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States Want to Force Online Retailers to Collect Billions in Sales Tax

Posted on 4/18/18 at 7:55 am
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 4/18/18 at 7:55 am
quote:

Overstock.com has a small but unmistakable advantage for anyone looking to buy a 3-cup Cuisinart Mini Prep Plus Food Processor for shipment to Germantown, Maryland: Purchasers don’t have to pay the 6 percent sales tax they’d owe at a local store.


quote:

That sort of discrepancy is at the heart of a multibillion-dollar U.S. Supreme Court case set for argument Tuesday. States and traditional retailers are asking the court to overturn a 26-year-old ruling that exempts many internet merchants from collecting billions of dollars in sales taxes. The 1992 decision says retailers can be forced to collect the tax only if they have a physical presence in a state, such as a store or warehouse


quote:

A ruling for the states would put new pressure on internet retailers and marketplaces that don’t always collect taxes -- including Overstock.com Inc., Wayfair Inc., Newegg Inc., EBay Inc., Etsy Inc. and thousands of smaller merchants.

The case will also affect e-commerce behemoth Amazon.com Inc., though less directly. The company now charges consumers in every state that imposes a sales tax, but only when selling products that come from its own inventory. About half of Amazon’s sales involve goods owned by third-party merchants, many of which don’t collect tax.




quote:

No matter what the court decides, Congress gets the final word -- if lawmakers want it. Amazon and Overstock are among the companies that say they support a nationwide law addressing internet sales taxes that would relieve retailers from dealing with a patchwork of state measures.


Full Story
Posted by Splackavellie
Bayou
Member since Oct 2017
9838 posts
Posted on 4/18/18 at 7:57 am to
Posted by crewdepoo
Hogwarts
Member since Jan 2015
9608 posts
Posted on 4/18/18 at 7:57 am to
Why shouldn’t they?
Posted by WavinWilly
Wavin Away in Sharlo
Member since Oct 2010
8783 posts
Posted on 4/18/18 at 8:00 am to
quote:

that would relieve retailers from dealing with a patchwork of state measures.


What a bad excuse from the likes of Amazon. One of the biggest companies can't figure out how to set up sales taxes for different states?? If you want a competitive advantage, at least come up with a better excuse.
Posted by Will Cover
St. Louis, MO
Member since Mar 2007
38551 posts
Posted on 4/18/18 at 8:00 am to
For a product thought of, created, manufactured or sold outside the state of Louisiana, this state or any state that this applies to should not collect any tax on it as it had nothing do with the processes that go into it.

And no labor or employees in the state that is attempting to collect the tax are associated with it either.
This post was edited on 4/18/18 at 8:03 am
Posted by Scruffy
Kansas City
Member since Jul 2011
72129 posts
Posted on 4/18/18 at 8:00 am to
quote:

Why shouldn’t they?
They aren’t located in the state.

Should Scruffy have to pay LA sales tax if he bought something online from Europe?
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
25455 posts
Posted on 4/18/18 at 8:02 am to
quote:

They aren’t located in the state.

Should Scruffy have to pay LA sales tax if he bought something online from Europe?


No but you should pay La Use tax, which is the same rate as sales tax.
Posted by Scruffy
Kansas City
Member since Jul 2011
72129 posts
Posted on 4/18/18 at 8:03 am to
quote:

No but you should pay La Use tax, which is the same rate as sales tax.
Scruffy disagrees with that stupidity on principal.

Damn thieves.
Posted by Wasp
Off Highland rd.
Member since Sep 2012
1483 posts
Posted on 4/18/18 at 8:04 am to
Further, should I have to pay louisiana sales tax if I purchase something in Europe and bring it back?
Posted by Huey Lewis
BR
Member since Oct 2013
4655 posts
Posted on 4/18/18 at 8:04 am to
quote:

Why shouldn’t they?


What right does one state have to tax purchases made in another state?

Posted by The Boat
Member since Oct 2008
164271 posts
Posted on 4/18/18 at 8:05 am to
Poor arse I needs mines Louisiana was already all over this.
Posted by Mingo Was His NameO
Brooklyn
Member since Mar 2016
25455 posts
Posted on 4/18/18 at 8:05 am to
quote:

Scruffy disagrees with that stupidity on principal.

Damn thieves.


It makes things equitable so I'm not sure why you disagree with it. The La rates are way to high, but thats a different discussion. If you don't have a use tax you deincentivize business in your state and state resources are used without any tax.
Posted by Konkey Dong
Member since Aug 2013
2166 posts
Posted on 4/18/18 at 8:06 am to
The Dong agrees with Scruffy. Usage tax, what a joke
Posted by Wasp
Off Highland rd.
Member since Sep 2012
1483 posts
Posted on 4/18/18 at 8:06 am to
What is the philosophy/intention behind a sales tax? Is it essentially supposed to double tax my spent portion of after tax income?
Posted by Scruffy
Kansas City
Member since Jul 2011
72129 posts
Posted on 4/18/18 at 8:06 am to
quote:

What right does one state have to tax purchases made in another state?
Apparently, if you exist in a state, you should pay that state a fee for every purchase ever made anywhere.
Posted by tigers win2
Baton Rouge
Member since Oct 2009
3838 posts
Posted on 4/18/18 at 8:06 am to

I agree the should collect the sales/ use tax. People have to remember that if they don’t get the money from those choosing to purchase items, the state won’t just say oh well, we don’t have any money. They’ll create new and different taxes to allow for the operation of the municipality.

Plus, the no sales tax on internet sales, puts you local business owners at more of a disadvantage which can also harm the local community as they start to go out of business.
Posted by Huey Lewis
BR
Member since Oct 2013
4655 posts
Posted on 4/18/18 at 8:07 am to
(no message)
This post was edited on 9/26/20 at 9:15 pm
Posted by SCLibertarian
Conway, South Carolina
Member since Aug 2013
36094 posts
Posted on 4/18/18 at 8:08 am to
Great link and article. I usually have a strong opinion about almost every issue, but I can genuinely see both sides to this issue. It'll be interesting to see if the Court applies stare decisis or if the conservative wing wins out by invalidating much of the dormant commerce clause altogether.
Posted by Wasp
Off Highland rd.
Member since Sep 2012
1483 posts
Posted on 4/18/18 at 8:09 am to
Then maybe the state should figure out how to cut the budget so that they can lower the sales tax. Maybe businesses should give me a reason to shop with them over amazon.
Posted by Mike da Tigah
Bravo Romeo Lima Alpha
Member since Feb 2005
58901 posts
Posted on 4/18/18 at 8:09 am to
If only these states were more concerned with the plight of their own locally owned businesses as they are a loss in their own revenue, I might be able to muster a little more sympathy for this.

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