Its official, sales tax for everyone

[Opus]

Supreme Court has ruled that states can force online businesses to collect sales taxes. This will hurt a lot of the mom and pop shops.

 

[Tiger-Paws]

Supreme Court has ruled that states can force online businesses to collect sales taxes. This will hurt a lot of the mom and pop shops.

https://www.cnbc.com/2018/06/21/sup...n-force-online-shoppers-to-pay-sales-tax.html

Looks like I will be purchasing a lot more from overseas.

 

[Opus]

https://www.usatoday.com/story/news...llows-sales-taxes-online-purchases/699556002/

 

[Opus]

I fell sorry for a lot of the small shops. These people don't realize how expensive it will be to collect sales taxes for all districts.

 

[Mikedawg]

I would think this decision would have the impact of helping LFSs by making online purchases of same items more expensive since tax will now be included in total price. I believe the decision authorizes states to require internet providers to collect such taxes.

 

[mta_morrow]

I would think this decision would have the impact of helping LFSs by making online purchases of same items more expensive since tax will now be included in total price

Yes, it levels the playing field.

 

[chipmunkofdoom2]

This will hurt a lot of the mom and pop shops.

How will this hurt mom and pop shops? When I think of mom and pop shops, I think of physical stores where I go to buy merchandise in person. I don't think of huge, monolithic online presences. This could undoubtedly hurt some small businesses if they do a lot of online sales, but it could also help a lot of smaller local community stores who conduct most of their business in person. Without a financial incentive shop tax-free online, local stores could become a much more attractive option.

This could even help mom and pop shops if they have an online presence. Now that everyone may have to collect sales tax regardless of whether they have an in-state presence or not, a mom and pop shop is no longer "more expensive" because they collect sales tax while the out of state vendors don't.

 

[Mikedawg]

States have the authority to require online retailers to collect sales taxes, the Supreme Court ruled Thursday, erasing a price advantage internet merchants have had in wooing consumers from real-world stores for 25 years. https://www.wsj.com/articles/us-sup...llect-sales-taxes-1529591376?mod=hp_lead_pos2

 

[Dennis McGrath]

It will hurt Mom and Pop online businesses (there's a LOT of them). The existing sales and invoicing systems pretty much only handle one tax rate (local). Once you go to all states and and tax rates, you now have to either purchase new updated software, or manually tax each sale and then the REAL pain is going to have the accountant send payments to all the different states/counties/cities. This is going to be a nightmare for them.

 

[Rispa]

"have the authority"
I wonder if this means that a state has to opt in for this to start.

 

[Opus]

How will this hurt mom and pop shops? When I think of mom and pop shops, I think of physical stores where I go to buy merchandise in person. I don't think of huge, monolithic online presences. This could undoubtedly hurt some small businesses if they do a lot of online sales, but it could also help a lot of smaller local community stores who conduct most of their business in person. Without a financial incentive shop tax-free online, local stores could become a much more attractive option.

This could even help mom and pop shops if they have an online presence. Now that everyone may have to collect sales tax regardless of whether they have an in-state presence or not, a mom and pop shop is no longer "more expensive" because they collect sales tax while the out of state vendors don't.

A lot of small companies/mom & pop shops are selling on things like ebay or Amazon only or sale online to help them stay in business. It takes a lot of time/expense to just prepare and submit taxes for the state you are in. If you have to collect in all states that have sales taxes that will be very very expensive. I believe there are over 10,000 sales tax districts in the US. Amazon probably loves this ruling. They offer a service to people that use them for selling to collect the sales tax. They charge a percentage of the sales amount to take care of it for you.

 

[Opus]

"have the authority"
I wonder if this means that a state has to opt in for this to start.

It is my understanding that the states will have to pass laws if they don't already exist. I'm not sure which do or don't have them. I know in LA, the first page of the income tax return asks for you to list all out of state purchases and then calculate the sales taxes owed and submit with your income tax return.

 

[Opus]

So now the question will be, what is the minimum online sales states will allow before they come after you? Will they go after the people selling on ebay or Etsy? There are some people that have a good business going on ebay.

 

[Mikedawg]

So now the question will be, what is the minimum online sales states will allow before they come after you? Will they go after the people selling on ebay or Etsy? There are some people that have a good business going on ebay.

The court upheld a South Dakota law that requires retailers with more than $100,000 in sales or 200 transactions annually in the state to pay a 4.5 percent tax on purchases. I haven't read the decision, but that is a significant threshold for a "mom and pop" business I think.

 

[MnFish1]

https://www.cnbc.com/2018/06/21/sup...n-force-online-shoppers-to-pay-sales-tax.html

Looks like I will be purchasing a lot more from overseas.

Except stuff you buy overseas is also subject to your states use tax. And they are far more likely to catch it via customs cobtrols

 

[BantyRooster97]

Glad I don't need to buy anything new... oh wait.... in this hobby there is always something new & cool to buy!!!! dang it!

 

[Tiger-Paws]

Except stuff you buy overseas is also subject to your states use tax. And they are far more likely to catch it via customs cobtrols

Never happened.

 

[Opus]

Never happened.

Agree. That would be the feds watching that and they don't care about a state's sales taxes.

 

[MnFish1]

Never happened.

Well good luck on that it happened to me when I bought some art in Italy and it was shipped. Got the bill and the penalty 3 years later Risk it if you want. But why not just pay the sales tax lol like a normal person

 

[Tiger-Paws]

Well good luck on that it happened to me when I bought some art in Italy and it was shipped. Got the bill and the penalty 3 years later Risk it if you want. But why not just pay the sales tax lol like a normal person

Because people of means keep their wealth by not giving it away needlessly.