Say Goodbye to Tax-free Internet Purchases

[Mazderati]

WASHINGTON — Internet retailers can be required to collect sales taxes in states where they have no physical presence, the Supreme Court ruled on Thursday.

Brick-and-mortar businesses have long complained that they are disadvantaged by having to charge sales taxes while many of their online competitors do not. States have said that they are missing out on tens of billions of dollars in annual revenue under a 1992 Supreme Court ruling that helped spur the rise of internet shopping.

On Thursday, the court overruled that ruling, Quill Corporation v. North Dakota, which had said that the Constitution bars states from requiring businesses to collect sales taxes unless they have a substantial connection to the state.

https://www.nytimes.com/2018/06/21/u...merchants.html

[Timberridge]

I report all my out of state purchases on my state income tax form as required by my state, and pay the appropriate sales taxes.

[liv2ski]

I report all my out of state purchases on my state income tax form as required by my state, and pay the appropriate sales taxes.

Well bless your pointed little head.

[stuckathuntermtn]

I live in MT, so does that mean Amazon must collect 9% WA salestax on anything I order, or will they just be required to collect the 0% that Montana charges?

[Danno]

I report all my out of state purchases on my state income tax form as required by my state, and pay the appropriate sales taxes.

Your nose also grew 2 inches in the last few minutes, Pinocchio.

[Danno]

I live in MT, so does that mean Amazon must collect 9% WA salestax on anything I order, or will they just be required to collect the 0% that Montana charges?

You don't pay sales tax where the retailer "lives", you pay it where you are. This ruling says the retailer has to collect YOUR state sales tax and remit that to the state. If your state doesn't have sales tax, this ruling has no effect (though I have not looked at what it says re local sales tax, not sure if they have to collect those too).

[hutash]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

[Timberridge]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

Just do as I do and declare all out of state purchases on your state income tax form.

[irul&ublo]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

Then you will be summarily executed

[Danno]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

It has always been about where the item is delivered, not where you are when you make the purchase. So, for ex, when I worked at a furniture store in Durango many moons ago, people from NM could avoid sales tax if they purchased and had us deliver the item, but they had to pay CO sales tax if they purchased and walked out the door with the item.

[AdironRider]

Does this apply to state taxes only, or local, city and county taxes?

There are something like 13000 different tax districts in the country, each with their own city, county, resort and other various local stuff that is going to be pretty much impossible for anyone but Amazon and Walmart to handle accounting wise.

[Danno]

I am guessing it is just state taxes, but haven't looked.

[GeezerSteve]

It has always been about where the item is delivered. . . .

Yes, for sales taxes, on the theory that the sale "occurs" in the state of delivery to the buyer.

A related issue: Some states, e.g., WA, have a use tax on some items @ the same rate for purchases made out of state by a resident of the taxing state if the buyer has the intention is to use the item in his or her resident (taxing) state. For example, if a WA resident buys a piece of equipment in OR (no sales tax state) and brings the equipment into WA to be used here, the buyer is obligated to pay use tax. The WA legislature enacted this law because lots of people were crossing to OR to buy expensive goods to avoid paying sales tax.

[Viva]

Good thing I don't schedule my hookers online; I'd owe thousands more.

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[Danno]

Yes, for sales taxes, on the theory that the sale "occurs" in the state of delivery to the buyer.

A related issue: Some states, e.g., WA, have a use tax on some items @ the same rate for purchases made out of state by a resident of the taxing state if the buyer has the intention is to use the item in his or her resident (taxing) state. For example, if a WA resident buys a piece of equipment in OR (no sales tax state) and brings the equipment into WA to be used here, the buyer is obligated to pay use tax. The WA legislature enacted this law because lots of people were crossing to OR to buy expensive goods to avoid paying sales tax.

yeah, I was pretty shocked when I moved to Seattle almost 30 years ago, that I had to pay "sales tax" (I know it wasn't sales tax, but a rose by any other name) on a car that I had purchased in VT 3 years earlier.

[Dantheman]

The WA legislature enacted this law because lots of people were crossing to OR to buy expensive goods to avoid paying sales tax.

Pretty common in northern CA, too, and I'd imagine eastern ID as well. My Dad lives in CA, bought a new truck in OR and registered it using his girlfriend's OR address. Saved him thousands.

[jgb@etree]

Wow. I guess we've finally found a tax that the lunatic leftists don't love!

[old goat]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

What if I'm in a plane on a treadmill in a non tax state?

Does this apply to state taxes only, or local, city and county taxes?

There are something like 13000 different tax districts in the country, each with their own city, county, resort and other various local stuff that is going to be pretty much impossible for anyone but Amazon and Walmart to handle accounting wise.

I haven't looked to see if the law applies to local taxes but they have these things called computers that can figure it out pretty easily, the way someone figured out there are 13000 taxing districts. I'm sure someone will come up with software that any online retailer can use.

[Cono Este]

In the last yr I’ve noticed some of my online vendors already charging me sales tax.

Honestly, I’ve never subscribed to tax free in the internet, but I buy very little online. On this forum I am glad to stand up and say we need to collect taxes in this case. I expect Dex to high five me.


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[AdironRider]

What if I'm in a plane on a treadmill in a non tax state?


I haven't looked to see if the law applies to local taxes but they have these things called computers that can figure it out pretty easily, the way someone figured out there are 13000 taxing districts. I'm sure someone will come up with software that any online retailer can use.

Have you ever had to remit sales taxes before? Filed the paperwork. Registered in all of those districts. Its not the math that is the problem here.

I actually support this level playing field, it is probably 90% of why the internet is killing local retail, which I would rather support.

However, this could have the unintended effect of just killing small retail businesses with paperwork.

[Dantheman]

You knew this was coming. I'm just glad I no longer have to dutifully track and declare all of my out-of-state purchases, that was a big headache.

[riser4]

yeah, I was pretty shocked when I moved to Seattle almost 30 years ago, that I had to pay "sales tax" (I know it wasn't sales tax, but a rose by any other name) on a car that I had purchased in VT 3 years earlier.

And VT does the same thing, so that's teh funneh that you were going between the two. Wouldn't have mattered which direction.

[Skistack]

Amazon already collects / pays alot of sales tax since "substantial connection" to a state includes states where they have a distribution center located.

[Danno]

Have you ever had to remit sales taxes before? Filed the paperwork. Registered in all of those districts. Its not the math that is the problem here.

I actually support this level playing field, it is probably 90% of why the internet is killing local retail, which I would rather support.

However, this could have the unintended effect of just killing small retail businesses with paperwork.

Those small retail businesses you are talking about are small INTERNET retail businesses. And remitting sales tax is just the cost of doing business, IMO. Surely something like Quickbooks or the like has this functionality or soon will.

[PNWbrit]

What happens if I live in a tax state, but I am skiing in Montana and buy something on the internet? What about shopping while flying over states and buying from those catalogs in the seat back?

Just have your family foundation make all purchases and avoid all taxation.