Makes me wonder what states that don't have a sales tax will do.
Get Ready to Pay Sales Tax
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The way I've understood it. Online sales didn't charge tax because of the cost shipping. With the price and shipping combined. It was more then a local item that just had tax. Applying tax on top of shipping creates a negative to ordering online.
Now online purchases get a three-fer. Price, shipping, and tax. When the local stores get a two-fer. Price and tax.
Way to go supreme court.
Now online purchases get a three-fer. Price, shipping, and tax. When the local stores get a two-fer. Price and tax.
Way to go supreme court.
Yep, this is the real fall out. Larger online businesses can afford to hire the team required to manage it all and spread the costs across their product line without their customers even really noticing. Small businesses get screwed again...
There is representation, it's just not necessarily for us, the consumer!
Lunyfringe
Well-Known
Collect the taxes they already do, and ignore this whole mess... but there could be jurisdictions within those states that want their tax.
For example: Alaska has no state sales tax... but the city of Seward has a 3% sales tax.
So this begs the question- is this only state entities that have to be tracked and collected, or are we talking about 1000s of jurisdictions? (Cities, counties, etc)
Lunyfringe
Well-Known
except that doesn't jive with out the sales/use tax laws were written... they are based on the jurisdiction of the user/purchaser.
Lunyfringe
Well-Known
Agreed, and Texas has a cap that 8.25% is the max combined sales tax...
But does a retailer pay the 3 entities directly, or just pay it to TX Comptroller who pays it out to the county and city? Doesn't change the fact that 8.25% is not the sales tax throughout all of Texas. And some jurisdictions have tax exempt items (groceries, for example) with different definitions of what is taxable and what is not by jurisdictions... example I saw was that in Illinois, the tax rate on a Snickers and a Twix is different, because the Twix contains flour and is considered groceries. That's a lot of tax tables.
Justice Anthony Kennedy wrote the 5-4 decision, jettisoning the court's longstanding rule that states cannot require companies without a physical presence to collect sales taxes. He was joined by Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel Alito and Neil Gorsuch.
As a couple of guys have mentioned, the SCOTUS has opened a real can of worms!
For Texas, I’m guessing the out-of-state retailers will collect just the state sales tax of 6.25%. Not all jurisdictions charge up to the maximum of the additional 2% (cap). This makes for quite a variety of sales tax rates within Texas, depending on where you live, in the case of brick-and-mortar stores.
This will make cities or cities & counties start yelping for their slice of the pie. Now for the online retailers, multiple that nightmare times 49 other states (50, if you count PR).
This will hurt online sales due to consumers now having to pay for both shipping costs and sales tax. And should help the brick-and-mortar stores remain more competitive.
For Texas, I’m guessing the out-of-state retailers will collect just the state sales tax of 6.25%. Not all jurisdictions charge up to the maximum of the additional 2% (cap). This makes for quite a variety of sales tax rates within Texas, depending on where you live, in the case of brick-and-mortar stores.
This will make cities or cities & counties start yelping for their slice of the pie. Now for the online retailers, multiple that nightmare times 49 other states (50, if you count PR).
This will hurt online sales due to consumers now having to pay for both shipping costs and sales tax. And should help the brick-and-mortar stores remain more competitive.
Lunyfringe
Well-Known
cool, another layer of complexity (learnt somethin new)... Texas is indeed an origin-based sales tax (but AFAIK, only for in-state sales)... the majority of states are destination based... California is complex and a little of both (go figure)
I had a storm shelter delivered here, and since I'm in Van Zandt County (which has 0% sales tax rate, and I'm not in any city) they charged 6.25% (they had to charge sales tax at the time because they delivered & installed it- not shipped by common carrier)
And just because a state CAN charge sales tax on internet sales doesn't mean they do... here are the rules & regs on whether you have to pay sales tax in TX currently: http://texreg.sos.state.tx.us/publi...c=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=286
clear as mud, right?
You mean like they are doing on immigration?
BTW, the more conservative immigration bill got voted down today. For a comparison of the 2 bills, see the Children Separated thread. The one that got defeated today was the better of the 2.
This is gonna get real complex, real fast. As always, complexity favors big businesses over small.
Still, there have always been sales tax provisions that were weird or were seemingly set up to get people. It used to be common for people in the northeast, when retiring to Florida, to stop off and buy a whole house full of furniture in the Carolinas. Since they lived in Florida, there was no sales tax. Florida got wise and literally started stopping furniture trucks, inventorying the contents, and charging sales tax to the buyers. I remember plenty of those stories from decades ago.
Never underestimate the short-sightedness of states who think they can make a few bucks. Their ability to stick their fingers in their ears and hum loudly whenever anyone starts to say "unintended consequences" is amazingly consistent and effective.
Still, there have always been sales tax provisions that were weird or were seemingly set up to get people. It used to be common for people in the northeast, when retiring to Florida, to stop off and buy a whole house full of furniture in the Carolinas. Since they lived in Florida, there was no sales tax. Florida got wise and literally started stopping furniture trucks, inventorying the contents, and charging sales tax to the buyers. I remember plenty of those stories from decades ago.
Never underestimate the short-sightedness of states who think they can make a few bucks. Their ability to stick their fingers in their ears and hum loudly whenever anyone starts to say "unintended consequences" is amazingly consistent and effective.
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