It’s not you, they’ll be auditing - it’s the retailers. Based on the ‘shipped to’ address.
Until there was political motivation... because the IRS was completely impartial in it's enforcement.In reality, I would guess the states involved would not waste their effort (read: money $$), going after the little guy. In fact they may make it a written or unwritten rule, that unless their gross sales receipts reach some certain minimum amount, sales taxe collection need not be necessarily complied with.
Like bank robbery, the state’s would go after where the money is (the big boys).
Yeah they get a portion of the 8.25%.
I used to file for my wife’s traveling business. We’re talking a few grand a year.
Been a couple years.
But each festival we collected sales tax. 6% to state 1/2 a basis point to the county, .35% to hospital district 1.022421249372782% to community college.
On and on
Each location has several taxing authorities.
If I did festivals in 4 cities there could be 20 different taxing entities. Some overlap etc.
I have NO clue how you’d manage that across 50 states.
Think about it. That’s 50 states, some require monthly returns. Some quarterly some yearly. Multiple taxing entities for a single location.
I predict clearing houses... like everyone run their sale through eBay or Amazon....
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Your case is unique in that you had multiple selling locations and had to report each. I only have one location and report to the state. When a I had a regular storefront in the city I had to charge the city rate of 8.25% but I only paid to the state, it was up to them to dole it out to the city
I don't like it either, for a number of reasons, but to be fair, ruling on the law is their job, not implementation.Personally, I think they haven’t a clue as to what their new decision means when it comes to implementation.
In reality, I would guess the states involved would not waste their effort (read: money $$), 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.
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.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.
Reread post #72.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.
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.Would one be complied to open their books to a state auditor of a state they have no physical presence in?
I wouldn’t.
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.
Reread post #72.
I would agree with the later more than the former.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.