OT: Internet Sales Tax Passes the U.S. Senate
George Toft
george at georgetoft.com
Tue May 7 23:06:36 MST 2013
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 /<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
> </mc/compose?to=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
> </mc/compose?to=mailing-lists at phoenixinternet.net>>/* wrote:
>
>
> From: Gilbert T. Gutierrez, Jr.
> <mailing-lists at phoenixinternet.net
> </mc/compose?to=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
> </mc/compose?to=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
>
> Please protect my address like I protect yours. When sending
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