Get Ready to Pay Sales Tax

busykngt · Jun 21, 2018

It’s not you, they’ll be auditing - it’s the retailers. Based on the ‘shipped to’ address.

No real difference than how it’s done now. The brick & mortar store collects sales tax from you. What assurance do you have what they do with that extra money they collect from you?

stdreb27 · Jun 21, 2018

busykngt said:
It’s not you, they’ll be auditing - it’s the retailers. Based on the ‘shipped to’ address.

Would one be complied to open their books to a state auditor of a state they have no physical presence in?

I wouldn’t.

busykngt · Jun 21, 2018

See my second paragraph of my previous post (post #57).

MTA · Jun 21, 2018

More tax money for flag burning illegals to go to college

busykngt · Jun 21, 2018

In reality, I would guess the states involved would not waste their effort (read: money $$), going after the little guy. In fact they may make it a written or unwritten rule, that unless their gross sales receipts reach some certain minimum amount, sales tax collection need not be necessarily complied with.

Or alternatively, they may go after a few “little guys” to set an example and put the fear of god into all the other small retailers.

Like bank robbery, the states would go after where the money is (the big boys).

Lunyfringe · Jun 21, 2018

busykngt said:
In reality, I would guess the states involved would not waste their effort (read: money $$), going after the little guy. In fact they may make it a written or unwritten rule, that unless their gross sales receipts reach some certain minimum amount, sales taxe collection need not be necessarily complied with.

Like bank robbery, the state’s would go after where the money is (the big boys).

Until there was political motivation... because the IRS was completely impartial in it's enforcement.

avvidclif · Jun 21, 2018

stdreb27 said:
Yeah they get a portion of the 8.25%.

I used to file for my wife’s traveling business. We’re talking a few grand a year.

Been a couple years.
But each festival we collected sales tax. 6% to state 1/2 a basis point to the county, .35% to hospital district 1.022421249372782% to community college.

On and on

Each location has several taxing authorities.

If I did festivals in 4 cities there could be 20 different taxing entities. Some overlap etc.

I have NO clue how you’d manage that across 50 states.

Think about it. That’s 50 states, some require monthly returns. Some quarterly some yearly. Multiple taxing entities for a single location.

I predict clearing houses... like everyone run their sale through eBay or Amazon....

Sent from my iPhone using Tapatalk

Your case is unique in that you had multiple selling locations and had to report each. I only have one location and report to the state. When a I had a regular storefront in the city I had to charge the city rate of 8.25% but I only paid to the state, it was up to them to dole it out to the city

TX OMFS · Jun 21, 2018

I believe Amazon already offers a clearing-house service to third parties. The optics planet invoices look strangely similar to Amazon's.

stdreb27 · Jun 21, 2018

avvidclif said:
Your case is unique in that you had multiple selling locations and had to report each. I only have one location and report to the state. When a I had a regular storefront in the city I had to charge the city rate of 8.25% but I only paid to the state, it was up to them to dole it out to the city

In Texas you pay state of.

You just had to document which taxing authority it went to.

Not a lawyer did not stay at a holiday inn last night.

Haven’t read any of the opinions.

So I can’t speak to legality.

I’m only discussing implications as someone who’s spent 10 years in retail. And someone who views any attempt by the government to get more of my money as distasteful.

outdare · Jun 21, 2018

They can get a subscription to a company like this.

https://www.avalara.com/us/en/produ...s tax&ef_id=WxksIAAAAFiq5Pds:20180622033207:s

Sent from my moto x4 using Tapatalk

busykngt · Jun 21, 2018

As pointed out in the OP article, the SCOTUS effectively reversed fifty years of what had been pretty much settled law (i.e., no physical presence in the state, no obligation to collect some other state’s sales tax).

Personally, I think they haven’t a clue as to what their new decision means when it comes to implementation. All they saw, concerning the new era of internet commerce, was the states loosing a sizable chunk of their operating tax base revenue. And they wanted to do something to “correct” this situation.

It’s not unfathomable they may have just taken a giant step toward killing off or greatly reducing internet/mail order commerce (IMHO). Time will tell.

AustinN4 · Jun 22, 2018

busykngt said:
Personally, I think they haven’t a clue as to what their new decision means when it comes to implementation.

I don't like it either, for a number of reasons, but to be fair, ruling on the law is their job, not implementation.

Southpaw · Jun 22, 2018

busykngt said:
In reality, I would guess the states involved would not waste their effort (read: money $$), going after the little guy. In fact they may make it a written or unwritten rule, that unless their gross sales receipts reach some certain minimum amount, sales tax collection need not be necessarily complied with.

In this case it was $100,000.

Ole Cowboy · Jun 22, 2018

busykngt said:
As pointed out in the OP article, the SCOTUS effectively reversed fifty years of what had been pretty much settled law (i.e., no physical presence in the state, no obligation to collect some other state’s sales tax).

Personally, I think they haven’t a clue as to what their new decision means when it comes to implementation. All they saw, concerning the new era of internet commerce, was the states loosing a sizable chunk of their operating tax base revenue. And they wanted to do something to “correct” this situation.

It’s not unfathomable they may have just taken a giant step toward killing off or greatly reducing internet/mail order commerce (IMHO). Time will tell.

Only to the extent that it affects small business that cannot afford to hire the lawyers and accountants to sort out the over 10,000 rules and regs on paying taxes to another state. In fact I expect this to be a killer for businesses that do less than a $10M year in internet sales.

I see this as striking at the heart of small business which is the engine that drives America. SCOTUS has no idea what it is doing, not a single person who sits on the bench has ever held a job that depends upon them to make the right decisions or face going out of business. Our nation is being run by bureaucrats that sit in life time jobs, with little accountability for their actions and with the backing of the strongest union in the world, their pay and benefits are the envy of the world, they enjoy a lifestyle only the richest can reach. They have no idea of the reality of what makes America run because they think its them and that the govt is the end all be all and we the people would be poverty stricken without them. The result is the decisions they make are not grounded in reality.

AustinN4 · Jun 22, 2018

Ole Cowboy said:
Only to the extent that it affects small business that cannot afford to hire the lawyers and accountants to sort out the over 10,000 rules and regs on paying taxes to another state. In fact I expect this to be a killer for businesses that do less than a $10M year in internet sales.

I see this as striking at the heart of small business which is the engine that drives America. SCOTUS has no idea what it is doing, not a single person who sits on the bench has ever held a job that depends upon them to make the right decisions or face going out of business. Our nation is being run by bureaucrats that sit in life time jobs, with little accountability for their actions and with the backing of the strongest union in the world, their pay and benefits are the envy of the world, they enjoy a lifestyle only the richest can reach. They have no idea of the reality of what makes America run because they think its them and that the govt is the end all be all and we the people would be poverty stricken without them. The result is the decisions they make are not grounded in reality.

Reread post #72.

Dash Riprock · Jun 22, 2018

stdreb27 said:
Would one be complied to open their books to a state auditor of a state they have no physical presence in?

I wouldn’t.

Yeah, this is kinda my main question with this. If the business isn't actually doing business in your state, what authority does that state have over it? I sure as heck don't want California auditors in here poking around, say, Primary Arms' books.

This is probably going to end up being a really dumb question that I'll regret asking, but if a business has to collect sales tax, why does it have to be remitted to the buyer's state? Why can't Texas levy a sales tax on all goods sold within its borders regardless of who they are sold to? Seems like that would at least be simpler to keep up with.

Lunyfringe · Jun 22, 2018

Dash Riprock said:
This is probably going to end up being a really dumb question that I'll regret asking, but if a business has to collect sales tax, why does it have to be remitted to the buyer's state? Why can't Texas levy a sales tax on all goods sold within its borders regardless of who they are sold to? Seems like that would at least be simpler to keep up with.

Most sales tax laws are also tied to use tax... if they can't change sales tax (because the seller is out of state), they charge a use tax that's equivalent (this is has been unenforced in many places, Texas included.. but some states have been pursuing use tax on internet sales- and that's exactly what is the case that was heard before the SCOTUS) The constitution forbids states from levying an import or export tariff, which is what it would be if Texas taxed goods leaving the state bound for another state. Sales/use taxes by states are not verboten if they apply to both intrastate and interstate commerce.

If the product ships to California, it's not staying within Texas borders. Simpler to keep it in state? sure... but most politicians never met a tax they didn't like.

busykngt · Jun 22, 2018

AustinN4 said:
Reread post #72.

Obviously some of us don’t agree with your assessment. Just as you don’t agree with ours. SCOTUS cannot make decisions in a vacuum. And to extend the argument, some with argue they don’t have standing to make decisions on tax policy - this more correctly falls under the authority of the legislative branch.

AustinN4 · Jun 22, 2018

busykngt said:
Obviously some of us don’t agree with your assessment. Just as you don’t agree with ours. SCOTUS cannot make decisions in a vacuum. And to extend the argument, some with argue they don’t have standing to make decisions on tax policy - this more correctly falls under the authority of the legislative branch.

I would agree with the later more than the former.

busykngt · Jun 22, 2018

That’s obvious from your prior posts.

Get Ready to Pay Sales Tax

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