National Internet Tax Mandate vote likely this week

[Prometheus]

Get on the horn and tell your congresscritters this is unacceptable.

This will place an insane burden on internet sales including firearms and gear purchases.

You can also find a petition here:
http://www.chooseliberty.org/internet_tax.aspx?pid=0319c

 

[04DarkShadowGT]

I dont imagine you will find many congressman who oppose this as the internet not having to tax puts their local state businesses at a 6-10% price disadvantage from the get go.

One of the main reasons people buy online is to skirt the state sales tax, we all know they are technically supposed to claim out of state purchases on tax returns, but no one does. Since no one does, the .gov is going to go about getting their $$ one way or another.

 

[ZombieApocolypse]

I dont imagine you will find many congressman who oppose this as the internet not having to tax puts their local state businesses at a 6-10% price disadvantage from the get go.

One of the main reasons people buy online is to skirt the state sales tax, we all know they are technically supposed to claim out of state purchases on tax returns, but no one does. Since no one does, the .gov is going to go about getting their $$ one way or another.

Maybe the state will start going after bartenders, servers, etc that make most their money in tips .... i've only ever met 1 (if any) that claimed tips. I guess going after the internet would be easier

 

[Llamaguy]

One of the main reasons people buy online is to skirt the state sales tax, we all know they are technically supposed to claim out of state purchases on tax returns, but no one does. Since no one does, the .gov is going to go about getting their $$ one way or another.

Very infrequently is sales tax the make or break decision maker for me on a purchase. Usually the price is going to be significantly cheaper online because of overhead reasons (unless there is a minimum advertised price contract) Go look at the price book in Barnes and Noble and then go check Amazon. I know from experiance with aquarium supplies that there can easily be a 50-100% markup on an item at Uncle Bill's or another local fish store over the prices online, the exact same item except that the local one will be covered in dust from sitting on the self for years.

Unless you're pinching pennies or it's a really large purchase, I don't buy into this claim. Most major retail websites already collect sales tax because they have a B&M store in most states (Walmart, Target, The Gap).

After that though I still don't support states collecting sales tax on internet purchases in the current fashion. If I remember correctly one of the major court cases came to the conclusion that going online was akin to visiting the companies store. IF they are going to collect then, it should be companies home state the collects the sales tax. This would solve all the issues of small companies sending in 50 different tax forms and keeping up with different rates and changes, AND would be more in line with actually visiting the store.

 

[Zoub]

A few years back I was on the fringe of the claims/threats of suits by States against sites that booked a lot of travel, no names. Indiana alone was in for big revenue. There is no stopping this.

If you want to avoid taxes, buy local and buy used when you can.

I wonder if it can be beaten by once again just picking up the phone and calling in the order? That is not an internet sale.

 

[BogWalker]

Usually the shipping charges balance out anything saved from not paying taxes when I buy things on the internet.

 

[No2rdame]

It's low hanging fruit for politicians and most Americans will accept this form of taxation over Uncle Sam snatching more of their paychecks away. And, as it's already been pointed out, places such as Amazon.com already have an advantage over brick-and-mortar stores by virtue of lower overhead. Besides, dollars spent on Amazon go to states like Arizona (or wherever else their distribution hub is). Dollars spent locally stay in your community.

I honestly prefer to buy locally as long as the costs are relatively close to what online retailers charge. My main purposes for shopping online are convenience (where else can you shop at 3AM in your underwear other than Walmart?) and to find those items that would be much more difficult to locate anywhere else.

 

[Hohn]

I dont imagine you will find many congressman who oppose this as the internet not having to tax puts their local state businesses at a 6-10% price disadvantage from the get go.

One of the main reasons people buy online is to skirt the state sales tax, we all know they are technically supposed to claim out of state purchases on tax returns, but no one does. Since no one does, the .gov is going to go about getting their $$ one way or another.

But that cuts both ways. The internet businesses in-state also get an advantage in not paying other states' taxes.

 

[ultra...good]

If I am not mistaken, a person is required to pay sales tax on internet purchases already, in their state. If they buy in state the taxes are charged at purchase, but if buying out of state, you are required to report on your annual state tax return.

So, we are going to pass a new law, because nobody is following the existing law. Where have I seen this failed logic before.

 

[42769vette]

Very infrequently is sales tax the make or break decision maker for me on a purchase.

Mabye for you, but buying online is a very common pratice to aviod sales tax. Ive lost hundreds of sales after doing all the work involved in making a sale (talking the customer threw what optic is right for them) because your major online retailers charge the exact same price as me (minimum pricing agreement), be both ship for free, but I have to collect sales tax. Alot of times the customer even comes back to me with questions about the scope they just bought because they cant get a hold of anyone at "x online store" who knows anything at all about scopes.

Putting local business's at a disadvantage is exactly what happens. Either dont make me collect sales tax, or make everyone do it. I would prefer I dont have to mess with it either (highly unlikley) but I would love to have a level playing field

 

[04DarkShadowGT]

Maybe the state will start going after bartenders, servers, etc that make most their money in tips .... i've only ever met 1 (if any) that claimed tips. I guess going after the internet would be easier

They should IMO. It's tax evasion. If the law says we need to pay income tax, they should not be exempt.

 

[mrjarrell]

Maybe the state will start going after bartenders, servers, etc that make most their money in tips .... i've only ever met 1 (if any) that claimed tips. I guess going after the internet would be easier

Actually, now that most people pay with plastic the tips are declared and taxed before they even get to the servers. I rarely if ever tip with cash and don't know a lot of folks who do, unless their bill is just a drink or two. There's a lot less tax avoidance now than there was 20 years ago, in the food service industry.

 

[Prometheus]

Mabye for you, but buying online is a very common pratice to aviod sales tax. Ive lost hundreds of sales after doing all the work involved in making a sale (talking the customer threw what optic is right for them) because your major online retailers charge the exact same price as me (minimum pricing agreement), be both ship for free, but I have to collect sales tax. Alot of times the customer even comes back to me with questions about the scope they just bought because they cant get a hold of anyone at "x online store" who knows anything at all about scopes.

Putting local business's at a disadvantage is exactly what happens. Either dont make me collect sales tax, or make everyone do it. I would prefer I dont have to mess with it either (highly unlikley) but I would love to have a level playing field

I'm guessing the internet address in your sig is just for show? I don't know anyone selling online who wants this... unless it's a major store like walmart or best buy.

I get the animosity but your dreams of ever going out of your town are done.

You can have the nation but just want your town. You'll never go big thinking small and you'll never be able to afford complying with the new laws as a small business.

Trees meet the forest.

 

[42769vette]

I'm guessing the internet address in your sig is just for show? I don't know anyone selling online who wants this... unless it's a major store like walmart or best buy.

I get the animosity but your dreams of ever going out of your town are done.

You can have the nation but just want your town. You'll never go big thinking small and you'll never be able to afford complying with the new laws as a small business.

Trees meet the forest.

To be honest I really dont want to go big. I enjoy being the small business that knows every customer by name and can provide individual customer service. I guess my business modo might not make big time corporate scense, but thats the beauty of owning your own business, you can run it how you see fit without folks second guessing you. If I can keep food on the table and the lights on for the next 50 years Im perfectly fine with that, I dont need to make a fortune. To be honest the internet address in my sig is just for show. My site is going to be education based because education folks on optics is what I love to do. If you try and buy somthing from my site you get a screen saying call me, or email me. Not everyone wants to be walmart.

You are correct, I highly doubt the walmart's internet companies want this. They want to keep their advantage in every local market. The little guy's want a level playing field.

How can I not afford to comply with these new laws? Last I heard you collect tax for whatever state you sell in, make 1 large payment at the end of the month, and your done. I may not be the smartest business man in the room, but if you give me a level playing field, my customer service, and product knowlege (over the guy at optics planet who has never shot a gun) will win me the sale.

 

[92ThoStro]

I don't purchase stuff almost exclusively on amazon because of the tax-break. I do it because I can have most things delivered to my door in 2 days for free, or in one day . 3.99, or for free in 1 day if I use my discover card. Many of the products are cheaper, or you can buy them in bulk, which you would normally have to travel to a costco to get. You also get a large selection, with free no-hassle returns. Instead of driving to a bunch of different stores to look for a product, just hop on Amazon and click a button, and it shows up a day or two later. Really convenient for stuff like deodorant too, order a package of 6 with a discount instead of having to buy them one at a time at the store.
Even if I had to pay sales tax, I would still use Amazon.

Now, of course nobody claims their purchases on their IRS forms, but oh well. I don't personally see a problem with a forced tax, it's not like it's requiring us to pay another tax, it's requiring us to honestly pay the tax, instead of breaking the law and not claiming the purchases. They still need to get rid of Federal income tax though.

ETA: Honestly, the reason eye duznt claim his online purchases, isn't even to avoid the tax, it's because eye purchases at least a hundred items a year online, and don't want to spend more than 10 minutes filling out his tax return.

 

[Sfrandolph]

It is typical for the govt to try to kill the goose that laid the golden egg. The Internet has been a tremendous business engine. Leave it to the greedy SOBs on capital hill to screw things up. They live for that.

 

[BogWalker]

I don't know about you, but when I shop online it's to find something no store I know of carries.

 

[Prometheus]

To be honest I really dont want to go big. I enjoy being the small business that knows every customer by name and can provide individual customer service. I guess my business modo might not make big time corporate scense, but thats the beauty of owning your own business, you can run it how you see fit without folks second guessing you. If I can keep food on the table and the lights on for the next 50 years Im perfectly fine with that, I dont need to make a fortune. To be honest the internet address in my sig is just for show. My site is going to be education based because education folks on optics is what I love to do. If you try and buy somthing from my site you get a screen saying call me, or email me. Not everyone wants to be walmart.

You are correct, I highly doubt the walmart's internet companies want this. They want to keep their advantage in every local market. The little guy's want a level playing field.

I'm having a little trouble understand exactly what you mean on some of the points you are attempting to make.

That last paragraph... anyway. Walmart DOES want this.

How can I not afford to comply with these new laws? Last I heard you collect tax for whatever state you sell in, make 1 large payment at the end of the month, and your done.

You mean to tell me, you can run your business AND know all the tax rates in all 50 states and every county, city, town, Burroughs and district in them?

Have fun with that.

I may not be the smartest business man in the room, but if you give me a level playing field, my customer service, and product knowlege (over the guy at optics planet who has never shot a gun) will win me the sale.

and there we have it...

Instead of competing in Illinois (where they do have to charge tax) and beating them out with that service you are so proud of, you'd prefer to have FEDERAL agents with guns get local customers for you.

You can see how some of us might not take kindly to this... can't you?

FYI, Illinois has a much larger customer base for you to tap than customers in your driving range.

It's also not about getting as big as walmart but it doesn't take much work to sell online in addition to your store. You get some extra cash and instead of staying at the comfort inn on your next vacation, you can stay at the Hyatt... or buy that cool new gun at full retail the day it hits the market... whatever

A wise woman once said (and I paraphrase): If you can't compete without government thugs holding a gun to the heads of your customers/competition you don't belong in business.

 

[BehindBlueI's]

So if I'm reading this right it:

ALLOWS states to force Internet companies to collect sales tax on purchases shipping to THEIR state. If I buy something out of Ohio, I'd still pay Indiana sales tax, which I'm already legally supposed to. The only difference is the retailer is required to collect it at the time of purchase, just like a retail store is.

Frankly, I see both sides. It levels the playing field among online retailers with a brick & mortar location in your state, an online retailer w/o a location in your state, and a strictly online company. It isn't legally raising taxes, as you are supposed to pay those taxes anyway, just no one does. It would be like saying you Wal-mart doesn't have to collect sales tax, you just send it in on your own. Why does Wal-mart have to, but Amazon doesn't?

DOR: Frequently Asked Questions - Businesses
Which purchases that I make on the Internet or out-of-state are taxable?
All purchases are subject to the sales tax. If tax is not collected from you by the seller, you are required to remit use tax on the purchase price.

On the other hand, how much will compliance cost small companies and what about foreign sales? Effectively, it is also a tax hike as essentially no one complies with the law and actually reports their online purchases to send in the sales tax. Will online retailers no longer wish to sell to smaller states, where the volume of sale isn't worth the hassle of collecting and sending in taxes? Will this reduce Internet access to products for some communities?

Definitely see pro's and con's on this one, either way.

 

[Prometheus]

Why does Wal-mart have to, but Amazon doesn't?

Because walmart has a physical sales location there, so they already send in the required reports and payments.

Think of the current law like the Safe Passage laws that allow a person to transport a firearm (in a container and unloaded) from point a to point z without worrying about every single law in a million jurisdictions in between.

It's the same thing. Indiana is a unique state when it comes to sales taxes, there is one flat rate for the entire state. In most states, that isn't the case. In Florida for example, sales taxes vary from 5.5% to 6.75% and no income tax. I think most people know the insanity across the state line in Illinois.

Similar to online shops simply refusing to do business in certain states anymore. It's too complicated and the risk of running afoul makes trying too costly of a proposition.

More small businesses squeezed out because of mountains of extra red tape and costs.... just what the walmarts of the world want.