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eBay fighting Internet Sale Tax
EagleEye
Posts: 7,677 ✭✭✭✭✭
ebaymainstreet.com/issues/internet-sales-tax
ebaymainstreet.com/campaign/tell-our-new-congress-not-enact-new-internet-sales-tax
Rick Snow, Eagle Eye Rare Coins, Inc.Check out my new web site:
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They have been working on this for years. I don't know how many times I've mailed my representatives here in NY.
ty.
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Ebay sales tax will put a big drop in sales..
I'll contact my reps. when I get a chance, it would be devastating with online sales. I have not blocked MN buyers, maybe I'm taking a chance but I'm a small timer. Eventually a national sales tax is a liklihood if the economy permits vs. the antiquated income tax.
I think it is a preemptive strike since Bob Goodlatte (R-VA) is House Judiciary Chairman. Last year he released the Online Sales Simplification Act, which is similar to the dreaded Marketplace Fairness Act.
They are looking for money and since we are not Billionaires, they'll come after us.
9600 jurisdictions would be crazy to report to as a small business .....
If this ever happened ..... IMO, eBay would have to collect and pay the taxes directly to all the jurisdictions with all the (electronic) paperwork going to the seller showing the taxes collected and paid by ebay as an agent for the seller.
There is software that does this. eBay would just buy the company, add the service, jack up their fees because of the administrative costs and laugh all the way to the bank as other companies have to buy the software/service from them.
ANA 50 year/Life Member (now "Emeritus")
It would be interesting to see what happens to the coin market if auction companies and retailers have to start charging sales tax to retail buyers in all 50 states.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
Goodlatte's proposal will be great for Mexico and Canada ! I found this response to a Forbe's article on some of Goodlatte's tax proposals:
"Wake up Congress. Small businesses actually live and operate in 2016 instead of the mid-90s’. They have diversified their channels and have not only physical stores but robust online ecommerce channels.
This proposal, plus the MFA, and others are terrible for small business:
1) In 2004, 82% of all ecommerce was Big Box + Amazon. Now it is 88% and growing. Amazon is collecting sales tax in 28 states now with 5 more coming by end of year. So this tax, the compliance of which will be overwhelming, is focused on the remaining and dwindling 12% of ecommerce, almost all of which are small businesses who have innovated hybrid (ecommerce plus physical) business models to survive. Big Box + Amazon would love to squeeze a few more % points out of small business.
2) The National Retail Federation, its lobbyists, and sales tax states (who cannot manage their finances) have convinced a GOP Congress that an even higher tax burden put on the middle and working class will somehow benefit them. Again, just 12% of ecommerce is left to tax. Thus the states’ estimates of how this will be a financial boon to states’ finances are vastly overestimated.
3) As with other taxes and more government regulation, this will put innovative small businesses out of business, and create a new vast compliance infrastructure (accountants, lawyers, and the snake-oil tax software lobby) that is currently salivating at the prospect. Only the largest companies — the 88% — will be able to comply to it.
4) Further, and something Congress has completely missed, it is a gift to Canadian and Mexican companies who will not have to comply and collect sales taxes for 9,600 juridictions.. They can just ship to the US under NAFTA. No sales tax collection, no compliance, no problem. So why not create a subsidiary in Canada?
In sum, this is a terrible terrible idea that needs to die as with most things Congress and their big company lobbyists suggests. Congress claims they love small business. They simply don’t because where and when it counts, they continually hurt small business, the true job creators in this country." Comment by Joan Nordlund, Forbes Magazine 9/8/2016
http://www.forbes.com/sites/kellyphillipserb/2016/09/08/goodlatte-introduces-revamped-internet-sales-tax-proposal/#7d459d387a50
Sure glad I'm not aware of small business issues anymore (a family member's former business), this would have killed the already small profit margins.
I previously worked on opposing an internet sales tax, and I helped shoot a video on what the impact would be to one small t-shirt company in Gloucester, VA.
http://dailysignal.com//2013/06/04/internet-sales-tax-will-kill-my-small-business/
Gonna get me a $50 Octagonal someday. Some. Day.
I already have to figure and break down all 100 counties in NC for ebay sales in my state. Luckily I don't have that many in state sales, but its still time consuming
What is wrong with the present system of buyers self reporting their 'use tax' ?
This gave me a chuckle. I have done thousands of CA tax returns, and have never had anyone besides myself report any use tax. I have actually had heated "debates" with clients and family members who refuse to believe that they are supposed to pay tax on those things they buy online.
Edited to add. I have been saying this here for a while every time this topic comes up. If people continue to refuse to pay use tax, the states will find a way to make sure they get it. It's nearly impossible to get the consumer to comply with these kind of laws when there is an easy way to avoid it, so the people in charge will go after the people who they can regulate. The businesses.
A few years ago CA decided that they would save the environment if everyone just filled the tires on their cars to the proper inflation. So since they can't force people to go to the gas station and fill their darn tires, they passed a rule where all auto repair shops had to inflate the customers tires on every service. There are all sorts of rules and compliance requirements for shops, record keeping and even penalties for non compliance. The world we live in.
My Ebay Store
There will be an Internet tax one day. There is money out there and State and local governments have their eye on it.
Probably it will be implemented as a national sales tax that the Feds will distribute.
It's a revenue stream for government at all levels and they want it.
oh the irony. while online sales tax is for presumably all sales inclusive, with numismatic in-state sales having reduction of taxes due in some states, including more states every year, the old days of shops, even if a shadow of the former ones, may start springing up. i've seriously considered it a few times. one just needs an affordable and decent location. the real estate abounds for the hearty entrepreneur.
it really doesn't take but a few more shops per state to get people to start flocking to them, especially in states w/o tax on part or all of numismatic items. a lot order online but this issue balancing on the edge of a knife, wouldn't take much of a nudge to get em to start going to shops. imo.
been in several shops where customers from out-of-state get things shipped in-lieu of paying in-shop, to avoid the state sales tax (legally) and for a lot of customers, the tax amount is vastly larger than the shipping cost. amazes me to see how many people drop $5-20k in one fell swoop. as i'm going through buckets of coins for $.30-$1 each. hehe
someone should tell the tax collectors, as nearly all business owners know, another way to raise funds besides increasing income/prices, reduce expenses/salaries. as one suggestion. starting with energy start/efficient products.
ok. enough of that.
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i think every serious collector will invest $50, incorporate and get a resale tax number thereby avoid any tax
It doesn't work that way. If you get a resale number, you have to file a tax return and pay the sales tax directly to the state.
While I like not being charged a sale tax, let us all not forget that we, by current law, should be paying a sales tax on our purchases. They just haven't figured out how to hit all on-line purchases. . . but they will. Note that some on-line purchases are already being taxed at the time of the sale.
No Way Out: Stimulus and Money Printing Are the Only Path Left
This...
I too have told many they should pay some USE tax annually. This at least may avoid penalties under audit. Everyone says 'I don't buy much over the net'...so hear we are; now what. People will always avoid paying taxes unless forced to do so. Can you imagine how much less in payroll taxes would be collected if the government left it up to us to remit the tax.
Big difference between "inventory" and "investment" when an item is eventually disposed of and produces income. "Investment" requires the least amount of record keeping and normally results in the lowest taxes due on the profit. Inheritance of and investment is much more advantageous than inheritance of inventory. When given the choice, best to treat your coins as an investment rather than business inventory.
No Way Out: Stimulus and Money Printing Are the Only Path Left
...If you want a sales tax audit, that's a guaranteed way to get one. And the sales tax auditors are much harder to fight than their IRS counterparts. If you do out of state or re-sales, you must provide your resale number. The sales tax auditor will want to see proof of every item you bought for resale was in fact re-sold to an entity which was not an end user of the coin, or genuinely out of state.,
The typical sales tax audit covers three years, and you're looking at sales tax, interest , and negligence penalties if your documentation is bogus or sloppy.
I've only gotten two "no changes" on sales tax audits when representing clients. I don't do much of this, because unless they are really re-selling the goods in interstate commerce - not to end users - I strongly discourage them from playing this game..
"Seu cabra da peste,
"Sou Mangueira......."
Pay Pal already reports all sales over $20,000 per year from ebay to the Feds. I also think they report on sales if you are over a certain limit of individual items but not sure. I can't remember. I haven't sold on ebay in over two years.
Box of 20
FWIW I sent it in. Kudos to eBay for standing up.
Great transactions with oih82w8, JasonGaming, Moose1913.
To clarify- If each "collector" were to incorporate and then get a resale number, I would presume there is no time table when and item has to be sold. So imagine, a collector whom purchased $2-3000 a year from some coin company gives them their resale number. Now if they are a collector then the presumption would be they are looking to hold their purchases. So at the end of the year, there is no tax collected or paid. 3 years down the line when an item is looking to be upgraded or sold they just need to sell the coins to a dealer whom also has a resale number and the difference in profit or loss will get played into their income for the year.
I am in no way an accountant or have much information about these things. Just thought the above can be done and save money
Everyone should. Even if you think it doesn't directly affect you.
The seller is required to report all income received on his income tax return. When the buyer later sells the same items he will be required to also report his income. Gains by any and all parties will be subject to income tax. The same coin will generate multiple requirements to report income depending on how many times it gets sold. Don't confuse income tax with sales tax. Sales tax can be deferred to the end user by a (sales) tax exempt reseller , income tax cannot.
No Way Out: Stimulus and Money Printing Are the Only Path Left