topic Re: Sales Tax on Online Purchases Ruling in Community Chat

Sales Tax on Online Purchases Ruling

Marp — Thu, 21 Jun 2018 17:29:18 GMT

The Supreme Court says states can force online shoppers to pay sales tax.

The 5-4 ruling Thursday is a win for states, who said they were losing out on billions of dollars annually under two decades-old Supreme Court decisions that impacted online sales tax collection.

The high court ruled Thursday to overturn those decisions. They had resulted in some companies not collecting sales tax on every online purchase. The cases the court overturned said that if a business was shipping a product to a state where it didn't have a physical presence such as a warehouse or office, the business didn't have to collect the state's sales tax. Customers were generally supposed to pay the tax to the state themselves if they don't get charged it, but the vast majority didn't.

More: chicagotribune.com/news/nationworld/ct-supreme-court-sales-tax-20180621-story.html

Re: Sales Tax on Online Purchases Ruling

tansy — Thu, 21 Jun 2018 17:30:36 GMT

I need to do some online shopping fast then.

Re: Sales Tax on Online Purchases Ruling

Cakers3 — Thu, 21 Jun 2018 17:45:53 GMT

Many people would head to NH to avoid the sales tax in MA.

MA used to send letters out to those folks with the sales tax figured out. I don't know how many people actually paid or how MA followed up but they used to track sales tax debt through credit card and personal check purchases.

Large items being delivered to MA were especially hit.

I don't know if that holds true today.

Re: Sales Tax on Online Purchases Ruling

SilleeMee — Thu, 21 Jun 2018 17:44:04 GMT

Coloradoans have to file a separate sales tax form each year for on-line purchases totalling over a certain amount...something like $500...if the retailer did not charge it at the time of sale. Those retailers report their numbers to the IRS which includes their customers' sales amounts. I did not file this form last year when it started so I'm waiting and wondering what is going to happen to me. I honestly don't know how this 'rule' is being enforced or what approach is being taken to take care of the offenders...like me.

Re: Sales Tax on Online Purchases Ruling

Nightowlz — Thu, 21 Jun 2018 17:56:32 GMT

I know some places you check out it says in your state blah blah blah???

I have not kept track of online purchases that did not charge sales tax to put on my tax return. I don't know anyone that does.

How will they prove anything.

I don't like shopping online at the places that do charge sales tax.

We pay enough tax as it is. We are taxed to death. Our sales tax is over 9%. BS if you ask me. We have to pay it on every thing you buy.

Re: Sales Tax on Online Purchases Ruling

Nightowlz — Thu, 21 Jun 2018 17:57:28 GMT

@Cakers3 wrote:
Many people would head to NH to avoid the sales tax in MA.

MA used to send letters out to those folks with the sales tax figured out. I don't know how many people actually paid or how MA followed up but they used to track sales tax debt through credit card and personal check purchases.

Large items being delivered to MA were especially hit.

I don't know if that holds true today.

@Cakers3 If that's true. Sounds like cash is the answer.

Re: Sales Tax on Online Purchases Ruling

Cumbercookie13 — Thu, 21 Jun 2018 18:05:59 GMT

Here in Maryland, the comptroller has been pushing for a sales tax for online purchasing for some time now, also saying the state is losing revenue. I don't think the ruling will change the amount of online shopping being done. Some may grumble, but the convienence outweighs the cost, especially for those that can't get out to shop for certain reasons.

Re: Sales Tax on Online Purchases Ruling

Cakers3 — Thu, 21 Jun 2018 18:07:36 GMT

@Nightowlz wrote:
@Cakers3 wrote:
Many people would head to NH to avoid the sales tax in MA.

MA used to send letters out to those folks with the sales tax figured out. I don't know how many people actually paid or how MA followed up but they used to track sales tax debt through credit card and personal check purchases.

Large items being delivered to MA were especially hit.

I don't know if that holds true today.

@Cakers3 If that's true. Sounds like cash is the answer.

@Nightowlz It is true. As I said, though, I don't know if this holds true today or how long MA tried this angle.

I'm sure people did use cash, too.

Re: Sales Tax on Online Purchases Ruling

songbird — Thu, 21 Jun 2018 18:11:38 GMT

@Cumbercookie13 wrote:
Here in Maryland, the comptroller has been pushing for a sales tax for online purchasing for some time now, also saying the state is losing revenue. I don't think the ruling will change the amount of online shopping being done. Some may grumble, but the convienence outweighs the cost, especially for those that can't get out to shop for certain reasons.

Maryland is consistently listed as one of the richest states in the country for as long as they have been keeping that list. But taxed to death. Reminds me of the Popeye character always taxing people. Taxed for breathing.

Re: Sales Tax on Online Purchases Ruling

Krimpette — Thu, 21 Jun 2018 18:20:31 GMT

@songbird Where in Maryand are you talking about? I've iived in Maryand for probably over 30-40 years now. Never felt that we were taxed to death. But then, again, I never knew that Maryand was considered one of the richest states. Nice to hear that. But back to the subject, it won't change my on-line shopping habits. I've been expecting it for quite some time.

Re: Sales Tax on Online Purchases Ruling

SeaMaiden — Thu, 21 Jun 2018 18:21:45 GMT

Well, it has been a tax free free lunch for many people for many years with online shopping no tax sellers. We all knew this was coming. Time to just take a deep breath and accept it. To get mad or upset does no good. Sure I hate it too, but, I am not going to stew over it.

Re: Sales Tax on Online Purchases Ruling

RainCityWoman — Fri, 22 Jun 2018 16:10:14 GMT

I don't know to whom the states were losing out. Every single thing I have bought on line, be it Amazon, QVC, Nordstrom, Shoes.com, etc. have charged me sales tax on my state's percentage. I realize this hoopla was deliberately aimed at Amazon for ulterior motives. Amazon not only pays plenty of taxes but it charges state sales tax as do many other sites. This has been ongoing for years and years in my state. No vendor I've used has EVER omitted the sales tax.....PERIOD!

Re: Sales Tax on Online Purchases Ruling

bonnielu — Thu, 21 Jun 2018 18:27:58 GMT

So enjoying buying for places that did not have a physical presence. All the fun is gone. Got to either move or shop really really fast. LOL

Re: Sales Tax on Online Purchases Ruling

CinNC — Thu, 21 Jun 2018 18:52:01 GMT

The lady who does my taxes has always asked for my purchases where I haven't paid sales tax. I live in NC.

I've started a separate email "folder" for items I need to report to her and pay state sales tax.

Re: Sales Tax on Online Purchases Ruling

bikerbabe — Thu, 21 Jun 2018 18:55:57 GMT

95% of my online purchases are amazon and they collect tax in CA now for a long time. Ruling doesn’t matter to me and tax should be collected.

Re: Sales Tax on Online Purchases Ruling

Cakers3 — Thu, 21 Jun 2018 19:00:54 GMT

@RainCityWoman wrote:
I don't know to whom the states were losing out. Every single thing I have bought on line, be it Amazon, QVC, Nordstrom, Shoes.com, etc. have charged me sales tax on my state's percentage. I realize this hoopla was deliberately aimed at Amazon for ulterior motices. Amazon not only pays plenty of taxes but it charges state sales tax as do many other sites. This has been ongoing for years and years in my state. No vendor I've used has EVER omitted the sales tax.....PERIOD!

@RainCityWoman That is YOUR experience. There are retail vendors who do not collect sales/use tax and will advise on their websites for the customer to find out what is required by the customers states. PERIOD.

LOL

Re: Sales Tax on Online Purchases Ruling

Marp — Thu, 21 Jun 2018 19:06:23 GMT

@RainCityWoman wrote:
I don't know to whom the states were losing out. Every single thing I have bought on line, be it Amazon, QVC, Nordstrom, Shoes.com, etc. have charged me sales tax on my state's percentage. I realize this hoopla was deliberately aimed at Amazon for ulterior motices. Amazon not only pays plenty of taxes but it charges state sales tax as do many other sites. This has been ongoing for years and years in my state. No vendor I've used has EVER omitted the sales tax.....PERIOD!

The case the court ruled on involved a 2016 law passed by South Dakota, which said it was losing out on an estimated $50 million a year in sales tax not collected by out-of-state sellers.

In addition, as stated in this March 29, 2017 article, On Saturday (April 1, 2017) Amazon will start collecting sales taxes on purchases in the last four states where it wasn't doing so: Hawaii, Idaho, Maine and New Mexico. Four other states -- Delaware, Montana, New Hampshire and Oregon -- have no sales tax, while a fifth, Alaska, doesn't have a statewide tax, but it does have municipal sales taxes.

The case ruled upon today was South Dakota v. Wayfair, et al.17-494. Wayfair, Inc., Overstock.com, Inc. and Newegg, Inc. were the respondents in the case.

Re: Sales Tax on Online Purchases Ruling

GenXmuse — Thu, 21 Jun 2018 19:22:24 GMT

That’s what net neutrality brings ya.

Re: Sales Tax on Online Purchases Ruling

Jordan2 — Thu, 21 Jun 2018 19:37:06 GMT

Heaven forbid we should all catch a break! I'm sure the online retailers aren't happy about this either, some people may cut back on their purchases.

Re: Sales Tax on Online Purchases Ruling

Cumbercookie13 — Thu, 21 Jun 2018 19:48:18 GMT

@songbird wrote:
@Cumbercookie13 wrote:
Here in Maryland, the comptroller has been pushing for a sales tax for online purchasing for some time now, also saying the state is losing revenue. I don't think the ruling will change the amount of online shopping being done. Some may grumble, but the convienence outweighs the cost, especially for those that can't get out to shop for certain reasons.
Maryland is consistently listed as one of the richest states in the country for as long as they have been keeping that list. But taxed to death. Reminds me of the Popeye character always taxing people. Taxed for breathing.

Our unofficial state motto is "If we can dream it, we can tax it." As for being one of the wealthiest states, it's really on what area of the state you live in. Counties closer to DC and the Potomac have more of the wealth.