States can force online retailers to collect sales tax
bidask
Posts: 14,040 ✭✭✭✭✭
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
1
Comments
I once thought coin shows were destined to become extinct but maybe this is the end of internet sales and a return to face to face transactions for coin sales?
These attempts to tax us to death always end up with the underground market expanding,,,,just look at the mess in Greece where medical and other services and goods are offered at a steep discount for cash payment.
Commems and Early Type
Thanks Amazon
I have a Ca resale number. If I buy from another state, My guess is it would still be considered for resale, right???
Amazon has to collect tax for every state because it has physical distribution centers in virtually every state.
Amazon has NOT been collecting sales tax when your purchase is shipped directly to you from one of their retail "partners" not located in your state, but that seems to have come to an end today. Mr Trump got his revenge on Bezos.
Commems and Early Type
I would avoid buying coins from Amazon. You will pay more then needed. They charge 7-10% to ALL sellers no matter how big they are. The Amazon site for coin buying is only good when one of the following conditions exist.
That is my take on Amazon and this is before you consider the new tax situation.
-Kathy-
Best place to buy !
Bronze Associate member
Coins will always fall into the plasma between investments and consumer goods. Expect the free ride to end though.
between seller fees and state taxes, a lot of the smaller sellers on e bay will no longer sell
If I have to start collecting sales tax to every state, I doubt I will be able to make enough margin to keep selling on ebay.
The buyer pays the tax, not the seller. Has no effects on margins.
Not necessarily. My most recent order is being delivered today and I assume in 1 box.
Order Summary
Item(s) Subtotal: $75.86
Shipping & Handling: $7.93
Total before tax: $83.79
Estimated tax to be collected: $0.87
Grand Total: $84.66
Hardly looks like they are collecting ST on every item.
Just how can Iowa "FORCE" a Florida merchant to collect ST on a $10 purchase?
I guess it's time to stop buying too, so you don't have to sell
On a different board, people are singing the praises of this ruling.
They will collect the sales tax on the sale, and then not send it to the state, claiming they got resale numbers.
More profit for them.
Not really true. Bidders factor in shipping and sales tax and then reduce their maximum bid accordingly.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
This will help me reduce the buying load on my Credit Card; whew!
It's even worse than that. You will not only have to collect sales tax to each state, you will also have to collect tax to each local taxing municipality, of which there are between 7,500 and 12,000. Just how long do you have to fill out tax returns? And don't forget, any of these states or local municipalities can audit you. How many audits can you handle, and still run your business?
It would have been a heck of a lot easier to collect the tax where the seller is, not where the buyer is. For example, if I go to a Wal-Mart, they don't ask me where I live, they collect the tax based on where their store is located. This would have allowed small businesses to file one state and one local sales tax return.
Amazon was in favor of this. In my opinion, so they could drive more small businesses out of business.
An authorized PCGS dealer, and a contributor to the Red Book.
It will when the buyer starts taking into account the amount of tax and bids accordingly by lowering their bid so the final cost is the same as if there were no tax. Just like I do when I look at an auction where someone is charging for shipping as opposed to free shipping. If someone is charging $15 to ship I reduce my bid or offer by $15. Potential customers may do the same with the tax charge.
Donato
Donato's Complete US Type Set ---- Donato's Dansco 7070 Modified Type Set ---- Donato's Basic U.S. Coin Design Set
Successful transactions: Shrub68 (Jim), MWallace (Mike)
You can always protect your margins...but volume will fall off the cliff.
Your statement makes no sense.
I will do just fine, for sure.
I can see e bay stocks dropping off a cliff
Nope. I will never understand that thinking. When I buy a coin, I have a price in mind. If I want to pay $100, I factor in shipping, tax, etc. If you add a new cost into the purchase (tax) I have to reduce the actual bid amount. Thus, the seller gets less. How is that so hard to understand?
How many municipalities have their own ST? They may have a different rate than the state they are in but they don't have their own tax. It will be up to the states to provide that info to potential out of state merchants. It will be up to the states to develop [AND MAINTAIN] some sort of ST code that could be automatically applied at checkout on eBay, Amazon or others.
The buyer is already supposed to pay the tax to his own state, but that rarely happens. The law says the seller will be responsible to collect it and submit it to the buyer's state and town or county.
So while Congress MAY step in and protect small vendors, such as those craftsmen on ETSY, other companies like national coin dealers will have to comply. Can you see 45 different states demanding to see the sales by a national dealer for 2019 to see if they paid taxes for the coins sold to collectors in their state ?
Commems and Early Type
It makes perfect sense. You just add to your price to offset a buyer's underbid. Of course fewer people will buy overpriced stuff. Reasonable shipping is fine, but I don't get where some think that free shipping is a birthright.
I just bought a new truck, I did not really want to pay the sales tax so I asked the department of motor vehicles that I did not feel like paying sales tax on an expensive truck and if was ok that I not pay the tax.
Guess what they said?
If I give you a sound answer as Jwitten did, you will no doubt leave a similar disagree.
You will figure it all out by yourself.
What about all of us legal dealers who have a website and do shows (occasionally, like me) or more frequently (like, I think, Charmy and many others)? It's pretty easy to collect sales tax for one state, Virginia, where we are based ... especially because no one living in Virginia will buy a coin from me when they can buy the same thing, more or less, out of state for 5.3% less. Now, if I have to start tracking and collecting sales tax from 50 states, I am out of business.
Think about a large coin dealer like Heritage or Stack's Bowers or Legend. Tracking sales tax from 50 states? A nightmare!
Kind regards,
George
What I do not understand is how YOU can not make money on eBay as it is SO easy to be profitable.
Work hard instead of complaining.
I can only dream of buying a 16 year old truck, driven by Walter Brennan on weekends!
Tracking it shouldn't be that difficult. It's an extra line in a spreadsheet.
For eBay users, I'm pretty sure the end of year paypal information has all of the states documented. It shouldn't be that hard for them to provide another end of year document stating sales/state.
Even if they don't give an "easy-button" solution like that, manipulating a spreadsheet isn't that hard.
Filing taxes for 50 states does sound like a colossal PITA.
Dude, you obviously know nothing about Toyota 4x4s.
The only vehicle to buy if you want to off road around the wild wild west.
LMAO as you mentioned that I should have bought a Lincon instead in another thread. THAT to me PROVES that YOU know nothing about off-roading. I ONLY looked at Toyota as I want the best.
The 16-year-old Toy I bought only had 38,000 driven by a little old grandpa on a strawberry farm, really.
Depending on how this goes, I could see ebay forcing sales tax into the purchase process. Especially since they have the new payment platform coming.
I think this ruling has potential to disrupt their business more than increasing fees or changing return policies and discounts.
@Tetromibi I meant, tracking and filing it, keeping permanent records, and variable sales tax amounts, and reporting the amounts according to each state's rules. Monthly? Quarterly? It's easy for someone to say "extra line in a spreadsheet" who's not doing the actual work.
PS I'm not going to totally set my hair on fire until the fine print comes out. Maybe someone in Congress (stop laughing, I'm not kidding) will actually think through some of the ramifications of this and try to do something sensible. (Or maybe I will finally succeed in my transmutation experiments.)
Kind regards,
George
Well the all terrain vehicle should help you emerge from the quicksand that you have created on this thread. Natural laws are unbendable, even for those that ignore them.
I always wondered when this day would come. I already have too much paper work. Good luck everyone.
100% Positive BST transactions
Are you high?, you make no sense.
Things change, learn to adapt or fade away .....
So when you make a purchase, do you not consider all costs involved, even tax? If you are buying an error coin to resell, would you factor in if there was an extra 10% fee on a thousand dollar coin? Would that extra $100 fee not make any difference to you at all?
No, I did not consider the sales tax (altho I knew I would pay it) when pricing the very best deal in all of California on a super low mile used Toyota 4x4 truck.
I have a resale license for coins, so I never consider tax. Hard to price in the tax on a unique item like my truck or the coins that I sell.
And you say it only effects the buyer, not seller. Well..... you DO have to buy the coins that you sell, correct? So it hurts you when you buy then, right? The point is, there is now one more person taking a cut of the sell. OBVIOUSLY that means less money in the buyer and/or sellers pocket. How the heck can that NOT hurt??
I pay no sales tax on coins. I am a business and all businesses should have a resale license. I pay no sales tax to the buyer. I do collect sales tax on my state sales.
Since so many often complain of having to "eat" a coin, could it be listed on Amazon as food?
No? Darn.
Well if it is classified as food and you live in California then you will have to pay an extra 10 cents for the plastic bag.
Since they are dead set on collecting state sales taxes for online sales, the easiest way to do it would be to apply the state tax where the seller is located. That would enable sellers to have to deal with only one taxing authority. Treat the sale on different than if the purchase was made at a storefront by an out of state tourist.
No Way Out: Stimulus and Money Printing Are the Only Path Left
..and if it contains sugar, there is a $200 fat tax.
Glad that Horace Greeley tipped me off to stop at Arizona.
If 50 state tax returns is a nightmare, what would you call 7,500 local tax returns?
An authorized PCGS dealer, and a contributor to the Red Book.
Accountants of America REJOICE!!!!! your prayers have finally been answered
Computer software is all that is needed. Push a button, and distribute the collected taxes.
as long as there are taxes there will be a black-market. also,
it has always been the responsibility of the merchant to "collect" a tax and not necessarily the customer to "pay" the tax. it may sound like a trivial nuance but that's sort of the way it works. a merchant pays tax to the responsible Agency, the Agency doesn't go to my house with a ledger of all the purchases I made in a calendar year to collect.
it seems that with this ruling the IRS is saying I have to declare every online out-of-state purchase I make in a calendar year and pay the tax on it. what should be done is point of sale taxation like everything else. if that were to happen it would see an influx of drop shipping from states with no sales tax, then our Uncle would try to collect in your home state at that tax rate.
My guess is that ebay will let their users use the software for free. There are so many different web hosting sites for personal websites that in order to compete with one another, they would have the tax software built into their platform as well at no cost. Of course, you would still be paying your web hosting fees and ebay fees.
Perhaps the "trade" aspect of our BST [Buy,Sell,Trade] forum will become more active
Successful transactions with : MICHAELDIXON, Manorcourtman, Bochiman, bolivarshagnasty, AUandAG, onlyroosies, chumley, Weiss, jdimmick, BAJJERFAN, gene1978, TJM965, Smittys, GRANDAM, JTHawaii, mainejoe, softparade, derryb, Ricko
Bad transactions with : nobody to date