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

Tue May 7 18:16:24 MST 2013

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 <lthielster at gmail.com> wrote:

From: Dazed_75 <lthielster at gmail.com>
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
To: "Main PLUG discussion list" <plug-discuss at lists.phxlinux.org>
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 <klsmith2020 at yahoo.com> 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. <mailing-lists at phoenixinternet.net> wrote:

From: Gilbert T. Gutierrez, Jr. <mailing-lists at phoenixinternet.net>
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate

To: "Main PLUG discussion list" <plug-discuss at 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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-- 
Dazed_75 a.k.a. Larry

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