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

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Author: George Toft
Date:  
To: Main PLUG discussion list
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
What if . . .

. . . this bill (if it becomes a law) forces people to sell on Amazon?
I sell on Amazon and I let them take care of the sales taxes. I hate
the commission, but that's the price I pay for leveraging Amazon's
market presence and taking care of the administrivia for me. The end
result is I sell all over the country and Amazon takes care of the state
sales taxes.

I see this bill as an end to the small-timer and a shot in the arm for
the big companies.

As far as filling out the forms and reporting goes - I found filling out
just one form (for AZ) a PITA and stopped selling locally. I can't
imagine doing it for 9600 (ebay's count) municipalities.

Regards,

George Toft

On 5/7/2013 6:16 PM, keith smith wrote:
>
>
> http://www.gpo.gov/fdsys/pkg/BILLS-113s743es/pdf/BILLS-113s743es.pdf
>
> Yes, it requires taxes be paid to the state, however it does speak of
> rate changes at the local level. It is a poorly written bill and it
> leaves the merchant in a position of needing to comply at the actual
> jurisdiction level. In other words it will require collecting
> differing tax rates within a state based on location and the local
> taxing authority. There will be compliance issue. If you have ever
> collected sales tax you can get the jest of it, however on a much
> grander level.
>
> The bill talks about software. What language? What OS? What if I
> have everything in PHP on the web and I only run Linux or Apple and
> the software is compiled to run on M$ only? How to I interface this
> with my shopping cart?
>
> Basically this is a bill written by people who have never been in
> business and who could care less about us in the trenches.
>
> For me this is a substantial issue that could cause me to lose a
> client that could very well sell off because compliance is going to be
> a nightmare.
>
> Read the bill, it is very vague and leave everything to the states. I
> see 50 different sets of compliance. I see the requirement to have a
> tax license in every state. Even if they only charge $30 for a license
> that is $1500 and what about all the time to contact each state, and
> complete all the docs they require. Yikes. It could take weeks just
> to acquire all the licenses.
>
> Then what about all the reporting on a monthly basis. This will be a
> huge burden.
>
> Please read the bill and assure me I am wrong, because I want to be
> wrong in this area.
>
> ------------------------
> Keith Smith
>
> --- On *Tue, 5/7/13, Dazed_75 /<>/* wrote:
>
>
>     From: Dazed_75 <>
>     Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
>     To: "Main PLUG discussion list" <>
>     Date: Tuesday, May 7, 2013, 5:11 PM

>
>     I am reasonably sure this is only at the state level.  Has anyone
>     actually read it to verify is local is included somewhere?

>
>
>
>     On Tue, May 7, 2013 at 4:23 PM, keith smith <
>     </mc/compose?to=>> wrote:

>
>
>         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.
>         /<
>         </mc/compose?to=>>/* wrote:

>
>
>             From: Gilbert T. Gutierrez, Jr.
>             <
>             </mc/compose?to=>>

>
>             Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
>             To: "Main PLUG discussion list"
>             <
>             </mc/compose?to=>>
>             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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>
>
>     -- 
>     Dazed_75 a.k.a. Larry

>
>     Please protect my address like I protect yours. When sending
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>     Remove addresses from a forwarded message body before clicking Send.

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