Internet Sales Tax Coming? For folks outside of New York who like me have enjoyed not paying sales tax when purchasing from retailers like B&H and Adorama those days may soon be coming...

Blurryeyed Loc: NC Mountains.

For folks outside of New York who like me have enjoyed not paying sales tax when purchasing from retailers like B&H and Adorama those days may soon be coming to an end. The constitutionality of the ruling that blocked states from requiring sales tax collections from retailers that do not have a presence in their state will be reviewed by SCOTUS, three conservative judges have previously expressed concerns with the prior ruling that allowed these retailers to escape state and local sales tax.

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http://www.bloomberg.com/news/articles/2018-01-12/bid-to-collect-internet-sales-tax-gets-u-s-high-court-review

robertjerl Loc: Corona, California

Blurryeyed wrote:

For folks outside of New York who like me have enj... (show quote)

Most sellers collect sales tax for the state of California and have done so for years.

JohnSwanda Loc: San Francisco

Most states that have sales tax require you to pay a "use" tax on purchases out of state where sales tax wasn't charged. But there isn't much enforcement, and most people don't pay it. That's why the sales tax states want out of state merchants be required to collect sales tax, so then they are sure to get it.

repleo Loc: Boston

It could be very cumbersome if merchants have to charge, collect and remit taxes for each individual state and keep track of the different rates and conditions. Big internet sellers will be able to manage it, but how will occasional sellers like on eBay manage it? What if you want to sell a lens. Each state may have a different requirement depending on whether the lens is 'used', 'like new' or 'new in box'.

jerryc41 Loc: Catskill Mts of NY

repleo wrote:

It could be very cumbersome if merchants have to charge, collect and remit taxes for each individual state and keep track of the different rates and conditions. Big internet sellers will be able to manage it, but how will occasional sellers like on eBay manage it? What if you want to sell a lens. Each state may have a different requirement depending on whether the lens is 'used', 'like new' or 'new in box'.

Another step to help business and hurt people.

I bet one good computer program could be used nationwide to keep track of sales tax. Sales tax varies not only by each of the fifty states, but also by every county in each one of those states. There are over 3,100 individual counties in the USA, and they can decide how much sales tax to collect for themselves.

peterg Loc: Santa Rosa, CA

JohnSwanda wrote:

Most states that have sales tax require you to pay a "use" tax on purchases out of state where sales tax wasn't charged. But there isn't much enforcement, and most people don't pay it. That's why the sales tax states want out of state merchants be required to collect sales tax, so then they are sure to get it.

I think it may not be legal to charge "sales" tax on interstate sales. Instead, a "use" tax, which is the same amount is often due from the buyer. Many states now exchange sales data. Example: If you live in California and buy from a big New York store, California may know about it and expect you to pay a "use" tax on your income tax return. (You can easily see an entire year's purchases on Adorama and B&H web sites.) Years ago, California contacted me about a $1000 purchase from a Georgia company. Different states have different laws. Purchases for personal use, businesses, resale, etc. make it even messier.

wec636 Loc: Central New Jersey

Don't know if other states do the same, but in New Jersey, when you file your state income tax return, you are supposed to list purchases that you made from out of state where you did not pay NJ sales tax. They get you then.

DavidPhares Loc: Chandler, Arizona

wec636 wrote:

Don't know if other states do the same, but in New Jersey, when you file your state income tax return, you are supposed to list purchases that you made from out of state where you did not pay NJ sales tax. They get you then.

How do they verify those purchases?

peterg Loc: Santa Rosa, CA

DavidPhares wrote:

How do they verify those purchases?

The states exchange out-of-state purchasing info that they get from vendors. Hypothetical: Store in New York sends out-of-state sales info to their tax office. Tax offices exchange data with other states (e.g. California). California compares my tax return with data that they got from other states. With interstate cooperation, clever programming and powerful computers, it's easy. Frankly, I think states are most concerned with big-ticket purchases where they can get the most $ with the least effort and cost.
I've gotten "use tax" bills from my California tax folks for purchases I've made on European vacations. How? US Customs sent my declarations info to California.

wec636 Loc: Central New Jersey

Don't think they do. Perhaps the honor system?

peterg Loc: Santa Rosa, CA

wec636 wrote:

Don't think they do. Perhaps the honor system?

California cares. Your state may be different.

ramblin21 Loc: Sharon,Wisconsin

robertjerl wrote:

Most sellers collect sales tax for the state of California and have done so for years.

I have a ? what about sellers and buyers from here on UHH. How will this internet tax effect those people?

Bmarsh Loc: Bellaire, MI

jerryc41 wrote:

Another step to help business and hurt people.

I bet one good computer program could be used nationwide to keep track of sales tax. Sales tax varies not only by each of the fifty states, but also by every county in each one of those states. There are over 3,100 individual counties in the USA, and they can decide how much sales tax to collect for themselves.

But only if you have a central collection point. Having small mom and pop vendors submit taxes to each state would be a killer. I once had a small software company that sold to all the States but I only had to collect sales taxes for MI where I am located. So when I sold something to an Arizona resident, and AZ said that henceforth I would have to submit quarterly taxes and reports to AZ, I just told them that henceforth I would refuse to sell to anyone in AZ. It’s that onerous a chore.

wec636 Loc: Central New Jersey

My understanding is that retail outlets that do business out of state (mail order or internet) are only responsible to collect sales tax for states that they have outlets in. They aren't responsible to collect other states sales tax. Now that B and H has a warehouse (?) in NJ, they charge me sales tax when I order through their website. Before they opened in NJ, they did not charge me sales tax.

JohnSwanda Loc: San Francisco

DavidPhares wrote:

How do they verify those purchases?

They don't. Unless you are audited, most people get away with not paying the use tax. That's why the states want merchants to collect the out of state sales tax.