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High Court: Online shoppers can be forced to pay sales tax
AP ^ | June 21, 2018 | Hessuca Gresko

Posted on 06/21/2018 7:58:37 AM PDT by Reno89519

WASHINGTON (AP) — The Supreme Court says states can force online shoppers to pay sales tax.

The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection.

The high court ruled Thursday to overturn those decisions.

snip

“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States. These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause,” he wrote.

(Excerpt) Read more at apnews.com ...


TOPICS: Breaking News; Government; News/Current Events
KEYWORDS: constitutiontrumped; dakota; idiocy; incometaxes; internet; internetsalestax; internettax; momoneymomoney; nexus; salestax; scotus; sodakota; stopdoubleposting; stupidity; supremecourt; tax; taxcutsandjobsact; taxes; taxoninternet; taxreform; tcja; trump; trumptax
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To: Reno89519

significant revenue losses to the States.

Those “revenue losses” in reality power the economy.

Money taken by the state, notice I said TAKEN, seldom
makes a justifiable return.


41 posted on 06/21/2018 8:40:41 AM PDT by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
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To: Reno89519
A HUGE issue is the fact you have deal with over 44,000 sales tax jurisdictions. That could make accounting a very messy issue, to say the least.

Now, if we have each state designate a single sales tax rate for online sales, then it would be easy to implement.

42 posted on 06/21/2018 8:40:52 AM PDT by RayChuang88 (FairTax: America's Economic Cure)
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To: Reno89519

It is a nightmare for small businesses. It would be better to have a national sales tax that is centrally collected and then disbursed to the states. Trying to collect for not only state but local option sales tax is a great burden when your sales are nationwide.

Why not make stores collect sales tax from out of state buyers? We can be sure they are not paying the use tax when they bring the items they buy back home. So they must pay the onsite tax as well as the tax for their state.

If this is implemented then states that do so must eliminate their use tax.


43 posted on 06/21/2018 8:42:09 AM PDT by lastchance (Credo.)
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To: Reno89519

That description of how it split makes me nauseous.


44 posted on 06/21/2018 8:42:43 AM PDT by rlmorel (Leftists: They believe in the "Invisible Hand" only when it is guided by government.)
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To: Reno89519

An entrepreneurial programmer or group of programmers could create a database of all state and local sales tax formulas, put it online, and then let small businesses subscribe to it for a small price.

Set it up so a point of sales systems (POS) can log in, automatically put in the buyer’s zip code, the web site computes the tax, and send it back as data to the POS to finish the customers charges.

It wouldn’t take a lot of work, and could make the developers/web site owner lots of $$$.

They key would be to charge very little for a long-term subscription and get lots of subscribers.

Any FReeper programmers out there, feel free to develop my idea, but just give me credit! :->


45 posted on 06/21/2018 8:43:17 AM PDT by Alas Babylon! (MAGAMarchOnWashington.com)
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To: rlmorel

The description of how it split makes me suspicious.


46 posted on 06/21/2018 8:44:52 AM PDT by mewzilla (Has the FBI been spying on members of Congress?)
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To: tet68

This will potentially help fund tons of illegal alien freebies. An untimely counteraction to Trump’s border security measures.


47 posted on 06/21/2018 8:47:04 AM PDT by mikhailovich
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To: mewzilla

Me too. It seems to make no sense. But without knowing how it was argued...will have to check that out later. Sometimes they get handcuffed by how something is argued, or the focus, especially if it is very narrow.


48 posted on 06/21/2018 8:47:15 AM PDT by rlmorel (Leftists: They believe in the "Invisible Hand" only when it is guided by government.)
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To: chrisser
If fairness was really the goal, then the focus would be on collecting sales tax at the state from which the product ships, not the state to which the product is delivered.

Think about this for a moment. As a consumer, where I buy the product determines the cost. As a consumer in Tulsa, I cannot get the tax rate in a low tax state unless I go there to shop. Or move there.

49 posted on 06/21/2018 8:47:20 AM PDT by FatherofFive (deIslam is EVIL and needs to be eradicated)
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To: Reno89519

Funny that Roberts was against this Tax but made the decision that the Obamacare Mandate was a Tax, not a Penalty. He’s not just a Justice, he’s a Legislator.

While I despise Taxes in general, a Retail Internet Site is just a Virtual Storefront that gets to undercut local Businesses by not tagging on the Sales Tax.

Then again, there are the Shipping Costs...

Whatever, the Black Robed Tyrants have spoken.


50 posted on 06/21/2018 8:49:22 AM PDT by Kickass Conservative (The way Liberals carry on, you would think "Mexico" was Spanish for "Auschwitz".)
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To: Reno89519

Is the tax rate calculated against the zip code of the shipper or the end purchaser?


51 posted on 06/21/2018 8:49:41 AM PDT by umgud
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To: Reno89519

ETSY stock likely drops.


52 posted on 06/21/2018 8:50:00 AM PDT by CincyRichieRich (Ruled by lawyers, not by laws...a temporary national illness.)
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To: Jim 0216
"that is not a genuine federal issue"

This strikes me as one of the few genuine "interstate commerce" situations.

53 posted on 06/21/2018 8:50:28 AM PDT by Mr Rogers (Professing themselves to be wise, they became fools)
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To: libertylover
I’m OK with this as long as I don’t have to pay taxes in two states for one transaction.

I'm NOT OK with this. In fact I'm NOT OK with sales taxes at all. I grew up in supposedly high tax NY State with ZERO sales tax. We had roads, schools, police, etc. In fact I doubt that the people who now live in the house I grew up in get a single government "service" that my family didn't get. In many cases State Governments "profit" more from the sale of an item than does the company that produced that item. This is OBSCENE.

In addition, back then (50s & 60s) NY State didn't receive any money from the Federal Government. (Nixon started this with "revenue sharing." Now these payments are called "block grants, " but they are effectively the same thing.)

(FTR, Sales Tax began in NY State on August 1, 1965. Before that NYC had a 3% Sales Tax.)

ML/NJ

54 posted on 06/21/2018 8:51:06 AM PDT by ml/nj
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To: Reno89519

The government can never do with one cent less!


55 posted on 06/21/2018 8:51:39 AM PDT by KC_Lion (If you want on First Lady Melania's, Ivanka Trump's or Sarah Palin's Ping Lists, just let me know.)
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To: Fair Paul

“If I sell on eBay am I required to collect (and remit) sales tax for each location I sell to?”

Not likely.

Amazon FBA already collects taxes without any work from the seller, so it is likely that they will just set up a system that will look at the shipping address and tack on the tax to the final price, and then Ebay will just pass it on to the appropriate state.


56 posted on 06/21/2018 8:53:52 AM PDT by VanDeKoik
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To: Reno89519

I don’t know how this even got to court. It’s freaking mail order. The mail order rules were well established over 100 years ago, and yes you’re supposed to self report and pay the sales tax, and nobody does.


57 posted on 06/21/2018 8:55:08 AM PDT by discostu (Does this kind of life look interesting to you?!)
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To: Jim 0216

It seems to me that since States will be collecting taxes on out-of-state businesses, those same “foreign” companies should be able to require those same states to provide the services afforded all in-state brick-and-mortar businesses


58 posted on 06/21/2018 8:56:19 AM PDT by Sgt_Schultze (When your business model depends on slave labor, you're always going to need more slaves.)
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To: apillar

Or they will be forced to be vendors under the Amazon umbrella.


59 posted on 06/21/2018 8:56:34 AM PDT by pas
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To: Reno89519

Services would be covered by income tax. If you provide services to other states, you need a resident agent at a minimum. Typically, states will exempt out of state income tax on services when income tax for that revenue is paid to the home state.

To sort out sales rates, you’ll have to buy a service to provide you the rates associated with addresses or use someone like amazon instead of your own website shopping cart, whereby amazon will probably sell you that service.

The real problem comes with filing. Most states require monthly reporting. They make quite a bit of money from fining out of state filers when they make a mistake on those forms they’re not familiar with.

So you need an accountant now too.

Or, you could do your own research and roll the dice that way.


60 posted on 06/21/2018 8:57:27 AM PDT by fruser1
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