[meteorite-list] Ebay, Websites and State Taxes

From: Jim Wooddell <jimwooddell_at_meteoritecentral.com>
Date: Tue, 7 May 2013 05:58:39 -0700
Message-ID: <CAH_zgwF9JdZCf25AZc4ebvMeg4g=JKSz4Z-+vPtSc+1+rtYzRA_at_mail.gmail.com>

 Jason,

Even in California, someone is usually required to pay the tax.
States learned this early on to level the playing field between
interstate and intrastate dealers. If I remember right California
calls this a Use tax and it does apply to online sales in California
revenue law.
Use tax is one of the most abused taxes on the face of the planet.
I would be safe in saying that the vast majority of any sale is
taxable between any state in the union.

Jim


On Mon, May 6, 2013 at 9:18 PM, Adam Hupe <raremeteorites at yahoo.com> wrote:
> Jason,
>
> I will not argue the point anymore here on the List. It is turning into a purely political discussion. I just wanted to make online sellers aware that there may be some more excess taxation on the horizon. Just for the record, I believe in paying my fair share but dislike seeing it wasted on big government. Perhaps you can study the bill more, write a report and send it somebody who cares about another piece of misleading legislation.
>
> Many states already collect taxes on minor sells, including garage sales and swap-meets. I know because I used to live in such a state. The million dollar limit is a myth to mislead people like yourself.
>
> Wait until you need to send a 1099 to your paper boy who is trying put himself though college and then get back to me. That's right, you don't read a paper and get all your information from the interment which must make it true so don't bother responding unless you absolutely need to get the last word in.
>
> Either way, I don't care,
> .
> Adam
>
> .
>
>
>
>
>
> ----- Original Message -----
> From: Jason Utas <meteoritekid at gmail.com>
> To: Adam Hupe <raremeteorites at yahoo.com>
> Cc:
> Sent: Monday, May 6, 2013 8:56 PM
> Subject: Re: [meteorite-list] Ebay, Websites and State Taxes
>
> Hello Adam,
> So...you can read that the million-dollar lower limit applies, no
> matter what.
> Right?
> So the small guy is fine.
> Jason
>
> www.fallsandfinds.com
>
>
> On Mon, May 6, 2013 at 7:21 PM, Adam Hupe <raremeteorites at yahoo.com> wrote:
>> You can read, great
>>
>> Thus you found the small print. The state is in charge therefore the small guy will take a beating.
>>
>> Adam
>>
>>
>>
>>
>> ----- Original Message -----
>> From: Jason Utas <meteoritekid at gmail.com>
>> To: Meteorite-list <meteorite-list at meteoritecentral.com>
>> Cc:
>> Sent: Monday, May 6, 2013 7:10 PM
>> Subject: Re: [meteorite-list] Ebay, Websites and State Taxes
>>
>> Adam,
>> You're not telling the truth.
>> --------------------
>> SMALL SELLER EXCEPTION.-A State is authorized to require a remote
>> seller to collect sales and use taxes under this Act only if the
>> remote seller has gross annual receipts in total remote sales in the
>> United States in the preceding calendar year exceeding $1,000,000. For
>> purposes of determining whether the threshold in this sub?section is
>> met-
>>
>> 1) the sales of all persons related within the meaning of subsections
>> (b) and (c) of section 267 or section 707(b)(1) of the Internal
>> Revenue Code of 1986 shall be aggregated; or
>> 2) persons with 1 or more ownership relationships shall also be
>> aggregated if such relationships were designed with a principal
>> purpose of avoiding the application of these rules.
>> --------------------
>> http://www.marketplacefairness.org/bill-text/
>>
>> This also clears up the issue of whether or not a brick-and-mortar
>> store would have to accrue a total of $1,000,000 in sales -- versus
>> $1,000,000 in exclusively internet sales -- before being forced to
>> pay/charge taxes on online purchases. It's internet-only. In other
>> words, if your business grosses ~$1,500,000 in in-store sales, but
>> only sells $500,000 of merchandise online, you still wouldn't have to
>> pay any online sales tax. Unless your state has preexisting
>> provisions that require you to do so.
>>
>> Furthermore, the enforcement of this tax policy will be up to the
>> states. In other words, they can choose to enforce it (or not) as
>> they see fit.
>>
>> I'd read the document; it's only five pages.
>>
>> Regards,
>> Jason
>>
>> www.fallsandfinds.com
>>
>>
>> On Mon, May 6, 2013 at 7:09 PM, Jason Utas <meteoritekid at gmail.com> wrote:
>>> Adam,
>>> You're not telling the truth.
>>> --------------------
>>> SMALL SELLER EXCEPTION.-A State is authorized to require a remote
>>> seller to collect sales and use taxes under this Act only if the
>>> remote seller has gross annual receipts in total remote sales in the
>>> United States in the preceding calendar year exceeding $1,000,000. For
>>> purposes of determining whether the threshold in this sub?section is
>>> met-
>>>
>>> 1) the sales of all persons related within the meaning of subsections
>>> (b) and (c) of section 267 or section 707(b)(1) of the Internal
>>> Revenue Code of 1986 shall be aggregated; or
>>> 2) persons with 1 or more ownership relationships shall also be
>>> aggregated if such relationships were designed with a principal
>>> purpose of avoiding the application of these rules.
>>> --------------------
>>> http://www.marketplacefairness.org/bill-text/
>>>
>>> This also clears up the issue of whether or not a brick-and-mortar
>>> store would have to accrue a total of $1,000,000 in sales -- versus
>>> $1,000,000 in exclusively internet sales -- before being forced to
>>> pay/charge taxes on online purchases. It's internet-only. In other
>>> words, if your business grosses ~$1,500,000 in in-store sales, but
>>> only sells $500,000 of merchandise online, you still wouldn't have to
>>> pay any online sales tax. Unless your state has preexisting
>>> provisions that require you to do so.
>>>
>>> Furthermore, the enforcement of this tax policy will be up to the
>>> states. In other words, they can choose to enforce it (or not) as
>>> they see fit.
>>>
>>> I'd read the document; it's only five pages.
>>>
>>> Regards,
>>> Jason
>>>
>>> www.fallsandfinds.com
>>>
>>>
>>> On Mon, May 6, 2013 at 6:47 PM, Adam Hupe <raremeteorites at yahoo.com> wrote:
>>>> Jason Wrote:
>>>>
>>>> *********************************************************************************
>>>> I can't see how this new law would hurt small sellers, though. Since
>>>> only the companies making more than a million per year will have to
>>>> charge/pay taxes on inter-state sales, if anything, it gives an
>>>> advantage to the folks selling under that range.
>>>> *********************************************************************************
>>>>
>>>> Don't be so naive. This bill allows states to make all sellers collect taxes on their behalf and there is no real one million dollar exclusion: read the small print. Just like the Affordable Healthcare Act was supposed make healthcare affordable. Instead it was just one massive deceptive tax increase that will punish those who can least afford healthcare with fines.
>>>>
>>>> I have no idea why the feds are involved in state business in the first place. It is all driven by weak politicians who are being pressured by large companies like Amazon who want online market share.
>>>>
>>>> At least here in Nevada, there are no state corporate taxes.
>>>>
>>>> Adam
>>>> ______________________________________________
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-- 
Jim Wooddell
jimwooddell at gmail.com
928-247-2675

Received on Tue 07 May 2013 08:58:39 AM PDT