Looks like internet sales tax legislation will pass the senate today - Page 3 - TigerDroppings.com

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davesdawgs
Georgia Fan
Georgia
Member since Oct 2008
16506 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

I sure hope this bill dies in the house.


I will vote against any Congressman from my stqate who votes for this government money grab.






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Lsut81
USA Fan
Member since Jun 2005
63162 posts
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re: Looks like internet sales tax legislation will pass the senate today


quote:

I know several small business owners with sales of around or less than $1m and they all have CPA's that do their taxes at year end.


I am 100% sure that right now, the other companies have no problem with that either. But when you now have to track and pay taxes in 49 more states, there is going to be an issue.






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udtiger
LSU Fan
Louisiana
Member since Nov 2006
23878 posts

re: Looks like internet sales tax legislation will pass the senate today


udtiger quietly begins setting up resellers in states with no sales tax to purchase items for "members" in sales tax states.





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Lsut81
USA Fan
Member since Jun 2005
63162 posts
 Online 

re: Looks like internet sales tax legislation will pass the senate today


quote:

udtiger quietly begins setting up resellers in states with no sales tax to purchase items for "members" in sales tax states.


Smart move






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
23928 posts
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re: Looks like internet sales tax legislation will pass the senate today


quote:

udtiger quietly begins setting up resellers in states with no sales tax to purchase items for "members" in sales tax states.



So if you live in a state that collects sales tax and you purchase goods from a state that does not have a sales tax how will this law not require the retailer in the state with no sales tax to remit sales taxes from the consumers' state?

The states that do not have sales taxes are, Alaska, New Hampshire, Oregon, Montana, and Delaware.

This legislation stands to overturn the SCOTUS ruling in Quill Corp. v. North Dakota, "the Supreme Court ruled that a business must have a physical presence in a state for that state to require it to collect sales taxes". LINK










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NHTIGER
LSU Fan
Central New Hampshire
Member since Nov 2003
9112 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

The states that do not have sales taxes are, Alaska, New Hampshire, Oregon, Montana, and Delaware.



And the 5 Democrats who voted against cloture on this bill before the Senate adjourned in April( a good gauge of how they will vote today) ALL came from among these states - 2 from Oregon, 2 from Montana and 1 from NH.






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udtiger
LSU Fan
Louisiana
Member since Nov 2006
23878 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

quote:


udtiger quietly begins setting up resellers in states with no sales tax to purchase items for "members" in sales tax states.





So if you live in a state that collects sales tax and you purchase goods from a state that does not have a sales tax how will this law not require the retailer in the state with no sales tax to remit sales taxes from the consumers' state?


If the state has sales tax, the internet seller will have to charge and remit the sales tax to that state.

HOWEVER, I see a way around this:

"Clubs" are set up in no sales tax states that will buy items for their "members." People will buy one time "memberships" (which will interestingly be the cost of the item purchased, plus shipping, and 1/2 of what the sales tax would have been for a direct purchase of the item by the "member").






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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
23928 posts
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re: Looks like internet sales tax legislation will pass the senate today


The bill also contains a " small-seller exception" for remote sales of less than a million dollars.

I'm still a little confused how this will be enforced. I think the way this will be tracked is that retailers will be forced to install software provided by the state and remote purchases will be tracked that way.






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Lsut81
USA Fan
Member since Jun 2005
63162 posts
 Online 

re: Looks like internet sales tax legislation will pass the senate today


quote:

I'm still a little confused how this will be enforced. I think the way this will be tracked is that retailers will be forced to install software provided by the state and remote purchases will be tracked that way.


So ebay will now have to track any businesses that use their website and give their personal info to the Feds in order to make sure they are paying taxes






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Asgard Device
The Daedalus
Member since Apr 2011
3525 posts
 Online 

re: Looks like internet sales tax legislation will pass the senate today


State governors (mostly Republican) are a driving force behind this bill.

They could use the revenue and if it passes, blame Obama. Not that he should be off the hook if he chooses to sign it.






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NHTIGER
LSU Fan
Central New Hampshire
Member since Nov 2003
9112 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

I'm still a little confused how this will be enforced


First of all, Louisiana, along with 25 other states would be at least a year away from even subjecting businesses to this new legislation. Those states will first have to enact new legislation at the state level to even be included within the parameters of this new legislation. So only the 24 states and DC have the option of choosing to enforce this law.

The state legislatures of Louisiana, NH and the other 24 states can simply opt out by not opting in.






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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
9954 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

ACTUALLY, this is a scenario that i envision would fit within the concept of the ICC when written



I have to admit that this is a more legitimate exercise under the ICC than the 1964 CRA was.






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LJBurton
Member since Feb 2005
958 posts

re: Looks like internet sales tax legislation will pass the senate today


The burden will not be on Ebay, but rather on the businesses that use Ebay. Enforcement will be handled at the State level through the Audit division of each state's Department of Revenue. This isn't a federal issue, at all. The "Feds" will not be involved in this in any way, shape or form. If the bill passes, each business will be compelled to report and remit sales tax to any state in which it does business, i.e. delivers to.

As GumboPot stated, the bill is attempting to expand the reach of State Departments of Revenue, as to allow them to enforce their right to collect sales tax directly from businesses regardless of where said businesses are headquartered.






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Lsut81
USA Fan
Member since Jun 2005
63162 posts
 Online 

re: Looks like internet sales tax legislation will pass the senate today


quote:

The burden will not be on Ebay, but rather on the businesses that use Ebay. Enforcement will be handled at the State level through the Audit division of each state's Department of Revenue.


So how is that much different than right now... As of now, the person who buys the stuff is supposed to claim it on their state tax returns, now it just shifts to the seller.

And how will the states know if a company does sell to someone in their state unless ebay is giving out private info






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LJBurton
Member since Feb 2005
958 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

So how is that much different than right now... As of now, the person who buys the stuff is supposed to claim it on their state tax returns, now it just shifts to the seller


Correct.

quote:

And how will the states know if a company does sell to someone in their state unless ebay is giving out private info


Same way they do right now with Brick and Mortar retailers. Through the ability of the individual Departments of Revenue to audit. The power of the audit gives them the ability to examine the internal records of those businesses operating within the individual states. The threat of audit forces individual businesses to keep accurate records or face the potential for significant penalties and interest on uncollected taxes. Admittedly, I'm not sure how said states will go about conducting an audit outside of their borders, but I'm fairly sure that this bill does not give enforcement authority to the Federal Government, rather it seeks to expand the authority of the States.

ETA: The real question for me is what would the states do with that expanded authority. I would imagine it might be easy for a smaller fish to skirt by undetected. With an exemption given at < $1,000,000, depending upon the items being sold, there will already be a lot of businesses who won't be forced to collect and remit.



This post was edited on 5/6 at 3:54 pm


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NHTIGER
LSU Fan
Central New Hampshire
Member since Nov 2003
9112 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

If the bill passes, each business will be compelled to report and remit sales tax to any state in which it does business, i.e. delivers to.


Only if their state either opts in if they are a member of the SSUTA, or passes legislation and then opts in if they are not a member of the SSUTA. There may be some states where public pressure leads to an opt-out choice, even if it means losing some revenue.






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NC_Tigah
LSU Fan
Member since Sep 2003
50480 posts
 Online 

re: Looks like internet sales tax legislation will pass the senate today


quote:

How the frick are they going to afford to hire an accountant to keep up with state taxes?
They won't. They'll likely be done.

Jobs? We don't need no stinkin' jobs!
Send 'em to the Caymans.






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LJBurton
Member since Feb 2005
958 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

They won't. They'll likely be done


I completely disagree. This will actually be better for local mom and pop businesses and better for local job creation. Currently, they can't compete with Amazon and the like, because they are forced to collect and remit a tax that Amazon gets around having to do. Why would a consumer drive to a mom and pop to pay almost 10% more (9.25% in St. Tammany where I live) for the same product that they can buy in the comfort of their home with the click of a mouse and have delivered to their doorway?

This will help to level the playing field and is a very good thing for Brick and Mortar small business. The mom and pops who do business online will mostly fall under the $1,000,000 dollar threshhold anyway.

The objection to this bill is coming from behemoths like Amazon and Ebay, along with the individual consumer who has been able to avoid paying any sales tax on these purchases because the States are unable to enforce their right to collect.






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Bard
LA-Monroe Fan
BR
Member since Oct 2008
15744 posts

re: Looks like internet sales tax legislation will pass the senate today


quote:

This legislation stands to overturn the SCOTUS ruling in Quill Corp. v. North Dakota, "the Supreme Court ruled that a business must have a physical presence in a state for that state to require it to collect sales taxes"


Does this legislation re-define "substantial nexus" in the ICC's Dormant Commerce Clause? If not, the SCOTUS will slap it down.






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Bard
LA-Monroe Fan
BR
Member since Oct 2008
15744 posts

re: Looks like internet sales tax legislation will pass the senate today


Nevermind, just read about how the SCOTUS left that door open





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