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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

#211

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…

100k * 50 = 5M @ 2% profit margin that's 100k per year.

Enough to live comfortably on, but not exactly a big money. Further, the ruling applies to all taxes and has no cutoff under 100k/year required.

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

#212
post #186

Earlier quoted context omitted.

States not having jurisdiction outside of their borders isn't exactly a loophole. If California wants to punish people for buying from Oregon, a state free from sales taxes, it should use its existing use tax and take it up with its own citizens. This ruling is saying that California can tell Oregon businesses what to do.

Sure, but there's no point in getting bogged down in strict adherence to jurisdiction when we're all one country. Would you feel better if the ruling was that an online retailer in Oregon has to get a business license in every state which would come with the same requirement to collect sales tax? Same effect, but now businesses have to do more paperwork.

[deleted]

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

#213
post #206

Earlier quoted context omitted.

Thankfully with Shopify it is extremely easy and straightforward to manage for my wife's small online store. Their platform does a great job properly charging taxes by state, county and city in certain situations. Then using an inexpensive plan from https://www.taxjar.com/ the entire filing and paying process is 100% automated. In 10 minutes I was able to file and pay all the sales taxes to several state, dozens of C…

So you assume. As a small business you are unlikely to be audited, but that software could easily be wrong creating a huge minefield and potential liability.

So that would be the software companies' liability. And such business practice can differentiate good ones from the bad ones. I'm seeing a new business market here even.

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

#215
post #186

Earlier quoted context omitted.

Sure, but there's no point in getting bogged down in strict adherence to jurisdiction when we're all one country. Would you feel better if the ruling was that an online retailer in Oregon has to get a business license in every state which would come with the same requirement to collect sales tax? Same effect, but now businesses have to do more paperwork.

If we're all one country, how did the President get elected when the majority of the country voted for someone else? ..and yes, I'd prefer that the ruling was that the online retailer had to get a business license in every state. That ruling would create such a torches and pitchforks situation from citizens suddenly having their lives disrupted that we'd quickly return to status quo.

I mean even if we lived under a monarchy we would still be one country, the two things aren't really related.

That is the worst possible reason to enact a law. It should be obvious why making people's lives worse purposefully for political posturing is a bad idea, and you run the risk of your plan backfiring and having to live forever in the now-worse world.

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

#216

I have a hunch that this will, in the end, be a massive win for large retailers vs. small ones. The task of figuring out how to calculate tax for all states is more or less the same amount of work regardless of size, which means for someone like Amazon it's more or less trivial, but for a mom-and-pop store it's a major hassle.

Thankfully with Shopify it is extremely easy and straightforward to manage for my wife's small online store. Their platform does a great job properly charging taxes by state, county and city in certain situations. Then using an inexpensive plan from https://www.taxjar.com/ the entire filing and paying process is 100% automated. In 10 minutes I was able to file and pay all the sales taxes to several state, dozens of C…

This assumes these mom and pop shops have heard of these services. Personally I was helping someone get their little internet store off the ground and it was a huge hassle even with woocommerce.

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

#217

I have a hunch that this will, in the end, be a massive win for large retailers vs. small ones. The task of figuring out how to calculate tax for all states is more or less the same amount of work regardless of size, which means for someone like Amazon it's more or less trivial, but for a mom-and-pop store it's a major hassle.

How many mom and pop stores go through the hassle of maintaining their own software for this vs just paying someone else to handle it, who can do so trivially?

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

#218
post #213
post #206

Earlier quoted context omitted.

So you assume. As a small business you are unlikely to be audited, but that software could easily be wrong creating a huge minefield and potential liability.

So that would be the software companies' liability. And such business practice can differentiate good ones from the bad ones. I'm seeing a new business market here even.

https://en.wikipedia.org/wiki/Parable_of_the_broken_window

There is zero economic gain from more complex tax rules. Further, the software does not absolve you of liability. At best they may agree to cover it, but that's unlikely and they can also go broke if they get it wrong.

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

#219

I have a hunch that this will, in the end, be a massive win for large retailers vs. small ones. The task of figuring out how to calculate tax for all states is more or less the same amount of work regardless of size, which means for someone like Amazon it's more or less trivial, but for a mom-and-pop store it's a major hassle.

I expect that some third-party solutions will spring up, but of course that's more money that any third-party retailer has to pay.

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

#220
post #180
post #31

Earlier quoted context omitted.

So how exactly is this a constitutional question where a new court can have a different opinion? Quill now harms states to a degree far greater than could have been anticipated earlier. That hardly seems like it changes the Constitution.

The Constitution uses a fair amount of fuzzy language. "Undue burden", "excessive bail", "cruel & unusual punishment", "unreasonable search & seizure", etc. Thus our perception of what is undue, excessive, cruel, or unreasonable can change, without the Constitution changing a word.

That's relevant to specific sections not the entire thing. I really don't see any applicable fuzzy language involved.

As far as I can see it's purely a political question and they simply chose ahead of time to change their minds independent of any arguments given. That's a huge perversion of the entire idea of the supreme court.

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