[jblum315]

this has been banging around for years and years and has never come to pass. I'm sure there are some powerful lobbyists who will make sure it doesn't.

[JourneyOfLife]

Originally Posted by jblum315

this has been banging around for years and years and has never come to pass. I'm sure there are some powerful lobbyists who will make sure it doesn't.

I wouldn't be too sure.

Even more powerful business interests (and their lobbyist) are on the other side of the issue.

They are tired of competing with companies that have a "sales" cost advantage.

There is no doubt... it will eventually pass. State governments also want it! They want the tax revenue.

[blueash]

Amazon is actually supporting this legislation. There is a requirement for software to make this as easy as possible. Keep in mind it will only apply to companies doing 1 million or more in internet sales. Get ready for the proliferation of spin off companies that annually stop sales at 999,999 and refer you to their sister corporation that has exactly the same deal available. The proposed legislation also requires the state to provide free software to the merchant to assist in the proper collection of taxes owed.

Interesting side-point for what it is worth about Amazon. They may be about to increase by a large number the physical warehouses around the country. Up until now the sales tax was only collected in those states where they have a warehouse and they kept that uncommon to avoid taxes. If they want to be able to get purchases to you faster they need more nearby warehouses which means more of their sales will be locally taxed. Voila, as long as Amazon is going to have to do the tax collecting they might as well sign on for everyone else to have to do the same. Big money talks.

Here is the text of the proposal
Bill Text - 112th Congress (2011-2012) - THOMAS (Library of Congress)

[blueash]

Originally Posted by Golfingnut

I save a lot of money buying off the internet, but I think I should be paying sales tax to Florida for it as I am using it here.

Here is everything you need to comply

FL Dept Rev - Use Tax on Out-of-State Purchases

[jimbo2012]

Being an owner of retail stores and a Internet website, I see both sides.

As a online dealer it's great we offer low prices no taxes, as retail store we always have people come in asking to match the price on something, even if we match they scream that they still have to pay tax.

It hurts the retail store many times, this will level the playing field in several respects.

Now back to Internet sales, there are about 5,000 different tax codes for all the counties thru out the US, it is nightmare to manage all that and then mail checks to each taxing authority.

If there is a nationwide tax it should be flat rate not each county.

Sucks both ways, but the tax we feel is a better way to go.

[jimbo2012]

what does this have to do with internet sales tax guys, how about staying on topic.

[Gulfhills]

I thought we were promised our taxes wouldn’t be increased. How is this possible?

[Heartnsoul]

surprise you were promised alot of things

[Mikeod]

Originally Posted by Gulfhills

I thought we were promised our taxes wouldn’t be increased. How is this possible?

Because it is a tax you were already supposed to pay. FL and other states have a "use" tax that is supposed to be paid by the buyer on out of state purchases or Internet purchases when the state tax is not collected by the seller. So, technically, it is not a new or increased tax.

[allus70]

Here in NY we have been paying sales tax on items purchased online from Amazon and the other big boys for years.

[gomoho]

Originally Posted by mikeod

Because it is a tax you were already supposed to pay. FL and other states have a "use" tax that is supposed to be paid by the buyer on out of state purchases or Internet purchases when the state tax is not collected by the seller. So, technically, it is not a new or increased tax.

Just curious - do you pay this tax on internet purchases???

[Hal :-)]

Originally Posted by blueash

Amazon is actually supporting this legislation. There is a requirement for software to make this as easy as possible. Keep in mind it will only apply to companies doing 1 million or more in internet sales. Get ready for the proliferation of spin off companies that annually stop sales at 999,999 and refer you to their sister corporation that has exactly the same deal available. The proposed legislation also requires the state to provide free software to the merchant to assist in the proper collection of taxes owed.

Interesting side-point for what it is worth about Amazon. They may be about to increase by a large number the physical warehouses around the country. Up until now the sales tax was only collected in those states where they have a warehouse and they kept that uncommon to avoid taxes. If they want to be able to get purchases to you faster they need more nearby warehouses which means more of their sales will be locally taxed. Voila, as long as Amazon is going to have to do the tax collecting they might as well sign on for everyone else to have to do the same. Big money talks.

Here is the text of the proposal
Bill Text - 112th Congress (2011-2012) - THOMAS (Library of Congress)

Right. Walmart and other big retail promoted collecting tax on internet sales. But it may backfire. Amazon didn't initially jump on it, but ultimately went along for two reasons. They're planning sameday delivery with warehouses near major metro areas. That'll give brick & mortar's some stiff competition. Secondly, the paperwork involved in collecting, reporting, and submitting the tax is costly for small retailers and will limit their competition.

One million in sales doesn't seem like much to me. I recall reading that the Angry Birds app was earning $8 million a month in the early days. That's really an interesting one because the app was free. Many apps are just 99 cents and would be required to collect 5, 6, 7, 8 cents, depending where it was purchase, and do the paperwork for 50 different states.

It's so inefficient. I agree with someone's thought of eliminating sales tax in favor of income taxes. Simplify everything. How's this sound, replace the income tax with a wage tax for all employees. In an ideal world, the exact amount of tax owed would be withheld from a paycheck and April 15th is just paper work. The employee never received the money, the employer actually paid the tax. So, why not replace the income tax for employees and with a tax on wages paid by employers. Bingo, 100 million few returns to process. What do you think?

[asianthree]

so far i have been charged tax on everything i order so its not a change for when we move full time

[graciegirl]

Does anyone want to talk about ebay? Which to some sellers is like a garage sale and to others is a huge business, certainly into the millions yearly?

[jimbo2012]

ebay small time folks R not authorized to collect tax likely, the big sellers and there R many can do it but Ebay would need to have their program add the tax.

so now ebay adds the tax how does the seller repay the state?

Ebay recogizing how this will hurt their sales said "Auction site eBay is lobbying to expand the small business exemption to $10 million."

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