Internet Sales Tax Feud

[Vicon]

I am hearing that several states are gun ho for charging sales tax for ALL online purchases. Included those that do not reside in the same state. Amazon is at the top of many states lists for this.

What do you all think?

I find it pretty crappy that states are pushing for this to help "plug their budget holes". Not only have I witnessed wasteful spending by my own state, I think it's pretty bold for them exceed their grasp and go for internet sales. If the state would budget correctly, it would have a surplus or break even. Not a deficit.

I hope they are shot down and this does not happen. I love Amazon and not having to pay taxes. Perhaps if B&M stores were more competitive, customers would be willing to shop their first? This is all really aggravating

.

[mikejet]

If it happens I WON'T be renewing my Amazon Prime membership that's for sure. Actually, no tax on Amazon purchases is one of the main reasons I shop there to begin with.

Even though Newegg has good deals they are located in CA so I pay tax on purchases and avoid shopping there.

[Lord_Stewie]

Didn't they already implement this for New York?.

Personally I tend to not purchase items online because I am impatient. But this would definitely suck if its implemented.

[Uniquely]

It's the law. You're supposed to pay state sales tax on the things you purchase on the internet, just as if you had bought it in a brick and mortar store. Many people do fail to report their purchases accurately. I would not be surprised to see many states begin requesting purchase records from online retailers to begin to catch some tax evaders. Technically it could even be prosecutable.

[Clark Kent]

The states are getting greedy, because all of their recent budgets have massive deficits because of spending increases from when the economy was running good a few years ago.

[JimShaw]

Politicians are going to wring every penny they can from us from every source to cover their responsibility.

Fire them all and get new people who are not politicians, they cannot do worse then what we now have. If we don't do something, they will tax the Internet.

[mikejet]

Originally Posted by robinandtami

It's the law. You're supposed to pay state sales tax on the things you purchase on the internet, just as if you had bought it in a brick and mortar store. Many people do fail to report their purchases accurately. I would not be surprised to see many states begin requesting purchase records from online retailers to begin to catch some tax evaders. Technically it could even be prosecutable.

The sole reason a majority of people purchase from retailers online is to avoid tax. No one I know reports it. At all. If people had to report it then a lot of people would simply stop purchasing online. Myself included.

If I'm breaking the law then it's the online retailers at fault also for not telling me so. Also my tax persons fault.

[fatediesel]

They've been trying to tax internet sales for years, and eventually it's going to happen. Technically it is the law now but it is impossible to track. My company pays tax on all internet purchases through my state's online use tax form each quarter, and I would guess most companies do as well. I can't imagine many individuals paying this though. Eventually the government will pass a law forcing internet vendors to charge sales tax.

This will kill companies like Amazon because a lot fewer people will be buying from them. I bought all my TVs on Amazon (total cost about $6,000) because of the lack of tax and slightly better price. If they had been taxed I might have bought from a local store.

[SDon1969]

As a resident of Taxachusetts, I can feel your pain. The lastest things I hear about them trying to tax is candy, soda, and each song that you hear on the radio. It's out of control.

If we travel to, say, New Hampshire - to avoid state sales tax - we are supposed to report that (major) purchase on our income tax.

[Vicon]

I was under the impression that the state can only collect sales tax if the seller resides, has offices in or is physically in the same state as the buyer.

If neither of those is true about the seller, then there is no sales tax. I have never reported sales tax for online purchases. If an online place charges it, so be it. Like Dell for instance. Amazon on the other hand, I don't pay sales tax and that is a BIG reason I buy there. That and the fact that I love PRIME! Plus the cheaper prices compared to local stores.

I really don't get how they can justify charging people sales tax. Here is the catch.. If you live in NY - NY will charge you sales tax for an online purchase no matter what state you buy from online. What happens if someone from Texas buys something from NY online? Wouldn't that purchase be subject to NY sales tax or would that count as Texas sales tax? Or, do you only pay sales tax for online purchases for the state you live in?

See, it's a very confusing thing.

[mikejet]

Businesses paying tax on online purchases makes sense but like you stated the majority of individuals would never do it.

[Vicon]

Originally Posted by SDon1969

As a resident of Taxachusetts, I can feel your pain. The lastest things I hear about them trying to tax is candy, soda, and each song that you hear on the radio. It's out of control.

If we travel to, say, New Hampshire - to avoid state sales tax - we are supposed to report that (major) purchase on our income tax.

That's terrible.

Here with the local DMV, they charge you for EVERYTHING. They nickel and dime you to DEATH! I would really like to know where all that money goes to. Fees for stickers, fees for cards, fees for plates, fees for renewals, fees for online renewals, fees for accepting your payments online.

Tax here is terrible. I pay more for tax on food than if I go to Lowes and buy home improvement crap. Which I don't get because food is not a luxury. It's a NECESSITY.

Plus we have tolls. Those tolls WERE 25 cents 12 years ago. They went up to 50 cents. They are now 70 cents. Absurd. Considering that the roads they charge you to ride on, are pure shit.

[Uniquely]

Originally Posted by mikejet

The sole reason a majority of people purchase from retailers online is to avoid tax. No one I know reports it. At all. If people had to report it then a lot of people would simply stop purchasing online. Myself included.

If I'm breaking the law then it's the online retailers at fault also for not telling me so. Also my tax persons fault.

The old saying goes...... ignorance of the law is no excuse. I know that Alabama State tax forms have a clearly marked area where you are to report your internet purchases. IIRC, it specifys major purchases, as I think even they can realize that it would be hard to track every small purchase, like dvd's, one might make online; but they fully expect you to honestly report major purchases like a television or speakers.

I don't see states making a more concerted effort to educate about, and enforce, existing laws as a reason to stop shopping online if there are still better deals to be had there.

[SDon1969]

Originally Posted by Vicon

Plus we have tolls. Those tolls WERE 25 cents 12 years ago. They went up to 50 cents. They are now 70 cents. Absurd. Considering that the roads they charge you to ride on, are pure shit.

Ah man, don't even get me started on the infamous, scandalous Big Dig!

http://en.wikipedia.org/wiki/Big_dig

[mikejet]

Originally Posted by robinandtami

I don't see states making a more concerted effort to educate about, and enforce, existing laws as a reason to stop shopping online if there are still better deals to be had there.

The better deal is paying no sales tax. It's above 9% in some counties in Southern California. So even if a title is cheaper at the local Fry's by .50 I save by using my Amazon Prime to get it shipped free to me without tax.

[fatediesel]

Originally Posted by Vicon

That's terrible.
Tax here is terrible. I pay more for tax on food than if I go to Lowes and buy home improvement crap. Which I don't get because food is not a luxury. It's a NECESSITY.

Do they tax on all food or just prepared food? Here in Iowa there is no tax on unprepared food, with the exception of junk food. Fast food/restaurants are taxed though as it is prepared for you. This tax is generally referred to as a laziness tax. Regardless, in Iowa we have the same tax rate for all taxable products, which is 6% state tax plus most counties have a 1% tax that goes to either roads or schools.

[Uniquely]

Originally Posted by mikejet

The better deal is paying no sales tax. It's above 9% in some counties in Southern California. So even if a title is cheaper at the local Fry's by .50 I save by using my Amazon Prime to get it shipped free to me without tax.

That 9% is likely the total of the state tax + the municipality tax. Also, you would want to check and see if California is a state that requires reporting of internet purchases, as I believe there are still a FEW states that don't.

BTW.... most check out pages for most online retailers DO indeed state, right beside that area that says 0 tax, that state and local taxes may apply. As for your tax guy not telling you... well he just wants to get you a bigger refund so you will pay him to do your taxes for you again. He's not the one that has to pay it back if it gets found, so he's not worried about it.

[SirGuapinton]

I thought everyone paid taxes on amazon products but Now I know it's only cause I'm from New York. We get raped by taxes.

[Vicon]

Originally Posted by fatediesel

Do they tax on all food or just prepared food? Here in Iowa there is no tax on unprepared food, with the exception of junk food. Fast food/restaurants are taxed though as it is prepared for you. This tax is generally referred to as a laziness tax. Regardless, in Iowa we have the same tax rate for all taxable products, which is 6% state tax plus most counties have a 1% tax that goes to either roads or schools.

All food is taxed. Tax here is 4.5% but either it raised to 5.0% or that's tax for something else I bought. I don't know anymore.

[SDon1969]

We have a Meal Tax, recently raised from 5% to 6.25%.

http://www.mass.gov/?pageID=dortermi...eals&csid=Ador