Internet Sales Tax

[indago]

Journalist Ross Ramsey wrote for The New York Times 18 December 2014:
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The goods you buy online and through mail-order catalogs from out of state are not tax free. It’s just that the state has a hard time collecting the taxes that are due. Retailers do not pay sales taxes. Consumers do. Retailers just collect them and remit them to the state. And not all retailers are required to play. Texas has no way to force sellers in other states to collect taxes. The retailers that are not required to collect the taxes — a group that includes out-of-staters who sell online and through mail-order catalogs — are not the ones violating state tax laws.

Consumers are the deadbeats, and hardly anyone in politics wants to go door to door to straighten them out. ...Texas and other states have been trying for years to get the federal government to set up a system to get retailers all over the country to collect the taxes and remit them.
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Retailers do not pay sales taxes. Consumers do.

And that is what's wrong with the system. Retailers should be PAYING the sales tax.

Every business is required to keep books and records, and to render them up for examination by the State at the State's discretion. In the case of Miles Laboratories v Simon (33 Federal Supplement 962), a case concerning the state sales tax, it is declared: "The tax has been held to be a privilege fee imposed upon persons doing business at retail. ...The tax is not imposed upon the consumer, but upon those 'engaged in the business of making sales at retail, as hereinbefore defined.'"

It was also noted that the company has the option of adding the sales tax amount to the receipt or not to. Some stores have a fixed price on their goods, and when you go to the register to pay, the price that is on the price tag is the price that is charged. The tax that the company is liable for has already been included in the price as a cost of doing business. Most stores, however, calculate the tax and place it on the receipt, making it appear that the customer is the one liable for the tax.

Concerning an internet sales tax, governments are making a problem where one doesn't exist. Companies that make sales on the internet can make their sales the same as they would in their brick-and-mortar structures, with the sales taxes embedded into the price of the product as a cost of doing business. When they make a sale on the internet, it doesn't matter where the item is going. When the company makes their reports to their State, they send the money for the amount of the tax imposed upon them by that State.

It's not really all that complicated.

Example: An item that you want is found on Amazon.com. It is shipped from a supplier in the State of Washington to you in Michigan.

From the Washington State Sales Tax site:

The seller is liable to the Department of Revenue for sales tax, whether or not it is collected.

With the tax system being promoted in the congress, you will pay Washington sales tax, and Michigan sales tax also. Now, how fair is that? It's a double taxation.

[aboutime]

Easy way around it. Put your own shoes, or flip-flops on, get in your car, or walk to the store, and pay for whatever you need....IN PERSON. Problem solved.

Think about this for a second. I remember a time, not long ago. When nobody had a computer, nor was there anything called the INTERNET. And somehow. We all managed to survive getting everything we needed because WE ACTUALLY WENT TO THE STORE.

It might even be good for some FAT ASSES to get off their ASS, from behind their keyboard, and WALK.

[Bilgerat]

I buy quite a bit of stuff off the internet, because quite frankly it makes my life easier.

So far, I've only had one incident of tax being applied, but I know it's coming soon.

And if I see a tax that's usury, I just won't make the purchase.

[indago]

I buy quite a bit of stuff off the internet, because quite frankly it makes my life easier.

So far, I've only had one incident of tax being applied, but I know it's coming soon.

And if I see a tax that's usury, I just won't make the purchase.

If the tax is embedded in the selling price you won't know whether there is usury or not.

[aboutime]

I buy quite a bit of stuff off the internet, because quite frankly it makes my life easier.

So far, I've only had one incident of tax being applied, but I know it's coming soon.

And if I see a tax that's usury, I just won't make the purchase.

I fully understand why you, me, or anyone else buys from the Internet. It's so much easier than going out in traffic, fighting idiots in line, or not being able to find what you want, at the right price...RIGHT AWAY.

Guess I'm just getting too old now, but. Does anyone remember what life was like, and how easy it was BEFORE the Internet anymore?

Kinda makes you wonder how any of us managed to get this far WITHOUT having a CELLPHONE next to our ear all the time?

When I was growing up. We always heard the older folks tell us "How easy life was in the olden days."
Too bad we can't slow things down for about a year, and actually find out. There really are other people, just like us out there. Rather than imagining or pretending to like, smile, and always agree with people we don't know?????

[indago]

When I was growing up. We always heard the older folks tell us "How easy life was in the olden days."
Too bad we can't slow things down for about a year...

Reminds me of the old Twilight Zone "A Stop at Wiloughby"

[fj1200]

It's not really all that complicated.

Example: An item that you want is found on Amazon.com. It is shipped from a supplier in the State of Washington to you in Michigan.

From the Washington State Sales Tax site:

The seller is liable to the Department of Revenue for sales tax, whether or not it is collected.

With the tax system being promoted in the congress, you will pay Washington sales tax, and Michigan sales tax also. Now, how fair is that? It's a double taxation.

I don't think that means what you think it means. AFAIK is just means that you are liable to pay the use tax to the State of Michigan, not Washington.

I do think though that all on-line retailers should be on the same playing field tax wise as the local brick-and-mortars.

[indago]

I don't think that means what you think it means. AFAIK is just means that you are liable to pay the use tax to the State of Michigan, not Washington.

I do think though that all on-line retailers should be on the same playing field tax wise as the local brick-and-mortars.

Why should a consumer pay two sales taxes?

[fj1200]

Why should a consumer pay two sales taxes?

They shouldn't.

... just means that you are liable to pay the use tax to the State of Michigan, not Washington.

[indago]

They shouldn't.

And why should a consumer pay to taxes on the sale of the same item?

[tailfins]

Easy way around it. Put your own shoes, or flip-flops on, get in your car, or walk to the store, and pay for whatever you need....IN PERSON. Problem solved.

Think about this for a second. I remember a time, not long ago. When nobody had a computer, nor was there anything called the INTERNET. And somehow. We all managed to survive getting everything we needed because WE ACTUALLY WENT TO THE STORE.

It might even be good for some FAT ASSES to get off their ASS, from behind their keyboard, and WALK.

It may not be practical to travel to one of the six states with no sales tax. Also for example Best Buy is notorious for charging higher prices in store. Sometimes its necessary to turn on your 4G in store, order the item with your smart phone, mill around the store for 18 minutes, then get the item at the pickup counter to get some discounts.

[fj1200]

And why should a consumer pay to taxes on the sale of the same item?

Who said they should?

[Jeff]

It may not be practical to travel to one of the six states with no sales tax. Also for example Best Buy is notorious for charging higher prices in store. Sometimes its necessary to turn on your 4G in store, order the item with your smart phone, mill around the store for 18 minutes, then get the item at the pickup counter to get some discounts.

Tiger Direct is the same way , you find unreal sales and go to the store ( I have a huge warehouse with a small store in the corner of it not far from me ) and when you go in to get the sale price they tell you no that price is only if you order off line, they may have the same exact thing sitting right there for 30 bucks more but if you order it you save, go figure.

[indago]

Journalist David Eggert wrote for The Associated Press 19 December 2014:
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Amazon.com and other online stores will have to collect Michigan's sales tax on purchases under legislation headed to Gov. Rick Snyder. The bills are intended to level the playing field for brick-and-mortar businesses that must assess the 6 percent tax on customers. ...Wal-Mart and other Michigan stores must collect the sales tax when selling items over the Internet. ...They aren't specifically linked to a road funding plan headed to the May ballot. But talk of boosting funding for transportation and education in the negotiations gave the so-called "Amazon" bills a boost.
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One commenter wrote: "If the people of Michigan are lame enough to increase the sales tax to 7% in May 2015 all purchased items except food will increase. If you purchase a big ticket item you will be paying a 7% tax instead of a 6% tax. Also your car registration fees will be increased. So don't be fooled by this 1% sales tax inccrease scam being put out by these lame politicians. the cost of your internet and regular store purchases will increase if you vote to raise the sales tax. Rasing the sales tax does nothing to help the people on main street. Slick Rick and his pals are doing nothing but making up for the 1.2 billion dollar yearly tax cut given to businesses by increasing taxes on the people of Michigan."



From The Detroit News 19 December 2014:
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At about 5:30 a.m. Friday, the Michigan Senate narrowly approved a proposed constitutional amendment asking voters to increase the 6 percent sales tax to 7 percent during the May general election.

The Senate's action followed approval of an 11-bill package that will pump $1.2 billion more annually into road repairs and provide public education with an extra $300 million annually if voters approve the sales tax increase. The Senate vote was 26-12, just barely getting the required two-thirds support for a constitutional amendment to be sent to voters.
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One commenter wrote: "once again, lansing failed to DO THEIR JOB. i sure as hell am voting NO on this. they need to reprioritize the $52 billion they already collect, reduce truck weights, and make road construction companies guarantee their work for longer than 15 minutes. this was a total failure of leadership. in my world, this type of performance gets you canned."

[aboutime]

Everyone in this story is proving how RIGHT Gruber actually was when he called most Americans DUMB.

Everything is taxed, and has been taxed already. Look at your ISP bill. See the word TAX anywhere?

Stupid really is...as Stupid Does. Gruber was right.