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Honored Contributor
Posts: 13,034
Registered: ‎03-09-2010

Re: Sales Tax on Online Purchases Ruling


@ValuSkr wrote:

This may be hard for businesses to implement, especially small businesses.  Of course, states will make the rules.  Already, laws vary by state and rates can vary by county.  There will be software, if there isn't already, to help businesses comply and file necessary monthly / quarterly / annual returns in the many jurisdictions where shipments are made..  Can you imagine an Etsy seller doing all this?  Hopefully,states will get together and adopt uniform rules.  That would help a little.


@ValuSkr . I have an Etsy shop and when we first heard of this I was very afraid that I would be required to collect and submit taxes to not only each state that collects sales taxes but each jurisdiction (there are thousands). It would mean a lot of small businesses would go out of business.  No small business has the hours or manpower to work on this.  Large companies have a team of accountants.

 

Thank goodness according to the law most will require one to have at least 10k in sales to any given state.  As an individual small online business most don't have those numbers for each state that collects.

 

However Etsy does make those and much larger numbers so they will probably be collecting for their sellers. (It's a load off of the individual shops!!)  They started doing so this year for WA & PA.

Trusted Contributor
Posts: 1,606
Registered: ‎10-11-2017

Re: Sales Tax on Online Purchases Ruling

[ Edited ]

30 States so far sell marijuana in some form.  See map below.

 

Those States have more money than they've ever had before and one can only hope it's being distributed fairly and in a timely manner to those entities that need it, i.e schools.

 

States like South Dakota have been calling for a change for years to the internet sales tax policy and not surprisingly have not legalized mj in any form.  

 

http://www.governing.com/gov-data/state-marijuana-laws-map-medical-recreational.html

 

If it wasn't for the fact that 30 States are now rich beyond measure, rolling in more money than they've ever seen in their life, the States who are not getting sales tax from internet sales would have my sympathy.  That's the way it goes.  SD and others need to get with it and legalize mj in some form.  

 

 

 

Honored Contributor
Posts: 13,034
Registered: ‎03-09-2010

Re: Sales Tax on Online Purchases Ruling


@WenGirl42 wrote:

@pigletsmom wrote:

@esmeraldagooch wrote:

I wonder how this will affect ebay sales.  I know I have to collect CA if I sell to someone here in CA.  This could be very hard to figure for all the state tax rates.


This is the big problem. Most big companies are already collecting the sales tax if they have a physical presence in a state.

 

Samll operations are going to have a tough time with this. They will need to know the sales tax for every state and then every county. Also if there's some other local sales tax. Then they have to forward that money off to where it goes.

 

This is going to help the big guys really. They are already doing it like Walmart or Amazon, at least in my state. And they have the money to deal with the compliance.


Why shouldn't small businesses have to comply with the same laws and regulations as larger businesses? There are costs associated with doing business, no matter how large a company is. Maybe you shouldn’t be in business if it’s too hard.


Seriously?!!  Many people need to work and have small online businesses.  I would hate to take that away from them.  It could take more hours just to figure out the tax codes than actually running a small business.  It's unAmerican to say that an individual shouldn't be able to make a living by doing so.

 

Thank goodness the government agrees and a business has to have 10k in sales for individual states to start paying out of state.  If you have a higher number of sales for each state then you have a larger business and can probably afford an accountant.

Respected Contributor
Posts: 2,776
Registered: ‎03-11-2010

Re: Sales Tax on Online Purchases Ruling

We have a business and pay taxes. Although we take advantage of tax breaks that are available we still pay quite a bit imo.  The gov always gets their money one way or another. 

 

If states are losing money because online businesses aren’t paying their fair share, that money must be made up from somewhere else. I don’t want to see increases in other taxes to cover the shortfall - not saying this WILL happen but it COULD.  It seems fair to me to charge the same as brick and mortar establishments. Let’s also remember that the surge in online purchasing has already caused some physical stores to close which again can be adding to the sales tax shortfall. 

 

With regard to very small (in volume) etsy or eBay sellers, I do agree that they should be exempted.  

Honored Contributor
Posts: 13,469
Registered: ‎07-15-2016

Re: Sales Tax on Online Purchases Ruling

I just checked the date .... it was 2008 when NYS changed the tax law to tax internet purchases.

 

For clothing purchases in New York City (in the store or online)  - there's no sales tax under a certain amount per item.  Food is tax-free also. 

 

I generally buy through Amazon and they do charge tax.  Kindle purchases aren't taxed and about 90% of my book purchases are Kindle versions. (I buy a lot of books).

 

I order yarn from all over the country - and that's taxed.