On-Line Sales Taxes, States are trying again - PeachParts Mercedes-Benz Forum

kknudson · #1 12-17-2010, 11:54 AM

Here in IL, and I heard there is at least one other state, they are proposing to try and get us to pay sales tax for on-line purchases.

My comments.
States are crazy, there are over 6000 sales tax entities in the US, along with a miriad of rules. ie food, medical ...
Within a few mile radius of where I live there are hundreds of locations where the sales tax changes significantly if you cross the street.
So asking anyone, much less small retailers to charge and then remit these is just rediculous.
Unless of course they follow the same rules states do to the Feds, if the Feds come up with some requirement, but don't provide the $s to pay for it. The state pisses and moans.

Sales tax is charged based on the merchant location** for brick and mortar retailers. If I go to WI and purchase something does that merchant remit it to the state of Il(sic). How about the simplist, I go buy something in Crook county (Cook) which has the highest sales tax in the country, do I get a rebate because I live in Lake county ? Or I go into the City of Chicago, which is in Crook county, do I get a rebate as I don't live in either.

Beyond it just being a further tax grab, whats your thoughts.

**I'm going to do some research on how it's worded, is it really based the merchants location, the buyers address, or point of sale (for on-line would that be the location of the server ??).

LUVMBDiesels · #2 12-17-2010, 03:05 PM

I see NY is trying this again too...

I am glad I live in Va - I just saved $2.30 on a subscription to ALLDATADIY!
I always put none in the NYS tax return when they asked about online purchases...

okyoureabeast · #3 12-17-2010, 05:48 PM

I've been laughing at New York's attempt at taxing native american cigarettes as well. I swear I could never live in such a sad attempt of a state.

They should try and legalize marijuana first.

Pooka · #4 12-18-2010, 12:10 AM

In Texas the local sales tax depends on where you buy something.

Back in the 60's there was to be a big election in Dallas and Tarrant Counties on a local sales tax. All the cities were pushing for it and I think the amount was about 3%.

The city of Arlington, which is half-way between Dallas and Fort Worth, put on a big ad campaign to have the tax voted down. The reason for this was that Arlington had a lot of new car dealerships, one of which was owned by the Mayor, and they wanted that 3% advantage over the other area dealers.

Election day came and all the cities but Arlington voted for the tax. Arlington then began to really grow as retailers moved there and they could advertise that if you bought a big ticket item there you would pay 3% less for it.

The tax on food in Oklahoma is 7%, so I go to Texas and buy a months worth of grub. I live close enough to make this possible, and I get to visit the wrecking yards while I am in town!

t walgamuth · #5 12-18-2010, 07:51 AM

I have always been astonished (but glad for it) that internet sales and catalogue sales are tax exempt if you are out of state.

It is just a matter of time until this little loophole is closed IMHO....especially as more and more sales are done over the internet.

layback40 · #6 12-18-2010, 08:03 AM

We have a tax free threshold of $1000 per item for online purchases. The retailers in Australia are all complaining that they are loosing sales as they have to charge 10% sales tax (GST). When you see the mark ups that they have been getting away with for years, its hard to have much sympathy for the retailers. eg. $65 for a fuel filter ~ $8 on line.

Hatterasguy · #7 12-18-2010, 08:05 AM

Hopefully it won't be closed ever, on big ticket items it adds up.

dynalow · #8 12-18-2010, 08:49 AM

Quote:

Originally Posted by kknudson

Here in IL, and I heard there is at least one other state, they are proposing to try and get us to pay sales tax for on-line purchases.

My comments.
States are crazy, there are over 6000 sales tax entities in the US, along with a miriad of rules. ie food, medical ...
Within a few mile radius of where I live there are hundreds of locations where the sales tax changes significantly if you cross the street.
So asking anyone, much less small retailers to charge and then remit these is just rediculous.
Unless of course they follow the same rules states do to the Feds, if the Feds come up with some requirement, but don't provide the $s to pay for it. The state pisses and moans.

Sales tax is charged based on the merchant location** for brick and mortar retailers. If I go to WI and purchase something does that merchant remit it to the state of Il(sic). How about the simplist, I go buy something in Crook county (Cook) which has the highest sales tax in the country, do I get a rebate because I live in Lake county ? Or I go into the City of Chicago, which is in Crook county, do I get a rebate as I don't live in either.

Beyond it just being a further tax grab, whats your thoughts.

**I'm going to do some research on how it's worded, is it really based the merchants location, the buyers address, or point of sale (for on-line would that be the location of the server ??).

May I suggest a starting point? Quill Corp v North Dakota. The key issue to business and the states is "nexus"

http://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota
http://www.law.cornell.edu/supct/html/91-0194.ZO.html

From there, it becomes a matter of state law within it's borders.
Your State:
http://business.illinois.gov/tax_info_sales.cfm
http://www.iltax.com/Businesses/TaxInformation/Sales/rot.htm
Mine:
http://www.state.nj.us/treasury/taxation/su_over.shtml

Then attempts to standardize inter-state transactions thru SSUTA:
Streamlined Sales and Use Tax Agreement has been in the works since 1999. ......23 states have passed laws attempting to bring.............
http://www.streamlinedsalestax.org/index.php?page=faqs

Soon, my hunch is you will become bewildered, bored and/or disgusted.

Caution: You are about to enter the Twilight Zone!