"Internet Commerce Taxes" Topic

Well the voting in the US Senate and all the talk of pro and con and disinformation I'm getting I wonder what the thoughts of impact would be from any internet sales people. So if you sell items of any kind (TMP based or other non related items) What impact will it have on you or your business or don't you know yet?

The impact for most in this industry will probably be more paper work. I don't think it kicks in till you get to $1 USDM USD per year gross sales.

It will be a pain in the butt but not much more then that.

Only about 10,000 different rates to keep up with, and make individual payments to, across the country, monthly.

Simple, really…….

Most sites will have taxes be handled by a third party, just like most sites use a third party to handle payments. There will be another vendor cost butfor most the whining abiut needing to keep track of 10k+ tax rates is just a dodge.

I'm surprised it didn't happen sooner. And, no, its not that big a hassle.

Not to mention all those 1099s that will need to be printed up and mailed out!!

Oh and don't forget, in many states, like good old Virginia if you claim the Taxes paid on your Federal Income Tax, if the State doesn't have proof that the vendor has paid the taxes collected, guess who will get the bill? That's right, the consumer, and individual who had to pay the tax the first time!! A lesson I learned a couple of years ago!! The State WILL send you a bill, and they will collect it!!

That's the way the law is written in many States other then Virginia by the way!! So it's not just a "dodge"!!!!

to me this whole thing could be solved simply without any extra headache. make the sales tax payable at the location of the seller instead of the buyer. Then your only dealing with your own tax code at your own location and no one would complain about the additional paperwork.

but that's not the idea, its not about raising money its about putting people out of business and making there life even more of a living hell.

This is an asinine bill and I already complained to my senators and reps. I'm sure they won't listen since half of them ing sponsored it! but hopefully they'll have a moment of clarity, otherwise you can bet your ass I'll be running to take the place of one of them!

make the sales tax payable at the location of the seller instead of the buyer

Ooh, I can see Amazon moving to Grand Cayman.

Anyway, I do see a fundamental unfairness in physical stores having to pay sales tax but not virtual ones.

If the law passes, can my state remove the "uncollected sales tax from purchases" line on my tax form.

By most state tax codes, the consumer already has to pay sales tax on out of state purchases. Usually called a 'use tax', it intended for anything purchased out of state that is being used in the home state. The rate is the same as the sales tax. Here in RI, it's a line item on the income tax form. Of course it relies on the consumer to track and pay it. Wonder how many do?

In Pennsylvania in theory you are to claim any taxes from internet buys when you fill out your annual taxes (%.06 here by the way). Delaware has %0 and so stores often advertise this to get people to drive there.

There's an exemption under $500,000. USD How many of you will really be affected?

O had to look that up and hadn't heard or read that, so how would that work? I' not asking for a reply it's something I have to look up.

Now here is a question: are Kickstarters "sales"?

I don't buy kickstarters, I give money and get rewards. The only analogy I can think of is not being allowed to claim charitable deductions that are offset by a reward. Maybe KS rewards should be declared as Short Term Capital Gains?

KS companies are not charities ALSO if I lose money on a KS can
I take that as a loss?

"this whole thing could be solved simply without any extra headache. make the sales tax payable at the location of the seller instead of the buyer."

Then you'd just have all sellers operating a fictitious headquarters in some tax shelter haven like the Bahamas or wherever.

Originally the whole point of the idea – levying this at the Federal level – was to avoid the divergences in the different state sales taxes. That would have been both simple and fair, and would have created a natural pressure on states whose sales taxes are so high that they discourage brick-and-mortar sales.

But that idea would probably have no chance in the Senate, if states felt disadvantaged by it. And it would have died in the House, too, because no members would have dared tell their constituents that they'd voted for a new "national" tax of any sort. So the Feds end up enforcing an ungainly mishmash of state laws.

Actually all the states require you are supposed to pay "Use tax" on purchases where the tax was due but never collect. Check with your local taxing authority website, or contact my firm, but my billing rate is $250 USD an hour.

Some, Wisconsin springs to mind, actually indlude the collection on the state income tax return.

On, don't worry about 1099-MISC reportings. Sales are not subject to the reporting requirement.

Well the Senate is up for it, how about the US House of Representatives? I hope not.

14Bore – the legislation is being pushed hard by Walmart lobbyists – Wallyworld does not like the completion they get from Amazon.com and they want to level the playingfield.

Governor love the idea of more taxes that they can blame on Washington.

Suck it up kiddies Wallyworld Taxes are a comin'.

I'm still hoping for a no vote from the Rep's, there is talk of above this amount or that amount above, but let's face it once started there is no end.