Supreme Court Rules On-line Sales Tax May Be Collected By Individual States

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5.7 hemi said:
That’s what I’m saying, the retailer may do this to get more money. The bigger companies, I’m sure, will do the right thing.

But the tax collected/charged, should be from the state the item(s) are bought in.
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Well, the law disagrees. The taxes are due to the state the purchaser resides in, not the state it was purchased in. The sales tax comes out of the buyers pocket, not the seller. The seller just collects it from the buyer for the state in which it is due. Just like it works on in-state purchases.
 
Ddaddy said:
Well, the law disagrees. The taxes are due to the state the purchaser resides in, not the state it was purchased in. The sales tax comes out of the buyers pocket, not the seller. The seller just collects it from the buyer for the state in which it is due. Just like it works on in-state purchases.
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There are thousands of small mom and pop sellers with an Internet presence. Now they are saddled with a nightmarish task of determining the correct sales tax for any state they sell to, collecting that tax, then remitting it to the individual states. You can't believe this isn't going to be a costly affair for them. I can picture many sellers giving up due to the headache and expense.

Fair or not I won't debate, but it's going to cause a lot of pain. Have not studied it enough to know if used items will be exempt and will private sellers get caught up in it (thinking eBay)?
 
Retailers under $100k in annual sales were exempted from the ruling. This ruling also only applies to the specific case of South Dakota. It does however clear the path for additional legislation from other states if and when they choose to enact it.

In the mean time, all the ruling does is uphold the South Dakota law as being constitutionally legal.
 
5.7 hemi said:
That’s what I’m saying, the retailer may do this to get more money. The bigger companies, I’m sure, will do the right thing.

But the tax collected/charged, should be from the state the item(s) are bought in.
Click to expand...

My experience has been paying tax rate where I take possession of the item.
 
340demon72 said:
There are thousands of small mom and pop sellers with an Internet presence. Now they are saddled with a nightmarish task of determining the correct sales tax for any state they sell to, collecting that tax, then remitting it to the individual states. You can't believe this isn't going to be a costly affair for them. I can picture many sellers giving up due to the headache and expense.

Fair or not I won't debate, but it's going to cause a lot of pain. Have not studied it enough to know if used items will be exempt and will private sellers get caught up in it (thinking eBay)?
Click to expand...
Good! That's part of owning a business. I'm responsible for collecting and paying sales tax in all the states I do business in. As a real business owner you are issued a sales tax certificate that makes you legally authorized to collect sales tax.

Don't fool yourself into believing the mom and pop website business crap. Most of the websites with incredibly cheap pricing are run by the execs at manufacturers. When Joe the plumber buys a toilet through his wholesale distributor for $200, and you can buy it on Crappers.com for $150... that's not a mom and pop website looking out for you. It's an exec drop shipping the toilet right out of the warehouse to your doorstep. They have just screwed their wholesalers, retailers, installers, and the state out of sales tax. I wish people would wake up and realize that e-commerce has done more destruction to middle class America than anything else. Saving $5 bucks and eliminating 5 jobs may sound fine to some people... until they are one of the 5 in the next round affected.
 
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Bad business all 'round. This will eventually kill internet sales.

And more importantly...... There are those who want to regulate and control the internet in order to quash the free exchange of ideas. I predict that these people will soon smell blood and pile on as well.

Huge thumbs down,

Harry
 
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We've gotten to the point where people are buying dog food online. Shipping a single fifty pound bag of dog food.... ridiculous.

I don't like any new taxes, but things are a little out of hand.
 
Buy your big-ticket items ASAP. It will take a while for all the different states to pass legislation to make this happen. If they do. It's not mandatory or anything.
 
The biggest issue will be getting the tax money from the sellers. AFTER it is paid by the buyer.
 
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