Re: OT: Internet Sales Tax Passes the U.S. Senate

I assume form what I am reading that one will have to have a sales license in each state and collect sales tax based on local and report that to the state and give the money to the state.  They state would then disburse the money.

I further assume the online retailer would be subject to audit by any one of the taxing authorities.

The audits could be worse than collecting and reporting the tax.

About two weeks ago I wrote an article about online sales tax :  http://www.netcodeman.com/news/internet-retail-sales-tax-and-how-it-may-effect-the-online-retailer/


------------------------

Keith Smith

--- On Tue, 5/7/13, Gilbert T. Gutierrez, Jr. <mailing-lists@phoenixinternet.net> wrote:

From: Gilbert T. Gutierrez, Jr. <mailing-lists@phoenixinternet.net>
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
To: "Main PLUG discussion list" <plug-discuss@lists.phxlinux.org>
Date: Tuesday, May 7, 2013, 3:22 PM

    Taxes are a pain. I believe it will
      probably be taxing only to the state level, and not county and
      city. I do not know how this would work. Do you have to register
      your tax id in every state? File paperwork in every state? How do
      states know that you have made transactions within their borders?
      This seems like it would be a logistical nightmare. I remember
      when I had an operation in TX, that was a headache and a half. I
      cannot image nationally.

      Gilbert

      On 5/7/2013 8:48 AM, keith smith wrote:

              The U.S. Senate passed the Internet Sales Tax Bill.  Jeff
              Flake's office says he voted against it and John McCain's
              office said he voted FOR it.

              It is being reported there in some 9,600 taxing
              authorities in the U.S.  Add to that 560 or so Indian
              tribe taxing authorities. That is over 10,000 taxing
              authorities.  Yikes!!  Any company with 1 million in sales
              will be required to comply.  I can tell you that a company
              that has 1 million in sales is not a big company.  That
              online retailer might consist of 2 or 3 employees with
              some additional help from a number of consultants and
              potentially a fulfillment center. 

              From first hand experience, I would say this law, if
              passed by the U.S. House, will cause a bunch of small
              online retailers to either go out of business or reduce
              sales through raising prices or some other method.  

              This may very well play out like ObamaCare where companies
              are reducing the hours of their employees so they have
              less than 50 full-time employees.   In other words we will
              experience the unintended consequences of these laws.

              These polices effect each of us.  

              ------------------------

              Keith Smith

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