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Someone buys from an on-line vendor in another state, and the goods are shipped across state lines, it's an interstate sale.

quote:
Originally posted by a1abdj:
quote:
Someone should start pestering Trump and the Republicans to reimpose the ban on states collecting sales tax on interstate sales


I have never heard of a state that is collecting tax on interstate sales. Which state(s) are doing that?
 
Posts: 19087 | Registered: November 05, 2003Reply With QuoteReport This Post
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quote:
Someone buys from an on-line vendor in another state, and the goods are shipped across state lines, it's an interstate sale.



Right. But the states aren't collecting it, and the taxes collected are being remitted to the state where the sales/use tax is due by the retailer or whatever third party avenue they're using.

If you're in Florida and I'm here in Missouri I have no avenue of collecting tax because I do not have a nexus in Florida. But assume for a second I did. I would collect those taxes upon the sale, and remit them to the state of Florida. Missouri is not involved in any way.

Furthermore the taxes are due in Florida regardless of how they are collected. I can pay them as the seller, or you can pay them as the buyer. States figured out a long time ago that the only way they were going to get their money was to have the seller collect it at the point of sale. The tax is due as a result of your consumption of a product within that state.

You use a product in Florida, you pay Florida tax. You travel to Alabama, you pay Alabama tax. Buying something online doesn't absolve the tax burden.


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Posts: 13729 | Location: St. Charles, MO, USA | Registered: September 22, 2003Reply With QuoteReport This Post
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quote:
Originally posted by V-Tail:
That won't always work here in Florida. There are a few places where a zip code crosses a county line and -- you guessed it! -- the two counties have different tax rates. So, in those specific zip codes, the retailer who sells online needs to have a finer granulation than zip code in order to determine the correct tax rate.


I believe the zip plus 4 fixes that. But your point is well taken and one of the complaints that mail order companies had - it's tough to identify the exact sales that that applies to a home.




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Posts: 4338 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
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quote:
Originally posted by BBMW:
Someone should start pestering Trump and the Republicans to reimpose the ban on states collecting sales tax on interstate sales.


There was never a ban collecting sales tax on sales made via the internet. The ban was taxing internet ACCESS like the fees that you pay to your internet provider for access.




Speak softly and carry a big stick loaded Sig
 
Posts: 4338 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
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quote:
Originally posted by a1abdj:

Right. But the states aren't collecting it, and the taxes collected are being remitted to the state where the sales/use tax is due by the retailer or whatever third party avenue they're using.

If you're in Florida and I'm here in Missouri I have no avenue of collecting tax because I do not have a nexus in Florida. But assume for a second I did. I would collect those taxes upon the sale, and remit them to the state of Florida. Missouri is not involved in any way.

Furthermore the taxes are due in Florida regardless of how they are collected. I can pay them as the seller, or you can pay them as the buyer. States figured out a long time ago that the only way they were going to get their money was to have the seller collect it at the point of sale. The tax is due as a result of your consumption of a product within that state.

You use a product in Florida, you pay Florida tax. You travel to Alabama, you pay Alabama tax. Buying something online doesn't absolve the tax burden.


Nexus standards by and large come from case law and have been subject to many challenges over the years. The most recent is South Dakota v. Wayfair, decided by the US Supreme Court in June 2018. The Court concluded that a state can mandate a company that has no physical presence in the state to collect and remit sales tax if it has more than 200 transactions or $100k of sales into that state.

Demonstrating how foggy the laws are, that case was decided 5-4. The case overturned a much older case which pretty much required physical presence.

The current standard is sometimes referred to a 'economic nexus.' In Wayfair's case, if you advertise in my states and sell to citizens in that state then you need to collect sales tax.




Speak softly and carry a big stick loaded Sig
 
Posts: 4338 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
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quote:
if you advertise in my states and sell to citizens in that state then you need to collect sales tax.


That would be easy if that was all a business has to do. Colorado has "home rule" with 71 municipalities requiring registration, filing and payment directly to them. Kansas just passed a "Wayfair" law contradicting what the Supreme Court said. The costs of selling into some states amounts to a tariff. If a small internet seller ships to Colorado & sells in all taxing jurisdictions, the least expensive 3rd party software & filing charges would be over $30,000 a year in fees.


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Posts: 3680 | Location: Nashville, Tennessee | Registered: December 16, 2004Reply With QuoteReport This Post
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