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internet sales tax in USA resumes Sunday?
did anyone notice this yet?
amznVibe

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 3:36 am on Oct 28, 2003 (gmt 0)

Congress is grappling with two different issues. One is whether to expand a ban on states and localities from taxing Internet access - such as dial-up, DSL or cable modem service. ... The second issue involves whether Internet companies like Amazon.com, eBay and Colorado-based eBags should be required to collect local and state taxes from sales of their products.

The ban, which has lasted seven years, expires Saturday

Internet retailers may be taxed - Law to require collections on remote product sales [knoxnews.com]

Net sales tax bill exempts small biz [bizjournals.com]

CMP newsmedia [techweb.com]

Rocky Mountain News [rockymountainnews.com]

Associated Press article [wate.com]

[chattanoogan.com]

Voices for states crying in D.C. wilderness [gomemphis.com]

 

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 12:38 pm on Oct 30, 2003 (gmt 0)

Yes, I'm watching very carefully.

They still haven't voted. AFAIK, if there is no vote...it will pass automatically. Bad news for ecommerce.

amznVibe

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 1:48 pm on Oct 30, 2003 (gmt 0)

We'll find out soon enough. I am surprised I have not seen it on TV media.

lorax

WebmasterWorld Administrator lorax us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 1269 posted 2:00 pm on Oct 30, 2003 (gmt 0)

Keep us posted as I'm curious to learn the outcome but don't have the time to track it myself! :)

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 6:41 pm on Oct 30, 2003 (gmt 0)

Ok, I called our Senator's office. He was one of only a couple of Senators blocking this.

Told them my thoughts and they seemed surprised there was actually anyone in the state making money on the Internet.

Let's hope we can count on a vote soon!

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 10:49 pm on Oct 30, 2003 (gmt 0)

Hehe....too funny. Just got a call from the Senator's office. They want me to teach a class in January on Search Engines at a statewide convention.

Best part about this is that I get to talk one-on-one with our Senator about issues such as this...but it may be after the fact if a vote does or doesn't happen.

rise2it

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 10:33 pm on Nov 4, 2003 (gmt 0)

The sky is falling.....the sky is falling....

Alphawolf

10+ Year Member



 
Msg#: 1269 posted 10:31 pm on Nov 7, 2003 (gmt 0)

caught this:

Yahoo News Story [story.news.yahoo.com]

AW

CernyM

10+ Year Member



 
Msg#: 1269 posted 12:43 am on Nov 8, 2003 (gmt 0)

Isn't this about taxing your connection to the Internet (e.g. %5 tax on your cable modem) rather than taxing goods and services purchased over the net?

Webwork

WebmasterWorld Administrator webwork us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 1269 posted 5:02 pm on Nov 8, 2003 (gmt 0)

Total public misperception.

People think there's a ban on collecting sales taxes for selling widgets online.

Not true. Such taxes are payable if you have a presence in the State where the widget is being purchased.

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 5:20 pm on Nov 8, 2003 (gmt 0)

Total public misperception

The way I understand it is there are two parts to the bill. One for Internet ACCESS and one for Internet COMMERCE.

People think there's a ban on collecting sales taxes for selling widgets online.

I don't believe this is true. Anyone who has ever bought anything from an online store in there state has checked the little box saying they need to pay sales tax.

On the otherhand, they do NOT pay taxes on interstate commerce.

This, IMHO, is the real issue to myself and other small ecommerce businesses.

If a state/states get together and decide to start forcing businesses to do this, there is going to be a Federal case very soon afterward. (And the Supreme Court has already ruled on this.)

richiedoc

10+ Year Member



 
Msg#: 1269 posted 8:39 pm on Nov 8, 2003 (gmt 0)

Here's the huge hurdle the States will have to contend with if they want us Internet merchants to collect sales tax from all our customers:

How will all the states, counties, and localities collect their share?

The only solution is to have merchants pay the taxes collected into one huge fund, then have that fund and whoever manages it disperse the funds to states, counties, etc. A national BOE, so to speak.

There is no way individual merchants can do the dispersements themselves. Not without an easy software program. All kinds of issues will arise, including some constitutional ones I imagine. The government will have a hard time taxing Internet state-to-state sales without taxing long standing/non-Internet/state-to-state trade.

But I don't think states will continue to ignore all that potential money. So the program is, I'm sure, in the works by some industrious company. The Internet used to be a place for us small guys, and I shudder to think that that is coming to an end.

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 9:27 pm on Nov 8, 2003 (gmt 0)

There is no way individual merchants can do the dispersements themselves

Exactly one of the reasons the Supreme Court has rejected this in the past.

Not without an easy software program.

VERY true. If it comes to this...think "picks and shovels" in the gold rush years.

All kinds of issues will arise, including some constitutional ones I imagine

Most certainly. I'm having a hard time trying to figure out how some city in Texas is going to force me to collect sales tax for them. I'm no constitutional expert, but it seems they lack the authority to do so. The keyword here is to "force" me to collect those taxes.

This is a State issue, so the Feds can't really get involved, per se. Again, as I understand it.

Think of a worst case scenario. Let's say I refuse to collect the sales tax from a jurisdiction outside of my state. What can they do to me? I don't see how they could do anything. They would need to prosecute me, but I don't see how they could. They don't have any authority over me. Granted, MY state could give them authority, but if they don't....what would happen? My understanding is nothing would happen. That's why states have to request extradition of accused criminals. If the State says, "No". It ends there. AND....if a single state refuses to cooperate with the extradition, that state will become the new home to several web based businesses.

Another possible scenario?:

I live in town "X". Now in my brilliance as "Mayor" of town x, I get together with the local council members and we decide/vote on a 1 BILLION percent sales tax on any purchases in our city.

THEN we all go out and order a bunch of stuff online. Ooops! these items weren't charged the additional tax (the tax software of the web based company was an hour outdated-we do our meetings fast.), so we get them tax free. But then we go after the web business for our "tax" we intitiated. After all, it's "OUR" money. Those purchases should have been taxed...

Obviously us townfolk don't have that kind of money, but the business still should of collected it and they owe us that money. They could sue us, but we (as citizens) just declare bankruptcy and then still go after the tax money as a legal taxing jurisdiction. (Sorry for the pathetic example.)

Now the above may or may not be entirely accurate, but it is my understanding of the issue and I'm open to be corrected and educated on this matter.

The government will have a hard time taxing Internet state-to-state sales without taxing long standing/non-Internet/state-to-state trade.

The "Government" (as in the US Government) won't be doing/taxing anything. It's a State issue. BUT, if it happens, the above industries will certainly be included.

7500 taxing jurisdictions currently in the US. 7500. Think how often those percentages change based on local votes. Think about cutting checks for each of them. Some weekly. Maybe even daily...

Ouch!

ScottM

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 1269 posted 12:33 am on Nov 26, 2003 (gmt 0)

Every time a consumer turns to Google research service, they could be taxed for each key stroke. If that happened, no question, some in my office would just go bankrupt.

Some humor from the cosponsor of the original bill here [noemailtax.com]

Also, I found this from the Harvard Law School. Pay particular attention to section 3 and even closer to subparagraph/section d. [law.harvard.edu]

Indeed, the ITFA WAS written in order to give Internet ecommerce the same protection as mail-order, (IE no tax collection).

Co-sponsor Cox's own words a year after it passed:

The Internet Tax Freedom Act treats sales over the Internet the same as catalog sales over the telephone.

Here [caltax.org]

I got HAMMERED, personally (claimed I misrepresented the ITFA), in an article by one of our State Reps. He basically denied the above was true.

Also, answering myself:
Let's say I refuse to collect the sales tax from a jurisdiction outside of my state. What can they do to me?

This is what happens [supct.law.cornell.edu]

And...interestingly enough, that's why we HAVE the ITFA.

:>)

Further 'oh-ohs' [nga.org]

The above article is incorrect, though, the Congress did not side-step this...they passed it unchanged. [jointventure.org]

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