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More Taxes On The Way for Internet Sales

VANDAN

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I've been watching off & on the Bill to establish the Tax on Internet Sales. It appears it is going to be taking effect soon, so the nice occasional discount on items, and free shipping will be erased by adding another donation to our State Governments. I know some States have been on this program for some time, but it's been a good thing for those of us that could avoid it. I've been trying to make some purchases before this happens, so just a heads up to all, shop quickly, as I'm sure they will be pushing this to get our funds donated again, ASAP...
 
Too,late for us in PA. They started the internet sales tax thing back on April 1. I thought it was a joke but it wasn't. Most still don't charge but you get a big message that says your state requires them to report purchases. Now I have to screw with on state income taxes. Sucks.
 
I see no problem with this. The govt really needs the money. Where would we be without $750 hammers, & 4 guys watching while one used it ?
 
  • By Michael GRAHAM
Online sales tax a burden for small businesses

They finally got you, New Hampshire.

For years, the “tax ’em high” crowd have been after you, trying to drag you into the big-government mud. Massachusetts liberals hate the fact that every time they raise taxes on us here, they hear gleeful cackling from you as you expand your parking lot and warm up your cash register for the flood of new customers from across the border.

Remember Gov. Deval Patrick trying to force New Hampshire businesses to collect Massachusetts sales taxes from border-crossing Bay Staters?

Well, the Supreme Court just did Patrick’s dirty work for him, I’m afraid. They forced you into the sales tax business over the objections of your own citizens and small businesses.

There’s a telling part of Judge Anthony Kennedy’s ruling where he cites the $33.9 billion in potential internet sales taxes as “uncollected.” Alas, my New Hampshire friends, that’s how America’s political class views the money you work so hard to earn. It’s not yours. It’s theirs — they just haven’t “collected” it yet.

I don’t often agree with Sen. Jeanne Shaheen (DN.H.), but she got this right: “This is a disastrous decision for NH’s economy & does not take into account the day to day challenges of running a small business. NH small businesses do not have the time or resources to become tax collectors for other states,” she tweeted yesterday.

Many people are blaming the court for this mess and, in fact, there is plenty of blame — and pain — to go around. That $34 billion is going to bite shoppers from coast to coast, but it’s really going to hurt small online businesses in New Hampshire and the four other states (Delaware, Montana, Oregon and Alaska) without a state sales tax.

But before you blame five unelected judges for coming up with a lousy solution, remember: We pay 535 men and women — the U.S. Congress — a full-time salary to fix problems like this and they blew it off.

The Supreme Court first ruled on this when George H.W. Bush was in office. We’ve had eight years of Clinton, W. and Obama to find and pass a legislative answer, but Congress didn’t do it. Not under Speaker Pelosi or Paul Ryan.

The Supreme Court didn’t rule that states must shake down online T-shirt sellers or graphic artists, merely that they can. Congress could end it tomorrow. They won’t. And to be honest, I’m not sure they should.

I think brick-and-mortar store owners are right to complain that the guy selling the same stuff on the web down the street is off the sales-tax hook. I just don’t support the idiotic “solution” of making the internet guy collect the taxes due in 10,000-plus different jurisdictions.

The solution is to make internet businesses do what the brick-and-mortars do: Charge every customer ... their local sales tax.

Who cares if the shopper is standing at your counter or sitting in his underwear shopping online? Charge the sales tax based on where the store is, like we do with traditional purchases. When you buy a delicious and reasonably priced soda at Disney World for $13 (assuming you order the small one), they don’t ask where you’re from to calculate the sales tax. You pay based on where the seller is doing business.

Now do that online. If you’re WebStore World and you decide to locate your facility in Massachusetts, everyone who shops pays 6.25 percent. But if you locate in New Hampshire or Oregon, everyone pays ... zero.

“Hey, wait a minute,” Massachusetts liberals respond. “If we did it that way, all the online retailers would set up shop in lowtax states like New Hampshire. We’d lose all that revenue and those jobs!”

Exactly. Not only that, but this policy would pressure high-tax states like New York and Massachusetts to lower their sales tax rates, which in turn would benefit the Mom and Pops, too.

Win-win!

Which is why, of course, it will never happen. Sorry, New Hampshire.
 
Should have happened 20 years ago. Then maybe all the speed shops would still be around
 
Its got to be a pretty expensive purchase before I ever worry about the tax! And I don't cross the street to save 2 cents a gallon on gas either.
 
Should have happened 20 years ago. Then maybe all the speed shops would still be around

Good point BUT very few could provide the service you get from Summit or Jegs - most things stocked and next day delivery if you're that desperate!
 
Too,late for us in PA. They started the internet sales tax thing back on April 1. I thought it was a joke but it wasn't. Most still don't charge but you get a big message that says your state requires them to report purchases. Now I have to screw with on state income taxes. Sucks.
What's a "state income tax"?

Sorry, couldn't help it. :)
 
What's a "state income tax"?

Sorry, couldn't help it. :)
Help what, I don't follow? When you file your taxes in the begining of the year, federal, state, local. State wants to know what you bought and didn't pay tax on.
 
Good point BUT very few could provide the service you get from Summit or Jegs - most things stocked and next day delivery if you're that desperate!
i've had an issue with every delivered purchaze made from jegs. Spanning decades. And no, it wasn't ups fault. Check out my posfing on keystone classics. They seem to carry very little Mopar anyway, mostly chebby. I think they are chebby kind of people.
 
Help what, I don't follow? When you file your taxes in the begining of the year, federal, state, local. State wants to know what you bought and didn't pay tax on.
missed the joke.png
 
“Did you buy anything out of state that you didn’t pay tax on”......NOPE!
 
Living in NY I ordered Mopar parts from a Michigan Dealer last year. When I received the bill there was tax on it. I called and asked why I was taxed and his reply was that if there is a Mopar dealer in your state they must collect sales tax. That is a MI state law now. No more orders to MI mopar dealers. Mancini might not fall into that category. I ordered some non mopar parts from him and no tax.
 
Weelll, in Ohio you were supposed to “declare” website purchases and pay the tax anyway. I’m sure the purchases were always audited and adhered too(?).
 
As long as the question is asked on a tax form, the reply will always be no!

I read somewhere that this ruling is only for business that do over 100k in sales a year.
 
As long as the question is asked on a tax form, the reply will always be no!

I read somewhere that this ruling is only for business that do over 100k in sales a year.

That's been the answer. Difference now is the retailer reports the purchases to PA now. Hard to say no when they have your transactions in hand. They always wanted it now but now they're looking harder for it.

I thought the amount was a little less but maybe not. PA wants the retailer to collect and pay, if they chose not to do that then they want the retailer to report purchases at the end of the year. Now it seems they want to make this a federal law and not state by state.

I guess all good things must come to an end. I will say I'll probably start using more local business like the old speed shop that still here. I support a lot of local business already, the internet will be for convinience and that about it.
 
So if the retailer pays the tax charged to you, then your not on the hook to pay it again at the end of the year.
 
So if the retailer pays the tax charged to you, then your not on the hook to pay it again at the end of the year.
Correct I guess. The retiailer is charging me 6%, then they pay the sate. Just like buying something here normally. After April 1st I started seeing tax charged on some internet sites that I had not before. On my last Summit order I got a big pop-up that said I live in a state that Summit has to report purchases to. And I will be responsible to pay sales tax to my state at the end of the year. I will get a purchase summary in January 2019 for tax reporting from them. If that order was $300. I'll owe PA the 6% and they'll match it up against the reporting. I'm anxious to see if it really works. Seems like this will be a ton of admin work to police. May out weigh the benefit.

PA is a bit rediculous. At Spring and Fall Carlisle your supposed have a tax ID and collect tax on your used parts your selling. This is even for the little guy who has one spot and this is a hobby. Yeah, okay.
 
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