[blueash]

Originally Posted by 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."

Read more: Internet tax supporters promise to allow amendments - The Hill's Hillicon Valley
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I'm sure the EBay folk understand this better than I, but it is not clear to me how this would affect them. Ebay doesn't seem to sell anything it just acts as a conduit. They don't even collect any payments. Ebay seems more like the for sale posts here on TOTV. You do see listings on Ebay that say tax is due if the bidder lives in Calif or wherever the seller is located so apparently some system already exists to add tax when it is required and it is the seller, not Ebay, who calculates the payment due. I do have to laugh at the idea that we should call it a small business until it sells over 10 million a year. According to the bill's sponsors in the link you provided, as written with a 1 million exemption it will only hit 1000 businesses. I wonder how few it would be at 10 million.

[blueash]

Originally Posted by Gulfhills

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

In addition to the correct response already posted that this is not a new tax nor an increase, I am very certain that both parties clearly have stated that a goal is the elimination of loopholes and going after tax avoidance schemes. Seems to be they are trying to do exactly what they promised.

[Bogie Shooter]

It seems the small business man who has a brick and mortor location is at a disadvantage to the online sellers.
I go to his store and buy a $100 item and pay $7.00 in sales tax or go on line and buy the same item for $100, no tax and free shipping. This business man will eventually, and are, going out of business.
This change in the law will help even the playing field.

[gomoho]

Originally Posted by blueash

In addition to the correct response already posted that this is not a new tax nor an increase, I am very certain that both parties clearly have stated that a goal is the elimination of loopholes and going after tax avoidance schemes. Seems to be they are trying to do exactly what they promised.

Except these are state not federal taxes.

[blueash]

Originally Posted by 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.

The bill requires that any state which chooses to implement a requirement for collecting this tax also provide for free the software needed to simplify the merchants job in correctly managing the amount of tax... From the bill:

(D) Provide--
(i) adequate software and services to remote sellers and single and consolidated providers that identifies the applicable destination rate, including the State and local sales tax rate (if any), to be applied on sales sourced to the State,

I would think this could be as simple as an app where the seller enters the charges and the zip code for shipping and it gives the correct additional sales tax to be added.

Additionally it is very clear that the merchant is required to remit the total tax to a single entity in the state not to each locality. The state would be responsible for distribution to each locality.

(A) Provide--
(i) a single State-level agency to administer all sales and use tax laws, including the collection and administration of all State and applicable locality sales and use taxes for all sales sourced to the State made by remote sellers

I do foresee the possibility of companies adding tax and never remitting it to the state. I know that already occurs with brick and mortar companies.

[jimbo2012]

It would be a bookkeeping PIA, 50 tax returns a month????

It's bad enough doing one now.

[jimbo2012]

Originally Posted by blueash

I'm sure the EBay folk understand this better than I, but it is not clear to me how this would affect them. Ebay doesn't seem to sell anything it just acts as a conduit. They don't even collect any payments. Ebay seems more like the for sale posts here on TOTV. n.

Ebay collect all the money, who do you think owns Paypal?

Ebay takes a 15% commission out of every sale, they absolutely collect the money.

[blueash]

Originally Posted by jimbo2012

Ebay collect all the money, who do you think owns Paypal?

Ebay takes a 15% commission out of every sale, they absolutely collect the money.

I don't think this really is the topic of the thread, but Paypal was bought by Ebay in 2002. Ebay and Paypal existed as separate businesses well before that. Ebay encourages the use of Paypal but many sellers on Ebay will accept other forms of payment. "PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee." Many online companies other than Ebay also use paypal as a payment option.

The seller places a product on the Ebay website and pays Ebay for the use of the website to place the object up for sale. When the object sells the seller and buyer have to come to an agreement on how the product will be paid as listed on the site this may include:

PayPal, Bill Me Later ,Credit cards and debit cards, Skrill, ProPay, Pay upon pickup, Escrow, Other payment methods

So Ebay collects a listing fee from the seller as well as usually 10% not 15% of the sales price. If it makes any money from Paypal which it certainly does, that is not from selling a product. Again, given this business model it is not clear to me why Ebay would be involved in the collection of sales taxes although I understand why they may wish to represent their sellers in the discussion

[jimbo2012]

If it's not clear it's because U may not be a volume online seller, your facts R a bit incorrect.

Amazon and ebay are and will be responsible for sales tax collection where applicable.

I've been doing this since 1997. I really don't wish to debate this with U.

[Big47moe]

I have homes in Delaware and The Villages and Delaware has 0% sales tax. With all the government waste and tax loop holes don't you think that a flat tax on consumption would even the revenue stream for the government and make it a more fair system? Internet sales taxes would be equal for those who purchase no matter where you live or have products delivered!

[memason]

When I lived in Japan, they had a 5% consumption tax on everything. Even if you had something shipped from the States or elsewhere, customs would tack on the 5%. In Europe (specifically in Germany), they have the Value Added Tax (VAT), which is currently 19% on almost everything you consume.

However, both these countries have far more taxes than the US. Consumption tax is just another tax, just like the internet tax would be....no tax relief in either.

[EdV]

There is a much simpler way to tax Internet sales without the million dollar exception and the burden on sellers or buyers.

The simplest way is to make the tax law apply to online credit/debit card purchases. You see, every business that accepts a payment by credit card will use an online credit card processing company. So they could pass a law that requires these processing companies to deduct the sales tax at the time of processing and credit the net after tax amount to the seller. Only the card processing companies would be required to track and reimburse the states appropriately.

And one of the biggest card processing companies is PayPal. Every mom and pop online merchant or e-bay seller that uses them would automatically be covered without having to change a thing or report any sales tax activity at all.

[janmcn]

This bill has been shelved until after the senate comes back from next week's vacation.

[Bogie Shooter]

Originally Posted by blueash

I don't think this really is the topic of the thread, but Paypal was bought by Ebay in 2002. Ebay and Paypal existed as separate businesses well before that. Ebay encourages the use of Paypal but many sellers on Ebay will accept other forms of payment. "PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee." Many online companies other than Ebay also use paypal as a payment option.

The seller places a product on the Ebay website and pays Ebay for the use of the website to place the object up for sale. When the object sells the seller and buyer have to come to an agreement on how the product will be paid as listed on the site this may include:

PayPal, Bill Me Later ,Credit cards and debit cards, Skrill, ProPay, Pay upon pickup, Escrow, Other payment methods

So Ebay collects a listing fee from the seller as well as usually 10% not 15% of the sales price. If it makes any money from Paypal which it certainly does, that is not from selling a product. Again, given this business model it is not clear to me why Ebay would be involved in the collection of sales taxes although I understand why they may wish to represent their sellers in the discussion

Ebay charges a final value fee on the selling price plus shipping of 10%. Pay pal charges a fee on selling price and shipping of 3% plus $.30 per transaction.

[Indydealmaker]

Originally Posted by Villages PL

Brick and mortar stores collect sales taxes for the government, so why shouldn't the internet do the same? When I had my store in FL, I sold a trailer load of furniture to a man who was going to haul it back to Canada. Did I send those taxes to Canada? No, I sent the tax money to the state of FL.

So I don't understand why it's going to be a nightmare just because there are 50 states. If something is sold out of Florida, internet or otherwise, I would think the tax goes to Florida.

Brick and mortar stores have to compete with internet sales, so I think it's only fair that they both play by the same rules. Those who purchase on the internet should pay their fair share, in my opinion. No more free rides.

And I like the regressive tax aspect of it for the many who don't pay any income tax, and those who get tax credits. At least they will contribute something if they have to pay the sales tax.

The sales tax goes to the state in which the buyer takes shipment. It is going to be a nightmare for smaller online businesses. For instance, sales to California would require withholding State tax plus taxes for one of 25 other taxing districts.

As far as fairness goes, online shopper pay shipping which is most often equivalent to the sales tax amount. Parity is already in place. Even when shipping is paid by seller, it is built into the price.

Brick and mortar stores will not see an increase in sales from this. The government may see an increase in income, but those that think the U.S. debt will decrease are dreaming.