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Streamlined Sales Tax Project (ebay and other auction sites)
ebay ^ | unk | ebat

Posted on 01/26/2007 2:54:44 AM PST by Lokibob

 
 
Proposed Internet Taxes

Prospective legislation for mandatory out-of-state sales taxes could impact your trading on eBay by requiring you to collect and remit sales tax on all items sold outside your home state.

Last year, eBay sellers helped fight for "Net Neutrality," but the newly elected Congress brings new challenges.
 

Streamlined Sales Tax Project

eBay opposes raising taxes on the Internet or its uses, as well as any attempt to impose remote sales tax collection burdens on the smallest sellers who can least afford it. This is certainly not the time to impose a major new tax burden on Internet vendors working to implement successful new business models, nor is it wise macro-economic policy to impose what is effectively a tax increase on American consumers.

Background

  • In 1992, the Supreme Court ruled that forcing remote sellers to collect sales tax in states in which they do not have a physical presence would constitute an undue burden on retailers and commerce in general.

  • Since that ruling, states are prohibited from collecting remote sales tax until they have simplified their tax regimes enough to lift the burden on remote sellers.

  • In the name of simplification, a group of cash-strapped states proposed the Streamlined Sales Tax Project (SSTP). While the goal of the SSTP is simplification, it does not succeed in simplifying state and local tax laws sufficiently to ease the collection burden on eBay sellers like you.

The State Simplification Tax Project (SSTP) is still remarkably “un-simplified”

No increased tax burden on small business

Please Take Action!



TOPICS: Government; News/Current Events
KEYWORDS: ebay; internettaxes

1 posted on 01/26/2007 2:54:47 AM PST by Lokibob
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To: Lokibob
the newly elected Congress brings new challenges

And who might this new Congress be, huh.

2 posted on 01/26/2007 4:17:40 AM PST by mtbopfuyn (I think the border is kind of an artificial barrier - San Antonio councilwoman Patti Radle)
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To: Lokibob

What I am waiting for is the news release from the IRS that announces the examination of the top 10,000 "dealers" on ebay and their tax returns.

If you are going to run a business, expect to be required to have a business license and pay taxes.

Ebay is actively promoting illegal homebased businesses who aren't licensed and aren't reporting income.


3 posted on 01/26/2007 4:56:36 AM PST by wrench
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To: Lokibob

Here is what I predict in the very near future:

1. The US House and Senate will put through some sort of taxation package together than includes the very proposal mentioned.

2. Ebay will provide a nifty tax collection tool (much like PayPal) that will automatically calculate tax by location and collect said tax when the customer pays for their item. They will charge a "modest" fee for the service, but it will be required...


4 posted on 01/26/2007 5:19:42 AM PST by TheBattman (I've got TWO QUESTIONS for you....)
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To: Lokibob

Well, the national garage and attic sale was fun while it lasted.

I'll tell my grandchildren about the years we enjoyed buying, selling and trading our junk (on which we had already paid taxes) before we elected a DemonRAT/RINO congress which promptly demanded more taxes.

Land of the free? You've got to be kidding.


5 posted on 01/26/2007 5:55:20 AM PST by NaughtiusMaximus (Our troops are smart. It's our politicians who are stupid.)
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To: Lokibob

There should be a federal clearinghouse. Collect sales tax by shipping zip code (that's easy enough these days). Each zip code should have a single percentage (that's the state's job to implement, if they can't do that they don't get money). No adjustments for different types of goods (like different prices for food items).

But rather than requiring the money to be sent by the collectors to 50 different states and thousands of localities, ALL the collected money would go to this single tax-collection agency. The money could be transfered by pay-pal or other electronic means, and would only need to be transfered once per year. But the information about the money would be transfered as well, listing how much money was to be applied to each zip code.

Then the states would be required, if they want the money, to pay for this clearinghouse, and pay to have the money sent to them for the zip codes in their state. The state would be responsible for distributing the money to the local jurisdictions.

I think internet sales SHOULD be taxed the same as box-store sales. Free markets should apply the same government burdens to ALL competitors. Allowing an interent company to sell for no tax what a local store has to collect tax for puts the local store at a disadvantage unrelated to their business model.

Of course, e-bay wants to preclude sales tax collection, because it gives THEM a competitive advantage.


6 posted on 01/26/2007 6:18:27 AM PST by CharlesWayneCT
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To: wrench
What I am waiting for is the news release from the IRS that announces the examination of the top 10,000 "dealers" on ebay and their tax returns.
What gives you the idea that the top 10,000 do not pay income taxes on their ebay income?  I took a class on ebay dealing, day long, and we spent over 1 hour on IRS requirements for documentation.

If you are going to run a business, expect to be required to have a business license and pay taxes.
I have to follow all city and state laws concerning licenses.  currently, there are no licensing requirements for an ebay business in my state, county, or city.  If I make a profit at the end of the year, I pay income taxes on that profit.  That is not what this is about.


Ebay is actively promoting illegal homebased businesses who aren't licensed and aren't reporting income.
Again, you are talking about INCOME, this is talking about SALES tax.  I resent your implication that all businesses on ebay are Illegal.  Do not you think that 13,000,000 sales a day, if illegal, would be shut down?
 
You show a remarkable lack of understanding about ebay, and a total misreading of this entire article.

7 posted on 01/26/2007 7:34:26 AM PST by Lokibob (Greatest snow on earth. www.utahweatherlinks.com)
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To: Lokibob

"Ebay is actively promoting illegal homebased businesses who aren't licensed and aren't reporting income.
Again, you are talking about INCOME, this is talking about SALES tax. I resent your implication that all businesses on ebay are Illegal. Do not you think that 13,000,000 sales a day, if illegal, would be shut down?"


I keep missing the requirement for the "power sellers" to submit a copy of their business license when they sign up.

I repeat, Ebay is promoting illegal, unlicensed businesses. They are also aiding and abetting tax evasion, fed, state, and local (sales AND income taxes).


8 posted on 01/26/2007 10:06:04 AM PST by wrench
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To: TheBattman

I think you've got it..I would add that Ebay will be REQUIRED to collect the tax


9 posted on 01/26/2007 10:11:39 AM PST by InkYouBuss_007 (This one is escaping the Cuckoo's nest)
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To: TheBattman

Nver mind ;) reread #2...you said that !


10 posted on 01/26/2007 10:13:37 AM PST by InkYouBuss_007 (This one is escaping the Cuckoo's nest)
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To: wrench

Ebay is the venue, not the tax collecting authority. When I buy stock wholesale, most wholesalers require that I submit my tax ID number. In addition, if I buy wholesale here in Utah, I have to provide a copy of my tax exempt reseller form. I even have to do this when I physically go to Sams club to buy supplies. There are enough safeguards in place to provent income tax cheating.

However, again,
You are missing the point. We are talking about State Sales tax. If I sell an item in Utah, to a Utah resident, I am required to collect 6.5% state sales tax, by state law. EBAY doesnt require it, State law requires it. But I am NOT required to collect State sales tax for customers who reside in California. There is no law that says I have to, not yet.

EBAY is not aiding and abetting tax evasion, they are trying to prevent a new law from going into effect, as is their right. We, as consumers, as sellers, as internet users, and as Conservatives do not need new taxes on internet sales.

.....Bob


11 posted on 01/26/2007 11:55:45 AM PST by Lokibob (Greatest snow on earth. www.utahweatherlinks.com)
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To: wrench

here is a link to a forum ebay just conducted re: paying income taxes:
http://forums.ebay.com/db2/thread.jspa?threadID=2000291621


12 posted on 01/26/2007 12:08:07 PM PST by Lokibob (Greatest snow on earth. www.utahweatherlinks.com)
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