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Jun 23, 2018 10:59:08   #
warrior Loc: Paso Robles CA
 
Now that the Supreme Court has ruled on Collecting of Sales Tax. Does this mean If I purchase a item from a state that has a lower rate than mine collects my state rate?

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Jun 23, 2018 11:09:38   #
BobHartung Loc: Bettendorf, IA
 
warrior wrote:
Now that the Supreme Court has ruled on Collecting of Sales Tax. Does this mean If I purchase a item from a state that has a lower rate than mine collects my state rate?


The proof is in the final rules, but I would suspect they will be collecting sales tax for the location of the buyer or at least the buyers delivery address. It will be interesting to see what the states actually do with what might be a huge windfall.

Until in effect, none of us really has a clue, but it will not change my purchasing habits. I will continue to buy from those with a large inventory, knowledgeable sales people (not my local store), and ease of returns for items not meeting my expectations.

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Jun 23, 2018 11:21:23   #
Toby
 
BobHartung wrote:
The proof is in the final rules, but I would suspect they will be collecting sales tax for the location of the buyer or at least the buyers delivery address. It will be interesting to see what the states actually do with what might be a huge windfall.

Until in effect, none of us really has a clue, but it will not change my purchasing habits. I will continue to buy from those with a large inventory, knowledgeable sales people (not my local store), and ease of returns for items not meeting my expectations.
The proof is in the final rules, but I would suspe... (show quote)


I am disappointed. This is a money grab for the states. If the company you are buying from has no state located facilities what is the justification for the tax? It costs the state nothing except for transportation of the merchandise and that is what gasoline taxes are for. I hear one politician say it would level the playing field. Is that the job of the government? If so I want a tax on every cell phone that takes a picture.

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Jun 23, 2018 11:28:20   #
repleo Loc: Boston
 
warrior wrote:
Now that the Supreme Court has ruled on Collecting of Sales Tax. Does this mean If I purchase a item from a state that has a lower rate than mine collects my state rate?


In many states the tax is a 'sales and use tax'meaning you owe your state the tax regardless of where you bought it. However, you may be able to offset the tax paid to the state you bought it in.

I expect this change will help level the playing field for the few remaining local camera stores which would be a good thing even if it costs a bit more.

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Jun 23, 2018 11:32:33   #
Bazbo Loc: Lisboa, Portugal
 
Toby wrote:
I am disappointed. This is a money grab for the states. If the company you are buying from has no state located facilities what is the justification for the tax?


SCOTUS addressed that very point. Read the opinion.

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Jun 23, 2018 11:32:33   #
flyguy Loc: Las Cruces, New Mexico
 
Toby wrote:
I am disappointed. This is a money grab for the states. If the company you are buying from has no state located facilities what is the justification for the tax? It costs the state nothing except for transportation of the merchandise and that is what gasoline taxes are for. I hear one politician say it would level the playing field. Is that the job of the government? If so I want a tax on every cell phone that takes a picture.


I've always wondered why I should pay a tax for the privilege of buying something --- I think it's a crazy idea and counterproductive to having an expanding economy. It a regressive tax because it effects the lower income groups the most and people have less money to spend on other goods and services, to save, and to invest.

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Jun 23, 2018 11:39:11   #
AndyH Loc: Massachusetts and New Hampshire
 
flyguy wrote:
I've always wondered why I should pay a tax for the privilege of buying something --- I think it's a crazy idea and counterproductive to having an expanding economy. It a regressive tax because it effects the lower income groups the most and people have less money to spend on other goods and services, to save, and to invest.


I haven't read the decision yet, but I think that the logic will likely not be overturned.

I agree completely that the sales tax is the most regressive, both in terms of who pays it and its effect on the economy. Even the poorest really HAVE to purchase stuff, and pay a higher percentage of their income toward it. And the recent tax code changes eliminating its deductibility just make things worse.

On the second point, we are a consumer driven economy, unquestionably. Yacht purchases don't fuel it, and neither do state tax collections. Spending on consumer goods is the great driver of manufacturing and job creation. I'd love to see states move away from a taxation policy that inarguably hurts consumer spending.

It doesn't really matter much personally to me - I live in a state that has no sales tax. I earn my income in another state and pay income tax there, which I am much more comfortable with. And of course, I NEVER make big ticket purchases there if possible. I come home to New Hampshire and buy it there instead, or buy it over the web where I don't (and won't have to in the future) pay it.

Sales taxes are bad business for all, in my opinion.

Andy

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Jun 23, 2018 11:39:32   #
Toby
 
repleo wrote:
In many states the tax is a 'sales and use tax'meaning you owe your state the tax regardless of where you bought it. However, you may be able to offset the tax paid to the state you bought it in.

I expect this change will help level the playing field for the few remaining local camera stores which would be a good thing even if it costs a bit more.


I do try to buy from local camera store even though the price is higher because of their excellent service. I just think there should be a way that I choose which fields to level not the government.

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Jun 23, 2018 11:40:07   #
Bazbo Loc: Lisboa, Portugal
 
flyguy wrote:
I've always wondered why I should pay a tax for the privilege of buying something --- I think it's a crazy idea and counterproductive to having an expanding economy. It a regressive tax because it effects the lower income groups the most and people have less money to spend on other goods and services, to save, and to invest.


I agree. Sales taxes are the most regressive in our system. European style VATs are a little better but not much.

The suit was brought by a state that has no income tax and is heavily reliant on sales tax revenue. Sales taxes are much easier to pass politically than income taxes precisely because they disproportionally affect the poor.

Some states try to make sales taxes a little less regressive by exempting things like food. But they are regressive nonetheless.

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Jun 23, 2018 12:09:46   #
jeep_daddy Loc: Prescott AZ
 
warrior wrote:
Now that the Supreme Court has ruled on Collecting of Sales Tax. Does this mean If I purchase a item from a state that has a lower rate than mine collects my state rate?


No it doesn't. It means that the state, county and city in which you live collects the tax. But first, the vendor must collect the tax from the POS (point of sale) and then forward the money to the state, county and city in which that person lives. There are literally thousands of different tax rates for different states and cities. I live in Orange County CA and the tax is 7.75% in LA, one county over it's 9.5%. But that's just an estimate. It depends on each city too. Take a look at the rate website below. Imagine being a lonely ecommerce company that sells product over the internet and the nightmare you'll encounter by trying to figure out what city and state or county gets what for the widget you just sold for a dollar three ninety eight.

https://www.avalara.com/taxrates/en/download-tax-tables.html?gclid=Cj0KCQjw37fZBRD3ARIsAJihSr3Xw2v1BCFEAFjTySlwvYrd7OLQJSF219jEQkLRmX5xUxi5hrv4LAEaAgFQEALw_wcB&CampaignID=7010b000001DgsXAAS&st-t=all_visitors&lso=Paid%20Digital&lsmr=Paid%20Digital&s_kwcid=AL!5131!3!228169930994!b!!g!!%2Bstate%20%2Bsales%20%2Btaxes&ef_id=WK6qeQAABWnSHtyB:20180623161025:s

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Jun 23, 2018 12:17:56   #
Diocletian
 
Toby wrote:
I am disappointed. This is a money grab for the states. If the company you are buying from has no state located facilities what is the justification for the tax? It costs the state nothing except for transportation of the merchandise and that is what gasoline taxes are for. I hear one politician say it would level the playing field. Is that the job of the government? If so I want a tax on every cell phone that takes a picture.


The job of the government is to take from the poor and give to the rich.

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Jun 23, 2018 12:19:19   #
rjaywallace Loc: Wisconsin
 
The tax collected goes back to your (the purchaser’s) state.

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Jun 23, 2018 12:19:29   #
Diocletian
 
jeep_daddy wrote:
No it doesn't. It means that the state, county and city in which you live collects the tax. But first, the vendor must collect the tax from the POS (point of sale) and then forward the money to the state, county and city in which that person lives. There are literally thousands of different tax rates for different states and cities. I live in Orange County CA and the tax is 7.75% in LA, one county over it's 9.5%. But that's just an estimate. It depends on each city too. Take a look at the rate website below. Imagine being a lonely ecommerce company that sells product over the internet and the nightmare you'll encounter by trying to figure out what city and state or county gets what for the widget you just sold for a dollar three ninety eight.

https://www.avalara.com/taxrates/en/download-tax-tables.html?gclid=Cj0KCQjw37fZBRD3ARIsAJihSr3Xw2v1BCFEAFjTySlwvYrd7OLQJSF219jEQkLRmX5xUxi5hrv4LAEaAgFQEALw_wcB&CampaignID=7010b000001DgsXAAS&st-t=all_visitors&lso=Paid%20Digital&lsmr=Paid%20Digital&s_kwcid=AL!5131!3!228169930994!b!!g!!%2Bstate%20%2Bsales%20%2Btaxes&ef_id=WK6qeQAABWnSHtyB:20180623161025:s
No it doesn't. It means that the state, county an... (show quote)


These things are all set up by computers. Eazy peazy. Import sales tax rates, computer does the calculation.

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Jun 23, 2018 12:21:23   #
d3200prime
 
The SCOTUS ruling allows states (at their discretion) to collect sales tax from online businesses. If the citizens of a particular state do not want this in their state then they should make it known to their elected officials. Public opinion is a very powerful influence in political policymaking.

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Jun 23, 2018 12:21:25   #
Charles 46277 Loc: Fulton County, KY
 
Warrior, jurisprudence and politics aside, I wonder how the State of Nebraska hopes to collect the money from me, the seller, in Kentucky. It is always the seller that must collect sales taxes and give them over to the state. Buyers, even in Nebraska, have no tax number there (and neither do I). Nebraska cannot search my sales records without a warrant that is valid here in KY, right? And they need probable cause for that.

I have not read the actual court decision, but I doubt they said that if I sell by mail or Internet I must get a tax number in all 50 states. (In the past, some states got around this by making me collect sales taxes for them on all sales--or pay the sales tax to another state if I had stores in that state. In other words, I already had a tax number there.) If I have no stores there, I have no tax number there.

Their decision raises new questions, even if we agree that sales tax should be paid. If I drive across the state line and buy something to be delivered in my home state, there is not only a question of who gets the sales tax, but what the correct tax rate would be. I often buy groceries in TN, where the food sales tax is almost 10%, but live in KY, where the food tax is zero. If I buy a box of candies in KY, to be sent to TN, why should that not be taxed at the KY rate (zero)? Mail or Internet should not change the tax from what it would be in the store, should it?

warrior wrote:
Now that the Supreme Court has ruled on Collecting of Sales Tax. Does this mean If I purchase a item from a state that has a lower rate than mine collects my state rate?

Reply
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