New Taxes / Fees on orders.....

alton · Apr 17, 2018

I heard this morning that 40 states are going to start charging taxes on internet sales. Ya knew it was going to happen! Just wait for a 10% off sale and consider that to be tax free.

Brew12 · Apr 17, 2018

It doesn't matter if the Supreme Court upholds Quill or not.
States are going to take in a certain amount of revenue. If collecting sales tax for internet transactions is blocked at the Federal level, the States will replace that income with something else. It may take awhile for it to be implemented which will result in the State taking on more debt resulting in even higher future taxes. In fact, if sales taxes end up not being collectible, I could see a time when all local sales taxes are dropped. I would expect them to be replaced with higher property taxes and other hard to avoid fees. I could also see a "local delivery tax" being implemented on all packages delivered in an area.

The bottom line is that there is no direct connection between State revenue and State spending. Certain individuals may be better off with one form of taxation over another, but the overall tax burden isn't going to change.

It's like free shipping. There is no such thing. Shipping costs are built into the prices charged by the seller. Typically, the consumer comes out ahead when ordering a single item and sellers come out ahead when consumers buy multiple items. If internet taxes are collected, people who do more local shopping will end up benefiting. If internet taxes are blocked, it is likely that people who own valuable real estate will be on the short end.

reefluvrr · Apr 17, 2018

I wonder if the state in which we reside in really has a way to collect the taxes from the business of another state if the company doesn't report it?

AKReef · Apr 17, 2018

reefluvrr said:
I wonder if the state in which we reside in really has a way to collect the taxes from the business of another state if the company doesn't report it?

The problem is they probably won’t go after the vender, they’ll go after you. Many states require residents to report the online purchases on their state tax return. Of course no one really does, though that could change if vendors are required to report sales information. This is exactly why BRS is choosing to collect taxes, rather than have their customers surprised with a tax bill later.

Ryanbrs · Apr 18, 2018

From a small business perspective, the scariest part of a Quill change is potentially being audited by 50 different state taxing authorities.

We got sales/use tax audited here in Minnesota once. Took 6 months and in the end, they owed us 20k .... Was a ridiculous process.

Turbo's Aquatics · Apr 18, 2018

Ryanbrs said:
Took 6 months and in the end, they owed us 20k ....

Now, that's irony

tangtime · Apr 18, 2018

Am I missing something? Really, what’s wrong with paying your taxes?? It’s the law....geesh

RobertP · Apr 18, 2018

Being a Texan I do not mind paying internet sales tax to my state because we are one of the few states left that DO NOT HAVE INCOME TAX! This means we don't have to file a state income tax return and I dont have to worry about state auditors. Yes, businesses still do since they collect the sales tax. My company is based in Georgia and when I first started working there (years ago) they were pulling Georgia income taxes out of my check. It was several months before I caught it and was surprised the amount of money I got back! I cannot imagine how bad it is out there in Cali... On a side note there are a TON of Californians moving here to Houston because of jobs and cheaper housing. I just ask that you do not try to change our laws into what you left. We Texans are set in our ways!

EdsReefOdyssey · Jun 24, 2018

So what did the BRS lawyers have to say about the ruling? Is it only State taxes or is it every City and County tax in the country?

Peng · Jun 24, 2018

Washington state does not have income tax. So of course you should pay sales tax for things you buy online and shipped to a local address.

Brew12 · Jun 24, 2018

Peng said:
Washington state does not have income tax. So of course you should pay sales tax for things you buy online and shipped to a local address.

What does an income tax have to do with internet shopping?

dragon99 · Jun 24, 2018

EdsReefOdyssey said:
So what did the BRS lawyers have to say about the ruling? Is it only State taxes or is it every City and County tax in the country?

It's not going to get better. I think online vendors and shoppers might as well get used to the idea on taxes.

https://arstechnica.com/tech-policy/2018/06/get-ready-for-more-sales-taxes-on-online-purchases/

Peng · Jun 24, 2018

Brew12 said:
What does an income tax have to do with internet shopping?

Because WA doesn’t have income tax, sales tax is very important for the state. When people shop online more and more without paying sales tax, the state is losing a lot of tax revenue.

Brew12 · Jun 24, 2018

Peng said:
Because WA doesn’t have income tax, sales tax is very important for the state. When people shop online more and more without paying sales tax, the state is losing a lot of tax revenue.

If they need an income tax, they should pass an income tax. When I lived in WA the lack of an income tax was made up for with very high property taxes.

Peng · Jun 24, 2018

Brew12 said:
If they need an income tax, they should pass an income tax. When I lived in WA the lack of an income tax was made up for with very high property taxes.

It’s hard. People don’t like changes especially something like income tax. Back then when online shopping wasn’t popular this wasn’t an issue.

All Delight · Jun 24, 2018

Thank the cry babies in south dakota

Ryanbrs · Jun 24, 2018

EdsReefOdyssey said:
So what did the BRS lawyers have to say about the ruling? Is it only State taxes or is it every City and County tax in the country?

Right now it is the Wild West and the horses are loose. It’s going to be insane hard to manage all this.

After the court ruling we are going to have to collect sales tax from every state that has a law requiring the collection which is quite a few. I’d expect all but a few will have one by the end of the year.

while there is software to manage this last time i checked the best one was going to cost $250k a year . Bet they increase that cost now. There are 12,000 state, county and city tax codes to follow, 50 states that can now audit businesses, and a seemingly limitless amount of rules on what is taxable and what isn’t.

foxt · Jun 24, 2018

Ryanbrs said:
From a small business perspective, the scariest part of a Quill change is potentially being audited by 50 different state taxing authorities.

We got sales/use tax audited here in Minnesota once. Took 6 months and in the end, they owed us 20k .... Was a ridiculous process.

I hope they had to pay you interest ...

dragon99 · Jun 24, 2018

Ryanbrs said:
Right now it is the Wild West and the horses are loose. It’s going to be insane hard to manage all this.

After the court ruling we are going to have to collect sales tax from every state that has a law requiring the collection which is quite a few. I’d expect all but a few will have one by the end of the year.

while there is software to manage this last time i checked the best one was going to cost $250k a year . Bet they increase that cost now. There are 12,000 state, county and city tax codes to follow, 50 states that can now audit businesses, and a seemingly limitless amount of rules on what is taxable and what isn’t.

Well when you put it that way, sounds just peachy. The only thing that can save this now is a :cringe federal law ;Spitoutdummy

Opus · Jun 25, 2018

Ryanbrs said:
Right now it is the Wild West and the horses are loose. It’s going to be insane hard to manage all this.

After the court ruling we are going to have to collect sales tax from every state that has a law requiring the collection which is quite a few. I’d expect all but a few will have one by the end of the year.

while there is software to manage this last time i checked the best one was going to cost $250k a year . Bet they increase that cost now. There are 12,000 state, county and city tax codes to follow, 50 states that can now audit businesses, and a seemingly limitless amount of rules on what is taxable and what isn’t.

And implementing it will probably be hard. We are currently trying to implement the new accounting rule that expense leases are to be considered fixed assets. We purchased the software for a hefty amount but the company is so swamped that they can't help us implement it. We now have to hire a third party company to implement it and they are new to the game since this is all new to everyone. What is sad some companies haven't even started the process yet and it has to be done for Jan 1.