Internet sales tax? Is this really back again?

by Steven Haninger Jul 11, 2010 8:24PM PDT

http://consumerist.com/2010/07/internet-sales-tax-bill-introduced-again.html

As I understand it, the tax would be levied based on purchases made where states did not collect a sales tax at the time of the transaction. I don't know how other states work but mine, Ohio, collects this unpaid sales tax during the income tax filing process. As such, it seems that folks who live in states with delayed collection could end up paying both taxes while those who live in states where tax is collected at the time of the transaction would be exempt from the federal tax. Maybe I'm misunderstanding this but it makes no sense to me. If they want to collect a tax, try to make it on all purchases regardless and see how the public reacts in a united rather than a divided way. It's no wonder "tea parties" are becoming popular again.

Discussion is locked

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what I've seen so far is...

by James Denison Jul 11, 2010 10:59PM PDT

...increasing numbers of sales places on internet collect a sales tax if the buyer is in the state where the business is, and not from residents of other states. Usually there's a statement that residents of the particular state are charged a sales tax.

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Not applicable to all states

by C1ay Jul 11, 2010 11:05PM PDT

As I read the proposed text of the bill at this time it would only apply to states that petition to be member states under the act. It is also not just an internet tax but a complete "remote sales" tax that applies to phone orders, mail order, internet orders, etc. Leave to Taxachusetts to think of news ways to pillage the citizenry.

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Darn taxes

by Willy Jul 12, 2010 1:30AM PDT

Yje omnipresent fact is states just don't have the revenue. They will want or increasing pass some measure to get their "due share" and righfully so up front any taxes from www commerence. Further, it may become the std. policy of any www vender to head-off any disputes and collect the sums that are required and then foward. Even holding the revunue for a short and in itself generate funds like banks do now or any large holders of revenue. I bet you sooner or later, it will come to this, enjoy it while things remain the same for now. -----Willy

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Of course, the states with self reporting

by Roger NC Jul 12, 2010 8:23AM PDT

don't believe even half of it is getting reported.

Know what? I doubt if over half of "use tax" is getting reported.

People who don't get charged tax at the time of purchase are very unlikely to "remember" next April to list taxes on those purchases.

I'd be very surprised if they did collect half those taxes. Heck, I called the local state tax office one time over a decade ago to ask a question about filing use tax. They didn't know what I was talking about.

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I'm sure there are many abusers as well as those

by Steven Haninger Jul 12, 2010 9:29AM PDT

who don't keep good records. Since any on line shopping I do is with the same credit card and I can get an end of year statement for all my purchases, it's as easy as knowing which merchants add the tax and which don't. I just tag the ones I know that require the use tax. But it gets more complicated than that. My state doesn't charge sales tax on food items though other states do. As well, there are "permissive taxes" on top of the state's base rate that are levied by county and local governments so sales tax percentages vary within the state itself. As I mentioned, some states don't have sales taxes and those that do will levy at varying rates. Those with no or lower rates tend to make the difference with such as personal property tax or higher income tax but the federal government wants to pick on unpaid sales tax only. Makes no sense.

In the text of the bill as graciously linked by another member here, it seems to read that the federal government is wanting the states to standardize their state and interstate tax collection policies to make them more fair. Citizens of states that don't care to comply could find themselves with another tax...just to make it fair. So, I presume this is Washington's way of saying "We know it's going to hurt but it's for your own good."

Internet sales tax? Is this really back again?

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