Posted on 06/21/2018 9:54:25 AM PDT by Poison Pill
Online shoppers could find costs going up after the Supreme Court did away Thursday with a decades-old precedent limiting the ability of states to collect sales tax on certain out-of-state Internet purchases.
The 5-4 ruling called the current rules “unsound and incorrect.”
(Excerpt) Read more at foxnews.com ...
FYI, the original clause I sited, U.S. Const., Art. I, Sec. 9, Cl. 5, was incorrectly applied here.
The correct clause is Art. I Sec. 10, Cl. 2.
I’ll repeat again... is this a serious question?
I’ll explain it simply. I’m a seller in say... Texas. I have two buyers. One in New Jersey, and one in Oregon. For the New Jersey buyer, i charge and collect sales tax, and then pay that sales tax to New Jersey. For the Oregon buyer.... I don’t charge for sales tax, and therefore don’t collect any sales tax.
Make sense?
Great post—I knew it was a big mess but appreciate the explanation of more details.
It doesn’t make sense since the SCOTUS says to collect sales tax.
I tsays export from any state, not export from that state.
I get that. That is my point. You can’t tax an export.
The word “export”, legally speaking, describes not only what is happening, but who is doing it. If you give another state something, your state can’t apply a “sales” tax to that transaction. But if you take something from another state, your state CAN tax that transaction because it is not an export. It is import.
China exports to the US. The US receives imported items.
The people who work in government are very creative and energetic when it comes to finding new ways to tax, spend and expand their empires. Its all about them, not about us.
No matter how much of our tax dollars they get, they always want more. There is no limit to their greed.
Oh, so you were kidding. You almost got me.
What could possibly go wrong?
“””I NEVER buy anything that is taxed”””
Looks like your free ride came to an end today.
I've never paid sales tax for any eBay purchase.
btw Amazon has been very cleverly using third party sellers to avoid charging the sales tax on a wide variety of transactions.
Charge em double.
You mentioned Alavara was in sales tax processing. Alavara stock is up 20% today.
Yep. No hard feelings? :)
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We in the great state of Montana will welcome you!
As a fourth generation Montanan I can assure you that there is a place of you here.
Montana thrived (mostly) during the depression as wealthy Easterners came here to spend money without their neighbors seeing their ‘excess.’ They could enjoy spending their money without fear of reprisal...
Many excellent businesses have divisions in this state, Oracle for instance. Many opportunities...
PM me if you really want to move to Montana, my Wife is a superior RE Broker, She’s law based and dots every ‘i’ and crosses every ‘t’ - unusual for this market.
BEST to you!
It is not a federal cash grab. Companies like Amazon owe each state several billion in back taxes while rural towns in said states are barely surviving. The cash grab subsides went to leftists like Jeff Bezos who owes dozens of states for back taxes.
It's an unconstitutional state cash grab sanctioned by the Feds. And Trump was out front cheering for this which tells you how little he cares for separation of powers since only Congress gets to have a say in this.
This ruling is Jeff Bezos' wet dream come true. Amazon will get bigger than ever now.
There’s a lot of misinformation and misunderstanding of the current state of play with Amazon. There are 3 types of selling on Amazon: (1) Amazon selling directly to buyers; (2) Amazon fulfilling orders from Amazon warehouses, but where a 3rd-party is the seller; (3) 3rd-party sellers that do their own order fulfillment.
Several years ago, Amazon made the decision to collect and remit sales tax on their own sales to ALL states that have a sales tax. Their rationale was they had (or would have) a nexus in each such state as they grew their company and expanded their warehouse network.
Where there was and is a “shady” area was when they offered “fulfillment by Amazon”, or “FBA”, to 3rd-party sellers. Even though these orders were filled out of a local warehouse, if the 3rd-party seller doesn’t have their own local presence, then no tax would be collected.
The last category of self-fulfilling 3rd-party sellers (”FBM” - fulfilled by merchant) is using the Amazon selling platform only, and does their own shipping. Here, no sales tax is collected except in the seller’s home-state, or other states where they have their own additional nexus.
A recent development with Amazon has them directly collecting and remitting sales taxes in states that have passed “marketplace facilitator” tax collection obligations. So, no matter which of the 3 seller-types above, Amazon directly calculates, collects, and remits taxes to Washington State, Pennsylvania, and (starting July 1) Oklahoma.
In essence, it’s a complete mess currently, and the new ruling isn’t going to do anything to make it less of a mess. Rather, it will place a lot of burdens on any online sellers that, heretofore, had a relatively simple job of complying with sales-tax laws.
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