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Author Topic: Sales Tax  (Read 1490 times)
N9AOP
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Posts: 1154




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« on: February 27, 2019, 10:11:01 AM »

I live in  Illinois and ordered from HRO Milwaukee the other day.  I was informed that starting March 1 they would probably be adding Illinois sales tax.  I presume that goes for the other states also. 
Art
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KS2G
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« Reply #1 on: February 27, 2019, 10:29:52 AM »

Likely the result of the U.S. Supreme Court decision last June in South Dakota v. Wayfair Inc. that effectively stated that individual states can require online sellers to collect state sales tax on their sales even if they don't have a physical presence in that state.

See: https://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html

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KD0REQ
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« Reply #2 on: February 27, 2019, 10:34:51 AM »

the next step up from North Dakota vs. Western Electric, and it's been expected for quite some time.
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SWMAN
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« Reply #3 on: February 27, 2019, 10:35:43 AM »

 Now isn't that a bunch of BS Crap.
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AA4PB
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« Reply #4 on: February 27, 2019, 12:32:06 PM »

That's going to be a killer for many of the 1-man operations who sell amateur radio equipment via the Internet. Imagine trying to keep track of all the different tax rates, where to submit the collected tax, and keeping track of each state's rules for setting up accounts, when to submit the taxes, etc. In VA, for example, once you open an account you have to submit a form and the collected taxes every month. If you are late, even if you collected no taxes that month, you have to pay a fine. Before the state will give you a tax ID, you must have a county "trader's license". The county won't give you a "trader's license" to operate an Internet business from your home unless you first get a zoning varience (which requires a large fee and a public hearing). It's not going to be worthwhile to even operate a small Internet business.

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Bob  AA4PB
Garrisonville, VA
KS2G
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Posts: 1063




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« Reply #5 on: February 27, 2019, 01:05:02 PM »

the next step up from North Dakota vs. Western Electric, and it's been expected for quite some time.

Can you provide a link for that case?

My on-line search yields nothing with that title.

Thanks.

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W3WN
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Posts: 842




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« Reply #6 on: February 27, 2019, 02:07:53 PM »

Now isn't that a bunch of BS Crap.
No, it’s not.

Most states that levy a Sales or Sales & Use Tax require YOU, the state resident & end buyer, to pay the tax regardless of where you bought it from, even out of state. 

Between better available technology and recent court rulings, you’re going to see this enforced more and more.
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W3WN
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« Reply #7 on: February 27, 2019, 02:11:13 PM »

That's going to be a killer for many of the 1-man operations who sell amateur radio equipment via the Internet. Imagine trying to keep track of all the different tax rates, where to submit the collected tax, and keeping track of each state's rules for setting up accounts, when to submit the taxes, etc. In VA, for example, once you open an account you have to submit a form and the collected taxes every month. If you are late, even if you collected no taxes that month, you have to pay a fine. Before the state will give you a tax ID, you must have a county "trader's license". The county won't give you a "trader's license" to operate an Internet business from your home unless you first get a zoning varience (which requires a large fee and a public hearing). It's not going to be worthwhile to even operate a small Internet business.
Not necessarily.  As a practical matter, if the sales from one of these shops to a given state falls below a certain threshold (amount varies from state to state), they won’t be required to collect the tax... but they will be required to notify you that YOU have to pay the tax, and they will probably be required (or at least “encouraged” ) to notify the appropriate state who they shipped goods to, and what the value was... and then the State will contact you directly to remit the $$

This was inevitable.  Just took a long time coming.
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N4NYY
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« Reply #8 on: February 27, 2019, 03:20:19 PM »

Likely the result of the U.S. Supreme Court decision last June in South Dakota v. Wayfair Inc. that effectively stated that individual states can require online sellers to collect state sales tax on their sales even if they don't have a physical presence in that state.

See: https://www.nolo.com/legal-encyclopedia/50-state-guide-internet-sales-tax-laws.html



Bingo. That is exactly the reason. So if you want tax free, you have to go to the store itself. Online sales will need bill you for sales tax.
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SWMAN
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« Reply #9 on: February 27, 2019, 05:44:39 PM »

WN,  Like I said before, what a bunch of BS Crap.
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AA4PB
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« Reply #10 on: February 27, 2019, 06:15:31 PM »

If the states would get together and adopt a standard Internet tax rate, a standard set of rules, and set up a single collection agency it would be a lot more efficient and they'd be more likely to actually collect the money. I don't have any issue with paying the state taxes, but I think it's nuts to expect small Internet businesses to hire accounting people to keep track of 50 different sets of rules, track sales to 50 different states, calculate 50 different tax rates, and distribute money to 50 different states with 50 different due dates using 50 different state forms.
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Bob  AA4PB
Garrisonville, VA
N5EG
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Posts: 347


WWW

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« Reply #11 on: February 27, 2019, 07:43:28 PM »

If the states would get together and adopt a standard Internet tax rate, a standard set of rules, and set up a single collection agency it would be a lot more efficient and they'd be more likely to actually collect the money. I don't have any issue with paying the state taxes, but I think it's nuts to expect small Internet businesses to hire accounting people to keep track of 50 different sets of rules, track sales to 50 different states, calculate 50 different tax rates, and distribute money to 50 different states with 50 different due dates using 50 different state forms.


If it were that simple, it would be easy.  Additionally many municipalities also have sales tax (mostly in the 1% range) added on top, those municipalities all have different exclusions, modifications, special rules, special tax adjustments, etc.  Last I heard there are something like 50,000 different sales tax rates in the US that need to be used. I don't think you can just use zip code to figure it out, you need the actual street address because municipalities and tax districts don't necessarily align with the zip code (they might align with a 9-digit zip code, but not sure).  There are companies that sell or lease 'sales tax software modules' to folks who provide Internet sales.   One would want to lease them because those 50,000 tax rules are constantly changing.

-- Tom, N5EG


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N4MU
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Posts: 235




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« Reply #12 on: February 28, 2019, 04:55:53 AM »

If the states would get together and adopt a standard Internet tax rate, a standard set of rules, and set up a single collection agency it would be a lot more efficient and they'd be more likely to actually collect the money. I don't have any issue with paying the state taxes, but I think it's nuts to expect small Internet businesses to hire accounting people to keep track of 50 different sets of rules, track sales to 50 different states, calculate 50 different tax rates, and distribute money to 50 different states with 50 different due dates using 50 different state forms.

ANOTHER government agency? More efficient? I can't seem to get these two concepts in agreement. Oh yes, we certainly could use another agency! Just make sure there are lots of coffee and donuts in each office.  Grin
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N4NYY
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« Reply #13 on: February 28, 2019, 11:41:50 AM »

I can't believe some people are shocked to have learned this. When the Supreme Court made the decision, this was front page news in NJ, where the gov't just found another windfall to screw us our of.
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N9AOP
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Posts: 1154




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« Reply #14 on: March 01, 2019, 09:32:34 AM »

Please do not wish for the states to get together and formulate a universal tax for the internet sales.  They will probably take the easy way out and adopt the EU 20% VAT.
Art
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