Online purchase sales tax

[bwframe]

What will eBay do about this?

 

[dieselrealtor]

What will eBay do about this?

The same thumbing their nose at law & regulation they have been doing all along.

 

[bwframe]

What will eBay do about this?

The same thumbing their nose at law & regulation they have been doing all along.

So this could be a boon for them?

 

[mmpsteve]

What will eBay do about this?

I don't think Ebay will have to do anything, in terms of the sellers' revenue. They merely collect a fee from the sellers. It would be the sellers' reponsibility (those that are big enough to be required to) to follow the new laws. After all, the money you pay an Ebay seller goes to the seller, not Ebay. They might set up a system to facilitate the tax transaction for their sellers.

Interesting question though.

.

 

[BigRed]

How much more money does the government need to operate effectively?

The answer is always "Just one dollar more".

 

[KittySlayer]

While enforcement was to begin October 1st, compliance by retailers will certainly lag behind. Proper compliance will lag even farther behind. It's not just Indiana, but states all across the country.

I believe if the business does 100k in sales to in or 200 transactions, they must collect sales tax. They no longer need a presence to be required to collect in sales tax.

Someone asked for a source:

https://www.in.gov/dor/6367.htm

Got this at a continuing education conference put on by an Indiana Revenue Tax Auditor Supervisor this fall.


“South Dakota vs. Wayfair, Inc.”
Indiana HEA (2017)

Remote Sellers / Sales Tax

Regardless as to whether a retail merchant has any physical presence in Indiana


A retail merchant is required to register and collect tax if it:

Has gross revenues from sales into Indiana exceeding $100,000


OR

Performs 200 or more separate transactions for tangible personal property, electronic products or services delivered in Indiana

Enforcement date: Oct. 1, 2018

 

[HoughMade]

I don't think Ebay will have to do anything, in terms of the sellers' revenue. They merely collect a fee from the sellers. It would be the sellers' reponsibility (those that are big enough to be required to) to follow the new laws. After all, the money you pay an Ebay seller goes to the seller, not Ebay. They might set up a system to facilitate the tax transaction for their sellers.

Interesting question though.

.

Yeah, eBay just matches buyers with sellers. It doesn't sell anything.

 

[mmpsteve]

While enforcement was to begin October 1st, compliance by retailers will certainly lag behind. Proper compliance will lag even farther behind. It's not just Indiana, but states all across the country.

A retail merchant is required to register and collect tax if it:

Has gross revenues from sales into Indiana exceeding $100,000


OR

Performs 200 or more separate transactions for tangible personal property, electronic products or services delivered in Indiana

Enforcement date: Oct. 1, 2018

So does each state set the dollar amount or number of transactions for a seller to 'qualify' ?

If so, it's an interesting legal situation where each state can regulate interstate commerce however it sees fit.

Is this not a legal issue, or is the concept that each state is only regulating commerce coming into it's own state, and thus not an issue?

.

 

[2in1evtime]

Was on sportsman guide yesterday, saw they started taxing indiana sales tax, and they also were taxing shipping cost also, so i just cancelled my order

 

[HoughMade]

So does each state set the dollar amount or number of transactions for a seller to 'qualify' ?

If so, it's an interesting legal situation where each state can regulate interstate commerce however it sees fit.

Is this not a legal issue, or is the concept that each state is only regulating commerce coming into it's own state, and thus not an issue?

.

Yes, but it looks like they just copied South Dakota which state's statute was at issue in the Supreme Court. That's one way to try to avoid another court battle.

 

[KittySlayer]

So does each state set the dollar amount or number of transactions for a seller to 'qualify' ?
.

Yes. It is quite a fun little thing to try and comply with as you try to start up your Mom & Pop business. So much fun, especially if you don't really enjoy accounting. As a bonus, states like Ohio layer on local sales tax so it's not just 50 states, you get bonus compliance and collection issues.

So now the startup business is to become a Certified Service Provider and help businesses try to comply with the quagmire of rules and regulations in multiple taxing districts. The next new startup business will be offering services to groups of states and conducting sales tax audits of sellers on behalf of those states.

https://www.streamlinedsalestax.org/for-businesses/remote-seller-faqs/remote-seller-state-guidance


This is just the easy part so far. Once the audits start the real nightmare will begin. It ain't gonna be pretty because Congress failed to do its job for decades and punted it to the court system. As I recall the courts handed it on a platter to Congress with the Quill decision and the states got tired of waiting for Congress to do its job.

 

[KMaC]

I bought a gun from Grabagun in late October and there wasn't any sales tax. In hindsight I am glad I was weak and went ahead and splurged.
I buy from Target Sports nearly every week and no sales tax so far. You guys and your talk about the tax man cometh is depressing me so I went ahead and ordered from them again today. No tax.

 

[FWP9MM]

So what is the good old state of Indiana going to do with these new tax dollars? I am still not seeing results from the $0.10 per gallon gas tax.