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Senate approves online sales tax bill [W:244]

Are we basically allowing states to impose a tariff on out of state purchases?
 
Blue_State said:
Are we basically allowing states to impose a tariff on out of state purchases?
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No. States have always been able to tax out of state purchases. This Senate bill has nothing to do with that.
 
Mycroft said:
No. States have always been able to tax out of state purchases. This Senate bill has nothing to do with that.
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From the article.

Under current law, states can only collect from companies that are physically located within their borders.

Customers who order items online from another state are often supposed to declare the purchases on their tax forms, but few do or are even aware of that requirement.

The bill would exempt small businesses that earn less than $1 million annually from out-of-state sales, and requires states to provide retailers with software to calculate sales taxes based on a buyer’s zip code. States would be allowed to collect taxes on out-of state purchases in six months, to give retailers time to prepare.

Read more: Senate approves Internet sales tax bill - The Hill's Floor Action
Follow us: @thehill on Twitter | TheHill on Facebook
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sangha said:
It will cost the state to re-organize it's sales tax, but that won't cost the vendor anything. The software that handles this on the vendors end is free to the vendor.

All it takes on the vendors end is a computer and an internet connection, which presumably a business on the internet already has.
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It won't cost the vendor anything? At all? Well, that's good news.

Silly me, I thought they might have to pay people to spend time to administer the program, maybe an accountant to coordinate and send payments, etc. I mean, I'm sure most already have an accountant, but hey, it's just a few more forms and a few more payments. Time is free.
 
Helix said:
I admit not being thrilled about it, as sales taxes are among the most regressive. however, fair is fair. I can think of better ways to get tax revenue, though.
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Fair is a place where they judge pigs...life isn't fair and never was supposed to be.

I am fully against this tax...Online sales contains a lot of small business entrepreneurs. This will cause a headache for them...they will have to abide by every state's separate tax codes. I couldn't imagine the weight on their backs for this BS
 
AreteCourage said:
Fair is a place where they judge pigs...life isn't fair and never was supposed to be.

I am fully against this tax...Online sales contains a lot of small business entrepreneurs. This will cause a headache for them...they will have to abide by every state's separate tax codes. I couldn't imagine the weight on their backs for this BS
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i'd like to see the small ones largely exempted. i think they exempted to one million dollars; that number should be raised.
 
The bill calls for "free" tax calculation software to be provided to online businesses that are affected, and that those tax software companies must be certified in each state.

What a bunch of red tape that is going to cost a boat-load of taxpayer money.......to collect more money from taxpayers.
 
Helix said:
i'd like to see the small ones largely exempted. i think they exempted to one million dollars; that number should be raised.
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But if the issue is fairness for the local brick-and-mortar store*, then why should ANY business be exempt? Selling online out-of-state is just a cost of doing business, isn't it?

*- One of the reasons commonly given, though personally I don't believe they give a rat's behind about the local stores, they just want their revenue.

There is some devil's advocate in this question.
 
radcen said:
But if the issue is fairness for the local brick-and-mortar store*, then why should ANY business be exempt? Selling online out-of-state is just a cost of doing business, isn't it?

*- One of the reasons commonly given, though personally I don't believe they give a rat's behind about the local stores, they just want their revenue.

There is some devil's advocate in this question.
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i'd say the small guys have the potential to really get hit by shipping costs if their entire business is online.
 
Mycroft said:
No. States have always been able to tax out of state purchases. This Senate bill has nothing to do with that.
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The article.

Under current law, states can only collect from companies that are physically located within their borders.
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I could be missing something, that is why I asked.
 
Mycroft said:
Again...the issue is not the tax. The issue is whether a State can compel the resident of another State to collect and deliver tax revenue. Evidently, the Senate wants them to be able to do so. I think it's a bad precedence.
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For one thing, I was directly responding to another post

For another, you are wrong. It's not about whether a state can compel a resident of another state to collect taxes for it. SCOTUS decided that they can't. SCOTUS also said that Congress can.

And the Senate did.
 
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radcen said:
It won't cost the vendor anything? At all? Well, that's good news.

Silly me, I thought they might have to pay people to spend time to administer the program, maybe an accountant to coordinate and send payments, etc. I mean, I'm sure most already have an accountant, but hey, it's just a few more forms and a few more payments. Time is free.
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What do you mean by "administer the program". Software does not need a baby sitter.

The transfer of payments is done electronically. The sales tax collected from each sale is deposited into an account electronically. The collected funds are sent to the states from that account electronically. At most, the vendor has to click an OK button to verify the transfer.

How much time does it take to click a button? How is this a burden?
 
Blue_State said:
The article.



I could be missing something, that is why I asked.
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The confusion is between a states power to levy a tax, and the states power to collect the tax. States have always had the power to levy a tax on sales that were made within it's borders, even if one party was a resident of another state. However, the while the state was able to levy the tax, they did not have jurisdiction to enforce the tax and compel the out of state resident to collect the tax, nor could they make the state govt in the state that party resided in force that out of state resident to collect the tax.

This bill gives states the power to force an out of state resident to collect those state taxes and send them to the state.
 
Blue_State said:
The article.



I could be missing something, that is why I asked.
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Yes...you are missing something. You are confusing levying taxes with collecting taxes. Two different issues and the Senate bill addresses collecting taxes.
 
sangha said:
For one thing, I was directly responding to another post

For another, you are wrong. It's not about whether a state can compel a resident of another state to collect taxes for it. SCOTUS decided that they can't. SCOTUS also said that Congress can.

And the Senate did.
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The Senate bill doesn't compel anyone...whether state or resident...to collect taxes for anyone. The Senate bill allows States to compel out of State residents to collect and deliver that States taxes.

Is this really so hard to understand?
 
sangha said:
What do you mean by "administer the program". Software does not need a baby sitter.

The transfer of payments is done electronically. The sales tax collected from each sale is deposited into an account electronically. The collected funds are sent to the states from that account electronically. At most, the vendor has to click an OK button to verify the transfer.

How much time does it take to click a button? How is this a burden?
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I am concluding that you have never done bookkeeping or accounting for a business.
 
Mycroft said:
The Senate bill doesn't compel anyone...whether state or resident...to collect taxes for anyone. The Senate bill allows States to compel out of State residents to collect and deliver that States taxes.

Is this really so hard to understand?
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Correct. Your post is worded more clearly
 
upsideguy said:
Certainly the commerce clause allows the Feds to refer issues affecting commerce across state lines, which is all this is really about.
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Except that the commerce clause only deals in trade disputes. The federal government has no power to act on business. Yes, I realize the SC says otherwise, but I'm not going to humor nonsense. Are you?

Btw, does anyone want to tell where the words "Interstate commerce" happen to be? Far to long I have been looking for those words in the commerce clause and I have yet to find them.
 
Henrin said:
Except that the commerce clause only deals in trade disputes. The federal government has no power to act on business. Yes, I realize the SC says otherwise, but I'm not going to humor nonsense. Are you?

Btw, does anyone want to tell where the words "Interstate commerce" happen to be? Far to long I have been looking for those words in the commerce clause and I have yet to find them.
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And this is a trade dispute. Sales are a form of trade.
 
sangha said:
And this is a trade dispute. Sales are a form of trade.
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There is no issues between the states being arising here. The situation involves a state that wants businesses from another state to collect taxes for them from consumers from their state. The other state where the business is located is not involved in the transaction nor the dispute.
 
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