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NY trying to tax online sales - 2/15/2008 5:10:50 AM

KenDckey

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http://www.switched.com/2008/02/13/amazon-ny-governor-battle-over-online-sales-tax/

New York is trying to collect sales taxes for purches made online.

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RE: NY trying to tax online sales - 2/15/2008 7:10:33 AM

Sanity

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There is a line in the Idaho State tax forms where us Idahoans are supposed to report all our online purchases, and figure in the taxes for those purchases. I wonder how many people actually do it...

Not that it would ever occur to me to cheat, mind you. It's just that you brought it up...

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RE: NY trying to tax online sales - 2/15/2008 7:17:29 AM

MistressNoName

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quote:

ORIGINAL: KenDckey

http://www.switched.com/2008/02/13/amazon-ny-governor-battle-over-online-sales-tax/

New York is trying to collect sales taxes for purches made online.

And the question I have is are NYS voters going to let this one slip by without a word?

MNN

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RE: NY trying to tax online sales - 2/15/2008 7:18:09 AM

Marc2b

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New York State tries to tax everything. I believe that there should be warning signs all along the New York border :

Welcome to New York. Please have your wallet handy as we are going to tax everything you have and everything you do.

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RE: NY trying to tax online sales - 2/15/2008 7:24:01 AM

Termyn8or

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Ohio has the same crap. Guess they can't let a dollar move anywhere without stealing a dime.

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RE: NY trying to tax on line sales - 2/15/2008 7:27:23 AM

thompsonx

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Marc2b:
The same is true in California. Although the signs are printed in excelsior type on the back of the roadway mile markers.
Here is an interesting little item concerning sales tax and who is obligated to collect and/or pay it.
The article points out that it is a privilege tax applicable only to corporations and not to private citizens. Which would mean essentially that a corporation would be at a disadvantage if they sought to pass the tax onto their customers in the form of higher prices since they would have to compete with private enterprise at the cash register.
thompson
http://www.originalintent.org/edu/salestax.php

< Message edited by thompsonx -- 2/15/2008 7:29:47 AM >

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RE: NY trying to tax online sales - 2/15/2008 9:32:05 AM

justdavid

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Every state I have lived in and would bet big money that all fifty have a use tax or some other similar term. This is the sales tax for all purchases of what is normally charged a sales tax for but for some reason, usually out of state purchases are not. All taxpayers if over some very minimal amount are suppose to legally report and pay this tax. Historically aka before the Internet most rarely bought anything or for government purposes easily traceable that did not have a sales tax so it was no big deal to the state governments.

Now in the Internet era States are all assuming they are losing millions of dollars because of people buying things without sales tax being charged and turned in. Over the years Congress and States have been fighting about this issue. Traditionally state can only charge if there is a physical presence of the company in the state where it is sold. It is somewhat complicated (nexus) but if you buy something from Eddie Bauer online even if it is shipped from another state if your state has an Eddie Bauer store they will charge tax and if your state does not then they won’t.

The problem is it is totally legal because we are suppose to be responsible for paying the tax ourselves. Obviously no one does this and the amounts are too small to go after individuals but not companies. Congress has not done what the states have wanted them to and pass laws requiring all online purchases to be taxed because it is an economical logistical nightmare. Imagine selling things out of your garage online and then having to keep track and report sales tax to all fifty states individually? I own a small company and it would be very time consuming, confusing and costly to file fifty sales tax returns.

So states have gotten more aggressive in trying to get money they are actually legally suppose to get but they are trying to get but are instead of going after it based on the legal laws are currently trying to change the playing field.

In the end you will see all things taxed from the source and not rely on taxpayers to report our use tax. There will probably be a few national clearinghouse companies come into existence that the mom and pop people will be able to use to make things easier.

But understand all online purchases are subject to sales tax. If you bought something that was not it is technically your legal responsibility to report it and pay it to your state. So no state trying to collect this is coming up with a "new tax".

< Message edited by justdavid -- 2/15/2008 9:42:41 AM >

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RE: NY trying to tax online sales - 2/15/2008 9:39:02 AM

Moloch

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NY has messed up gun laws too. apparently for the public saftey my rifles cant have a bayonet lug!!! God forbid I do a drive by bayonetting!!!
The public is safe now I cant bayonet people with my rifle!

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RE: NY trying to tax online sales - 2/15/2008 10:10:36 AM

popeye1250

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quote:

ORIGINAL: KenDckey

http://www.switched.com/2008/02/13/amazon-ny-governor-battle-over-online-sales-tax/

New York is trying to collect sales taxes for purches made online.

That must be one of the reasons that so many people from N.Y. move here to Myrtle Beach, S.C.
And they flip out when they see the price of houses and condos here compared to the prices in N.Y.
There was a retired teacher from N.Y. who rented a condo here for a year while he had a house built.
He told me that he was paying real estate taxes up in N.Y. of $12,000 per year on his house!
He pays about $750 per year here now.

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RE: NY trying to tax online sales - 2/15/2008 1:28:16 PM

MistressNoName

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quote:

That must be one of the reasons that so many people from N.Y. move here to Myrtle Beach, S.C.

Oh really? I heard it was because of the golf down there...hmmm...a lot of closeted golfers here in NY. Seriously...

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RE: NY trying to tax online sales - 2/15/2008 1:40:18 PM

ottRopesandKnots

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quote:

ORIGINAL: justdavid
But understand all online purchases are subject to sales tax. If you bought something that was not it is technically your legal responsibility to report it and pay it to your state. So no state trying to collect this is coming up with a "new tax".

justdavid has it right. Residents are required to submit sales tax on out of state purchases for in state consumption, they just choose not to. This is not new.

What is new however is the attempt to force out of state business to *charge* the sales tax and remit that tax to the state the goods are being delivered to. To be honest, I don't have any problem with it within certain conditions. The in-state businesses have to charge the taxes, which can reflect a significant amount thereby driving business to online out of state businesses. That's not fair to the in state businesses.

I don't think it would be unfair for businesses which do over $X (yeah, I'm not an economist, I'll let someone else calculate out what that value should be) in annual sales to be required to track, charge, and remit state sales tax for those purchases. I think exemptions should be made for small businesses which do under a certain amount of dollars worth of sales every year since the burden of tax collection and remittance for that many states can be extreme. If you ask me, Amazon should certainly be in the position to collect and remit state sales taxes.

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RE: NY trying to tax online sales - 2/15/2008 3:01:18 PM

thompsonx

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quote:

ORIGINAL: Moloch

NY has messed up gun laws too. apparently for the public saftey my rifles cant have a bayonet lug!!! God forbid I do a drive by bayonetting!!!
The public is safe now I cant bayonet people with my rifle!

Moloch:
Can you just cut it off or would that constitute an "illegal modification"? Sounds fucked up to me. How about stacking swivels are those illegal also?
thompson

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RE: NY trying to tax online sales - 2/15/2008 3:22:35 PM

TieNTeas

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This isn't new for NY. But, Spitzer may press the issue further than anyone else has before. Last time they tried this they ended up just adding a Use Tax line on the Income Tax forms and set a mandatory amount based on income. Of course, if you had all your receipts and could prove you didn't owe anything you don't have to pay.