Supreme Court just ruled all online sales must collect sales taxes.

MCMLVTopps

I believe 46 states have a sales tax...so...

If I sell an item to someone in Kansas who might have a 7% tax, and another in Montana who might have a 5% sales tax...am I to understand that the burden is on me to know the correct sales tax and in turn provide that state with funds derived from sales within these states? And how would I remit funds to these various states...just a check to the state treasurer?

This tax battle was won by brick and mortar stores like Walmart, BestBuy, etc who (as I understand it), wanted a more level playing field, where internet sales were not taxed, but their sales were. I see their point, but think this will become somewhat burdensome to big sellers, like maybe 4SC, auction houses and the like.

Any thoughts on this??

detroitfan2

Interesting. In Michigan, you are supposed to report your on-line purchases on your income tax. If you have no idea what you spent during the year, they have a nifty formula that will help you (all based on your income). Not sure if that money gets reimbursed to the states or not.

Seems like this would be a HUGE hassle for on-line sellers. Looks like the # of unethical PayPal gift transactions is about to skyrocket even higher.

MCMLVTopps

According to Charles Payne, Fox News Business Analyst...He thinks this decision will hurt the eBay seller who's been keeping the home fires burning with eBay sales. Payne said that South Dakota brought this case and, if I understood correctly, South Dakota's position was $100,000 in sales, or 200 transactions to have sales tax kick in.

Somehow Congress is going to have to define how this process is going to function and when it takes effect.

markj111

@MCMLVTopps said:
I believe 46 states have a sales tax...so...

If I sell an item to someone in Kansas who might have a 7% tax, and another in Montana who might have a 5% sales tax...am I to understand that the burden is on me to know the correct sales tax and in turn provide that state with funds derived from sales within these states? And how would I remit funds to these various states...just a check to the state treasurer?

This tax battle was won by brick and mortar stores like Walmart, BestBuy, etc who (as I understand it), wanted a more level playing field, where internet sales were not taxed, but their sales were. I see their point, but think this will become somewhat burdensome tobig sellers, like maybe 4SC, auction houses and the like.

Any thoughts on this??

No. The Supreme Court ruled that states MAY collect sales tax. Each state makes its own laws.

MCMLVTopps

Yes, you're correct...but you can rest assured the states WILL enact laws to collect taxes on eBay sales...they've been green lighted by the Supremes. Surely you don't think 46 states will bypass this new found source of revenue to waste.

jay0791

Here in New York State the tax and fee capital of the world some companies already collect sales tax.

Here sales tax doesn't just go by state it goes by county. Each has its own rate. Maybe the paper pushing useless bureaucrats will just make it one rate

Here you will need to apply and get a tax number and we pay our sales tax online via the computer.

Money comes from my bank account directly (yes they will have your bank information)

If this happens I probably will cut back buying and what little selling I do

MCMLVTopps

My 2 cents...is that the brick and mortar companies complained hard enough to get the case to the Supremes. Feeling that Amazon was killing them in the market, they were losing sales. The final vote was 5-4, with an odd mixture of who voted how...
Ruling for...Kennedy, Ginsburg, Thomas, Alito and Gorsuch.
Ruling against...Breyer, Sotomayor, Kagan, Roberts.

I suspect many, many low level eBay sellers, who are putting bread on their tables via their sales, will be hurt badly.
For those who care, the logic of their vote can be read by a simple google on the topic. I see a tsunami of crazy paperwork forming on the horizon to comply with this crazy decision.

As for those who live in outrageously high tax states...hopefully you have a skill set that allows you to leave! I have neighbors who tell horror stories of the tax insanity in New Jersey. It is more insane to continue to vote in those who can continue to dig into your checkbook and give you little in return.

BIG BROTHER