Internet Sales Tax is Coming! What Does it Mean For You?

https://www.usatoday.com/story/mone...-begin-collect-internet-customers/2387450002/

Internet sales tax collection laws gradually taking effect

Joyce M. Rosenberg, Associated Press Published 6:00 a.m. ET Dec. 23, 2018



The laws are similar to the South Dakota statute. Most require remote sellers to collect sales tax after they reach a threshold of $100,000 in revenue or 200 transactions in a given state, either in the previous or current calendar year. Once a company reaches one of those milestones, under most of the laws it must begin collecting sales tax by the first day of the next calendar month, or, if that is less than 30 days later, the first day of the following month. For example, if a company reaches the threshold on May 8, it must start collecting tax by July 1.

Many small and independent online retailers are now investing in software and services to help them comply with more than 10,000 taxing jurisdictions across the country. The cost of compliance will vary from company to company and depend on how many transactions they have and what services they need from software providers, Peterson says. There are a number of companies that sell software, and pricing can range from free to thousands of dollars a year.

The software and services track sales tax rates and the merchandise and services that are taxed in each jurisdiction. They're designed to interface with most e-commerce systems that online retailers use. Some of the services will submit sales tax payments to state authorities and prepare required filings and documents.

Some businesses want Congress to pass legislation that would set uniform standards for sales tax collection. However, bills that would have accomplished that have tended to pass one house and then stall in the other.
I hope they allow us police ourselves, because 'the check's in the mail'. :dance:
 
I'm in NY too, its been like this for a while for me. Regarding watches, I've been buying mostly micro brands that aren't US companies and I have not paid any sales tax. Borealis, Prometheus, Benarus, Helson, Zelos, Squale(Gnmomon), Christopher Ward, Steinhart, Obris Morgan.

I also bought from Jomashop and had the watches delivered to my sister-in-law's home in NJ to avoid sales tax.
Especially on big ticket items like my Omega Aqua Terra.
 
As taxes of all sorts continue to rise, folks on Social Security and pensions without COLAs will feel the dwindling purchasing power of their dollars. From what I have read, the next generations entering retirement age are woefully unprepared to handle their financial obligations. Defined pension plans are dwindling and Social Security is running out of money. If we throw in the latest buzz about free heath care and free college for all, I'm wondering who will foot these bills. I don't have any answers but I sure don't believe giving things away without knowing how to pay makes sense. That brings us back to governments at every level enacting taxes on anything they can! Look at your cell phone bill. How about a license fee to fish in the ocean and fees to enter many of our national parks. How about beach off-road permit fees that are used to build parking lots and bath houses for people who pay nothing to walk to the beach. Sorry to go on but the taxing bodies need to open their eyes.
 
Just made an eBay watch purchase - was a private seller in FL and I am in OH - and I had to pay OH sales tax (eBay is collecting and remitting the tax). Looks like this went into effect for OH on 9/01/19. Fortunately it was not a large purchase ($270 with shipping) but the $18 tax on that purchase was $18 I wasn't expecting to pay. Looks like many other states are now doing this on eBay or will be doing this in coming months.
 
YepI bought eBay stuff from other states and got taxed too. I even got taxed for an eBay item from China!
 
There's no getting away from it. Some of the last hold-outs have had to enforce the tax. I buy a decent amount of audio, video, camera and Xbox stuff here. I venture to say I've saved enough money in taxes through the years to buy a few nice watches, so I'm ahead of the game. I don't have a problem paying taxes if the money goes to good use and doesn't line the pockets of the filthy rich with all of the tax loopholes to make them even richer.


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https://www.tobaccofreekids.org/assets/factsheets/0097.pdf
 
I am sure there are thousands of E-tailers who will dutifully ignore this. Even with today's tech, I suspect states won't just choose to audit an outta-state vendor willy-nilly. It would have to cost something significant to do, and the big players would be the only ones likely to have a return on such an investment.

still, I hope it doesn't hurt too many small folks, as sometimes that 'savings ' of no tax collection is the competitive edge that's swaying your business in th e first place
 
I'm getting taxed on all web sales, and they are collecting MORE than the state tax of 6.625. But as long as it's less expensive and more convenient, I'll pay. I just wonder if these companies are actually reproting it, or if they are charging more because it costs more for bookkeeping multiple states sales taxes.
 
https://blog.taxjar.com/happens-business-doesnt-file-sales-tax-returns/


If a small business expects to charge sales tax, the owners need to be prepared. Incorrect reporting or remitting sales taxes — even missing a scheduled payment — can result in penalties or criminal charges. In most states, businesses need to obtain a sales tax permit that must be displayed at the place of business. Business owners also may need a DBA (doing business as) designation, a business license, a business bank account and an Employer Identification Number (EIN) if there are employees. Owners need to learn their state, city and county tax rates, have the correct forms and returns, and know when, where and how to file sales taxes.

Virtually every state requires sellers to state the amount of sales tax collected on the receipts and invoices they provide their purchasers. About half of the states allow sellers to deduct the costs of sales tax collection. More and more states are providing or even requiring electronic reporting and payment. Some states have reduced rate allowances for certain trade-in sales, and states differ on their rules for including transportation charges, post-sale labor and service costs, and bad debts when calculating the amount, or tax base, upon which taxes are determined. Again, the onus is the small business owner to understand and comply with all regulations.

Mail order businesses, as well as those that simply communicate with customers in other states, are not obligated to collect other states’ sales tax. This principle is based on a 1992 Supreme Court ruling that found that forcing sellers to comply with thousands of different tax jurisdictions would put a strain on interstate commerce. However, businesses are responsible for sales taxes in a host state if they sell items in the state at a craft or vendor fair, exhibit or trade show.



https://taxify.co/2016/10/25/failing-collect-sales-taxes-nearly-killed-million-dollar-deal/

A Simple Amazon Store
The couple selling their business started an Amazon Store in which they distributed their own brand of art supplies. The business model was simple, the niche was hot, and the brand took off. Within 18 months they had topped $1.4 million in total revenue, and were hoping to surpass $1.5 million in 2016.

When they listed the business for sale, they received two solid offers within ten days. While each offer was strong and relatively similar in monetary terms, one buyer stood out and the couple chose his offer over the other.

Due to the brand and simplicity of the business model, both sides expected due diligence to go smoothly and be completed within a couple of weeks. After this, the process would move on to the Asset Purchase Agreement, with the two sides eventually closing in a total of four weeks. However, this timetable did not come to fruition because of information unearthed during the due diligence process.

Due diligence is essential for two reasons: Not every seller is totally honest, and many sellers make honest mistakes or omissions.

Fortunately, completing due diligence on an Amazon business is not difficult. After about ten days of digging into the numbers, the sale looked good to the buyer with the exception of one critical area: Sales tax. The couple selling their business had chosen not to collect sales taxes throughout their 18-month history.
Since the sellers had elected not to collect sales tax, the buyer was unwilling to assume the potential risk of states collecting any unfiled taxes. As the new owner of the business, he would have been liable to file and pay any uncollected taxes and associated fees for the 18 months prior to the sale.

The Near Death of a Million Dollar Deal
Deciding between closing a deal with a buyer with whom a relationship has been established at a reduced price or moving on to a new buyer is a tough choice. In this case, the sellers chose to move forward with the deal and pay the sales tax out of pocket. If they had properly collected sales tax from each transaction, their cost of collection and remitting would have been a few thousand dollars. Instead of collecting taxes up front, the sellers ultimately received $70,000 less for their business than they should have.
 
I get it and hear what you are saying. But what I was trying to get across simply was no matter what state you live in taxes need to be paid to provide all of those services mentioned. In whatever state you live in that's the state that provides for you and should receive those needed taxes. If ones real estate taxes are too high or sales tax then that needs to be dealt with at the ballot box. We all should pay our FAIR share... although it really doesn't work out that way as we all know. The rich get richer and the poor get poorer...

And since politics are a big no-no on the forum I'll just leave it at that... :nope:

agree with JOEL taxes the price for living in a civilized society everybody pay... crying about taxes on toys kinda solipsistic....

-unfair burdens...taxes going up too fast ? put energy into the ballot box... file a tax certiorari
 
https://blog.taxjar.com/happens-business-doesnt-file-sales-tax-returns/


If a small business expects to charge sales tax, the owners need to be prepared. Incorrect reporting or remitting sales taxes — even missing a scheduled payment — can result in penalties or criminal charges. In most states, businesses need to obtain a sales tax permit that must be displayed at the place of business. Business owners also may need a DBA (doing business as) designation, a business license, a business bank account and an Employer Identification Number (EIN) if there are employees. Owners need to learn their state, city and county tax rates, have the correct forms and returns, and know when, where and how to file sales taxes.

Virtually every state requires sellers to state the amount of sales tax collected on the receipts and invoices they provide their purchasers. About half of the states allow sellers to deduct the costs of sales tax collection. More and more states are providing or even requiring electronic reporting and payment. Some states have reduced rate allowances for certain trade-in sales, and states differ on their rules for including transportation charges, post-sale labor and service costs, and bad debts when calculating the amount, or tax base, upon which taxes are determined. Again, the onus is the small business owner to understand and comply with all regulations.

Mail order businesses, as well as those that simply communicate with customers in other states, are not obligated to collect other states’ sales tax. This principle is based on a 1992 Supreme Court ruling that found that forcing sellers to comply with thousands of different tax jurisdictions would put a strain on interstate commerce. However, businesses are responsible for sales taxes in a host state if they sell items in the state at a craft or vendor fair, exhibit or trade show.



https://taxify.co/2016/10/25/failing-collect-sales-taxes-nearly-killed-million-dollar-deal/

A Simple Amazon Store
The couple selling their business started an Amazon Store in which they distributed their own brand of art supplies. The business model was simple, the niche was hot, and the brand took off. Within 18 months they had topped $1.4 million in total revenue, and were hoping to surpass $1.5 million in 2016.

When they listed the business for sale, they received two solid offers within ten days. While each offer was strong and relatively similar in monetary terms, one buyer stood out and the couple chose his offer over the other.

Due to the brand and simplicity of the business model, both sides expected due diligence to go smoothly and be completed within a couple of weeks. After this, the process would move on to the Asset Purchase Agreement, with the two sides eventually closing in a total of four weeks. However, this timetable did not come to fruition because of information unearthed during the due diligence process.

Due diligence is essential for two reasons: Not every seller is totally honest, and many sellers make honest mistakes or omissions.

Fortunately, completing due diligence on an Amazon business is not difficult. After about ten days of digging into the numbers, the sale looked good to the buyer with the exception of one critical area: Sales tax. The couple selling their business had chosen not to collect sales taxes throughout their 18-month history.
Since the sellers had elected not to collect sales tax, the buyer was unwilling to assume the potential risk of states collecting any unfiled taxes. As the new owner of the business, he would have been liable to file and pay any uncollected taxes and associated fees for the 18 months prior to the sale.

The Near Death of a Million Dollar Deal
Deciding between closing a deal with a buyer with whom a relationship has been established at a reduced price or moving on to a new buyer is a tough choice. In this case, the sellers chose to move forward with the deal and pay the sales tax out of pocket. If they had properly collected sales tax from each transaction, their cost of collection and remitting would have been a few thousand dollars. Instead of collecting taxes up front, the sellers ultimately received $70,000 less for their business than they should have.

wow...at least they netted 930k
 
The top 1% pay 37% of collected US taxes, and the top 10% pay 70% of all US collected taxes. The top 25% income earners pay 86% of all US taxes. Fair share?
The top 50% pay 97%, which leaves the bottom 50% paying 3%. I pay more than my fair share. Over 50% [because I'm self employed] my earned income goes to these income taxes in USA and NJ, excluding sales taxes. So for over half the year, I get up, and go to work and make NOTHING for myself or my family.:mad:
 
Been real busy lately but I wanted to see if this thread was going to start blowing up. I noticed tax for eBay purchases starting this month in October. If I use my mother's account and the shipping address is in North Carolina she doesn't get tax attached, but if I switch the recipient address to mine in Nevada there is the tax in the checkout. I just went on Amazon and was going to grab something off the run and sure enough tax being charged there now too, never before to my address.
I'm not into politics, but I think this is BS. I understand the need for taxes, of course. But tax law has always been if you purchase from a company within the same state. Not sure how each individual state has the right to enforce sales tax when the purchase is online and being shipped from a seller/company p from another state.
 
Been real busy lately but I wanted to see if this thread was going to start blowing up. I noticed tax for eBay purchases starting this month in October. If I use my mother's account and the shipping address is in North Carolina she doesn't get tax attached, but if I switch the recipient address to mine in Nevada there is the tax in the checkout. I just went on Amazon and was going to grab something off the run and sure enough tax being charged there now too, never before to my address.
I'm not into politics, but I think this is BS. I understand the need for taxes, of course. But tax law has always been if you purchase from a company within the same state. Not sure how each individual state has the right to enforce sales tax when the purchase is online and being shipped from a seller/company p from another state.

It must be a book keeping nightmare t get all the money figured out. I suppose they have a computer program to do it.
 
YepI bought eBay stuff from other states and got taxed too. I even got taxed for an eBay item from China!

I am sorry that I ddin't see this sooner. Yeah, you can bet those Chi-Coms are remitting their 'due' to each state...:ear:
Actually, that brings up the issue perfectly. I suspect there will likely be some vendors that will 'collect tax', which will simply be extra profit.

Should a small-time e-tailer with no established track history be offended if I asked to see a copy of their tax-registry forms (whatever they may be called)
for MY state????:hurry:
 
Many are collecting MORE than the state tax rate. I cannot believe that PP is charging for the collected tax too, but it is possible.
 
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