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Esteemed Contributor
Posts: 7,746
Registered: ‎03-09-2010

Sales Tax on Online Purchases Ruling

 

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

The eyes through which you see others may be the same as how they see you.
Honored Contributor
Posts: 14,139
Registered: ‎01-02-2011

Re: Sales Tax on Online Purchases Ruling

I need to do some online shopping fast then.

Honored Contributor
Posts: 17,526
Registered: ‎06-17-2015

Re: Sales Tax on Online Purchases Ruling

[ Edited ]

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.

 

 

"" Compassion is a verb."-Thich Nhat Hanh
Honored Contributor
Posts: 35,887
Registered: ‎05-22-2016

Re: Sales Tax on Online Purchases Ruling

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.

Honored Contributor
Posts: 15,007
Registered: ‎03-11-2010

Re: Sales Tax on Online Purchases Ruling

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.

Honored Contributor
Posts: 15,007
Registered: ‎03-11-2010

Re: Sales Tax on Online Purchases Ruling


@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.

Respected Contributor
Posts: 2,020
Registered: ‎05-06-2016

Re: Sales Tax on Online Purchases Ruling

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. 

Honored Contributor
Posts: 17,526
Registered: ‎06-17-2015

Re: Sales Tax on Online Purchases Ruling


@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.

"" Compassion is a verb."-Thich Nhat Hanh
Honored Contributor
Posts: 9,664
Registered: ‎03-21-2010

Re: Sales Tax on Online Purchases Ruling


@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.

Honored Contributor
Posts: 11,160
Registered: ‎03-09-2010

Re: Sales Tax on Online Purchases Ruling

[ Edited ]

@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.