Here's what I think about internet sales tax

[Conan The Librarian]

"Traditional" retailers should be required to have the selection available from internet retailers.
 
If you're going to "level the playing field" on one dimension, level it on all the others too.
 
I can't even get a lot of things locally that I regularly use, and I live near a big city.
 
Fact is, there's more than one reason why "traditional" retailers can't compete with internet retailers.
 
And if "traditional" retailers can't compete, then why are they still in business?
 
This is all about revenue for the state. It has nothing to do with fairness or competition.
 
I wish they would stop using the term "traditional". Internet retailing has been mainstream for about 15 years. That's old enough to be considered "traditional".
 

[FPH]

Bottom line....if people don't pay interest.....they see it as paying less......doesn't matter if 8.25 % goes to the State here in TX or not.  It drove my BIL out of business.   You want to pay the extra interest if you don't have to?  You rather pay $100.00 for an item or $108.25  bottom line?  I say level the playing field for internet and brick & mortar shops.

[Conan The Librarian]

I don't think putting a lot of internet retailers out of business is what I'd call leveling the playing field. I'm sorry about your BIL, but somebody else's BIL has an online business that will go under if they had to support taxation for 9000+ localities. The reason for the tax-free status of the internet is that taxation opens a can of worms that's very complex to deal with.
 
I'd look beyond the tax and look at selection and options.
 
My personal experience is that I often go to an online retailer first because I can shop from my home and not waste a Saturday stocking up on stuff like my fishing tackle supply. The selection is way better too.
 
I do see taxation as inevitable, and not necessarily a bad thing, but establishing a rule that imposes a heavy regulatory burden on online businesses is a bad way to do it. Probably a better way would be to have a flat rate that gets paid to state governments, then make it the responsibility of the state governments to distribute the funds. Of course, the administrative costs would be so high that nothing would ever make it to the municipalities, but that just amplifies the inefficiency of state government, and the concept of accommodating taxation in 9000+ localities.
 

[spruce]

Fairness is definitely not a motivating factor.
 
Government sees this as an opportunity to both get more tax money and expand government at the same time ("We'll need a new agency to oversee this").

[garbhead]

Level the playing field by removing all state sales taxes,  ...period

[Sourdough]

What about those of us that live in states that do not have sales tax?

[FPH]

I don't think putting a lot of internet retailers out of business is what I'd call leveling the playing field. I'm sorry about your BIL, but somebody else's BIL has an online business that will go under if they had to support taxation for 9000+ localities. The reason for the tax-free status of the internet is that taxation opens a can of worms that's very complex to deal with.
 
I'd look beyond the tax and look at selection and options.
 
My personal experience is that I often go to an online retailer first because I can shop from my home and not waste a Saturday stocking up on stuff like my fishing tackle supply. The selection is way better too.
 
I do see taxation as inevitable, and not necessarily a bad thing, but establishing a rule that imposes a heavy regulatory burden on online businesses is a bad way to do it. Probably a better way would be to have a flat rate that gets paid to state governments, then make it the responsibility of the state governments to distribute the funds. Of course, the administrative costs would be so high that nothing would ever make it to the municipalities, but that just amplifies the inefficiency of state government, and the concept of accommodating taxation in 9000+ localities.
 

I live in  State with no internet sales tax.....I take full advantage of it.  Why should someone's BIL have a tax advantage over anothers?  If people can get a product for a nickle less.....they will......and we are not talkin nickles.  It's it OK to place a burden on a brick and morter shop but not the internet.  BS  Unfair advantage hands down......You ever been in  business and get to send in 10s of thousands of tax money when your competitors aren't?  He!! I like nice trucks.

[spruce]

They'll make it a FEDERAL sales tax, not a state tax.  The dummycrats always need more of our money to waste.

[BBF]

Several years back while staying in GA I ordered an item from a Co. in Florida and used my VISA card issued by a Canadian Bank to pay for the item. The item was shipped to GA.
 
About a month later I got an email from the Co. saying they forgot to charge me Sales Tax and they had charged my VISA account for that amount. I figured it was either the Fl or GA tax. When I looked at the charges they had used my Canadian Provincial tax rate. I called them and we had a long discussion on this. They insisted that they were obligated to charge me regardless of were the item was shipped because the card was issued in Canada.. I called it BS !!
 I'll name them for you, Tiger Direct will never have me as a customer again.

[Conan The Librarian]

FPH:
 
I totally see your point. This is a tough one because of our complex system of taxes. I don't object to paying sales taxes if I have too. But it has to be a simple method of calculating it and collecting it. We just don't have that as part of our business infrastructure.
 
The only winners I see here are big box stores like Walmart who can afford to have a staff that takes care of the calculations and disbursements, and governments.
 
One other thing is that I think this bill only applies to businesses with a sales threshold in excess of one million per year.
 
I just see this as being another tar baby.
 
In my state, we're supposed to pay the local taxes on internet purchases by declaring it on our annual income tax, but nobody does that.
 
Here's another "level the playing field" argument: If a brick and mortar store has a clear and simple way of collecting sales tax, why can't an internet business? Isn't it an unfair advantage for "traditional" stores if they only pay one entity for sales tax while the internet business has to pay over 9000?
 
The bottom line as I see it is to beware of Obamas preaching fairness and level playing field. We've heard that before, and we know what it leads to.

[Oldshooter]

From my perspective, if I order from an internet store I pay shipping. If I have to pay shipping and sales tax I dont go to the internet store. 

[Conan The Librarian]

Leave it to OldShooter to point out the obvious! You got that right! I was going to buy a lure the other day and it costs $6, plus $5 for shipping. I didn't buy it. Tax would have been about 43 cents here. On the other hand, not having to drive to shop for it is worth more than five bucks, so in some circumstances this sort of purchase makes sense.
 
I've bought lawn mower parts like that. $2 part, $10 shipping. Well worth it if I need the part.

[SHOOTALL]

What about those of us that live in states that do not have sales tax?

 good point. If the state wants to tax the sales let them do so. Here in Va. When we buy for the business on the internet we have to keep record and pay the state sales tax . The same could be done in each state for private citizen sales.

[gypsyman]

Several here have made good points. Stop and think of all the Walmarts,Kmarts,Sears, Dollar Stores, etc., that are already collecting millions of dollars every month getting sent into state's for sales tax. Even with car sales down, how many 10's of thousands of dollars are going into the state coffers every month, including here in Ohio, used cars, that have already been taxed when they were sold new, but every time they get resold. New tax's are not needed!! Spending cuts are. gypsyman

[Oldshooter]

Leave it to OldShooter to point out the obvious! You got that right! I was going to buy a lure the other day and it costs $6, plus $5 for shipping. I didn't buy it. Tax would have been about 43 cents here. On the other hand, not having to drive to shop for it is worth more than five bucks, so in some circumstances this sort of purchase makes sense.
 
I've bought lawn mower parts like that. $2 part, $10 shipping. Well worth it if I need the part.

Well I was going to qualify my statement with the " If I need it and i dont have to drive somewhere to buy it thing" but...........I thought that was obvious!   

[Sourdough]

If I need it I check the local stores.  But our local stores are very limited on what they carry.  We are the end of the line and if it does not sell they are stuck with it.  So if they don't have it I will eat the shipping and order it on line.  Now if I have to pay sales tax, I'll just wait till I go to Anchorage to purchase it.  Anchorage will have it, and no sales tax.

[Doublebass73]

Fairness is definitely not a motivating factor.
 
Government sees this as an opportunity to both get more tax money and expand government at the same time ("We'll need a new agency to oversee this").

Exactly, government only sees it as unfair because they don't have their filthy mitts into it enough yet.

Sales tax only motivates people to shop in areas that don't have it. The government hates that so they want as much sales tax as possible everywhere.

New Hampshire has no sales tax so the border businesses do a booming business because we're surrounded by 3 states plus Canada that all have sales taxes. Massachusetts especially hates this fact so a few years ago they tried to force a New Hampshire tire business to collect sales tax from customers that were from Mass. Luckily that business with the backing our governor told Massachusetts to pound sand.

[Conan The Librarian]

One thing I do is to not pay downtown sales tax in minneapolis. State sales tax is seven percent, in downtown, it's ten percent. I have never bought anything there even though I work there. Likewise with uptown minneapolis. When i needed a new computer i called and asked the sales tax rate. The rate was one and a half percent above suburban rates, so i bought in the suburbs.