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States Can Require Internet Tax Collection, Supreme Court Rules

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Re: States Can Require Internet Tax Collection, Supreme Court Rules

#161

So, if a state has a flat sales tax for all purchases then that's pretty easy to implement. But often you tax different categories of product at different rates. And there are fuzzy edges. The advertisements for Fig Netwons famously were "a cookie is just a cookie, but Newtons are fruit and cake." But is that true, legally speaking? And if it's true in one state jurisdiction does that that necessarily translate to an…

I would think the same way any national chain does it.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#162

Earlier quoted context omitted.

That's still difficult to comply with. Imagine 50 different laws like that, each with their own tiers, and consider the difficulty accounting for them all and staying in compliance. That's not even getting into municipal taxes.

Which is why the issue remains, as it has been since Quill, the extent of the seller's contacts with the state. If you're making $100k to each 50 states, then you've got $50 Million in Revenue and can afford to do it. If you've sold 10 t-shirts at $20 a piece, then your total sales of $200 isn't worth bothering with. If we want there to be problems we can certainly create them, but doesn't seem all that complicated i…

You mean $5M not $50M.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#163
post #10
post #3

I find it hard to argue with from a fairness perspective. Clearly, retail is in a much different place from when Quill was decided. My concern is more in how a mom & pop online shop operating independently complies as a practical matter, which means not only collecting the right amount for different types of items but presumably remitting and filing with a huge number of different tax jurisdictions.

In Colorado you're already asked when filing state taxes what the value of the goods you bought online that haven't been taxed yet, so the onus is on the filer to look up receipts from the year for tax purposes. Amazon already collects tax in Colorado, but a few smaller retailers will send you a letter at the end of the year totaling up your untaxed purchases. Since different counties and localities collect different…

Just about every state requires this. No one does it, and it's simply not feasible for any state to go after taxpayers for this.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#164

So, if a state has a flat sales tax for all purchases then that's pretty easy to implement. But often you tax different categories of product at different rates. And there are fuzzy edges. The advertisements for Fig Netwons famously were "a cookie is just a cookie, but Newtons are fruit and cake." But is that true, legally speaking? And if it's true in one state jurisdiction does that that necessarily translate to an…

Thats why companies like Avalara exist and are doing well. https://www.crunchbase.com/organization/avalara (not affiliated in any way)

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#165
> Grover Norquist, president of the anti-tax group Americans for Tax Reform, said in a statement, "Today the Supreme Court said yes -- you can be taxed by politicians you do not elect and who act knowing you are powerless to object."

That doesn't follow. The people being taxed are the people living in that state, and their representatives are enacting that tax. As usually Norquist is making up BS to scare people.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#166
post #5

Earlier quoted context omitted.

We’ve been looking at tech solutions for calculation / remittance. So far only found Avalara. I’d be surprised if PayPal, Stripe, and others won’t step into this now that it’ll be fairly profitable.

Stripe already recommends Avalara and a couple others: https://stripe.com/docs/orders/tax-integration

Keep in mind that Stripe only provides automated tax calculations for their Orders API (previously Relay) at this time. You'll have to use a sales tax API to handle calculations for subscriptions and one-off charges.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#167

Isn't this at some level taxation without representation? If I don't like how some other state is taxing, I can't alter that behaviour by voting. At least in my current state I might have a chance to do so.

By that measure, if I am driving through a state, and I don't like their gas tax policies, me paying tax on gas that I had to buy while driving through is also taxation without representation.

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#168

> Grover Norquist, president of the anti-tax group Americans for Tax Reform, said in a statement, "Today the Supreme Court said yes -- you can be taxed by politicians you do not elect and who act knowing you are powerless to object." That doesn't follow. The people being taxed are the people living in that state, and their representatives are enacting that tax. As usually Norquist is making up BS to scare people.

It is so significant of a claim that brings the question...does norquist know how sales/use tax even works?

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#169

Earlier quoted context omitted.

Tennessee also has a "Sales Tax Holiday" on which certain items are tax exempt during certain times (during the holiday). And because we know how much programmers love date and time manipulations, it starts on "the last Friday in July" (I mean, it kinda had to, to be a weekend). [1]: https://www.tn.gov/revenue/taxes/sales-and-use-tax/sales-tax...

An exemption such as this is one of those things that I'd say is not worth supporting unless you're based out of TN, or do enough of sales there to make it worth your while. Sure, I'd implement it if it's required but every special case is just another point of failure.

But if you don't support it, are you liable for collecting more tax than required? How do you "not support" it? Just reject purchases from people in TN during the holiday?

Re: States Can Require Internet Tax Collection, Supreme Court Rules

#170
post #5

Earlier quoted context omitted.

We’ve been looking at tech solutions for calculation / remittance. So far only found Avalara. I’d be surprised if PayPal, Stripe, and others won’t step into this now that it’ll be fairly profitable.

have been using taxjar.com with... ok results so far - they seem to only provide a sandbox/playground for 'pro' accounts ("call for pricing" - ugh).

You can sign up for a free trial with TaxJar right away without calling a sales rep, no CC required. Sandbox API environment is included for all plans, but marketed toward Plus plans. Once you log in, generate prod / sandbox keys from the account page.
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