone? Or should online retailers be forced to collect sales tax?

Put simply, I think that online retailers should have to do the same things as other business that sell and operate within a state. A brick and mortar retailer already has to contend with building fees and related expenses, taxes should not be an issue. If the items was sold in a state (or more accurately shipped to a state) then sales tax should be paid based on the state shipped to. Since we all know NO ONE voluntarily pays the sales tax on their own when they pay their states taxes, having the retailer do it has long been the best solution and just like all the other businesses in a state, this solves that issue.

With that said, I do think that the discussion really rests on to what level of "local" do you for deciding what those taxes are? Just the state level, the county (my choice), or the city? Provided the level is not as low as City, and with software etc., it will not be that big a burden.

Quoting rfields5421 (Reply 30):
Quoting AirframeAS (Reply 28):
What I am saying is that the taxes should be at the State where the company's HQ is in, not at the purchaser's State of residence since that is where the money is going to. See above.

So you believe online retailers should be given a strong business advantage over brick and mortar stores?

No, what he is trying to advocate is a situation where all online retailers move to the one state that offers the best tax advantages (much like other industries). Which in turn will pressure the states to lower taxes just so their local businesses can compete.

Tugg
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AirframeAS
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:32 am

Quoting N867DA (Reply 32):
I remember hearing "If you live in California, New York, Massachusetts, or Texas add sales tax." on TV ads in the mid 1990s, well before electronic retailing took off.

Ah, yes... now that you mention this, I forgot about that. Well, I have never ordered over the phone or through the mail before this internet sales took off....
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ltbewr
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 2:43 am

Requiring online and mail order retailers to collect and forward sales taxes to the states where they are sent to leads to a costly nightmare.

Not only states, but within states (like NY), counties and cities can have their add-ons to sales tax rates at different levels. Some cities in NJ have a 3.5% State Sales tax, while outside of them it is 7%. Some states tax almost everything like food (NC), some don't tax clothing (NJ), some only tax clothing above a certain price (like NYS). Then you have exemptions like for not-for-profits and businesses that are buying for resale and processing properly them. Big retailers like Amazon can afford the software and tech to collect, distribute and otherwise follow the 1000's of state and tax sub-districts. Smaller retailers may not be able to afford it, even with exemptions or minimum amount of sales to some state.

Yes, there is no doubt all states that have sales taxes desperately want the revenues from outside the state sales to their residents, but the costs to collect and remit them for the retailers may just mean hurting them and residents of states losing out in saving money.
 
Superfly
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 3:44 am

Quoting darthluke12694 (Thread starter):
Many people buy online because there is no sales tax


  
Most people buy online because of convenience, many items aren't available at the local store and in my case, I buy old records & tapes as well as cars and car parts that have long been out of production. Therefore the ONLY place to buy these items is online. Many 2nd hand items have been taxed already when new. Taxing online is like taxing a yard sale.
Many purchases online are for low dollar amount items so it would be silly to purchase online and wait weeks for your item to arrive in the mail just to avoid an extra 75 cent to $2 sales tax.

Quoting ltbewr (Reply 35):
Requiring online and mail order retailers to collect and forward sales taxes to the states where they are sent to leads to a costly nightmare.


  
Agreed. That is 51 different tax laws to go by, then you get in to various taxes with international purchase as well.


What I DO support is a government that knows how to control spending. That may be asking for too much.  
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cmf
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 4:20 am

Quoting AirframeAS (Reply 25):
No, it should not. It matters where the goods either 1) Are shipped from or.... 2) The state where the HQ is collecting the money. The sales taxes, IMO, should go to the State where the company has their HQ base to support THAT State's economy.

That doesn't make any sense when you think about it. No-one likes to pay tax but reality is that bills must get paid. In a way sales tax is a fee for being able to sell to customers in a geographic area. The alternative would be for those areas to not allow sales from outside. Or to set up border controls. Like we have between nations.

Quoting ltbewr (Reply 35):
Requiring online and mail order retailers to collect and forward sales taxes to the states where they are sent to leads to a costly nightmare.

Some 3,500 rules that change is tricky but there are companies living on providing this info. It is a background request during the checkout process. Really not difficult, and not expensive. Nothing like credit card fees and freight who are the big obstacles in most internet sales business plans.
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darthluke12694
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 4:41 am

Quoting Superfly (Reply 36):
Many purchases online are for low dollar amount items so it would be silly to purchase online and wait weeks for your item to arrive in the mail just to avoid an extra 75 cent to $2 sales tax.

Sorry, I meant more for big ticket items and avoiding more $50 or more in sales tax. But yes, you are right, many people also buy online because it is way cheaper online then in store.
KBNA - "To most people, the sky is the limit. To those who love aviation, the sky is home."
 
Superfly
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 4:58 am

Quoting darthluke12694 (Reply 38):
I meant more for big ticket items and avoiding more $50 or more in sales tax.


I bought my car on ebay and the state collected their taxes when I registered the vehicle.
High dollar items tend to be cars, motorcycles, boats, RVs and trailers which requires registration and therefore get's taxed by the state anyway.
If someone sales a used guitar or record or stereo equipment that ends up going for a lot of money in a bidding war, then kudos to the seller.   
It's their money and the state shouldn't collect a dime.

Quoting darthluke12694 (Reply 38):
many people also buy online because it is way cheaper online then in store.


No. Many people buy online because many items are ONLY available online - particularly 2nd hand items.
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Aesma
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 5:02 am

In the EU where value added tax is common, online makes no difference. However when you order from another member country, it used to be that you paid the local tax of the website, for example I used to order computer parts from Germany that had a 16% tax when the French one was 21,6%. Things were cheaper even before tax, and the German market for such things is somehow more reactive/competitive than the French one, so it was interesting even if shipping was more costly.

Then there was some change and it was decided that online shops should apply the tax of the destination country instead, unless they don't sell to that country or very little. So many shops stopped dealing with other countries, others do it but I've no idea how the tax collection works, I know that there is a lot of tax evasion going on with multinational companies selling things from one branch to another, "forgetting" the taxes.

As for the revenue side, in France VAT (now at 19,6%, soon 20%) gets more money in than income tax (you know, that tax that goes up to 75%).
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darthluke12694
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 5:46 am

Quoting Superfly (Reply 39):
No. Many people buy online because many items are ONLY available online - particularly 2nd hand items.

Yes, but I am also right.

For example, at my local Best Buy a Nikon D300s is $1699.99. On Amazon, it's only a four dollars cheaper BUT no sales tax. So buying online saves me $150, which justifies my decision for buying online.

Another example. Adobe Photoshop CS6 at Best Buy, $699. At Amazon, it is $568. Over $100 savings right there.

People buy online because it is cheaper, because there is no sales tax, because it is only available online, or a combination. In my experience, I buy online because it is cheaper and no sales tax.
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zippyjet
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 5:46 am

I'm about as enthusiastic as sales taxing on Internet goods as I am about getting a colonoscopy! In addition to the higher costs, prices will rise due to the Internet sellers having to put up with different sales tax rates state per state. So this is an administrative cost and guess who gets to make up the difference besides getting screwed with the taxes. My state Maryland loves adding taxes and saying they will go to infrastructure improvement but in reality are stopgap measures to de fuster the cluck that is our deficit budget.
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Superfly
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 6:58 am

Quoting darthluke12694 (Reply 41):
For example, at my local Best Buy a Nikon D300s is $1699.99. On Amazon, it's only a four dollars cheaper BUT no sales tax. So buying online saves me $150, which justifies my decision for buying online.


Kudos to Amazon and the buyer. The government needs to learn to stop spending so much much that they don't even generate. The consumer and private sector always win.

Quoting darthluke12694 (Reply 41):
Another example. Adobe Photoshop CS6 at Best Buy, $699. At Amazon, it is $568. Over $100 savings right there.



You buy software?  Wow!
There are downloads and pirated copies but of course, I would never condone such.   

Quoting darthluke12694 (Reply 41):
In my experience, I buy online because it is cheaper and no sales tax.


In my experience, I buy online because I often have no choice. If I see a Led Zeppelin 8track tape selling on ebay for $5, I have no choice but to buy from that seller. It's not like I can drive down to Target and buy one. The taxes on that tape was paid when it was new back in 1971. I bought my 1977 Lincoln Town Car on ebay. I had no choice because it was the exact model and color I was looking for. It's not like I could go to the nearest Lincoln / Mercury dealer and order a 1977 model. The taxes was paid when the car was new and taxes continue to come in annually with yearly registration fees.
No need for an Internet tax. Don't give our out of control government any new ideas.

Quoting zippyjet (Reply 42):
I'm about as enthusiastic as sales taxing on Internet goods as I am about getting a colonoscopy!


Not a good analogy. A colonoscopy is necessary. An online sales tax is not. In fact, many taxes aren't necessary.
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nws2002
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:08 pm

Quoting TransIsland (Reply 12):
If I lived in the U.S., near a state border, surely, if I crossed the state border and went to a brick-and-mortar shop to buy something, surely I'd be paying the tax in the location of said brick-and-mortar store, even if I took it home to the state next door?

You would pay the sales tax at the brick-and-mortar store, but at least in Oklahoma you might also owe use tax when you bring the item back into the state. Technically, if I cross state lines and purchase an item and then bring it back into the state to store it, use it, or consume it in some manner than I owe the state 4.5% of the purchase price.
 
JJJ
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:25 pm

Quoting darthluke12694 (Reply 41):
For example, at my local Best Buy a Nikon D300s is $1699.99. On Amazon, it's only a four dollars cheaper BUT no sales tax. So buying online saves me $150, which justifies my decision for buying online.

Is there anything stopping your local BB from putting setting up a computer in the shop (or immediately outside the shop) with an order form ready to fill?

Order online, pick it up at the store only a minute later.
 
N801NW
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:53 pm

Quoting JJJ (Reply 45):
Is there anything stopping your local BB from putting setting up a computer in the shop (or immediately outside the shop) with an order form ready to fill?

Order online, pick it up at the store only a minute later.

No. You can even order from their website and do an in-store pickup a few minutes later. The issue is that BB has a physical "nexus" is the state so they are legally required to collect the tax. If I go to the state next door with no sales tax and buy an item at Best Buy for use in my state, I am legally obligated to declare it on my state income taxes and pay the Use Tax on it. Most people do not do this however, and this is why there is a push to get the merchant(s) to collect the tax.
 
rfields5421
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 1:57 pm

Quoting ltbewr (Reply 35):
Requiring online and mail order retailers to collect and forward sales taxes to the states where they are sent to leads to a costly nightmare.

States have proposed two solutions for online retailers in their attempts to get federal legislation passed to require that retailers collect and submit sales tax based upon the delivery address.

1) All online purchases are at the flat, base sales tax rate of the state of delivery, or
2) The state is responsible for maintaining a database retailers can access of sales tax rates for each zip code in the state.

The states will also be required to setup a system and bear the costs for online retailers to join in and make their sales tax payments online.
 
Kiwirob
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 2:16 pm

Quoting Superfly (Reply 43):
I had no choice because it was the exact model and color I was looking for.

Of course you had a choice, nobody forced you to buy it, you made that decision.
 
Superfly
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RE: Do You Agree With Online Sales Tax?

Wed Jan 16, 2013 2:50 pm

Quoting KiwiRob (Reply 48):
Of course you had a choice, nobody forced you to buy it, you made that decision.



Had no choice in terms of where to buy it, genius.  
Quoting rfields5421 (Reply 47):
2) The state is responsible for maintaining a database retailers can access of sales tax rates for each zip code in the state.



Would private sellers be exempt?
How about those that set up an online store of stuff from their basement?

I wish there was a movement towards cutting government spending instead of finding new ways to fleece the public.
Bring back the Concorde

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