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re: New Louisiana law aims to get taxes owed by online shoppers

Posted on 1/16/18 at 1:52 pm to
Posted by Epic Cajun
Lafayette, LA
Member since Feb 2013
37080 posts
Posted on 1/16/18 at 1:52 pm to
quote:

Under the new law, retailers also must send annual reports to the revenue department, which can cross-check the information with tax returns.

How are they going to enforce this?
Posted by captainahab
Highway Trio8
Member since Dec 2014
1669 posts
Posted on 1/16/18 at 1:53 pm to
quote:

As I pointed out earlier, they are NOT new.


^^^ This is correct.

And it does not only apply to Louisiana.

"Internet retailers don't have to collect sales tax from customers in states where they have no physical presence. Many states have expanded the nexus that make sales tax apply. Amazon collects tax in 23 states: Arizona, California, Connecticut, Florida, Georgia, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, North Dakota, Pennsylvania, Tennessee, Texas, Virginia, Washington, West Virginia and Wisconsin. Commencing in January, 2016, you’ll be taxed on Amazon purchases in South Carolina too.

But even if you buy from a small merchant that doesn't charge you, you are still liable for use tax, the counterpart to your state's sales tax. Brick-and-mortar merchants have long complained that this gives online retailers a competitive advantage. The Marketplace Fairness Act, which passed the Senate, would allow states to require online retailers to collect state sales taxes."


Forbes Article
Posted by Jake88
Member since Apr 2005
80030 posts
Posted on 1/16/18 at 1:58 pm to
Fed ex, ups pay state taxes right? What they charge me or the retailer includes stare taxes doesn't it?
Posted by LSURussian
Member since Feb 2005
134940 posts
Posted on 1/16/18 at 2:04 pm to
quote:

How are they going to enforce this?
quote:

Contact the Department of Revenue at 1-855-307-3893
Posted by White Bear
Homeless
Member since Jul 2014
17647 posts
Posted on 1/16/18 at 2:18 pm to
quote:

1.If I drove to TN and bought something and brought it home, should I pay La tax on it?
You're supposed to pay use tax on those purchases.
Posted by White Bear
Homeless
Member since Jul 2014
17647 posts
Posted on 1/16/18 at 2:23 pm to
quote:

The law has required the online retailer to have a physical presence within the state in order for the retailer to collect the sales tax at the time of the sale. With Amazon's purchase of Whole Foods last year, it means any state with a Whole Foods store now has Amazon located in the state.
I don't think it's that cut and dried. Are they not separate entities?
Posted by Carson123987
Middle Court at the Rec
Member since Jul 2011
68045 posts
Posted on 1/16/18 at 2:30 pm to
quote:

For years I've kept a simple Excel spreadsheet for my online, un-taxed purchases. I use it to complete my La income tax return and I always include a print out of the Excel pages with my tax return listing my purchase data although that's not a requirement of the return.


aint nobody got time for that
Posted by LSURussian
Member since Feb 2005
134940 posts
Posted on 1/16/18 at 2:48 pm to
quote:

aint nobody got time for that
You're right. 30 seconds is way too much time to keep from worrying about paying interest and penalties on unpaid taxes....
Posted by MikeD
Baton Rouge
Member since Jan 2004
8447 posts
Posted on 1/16/18 at 3:06 pm to
quote:

Out-of-state internet sales do not cost the state or cities direct money. There are no roads, police, fire and other services that a business in Idaho is absorbing from Louisiana.


How do you plan on getting this out of state purchase delivered if not on roads?
Posted by Carson123987
Middle Court at the Rec
Member since Jul 2011
68045 posts
Posted on 1/16/18 at 3:08 pm to
quote:

You're right. 30 seconds is way too much time to keep from worrying about paying interest and penalties on unpaid taxes....


if they want to waste the time and resources to track down what i owe, let them do it. im not doing their jobs for them.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41087 posts
Posted on 1/16/18 at 3:22 pm to
quote:

What is this difference if I drive Mississippi and buy something


You pay MS sales tax in this case

quote:

if I order it online and have it shipped?


You don't pay sales tax

quote:

The taxes should go to the state from which I purchase it.


That's not how it works... sales are generally considered to occur in the state of delivery/purchase, not the state of seller.
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41087 posts
Posted on 1/16/18 at 3:22 pm to
quote:

I drove to TN and bought something and brought it home, should I pay La tax on it?


Try buying a car outside of LA and then move it to LA and register it.
Posted by damnedoldtigah
Middle of Louisiana
Member since Jan 2014
4275 posts
Posted on 1/16/18 at 3:24 pm to
Money grabbing bastards. I already pay enough fricking taxes to this state. Quit giving all those tax credits to business and things would level out pretty quick. Politicians won't do it because the business have the politician's peckers in their pockets.

Bastards.
Posted by Nado Jenkins83
Land of the Free
Member since Nov 2012
66113 posts
Posted on 1/16/18 at 3:28 pm to
at people who online shop

Glad im a drive to store type
Posted by CSATiger
The Battlefield
Member since Aug 2010
6912 posts
Posted on 1/16/18 at 3:30 pm to
quote:

You're supposed to pay use tax on those purchases.


really did not know, so if I buy a pair of boots in TX I am supposed to pay LA a use tax?
Posted by CSATiger
The Battlefield
Member since Aug 2010
6912 posts
Posted on 1/16/18 at 3:34 pm to
quote:

Try buying a car outside of LA and then move it to LA and register it.


I have done this and paid said tax. Wasn't referring to items you have to register, but small things, like say some K Cups, If I buy them in another state and bring them here, supposed to pay a LA tax?
when you buy items online, the "sale" happens there, not here, thus Sales Tax not Buyer Tax
Posted by LSUFanHouston
NOLA
Member since Jul 2009
41087 posts
Posted on 1/16/18 at 3:57 pm to
I was at an LDR meeting when they discussed this. To say there was laughter, followed by groans, is an accurate description.

The law requiring self-reporting of sales taz is not new... and most professionals understand the intent. I have no issue with this.

The issues I have, like everything else LDR does lately, is going to be that enforcement is going to be completely F'd up, mainly done by computers, and and the amount of aggravation and compliance costs are going to far exceed the bit of revenue LA gets from this. Why?

1) There is no specific way for LDR to force retailers to do this. Why should an out of state retailer give a flying frick about what LDR wants? To prepare these statements involves cost to the company, with no benefit, and no penalty for non-compliance. LDR does say that they have the right to subpoena out of state company records for compliance... which pretty much everyone agrees will be thrown out of court at the first opportunity.

2) Retailers don't collect SSNs. So LDR is going to try to match based on name and address. But what about kids? What about people using nicknames to buy stuff?

3) What about returns? Who has the burden of proof on a return? And will the state accept it?

Posted by BHM
Member since Jun 2012
4010 posts
Posted on 1/16/18 at 3:59 pm to
quote:

How do you plan on getting this out of state purchase delivered if not on roads?






Drones...duh


Posted by LSUFanHouston
NOLA
Member since Jul 2009
41087 posts
Posted on 1/16/18 at 4:00 pm to
quote:

when you buy items online, the "sale" happens there, not here, thus Sales Tax not Buyer Tax


That's actually not correct.

If the sale occurred in the other state, since the entity is located in the other state, they have nexus, and would be required to collect sales tax (at that location's rate) on the sale.

Honestly... if all sales were considered to have occurred in the seller's state, not the buyer's state, this would be a lot easier and you would have a lot more compliance.
Posted by Eighteen
Member since Dec 2006
37406 posts
Posted on 1/16/18 at 4:24 pm to
quote:

The issues I have, like everything else LDR does lately, is going to be that enforcement is going to be completely F'd up, mainly done by computers, and and the amount of aggravation and compliance costs are going to far exceed the bit of revenue LA gets from this. Why?

1) There is no specific way for LDR to force retailers to do this. Why should an out of state retailer give a flying frick about what LDR wants? To prepare these statements involves cost to the company, with no benefit, and no penalty for non-compliance. LDR does say that they have the right to subpoena out of state company records for compliance... which pretty much everyone agrees will be thrown out of court at the first opportunity. 2) Retailers don't collect SSNs. So LDR is going to try to match based on name and address. But what about kids? What about people using nicknames to buy stuff? 3) What about returns? Who has the burden of proof on a return? And will the state accept it?


Preach.

I’ve been through LDR hell, and my dad and brother both went through the old license plate DMV debacle. Both ended with us being right, but had to waste so much time, energy, and in my case, the cost of 3 certified letters just to prove it.

My favorite part of the LDR is when you call, the phone rings, you get an automated message “Sorry, the phones are busy right now. Try again later.” *Click* No voicemail, no waiting, just hangs up on you

The state I live in now actually assigned me a case agent who I had a direct line of contact to. The difference was incredible.
This post was edited on 1/16/18 at 4:28 pm
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