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States Can Require Internet Tax Collection, Supreme Court Rules

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431–440 of 613 posts

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

#431
post #91

Earlier quoted context omitted.

Would love to see Stripe provide an API for this.

Seems like there should already be a service that does this. It's just static data, a microservice would be easy to run.

If you have the resources to proactively keep your data up-to-date, then a lookup API is trivial. But it also doesn't begin to address remittance, which is by far a bigger burden.

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

#432
post #258

What no one is talking about here is how this would be handled, especially for a small online sellers. There are almost 10,000 tax jurisdictions ( https://www.washingtonpost.com/blogs/fact-checker/post/mccon... ) and you're not allowed to collect sales tax unless you register for that jurisdiction. There is also a fee collected by most jurisdictions to register and most make you send in periodic reports, even if you…

Watch Amazon offer it as an AWS service...for a 0.2% fee.

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

#433
post #258

What no one is talking about here is how this would be handled, especially for a small online sellers. There are almost 10,000 tax jurisdictions ( https://www.washingtonpost.com/blogs/fact-checker/post/mccon... ) and you're not allowed to collect sales tax unless you register for that jurisdiction. There is also a fee collected by most jurisdictions to register and most make you send in periodic reports, even if you…

> What no one is talking about here is how this would be handled, especially for a small online sellers.

Strange huh? Seems like the little guy is being attacked by the elites in every manner possible. Whether it is small online sellers, small time youtubers, independent freelance journalists, small time artists, writers, etc, seems like the rules are being changed to favor corporations and the heavy hitters. Heck, even search and social media results/algorithms are changing to cater to corporations.

Odd that this story hasn't gotten that much traction anywhere either. You'd think something this important would be all over hacker news and social media. I remember Bezos used to be very vocal whenever internet tax issues came up. He's been awfully quiet. Oh that's right, amzn is no longer a small time book and music seller.

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

#434
post #380

Earlier quoted context omitted.

$100,000 in sales is a very low bar. That's equivalent to a business with a single employee, the owner, and they're probably not making a livable wage yet.

$100k of South Dakota revenue is either an almost exclusively local single-owner business or a much larger internet shop. But regardless, that kind of number is a full time job. If you're selling over the internet and making a full time job out of it, you can handle computing sales tax for SD residents. Yes, it's burdensome. Yes, it would be good to have a simpler federal framework for this. No, it's not the end of t…

> Now, it's just a giant subsidy for Amazon.

It was always just a giant subsidy for Amazon.

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

#435

Earlier quoted context omitted.

It sounds like Avalara costs $50 per year for small businesses, but scales up for larger companies. So compliance is trivial if it truly works.

If compliance were required to this new extent, then avalara could likely raise prices

And if that happens then certainly competitors would enter the market. If avalara is overpriced people will switch over.

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

#436
post #408
post #342

Earlier quoted context omitted.

Unfortunately they don’t have transparent pricing. So it’s a bit of a mystery. We were in the middle of getting a quote but then found TaxJar thanks to this thread and are going to try that. I prefer the pricing being up front.

FWIW, I can tell you that taxjar is pretty light on the "I've collected taxes, now what?" side. Avalara might be a BigCo but they have their stuff together, and it works at scale for transactions (especially when dealing with refunds or discounts that need to reflect Sales Tax differentially.... oy)

Can you expand on why TaxJar seems lighter after collecting sales tax? We have a fully automated reporting and filing solution that works at scale for over 10k merchants.

Disclaimer: I work at TaxJar, just curious to hear your feedback. Thanks!

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

#437
post #216

Earlier quoted context omitted.

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.

And what would it look like if Mom & Pop were starting an ice-cream shop instead of an online storefront? Would they _not_ have to pay tax then? I get that being subject to regulation or taxation is more burdensome than not being subject to it, of course that's the case. But it does not follow that requiring sellers to pay sales tax is unduly burdensome. If the underlying complication of tax is the problem, fix that.

> And what would it look like if Mom & Pop were starting an ice-cream shop instead of an online storefront? Would they _not_ have to pay tax then?

They would only have to pay sales tax in one tax jurisdiction, the one in which they are physically based and in which they can vote to change those taxes.

> But it does not follow that requiring sellers to pay sales tax is unduly burdensome.

What follows is requiring sellers to track and remit sales tax in some 10,000 jurisdictions is burdensome.

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

#438
post #258

What no one is talking about here is how this would be handled, especially for a small online sellers. There are almost 10,000 tax jurisdictions ( https://www.washingtonpost.com/blogs/fact-checker/post/mccon... ) and you're not allowed to collect sales tax unless you register for that jurisdiction. There is also a fee collected by most jurisdictions to register and most make you send in periodic reports, even if you…

If only we had .. machines which can look up an item in a huge list of items and find some specific properties about it.. just think! We could sell maybe two or three of these machines a year.

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

#439
post #216

Earlier quoted context omitted.

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.

And what would it look like if Mom & Pop were starting an ice-cream shop instead of an online storefront? Would they _not_ have to pay tax then? I get that being subject to regulation or taxation is more burdensome than not being subject to it, of course that's the case. But it does not follow that requiring sellers to pay sales tax is unduly burdensome. If the underlying complication of tax is the problem, fix that.

With a brick-and-mortar storefront, they have to figure out one jurisdiction's salestax (rate and what is taxable), their own. That is quite literally orders of magnitude simpler than this.

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

#440
post #403

Earlier quoted context omitted.

Wrong. If you live in a state without income tax, buy a product from a company in the same state, and then ship the product to your friend in Texas, you have to pay Texas sales even though you have never been to Texas.

That's because you asked the company to ship it there. That's the company collecting tax on your friend's behalf. If you buy it and ship it to yourself, and then ship it to your friend, there would be no tax, because then you bought it and they have no way of knowing it is going to your friend. Technically, your friend had to pay use tax when they got it from you. But they probably didn't. Which is why they want the…

No. We’re talking about sales tax, not gift tax.
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