What if . . .
. . . this bill (if it becomes a law) forces people to sell on Amazon?
I sell on Amazon and I let them take care of the sales taxes. I hate
the commission, but that's the price I pay for leveraging Amazon's
market presence and taking care of the administrivia for me. The end
result is I sell all over the country and Amazon takes care of the state
sales taxes.
I see this bill as an end to the small-timer and a shot in the arm for
the big companies.
As far as filling out the forms and reporting goes - I found filling out
just one form (for AZ) a PITA and stopped selling locally. I can't
imagine doing it for 9600 (ebay's count) municipalities.
Regards,
George Toft
On 5/7/2013 6:16 PM, keith smith wrote:
http://www.gpo.gov/fdsys/pkg/BILLS-113s743es/pdf/BILLS-113s743es.pdf
Yes, it requires taxes be paid to the state, however it does speak of
rate changes at the local level. It is a poorly written bill and it
leaves the merchant in a position of needing to comply at the actual
jurisdiction level. In other words it will require collecting
differing tax rates within a state based on location and the local
taxing authority. There will be compliance issue. If you have ever
collected sales tax you can get the jest of it, however on a much
grander level.
The bill talks about software. What language? What OS? What if I
have everything in PHP on the web and I only run Linux or Apple and
the software is compiled to run on M$ only? How to I interface this
with my shopping cart?
Basically this is a bill written by people who have never been in
business and who could care less about us in the trenches.
For me this is a substantial issue that could cause me to lose a
client that could very well sell off because compliance is going to be
a nightmare.
Read the bill, it is very vague and leave everything to the states. I
see 50 different sets of compliance. I see the requirement to have a
tax license in every state. Even if they only charge $30 for a license
that is $1500 and what about all the time to contact each state, and
complete all the docs they require. Yikes. It could take weeks just
to acquire all the licenses.
Then what about all the reporting on a monthly basis. This will be a
huge burden.
Please read the bill and assure me I am wrong, because I want to be
wrong in this area.
------------------------
Keith Smith
--- On *Tue, 5/7/13, Dazed_75 /<[email protected]>/* wrote:
From: Dazed_75 <[email protected]>
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
To: "Main PLUG discussion list" <[email protected]>
Date: Tuesday, May 7, 2013, 5:11 PM
I am reasonably sure this is only at the state level. Has anyone
actually read it to verify is local is included somewhere?
On Tue, May 7, 2013 at 4:23 PM, keith smith <[email protected]
</mc/[email protected]>> wrote:
I assume form what I am reading that one will have to have a
sales license in each state and collect sales tax based on
local and report that to the state and give the money to the
state. They state would then disburse the money.
I further assume the online retailer would be subject to audit
by any one of the taxing authorities.
The audits could be worse than collecting and reporting the tax.
About two weeks ago I wrote an article about online sales tax
:
http://www.netcodeman.com/news/internet-retail-sales-tax-and-how-it-may-effect-the-online-retailer/
------------------------
Keith Smith
--- On *Tue, 5/7/13, Gilbert T. Gutierrez, Jr.
/<[email protected]
</mc/[email protected]>>/* wrote:
From: Gilbert T. Gutierrez, Jr.
<[email protected]
</mc/[email protected]>>
Subject: Re: OT: Internet Sales Tax Passes the U.S. Senate
To: "Main PLUG discussion list"
<[email protected]
</mc/[email protected]>>
Date: Tuesday, May 7, 2013, 3:22 PM
Taxes are a pain. I believe it will probably be taxing
only to the state level, and not county and city. I do not
know how this would work. Do you have to register your tax
id in every state? File paperwork in every state? How do
states know that you have made transactions within their
borders? This seems like it would be a logistical
nightmare. I remember when I had an operation in TX, that
was a headache and a half. I cannot image nationally.
Gilbert
On 5/7/2013 8:48 AM, keith smith wrote:
The U.S. Senate passed the Internet Sales Tax Bill. Jeff
Flake's office says he voted against it and John McCain's
office said he voted FOR it.
It is being reported there in some 9,600 taxing
authorities in the U.S. Add to that 560 or so Indian
tribe taxing authorities. That is over 10,000 taxing
authorities. Yikes!! Any company with 1 million in sales
will be required to comply. I can tell you that a company
that has 1 million in sales is not a big company. That
online retailer might consist of 2 or 3 employees with
some additional help from a number of consultants and
potentially a fulfillment center.
From first hand experience, I would say this law, if
passed by the U.S. House, will cause a bunch of small
online retailers to either go out of business or reduce
sales through raising prices or some other method.
This may very well play out like ObamaCare where
companies are reducing the hours of their employees so
they have less than 50 full-time employees. In other
words we will experience the unintended consequences of
these laws.
These polices effect each of us.
------------------------
Keith Smith
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