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States Can Require Internet Tax Collection, Supreme Court Rules
11–20 of 613 posts
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#12I 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.
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.
Yeah, it seems like something the payment processors have to handle automagically in some manner. Otherwise, small online merchants are going to have no practical choice other than 1.) Selling through e.g. Amazon or 2.) Just ignoring the law.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#13More compliance and regulation for us to deal with. How about you just tax property? It doesn't move. And also, how about the state stops spending money?
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#14Fascinating mix of justices on this one:
> The vote was 5 to 4. Justice Anthony M. Kennedy wrote the majority opinion and was joined by Justices Clarence Thomas, Ruth Bader Ginsburg, Samuel A. Alito Jr. and Neil M. Gorsuch.
I can't imagine we're gonna see RBG agreeing with the Alito/Gorsuch/Thomas clan too often.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#15I 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.
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:
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#16This is good news for the country, even if it's bad for my wallet. The prior state of affairs was absurd. Online retailers already have major advantages in terms of convenience and inventory. Getting a N% discount vs. brick and mortar by not charging taxes was completely unnecessary.
It’s good for big business and bad for small businesses because compliance will be tough, and harder to compete and price.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#17The situation for retailers shipping to states where they have no physical presence reminds me of the situation of foreign retailers with significant online sales to customers in the EU. In each case, the seller (who has no physical or other presence in X) is required to collect tax from the buyer (a resident of X) and remit it to the tax authorities in X. The tax is owed by a resident of X, to the tax authorities in…
And as a seller you are required to register with every state, and collect + pay taxes quarterly in every state. Quite onerous for smaller sellers.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#18Someone needs to develop a service to make calculating and paying the sales tax easier. Something like plugin an address and it spits out the tax percentage and where to remit the payment to. Ideally the states would get together and create a centralized service so companies don't have to be mailing checks to every single county government that has a sales tax.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#19This is good news for the country, even if it's bad for my wallet. The prior state of affairs was absurd. Online retailers already have major advantages in terms of convenience and inventory. Getting a N% discount vs. brick and mortar by not charging taxes was completely unnecessary.
Exposing consumers to more regressive sales taxes is in no way good for the country. What would be good for the country is to abolish sales taxes entirely.
Re: States Can Require Internet Tax Collection, Supreme Court Rules
#20I 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.