Charging Sales Tax to out of state buyers
rlankhaar
Posts: 157 ✭✭
Can ebay sellers charge sales tax to buyers from out of state? I recently won an auction where the invoice I was sent included sales tax on the purchase. Since this seems to be a small business with no presence in my state, is this "legal" for them to do? It does state in the auction that sales tax will be applied to all orders.
In the end I just paid the $2 because it wasn't worth the hassle to even bother asking about, but I was just curious if sellers could do this.
In the end I just paid the $2 because it wasn't worth the hassle to even bother asking about, but I was just curious if sellers could do this.
Always looking for 1996 Select Certified Football.
0
Comments
<< <i>Can ebay sellers charge sales tax to buyers from out of state? I recently won an auction where the invoice I was sent included sales tax on the purchase. Since this seems to be a small business with no presence in my state, is this "legal" for them to do? It does state in the auction that sales tax will be applied to all orders.
In the end I just paid the $2 because it wasn't worth the hassle to even bother asking about, but I was just curious if sellers could do this. >>
That is very fishy. I seriously doubt the guy is filling out tax forms for every state. It is the responsibility of the buyer to claim purshases from out of state on their state tax forms.
Unless he is demented - or has a "nexus" in your state - he is
scamming his customers AND the sundry state governments.
I have worked in local sales tax in Alabama for 15 years. Let me know if I can help.
Kirk
202-347-7390, pmisener@amazon.com
Remote Sales Taxation
The U.S. Constitution provides an essential protection against burdensome State
regulation. The Commerce Clause uniquely empowers Congress “[t]o regulate
Commerce … among the several States” and, as interpreted by the Supreme Court, bars
States from burdening interstate commerce without specific Congressional approval. On
the matter of State sales taxation, the Supreme Court has held, in the National Bellas
Hess and Quill decisions, that the Commerce Clause bars States from requiring out-ofstate
(a.k.a. “remote”) sellers to collect taxes on sales to residents within that State unless
a remote seller has “substantial nexus” with the State. Otherwise, held the Court, the
current sales tax regime is so complicated that such a requirement would impose an
unconstitutional burden.
Thus, a fundamental constitutional protection, not a mere policy choice, bars
States from requiring remote sellers without nexus to collect sales tax, and the current
debate is not merely about being pro-Internet or not (although that element also is
present); it fundamentally is about whether remote sellers will continue to be afforded the
constitutional protection they are due.
In part because the Supreme Court also said that Congress could determine at
some point in the future that, as a matter of fact, States had so radically simplified the
sales tax regime that they could require sellers without substantial nexus to collect tax,
some States are attempting to simplify their tax codes. Appointed by Governor Locke as
one of two private sector representatives of Washington State to the Streamlined Sales
Tax Project, Amazon.com is working with States to address the confounding sales tax
complexities that currently exist. The sheer number of taxing jurisdictions is staggering:
there are over 7000 that already collect tax (up by several thousand since the Quill
decision), each of which has its own rates, rules, and definitions.
Unfortunately, the States have made little progress, perhaps because uncollected
taxes are so minimal (only about 3% of U.S. retail is online, and a large portion of that is
either not taxable or is already taxed). For example, the States have failed to address the
bundling of goods and services or of physical and digital goods. (There are many other
examples.) Although the simplifications the States have accomplished thus far are fine
for a voluntary collection system, they certainly are not sufficient to meet constitutional
minimums for a mandatory regime.
Beyond the factual issues of simplification or not, key policy questions remain.
Fundamentally, Congress needs to consider whether remote sales commerce – which uses
fewer local resources, causes less pollution, and saves citizen time – should be taxed the
same as local sales, especially when brick and mortar retailers regularly receive local tax
abatements. And, importantly, Congress needs to close any loophole – such as a socalled
“small seller exemption” – that inadvertently would favor one remote sales
business model over others.
Obama stimulus bill price tag now $850 billion
WASHINGTON – Barack Obama's economic recovery bill has grown to $850 billion after negotiations with his Democratic allies in Congress, who have rewritten some of the president-elect's tax proposals and may drive the price tag even higher.
For starters, Capitol Hill Democrats are trying to use the economic recovery bill to extend a tax cut for middle- to upper-income taxpayers despite concerns from Obama's transition team that it won't boost the economy.
Rep. Charles Rangel, D-N.Y., chairman of the tax-writing House Ways and Means Committee, said lawmakers in both the House and Senate feel strongly about using Obama's stimulus package to make the annual fix to the alternative minimum tax to prevent more than 20 million additional tax filers from having to pay it.
Making that fix for one year alone would cost about $70 billion, a healthy chunk out of the approximately $300 billion that Obama has set aside for tax cuts in the soon-to-emerge $850 billion stimulus plan.
Sen. Max Baucus, D-Mont., the Senate's top tax writer, suggested the alternative minimum tax fix might simply be added on, driving the cost of the bill even higher.
Rangel said other tax provisions would have to take a "haircut" to pay for dealing with the AMT. A $3,000 job-creation tax credit, which drew strong objections as unworkable, appears likely to be jettisoned from the Obama plan, Rangel said.
Also threatened is a pro-business provision proposed by Obama that would allow companies posting losses last year to get refunds for taxes paid as far back as five years earlier.
It may get killed by the House, but Baucus said he's still backing the idea.
The AMT "patch" is usually dealt with in the fall, but doing it now makes lawmakers' jobs easier.
The AMT was designed in 1969 to make sure wealthy taxpayers pay at least some tax. But it never was indexed for inflation and therefore threatens to trap millions of people for whom it was never designed.
Obama's economic team has been resisting adding the AMT fix to the economic recovery bill, arguing privately that it won't do much to help the economy. It's virtually certain to be addressed later if left alone now — and in any event, the effects wouldn't be felt until next year's tax-filing season.
The House and Senate often have wrangled over how to pay for fixing the AMT — whether to use other tax revenues to cover the cost or to add the cost to the budget deficit.
One of the factors that seems to be driving House members' desire to add the AMT patch to the economic recovery bill is to not have to follow through on promises to pay for it with painful tax increases. The economic recovery bill won't be subject to rules requiring that tax cuts be offset by other revenue hikes.
At the same time, work continued throughout the Capitol on other pieces of the recovery package in hopes of unveiling the bill to lawmakers and the public as early as Thursday. Despite promises of an open process, the Obama transition team and its allies in Congress have refused to release any details in writing or thoroughly describe most of the bill's elements.
The Obama plan originally was plotted to cost $725 billion to $775 billion, most of which would reach the economy over the next three years. Now, aides involved in ongoing talks said, the measure would cost about $850 billion, with tax cuts in the range of $300 billion to $325 billion.
The largest components include $85 billion to $90 billion for cash-strapped states to help pay for the Medicaid health care program for the poor and disabled. Another $80 billion or so would go into a block grant to states for education, which Sen. Charles Schumer, D-N.Y., said would prevent cutbacks in school programs, layoffs and property tax increases.
There's also about $25 billion to pay for subsidies to help laid-off workers hold onto their health insurance, $35 billion to extend unemployment benefits and a 15 percent increase in food stamp benefits costing $20 billion.
Infrastructure spending, especially popular with rank-and-file lawmakers, is set for a big increase. Rep. John Olver, D-Mass., who chairs the panel funding transportation projects and public housing, said he had at least $55 billion on such projects. But other ideas, such as improving the nation's electrical grid, also are getting funded.
The recovery bill has set off a feeding frenzy in Washington as lawmakers across the spectrum press for add-ons. Sen. Arlen Specter, R-Pa., wants new health research funds, while Rep. Anthony Weiner, D-N.Y., claimed credit for $1 billion worth of police hiring grants, which he hopes would create 13,000 jobs.
Quite honestly the Obama administration can't be any worse than the Bush administration. Bush oversaw the largest increase in Federal government spending since FDR's new deal, imagine if he had been a Democrat. Ohh wait all the politicians have gravitated to the center so their reaction to any crisis is the same regardless of party affiliation. At least the latest foray by the Federal government isn't a blatant attempt at corporate welfare, some of this money might make it to the average citizen.
As for sales tax the seller is either confused about which transactions require sales tax to be collected or is scamming his buyers.
Robb
<< <i>As for sales tax the seller is either confused about which transactions require sales tax to be collected or is scamming his buyers.
Robb >>
Robb ... I agree 100%. UNLESS the seller is a BIG TIME seller, I seriously doubt he has "nexus" with the buyers state.
Doug
Liquidating my collection for the 3rd and final time. Time for others to enjoy what I have enjoyed over the last several decades. Money could be put to better use.
And did you conveniently forget the last 8 years of wasteful government and overspending? Just curious.
<< <i>Steve shouldnt you be railing against gambling on another thread?
And did you conveniently forget the last 8 years of wasteful government and overspending? Just curious. >>
The Bush administration spending certainly wasn't good, in fact it was poor that's for sure, but Obama will likely be worse, much worse. When inflation starts to begin some day on a rampant level, think back to this post and you'll realize I was right....the government is out of control and Obama is NOT the right guy to do something about it.
Those who forget the past are condemned to repeat it, and this wouldn't be the first time that governments printed money and destroyed the financial system of their country..and that's exactly what is happening right before our very eyes and we are right in the middle of it...and it's spiraling towards a very bad conclusion for the future - read your history books and perhaps you'll figure it out - it's all right there...and it seems as though we're condemned to repeat it. I wish I was wrong, and hope that I'm wrong...but it's too obvious what the conclusion is gonna be.
<< <i>>>There is no doubt that the founding fathers would say that nexus sales tax is illegal, and frankly the constitution is perfectly clear on this that interstate trade was NOT to be taxed, But greed has overtaken the government and it's gonna get a lot worse before it gets better, especially under a liberal Obama administration.
Quite honestly the Obama administration can't be any worse than the Bush administration. Bush oversaw the largest increase in Federal government spending since FDR's new deal, imagine if he had been a Democrat. Ohh wait all the politicians have gravitated to the center so their reaction to any crisis is the same regardless of party affiliation. At least the latest foray by the Federal government isn't a blatant attempt at corporate welfare, some of this money might make it to the average citizen.
As for sales tax the seller is either confused about which transactions require sales tax to be collected or is scamming his buyers.
Robb >>
Your hero Obama, may have the "longest" 4 year administration in history, and I believe he'll be voted out 4 years from now for a younger John McCain type who understands that the "problem" is government overspending - in fact your hero has even mentioned that government overspending is a major problem...he realizes that - the question is that he seems not to have the guts necessary to do something about it. I hope Obama proves me wrong and does a good job, but unfortunately, very unfortunately, it doesn't appear that way so far.
Steve
Mike
Kirby Puckett Master Set