Internet sales tax

 
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Nüvi 255WT with nüMaps Lifetime North America born on 602117815 / Nüvi 3597LMTHD born on 805972514 / I love Friday’s except when I’m on holidays ~ canuk
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I am surprised that they

I am surprised that they waiting this long!

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Maps -> Wife -> Garmin 12XL -> StreetPilot 2610 -> Nuvi 660 (blown speaker) -> Nuvi 3790LMT

Internet Sales Tax.

I've always had to pay taxes in my internet purchases. The seller has always added the taxes that would be applicable if I'd made the purchase locally.

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nuvi 855. Life is not fair. I don't care who told you it is.

physical business

I've been told if the place you order from has a physical place of business in your state they have to collect sales tax. For example I can order from ecost.com and pay no tax but a friend in Tennessee has to because they have a warehouse in Memphis.

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Anytime you have a 50-50 chance of getting something right, there's a 90% probability you'll get it wrong.

!

Don B wrote:

I've been told if the place you order from has a physical place of business in your state they have to collect sales tax. For example I can order from ecost.com and pay no tax but a friend in Tennessee has to because they have a warehouse in Memphis.

Illinois passed an "Amazon" bill last year. Although Amazon does not have a warehouse, certain items were shipped by "associate partners" therefore tax must be collected on all Amazon purchases for Illinois residents.
Amazon's response was dumping all their associate partners in the state. Many of those partners closed their business. One firm moved their offices to Beloit, taking Illinois jobs to Wisconsin. Way to Governor Quinn!

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1490LMT 1450LMT 295w

Taxes

Living in NY state I have made many purchases through Amazon and have ALWAYS had to pay sales tax.
NEVER were any item shipped from a warehouse in NY, the closest was New Jersey. I believe up until last years there were only 4 states that they charged sales tax for, that number is now 9.

Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the following states are subject to tax:

•Arizona
•California
•Kansas
•Kentucky
•New York
•North Dakota
•Pennsylvania
•Texas
•Washington

Regarding Ebay, I see many vendors charging sales tax if shipped to the same state the seller is in.
Makes me wonder, if the money is going to those states or into the sellers bank account.

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Nuvi 2460LMT 2 Units

In the interests of full

In the interests of full disclosure, Amazon does support collecting sales tax on online purchases. However, they want a single, national standard that this bill does not have.

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"Anyone who is capable of getting themselves made President should on no account be allowed to do the job." --Douglas Adams

oh my ....

When I read the subject line... I thought5 it said Internet Sex Tax..

Where is mine mind.. I guess I dont read as good as I use to..

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Bobkz - Garmin Nuvi 3597LMTHD/2455LMT/C530/C580- "Pain Is Fear Leaving The Body - Semper Fidelis"

Beloit

spokybob,
Just curious, do you know which one moved to Beloit? I hadn't heard about that one.

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Anytime you have a 50-50 chance of getting something right, there's a 90% probability you'll get it wrong.

Physical Business

I get taxed for items if there is a physical business in PA.

Amazon Tax

This is my reference from the RR Star

Quote:

The $5 million, 30,000-square-foot building was built in 2007. FatWallet abandoned the property in March 2011, moving to Beloit, Wis., after the state of Illinois signed a law requiring all companies doing business in Illinois to collect and remit sales taxes.

Brick-and-mortar retailers have successfully pushed the law in several states, but FatWallet officials estimated the law — known as the Amazon tax after the online retailing giant — would cost it 30 percent of its business. A San Francisco-based company acquired FatWallet last September.

So not only did Illinois lose jobs, but lost all the sales tax revenue from FatWallet. OOPs

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1490LMT 1450LMT 295w

Some Places Collect The Tax and Others Don't

It's been my experience that if the company/business/person that is selling the item/s lives in the same state as the buyer then a sales tax is collected for that state. I even see this on some eBay items (eBay storefronts). Others don't charge the sales tax. On the tax forms for the state, it asked how much money you spent on internet purchases so they could charge you a sales tax on your annual tax form but it also said "unless it was a gift". All of my internet purchases are gifts;b

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OK.....so where the heck am I?

Internet sales tax

I didn't think tax free internet sales would last forever. However,I predict that many large on-line retailers will deduct the sales tax as an incentive to keep competitive.

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an94

Here in California

...the state tax collection agency, the Franchise Tax Board (FTB) sent a letter to all the Dentists in the state to tell them to make sure they pay up on any dental/medical equipment they might have bought from out of state vendors. My dentist said they audited him and asked for receipts for the all stuff he'd bought in the last year and made him prove he'd paid "use" tax for it.

California's notorious for going after their tax revenue....

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.

This should be interesting to see if it passes and if it does if there will be a National standard or flat tax rate for out of customer purchases, what large on line retailers will do to stay competitive or who will fold up shop due to the expense of managing this.

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JRoz -- DriveSmart 55 & Traffic

There are 2 things guarantee

There are 2 things guarantee in this life: TAX & DEAD!

too many different tax rates

jrozsnaki wrote:

This should be interesting to see if it passes and if it does if there will be a National standard or flat tax rate for out of customer purchases, what large on line retailers will do to stay competitive or who will fold up shop due to the expense of managing this.

There's the problem, and probably why an internet tax hasn't passed yet, too many different tax rates, not only state to state but city to city in some cases. PA has a 6% sales tax, but in Philadelphia, PA it's 8% for example.

Then there is a state like Delaware that does not impose a sales tax at all. Years ago the "Welcome To Delaware" sign on the PA border also said "Home of Tax Free Shopping".

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. 2 Garmin DriveSmart 61 LMT-S, Nuvi 2689, 2 Nuvi 2460, Zumo 550, Zumo 450, Uniden R3 radar detector with GPS built in, includes RLC info. Uconnect 430N Garmin based, built into my Jeep. .

Just a thought

The proponents of this tax claim local brick and mortar stores are being harmed now from unfair pricing.
I suggest that Amazon collect those taxes but not send the money to the states, but send it all to the local city instead.

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1490LMT 1450LMT 295w

LOST in Iowa

In Iowa, since most jurisdictions have passed the Local Option Sales Tax (LOST), cities will get their share if the online retailers start collecting the tax. Incidentally, I got a solicitation eMail message from eBay yesterday asking me as an eBay customer to contact my legislators and oppose the collection of sales tax for online purchases. I promptly ignored and deleted the eBay message.

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Alan - Android Auto, DriveLuxe 51LMT-S, DriveLuxe 50LMTHD, Nuvi 3597LMTHD, Oregon 550T, Nuvi 855, Nuvi 755T, Lowrance Endura Sierra, Bosch Nyon

When you file your taxes...

...in Ohio, they will ask you if you made any purchases on the internet in the last tax year. If you say Yes, you pay tax on that purchase. Pretty much an honor basis. surprised

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It is impossible to rightly govern a nation without God and the Bible. ----George Washington

Hong Kong and China

All I can say is good luck collecting sales tax from items shipped from Hong Kong and China. A lot of electronic items are shipping from there now. The stuff is made there so why not?

Oh yes, New York has a line on their income tax form for reporting sales tax owed too.

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I support the right to keep and arm bears.

Tax vs. Shipping Charge

Aardvark wrote:

All I can say is good luck collecting sales tax from items shipped from Hong Kong and China. A lot of electronic items are shipping from there now. The stuff is made there so why not?

If I buy something out of Hong Kong, or China, I have to decide either wait for weeks or months for delivery or paying expensive International Express shipping charge, I'd rather just pay the Amazon tax or just go to local stores. In addition, better protection if there is any problem on my purchase.

Internet Sales Tax

If this is passed, how many of the large online retailers do you think will simply move operations outside of the USA?

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Dudlee

None?

Dudlee wrote:

If this is passed, how many of the large online retailers do you think will simply move operations outside of the USA?

I think Amazon and others will just start collecting the taxes. They have a distribution setup that works very well right now. Also the convenience of Fedex and UPS picking up at their dock.
Amazon's claim of a burdensome task with over 9000 separate taxing entities is overstated. I'm sure each state has a list of tax rates per zip code now.

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Not large, but small

It's not the large companies that will have trouble with this, it is the smaller ones. Amazon and Harbor Freight can absorb the cost of this, Joe's Small Engine Repair can not.

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-Quest, Nuvi 1390T

Small retailers

The bill in the Senate mentioned that internet retailers with less than one million dollars sales per year would be exempt from collecting taxes.
(I'm thinking that would be from out of state sales)

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1490LMT 1450LMT 295w

E-bay will not be paying the taxes

alandb wrote:

I got a solicitation eMail message from eBay yesterday asking me as an eBay customer to contact my legislators and oppose the collection of sales tax for online purchases. I promptly ignored and deleted the eBay message.

E-bay will not be paying the tax. The implied concern is that small businesses that sell on e-bay will now have to find a way to collect and remit taxes. They are probably implying that if you want to sell something on e-bay, you will have to collect taxes for all those many thousand juristictions.

Cry Me A River

spokybob wrote:

The proponents of this tax claim local brick and mortar stores are being harmed now from unfair pricing.

I hear that statement too and all I can think is what is stopping THEM from setting up a website and entering the world of e-commerce. Laziness or no interest. Either way, retailers are going to have to adapt or die. I understand it was very painful in Westfield, MA at the turn to the 20th century. They were the buggy whip capital and had to watch their business go away as automobiles started replacing horse drawn carriages. Brick and mortar stores need to get with the times too. Of course it is far easier to cry "unfair" and solicit help from the government then to actually try and compete.

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I support the right to keep and arm bears.

Pennsylvania "Use Tax"

PA has had a "Use Tax" on the books for many years:

Use Tax

Out-of-state businesses and Internet vendors often falsely advertise that they sell taxable items “tax free”. However, Pennsylvania law requires the payment of use tax by any person who purchases taxable goods or services delivered into or used in Pennsylvania if sales tax is not collected by the vendor. Use tax is the counterpart of the state and local sales taxes.

When Pennsylvania sales tax is not charged by the seller on a taxable item or service delivered into or used in Pennsylvania, the consumer is required by law to report and remit use tax to the Department of Revenue. The use tax rate is the same as the sales tax rate: 6 percent state tax, plus an additional 1 percent local tax for items purchased in delivered to or used in Allegheny County and 2 percent local tax for Philadelphia.

http://www.portal.state.pa.us/portal/server.pt?open=512&objI...

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if they passed that...

bobkz wrote:

When I read the subject line... I thought5 it said Internet Sex Tax..

If they passed that we'd have a budget surplus in the first 20 minutes! mrgreen

This just in

Harry Reid says the debate is over in the Senate and the vote will be on May 6.

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While it seems to be a

While it seems to be a foregone conclusion the bill will pass the Senate, it will have a much harder time in the House.

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"Anyone who is capable of getting themselves made President should on no account be allowed to do the job." --Douglas Adams

tax

once this law passes is every one ready for the internet specific taxes the municipalities will pass.

The same

maddog67 wrote:

...in Ohio, they will ask you if you made any purchases on the internet in the last tax year. If you say Yes, you pay tax on that purchase. Pretty much an honor basis. surprised

Wisconsin does the same on the state income tax form, makes me wonder how many people fill it out.

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Anytime you have a 50-50 chance of getting something right, there's a 90% probability you'll get it wrong.

new thought

Another thought just crossed what little mind I have left. With the millions of sales made each year are the feds going to be able to enforce it, and at what cost? It would seem the feds would almost have to have access to the company's books in order to enforce it. How are the feds to pay for this new department? Are the feds going to get a piece of the action or will it just mean more bloat in the federal government that the taxpayers have to foot the bill for?

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Anytime you have a 50-50 chance of getting something right, there's a 90% probability you'll get it wrong.

Surprised

I'm surprised it's taken this many years for law makers to try to collect sales tax from internet sales. I thought it would have happened long ago. Too much revenue being lost. sad

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Tampa, FL - Garmin nüvi 660 (Software Ver 4.90), 2021.20 CN NA NT maps | Magellan Meridian Gold

Internet tax

The bill was tabled today. These money spending politicians will tax everything they can to get more money to piss away for their personal causes. Stay alert and informed ALWAYS email and call you elected representatives , federal and state to let them know how you feel about upcoming bills that can become laws. Remember it is your country and they are working for you...Don't let them forget it. We are too close to "socialism" now to be passive!
And never let them destroy the Constitution!!!

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Garmin Nuvi 765T, Garmin Drive 60LM

Amazon Already Collects Sales Tax. Now They Want eBay...

Arizona went after Amazon here in AZ since they opened a distribution center here about a year or so ago. Up until the end of last year I didn't have to pay sales tax on purchases from Amazon. As of January this year, they have have been charging the sales tax. I read somewhere earlier this week that the feds are going to try and get people who sell on eBay to start charging sales tax. I received and email from eBay to write my representatives to not pass the legislation.

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OK.....so where the heck am I?

Tax Software

soberbyker wrote:
jrozsnaki wrote:

This should be interesting to see if it passes and if it does if there will be a National standard or flat tax rate for out of customer purchases, what large on line retailers will do to stay competitive or who will fold up shop due to the expense of managing this.

There's the problem, and probably why an internet tax hasn't passed yet, too many different tax rates, not only state to state but city to city in some cases. PA has a 6% sales tax, but in Philadelphia, PA it's 8% for example.

Then there is a state like Delaware that does not impose a sales tax at all. Years ago the "Welcome To Delaware" sign on the PA border also said "Home of Tax Free Shopping".

There is software that they will end up forcing on small business that is updated monthly that accurately calculates tax based on exact location. Another burden for small business. More small business will close and soon they will go the way of small family owned farms.

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John B - Garmin 765T

POS Compatibility

And if the small business owners I've heard on the radio are accurate, that tax database software is not compatible with many POS systems. The small business owner may be forced to change over his entire sales software package.

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-Quest, Nuvi 1390T

NOT A GOOD IDEA

Small businesses will have to add capability to collect tax for many diverse locations, each with different tax rates. Then they will have to send accumulated tax to respective govs. Much more expensive to implement, plus added tax. Results: considerable added expense with no added value. NOT A GOOD IDEA.

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Tuckahoe Mike - Nuvi 3490LMT, Nuvi 260W, iPhone X, Mazda MX-5 Nav

Maryland gas tax tied to Internet tax

The State of Maryland passed legislation this year that is tied to the outcome of the Internet tax. If the Internet tax does not pass, Maryland will be paying higher gas taxes in the next few years. Not much to be said about the so called “Free State”.

Internet tax

John.jcb wrote:

There is software that they will end up forcing on small business that is updated monthly that accurately calculates tax based on exact location. Another burden for small business. More small business will close and soon they will go the way of small family owned farms.

Most businesses use accounting software already; Quickbooks is the leader in that field. Those packages already have tax tables built in for retail sales. They already have to get regular updates to the tax tables in their software to handle changes in tax rates. Not just sales tax, but all the labor-related taxes, too. FICA, Medicare, unemployment, state/Fed, etc. That's just not all that big of a burden to update something that is already updated on a regular basis.

Now the really small and often single employee businesses are a different story. They are probably not paying any taxes at all and might not be using any actual business software to run their business. The really small businesses are already exempt from many of the myriad of labor laws; we will just have to see how the new sales tax laws play out if enacted.

In the bigger picture, many many states already have a 'use tax' on the books that requires us to report our out of state and untaxed purchases and pay tax on them. None of us do that, of course and they have no way to track that at this point. So in that light it's not a 'new' tax, it's just a way to enforce what's already there.

Gas Tax Anyway

mbegly wrote:

The State of Maryland passed legislation this year that is tied to the outcome of the Internet tax. If the Internet tax does not pass, Maryland will be paying higher gas taxes in the next few years. Not much to be said about the so called “Free State”.

If the Internet tax isn't passed, Marylanders will pay higher gas taxes.

If the internet tax IS passed, Marylanders will pay higher gas taxes.

This IS Maryalnd we're talking about.

I once loved living in Maryland. sad

What should the government

What should the government do during tough economic times with a fragile economic state? Place an additional burden on small businesses and (effectively) raise taxes on the consumer.

Internet tax

johnc wrote:
John.jcb wrote:

There is software that they will end up forcing on small business that is updated monthly that accurately calculates tax based on exact location. Another burden for small business. More small business will close and soon they will go the way of small family owned farms.

Most businesses use accounting software already; Quickbooks is the leader in that field. Those packages already have tax tables built in for retail sales. They already have to get regular updates to the tax tables in their software to handle changes in tax rates. Not just sales tax, but all the labor-related taxes, too. FICA, Medicare, unemployment, state/Fed, etc. That's just not all that big of a burden to update something that is already updated on a regular basis.

Now the really small and often single employee businesses are a different story. They are probably not paying any taxes at all and might not be using any actual business software to run their business. The really small businesses are already exempt from many of the myriad of labor laws; we will just have to see how the new sales tax laws play out if enacted.

In the bigger picture, many many states already have a 'use tax' on the books that requires us to report our out of state and untaxed purchases and pay tax on them. None of us do that, of course and they have no way to track that at this point. So in that light it's not a 'new' tax, it's just a way to enforce what's already there.

As far as I know, software such as Quickbooks have no in-built Point Of Sale capability so the fact that a business might use QB for their accounting has no bearing on whatever SW might be required when a customer goes through the checkout process to determine what taxes they owe to what taxing authority. Quickbooks does have QB POS SW but I'm not sure that it has sales tax info for every taxing authority that's required for internet sales.

I can't even begin to imagine the difficulty in determining, and keeping current, the required tax for an individual when you consider that sales tax can be levied at the state, county and local levels. The process of actually paying the taxes that were collected to each taxing authority will be no small matter either.

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Nuvi 2460

Internet tax

Aardvark wrote:
spokybob wrote:

The proponents of this tax claim local brick and mortar stores are being harmed now from unfair pricing.

I hear that statement too and all I can think is what is stopping THEM from setting up a website and entering the world of e-commerce. Laziness or no interest. Either way, retailers are going to have to adapt or die. I understand it was very painful in Westfield, MA at the turn to the 20th century. They were the buggy whip capital and had to watch their business go away as automobiles started replacing horse drawn carriages. Brick and mortar stores need to get with the times too. Of course it is far easier to cry "unfair" and solicit help from the government then to actually try and compete.

I've never really understood that argument either. It's not as if the online merchants don't have a physical presence somewhere that they have to pay for along with the associated local taxes. They have similar employee costs, etc. The local B&M merchants have a sales tax penalty but the online merchants have extra packaging and shipping costs that they either pass on or absorb. Not exactly equal, but not all that far off.

I don't think this is as much a matter of protecting local business as it is of trying to exploit every source of tax dollars to increase tax revenue.

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Nuvi 2460

nothing new for me to have

nothing new for me to have to pay taxes on my internet shopping.

Glad to hear it

pkdmslf wrote:

Arizona went after Amazon here in AZ since they opened a distribution center here about a year or so ago. Up until the end of last year I didn't have to pay sales tax on purchases from Amazon. As of January this year, they have have been charging the sales tax. I read somewhere earlier this week that the feds are going to try and get people who sell on eBay to start charging sales tax. I received and email from eBay to write my representatives to not pass the legislation.

I live in AZ as well and noticed the change in Amazon and a few others. I wrote my representatives but we will see what happens. I have a feeling the representatives are like all the other polititions - what's in it for them and not the people.

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Larry - Nuvi 680, Nuvi 1690, Nuvi 2797LMT

State Sales Tax or city taxes as well?

Are we talking only about sales taxes for the States? Then there are "only" 50 sets of rules. If internet vendors must also deal with the city taxes, there are (tens of) thousands rules. In addition, it is impossible from just the address to know which cit5y they actually ship (e.g.there are unincorporated areas = NOT part of any city in the middle of well known cities and NOTHING in the address tells you whether you're in one of them because the post office doesn't follow the same rule. You would have to look at a map to figure it out.

...

I wonder if it'd affect Oregon as well.

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Michael (Nuvi 2639LMT)
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