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Seasoned...
Joined: Sat Oct 21st, 2017
Location: Near The Pointy End , USA
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I see this as a win for State's rights. A concept that has been stepped on since 1861.
I don't think it should be the receiving state that collects the taxes. It should be the state where the product is shipped from. That is where the sale originated.
An example is a gun parts supplier in north Chicago. They cannot stock or sale a magazine that holds more than 10 rounds. It is a local ordinance. This limits the business. All sales from this business should be collecting local sales tax for every transaction - local laws.
So.... from the article itself and
" The cases the court overturned said that if a business was shipping a product to a state where it didn't have a physical presence such as a warehouse or office, the business didn't have to collect the state's sales tax. Customers were generally supposed to pay the tax to the state themselves if they don't get charged it, but the vast majority didn't."
" Consumers May Be Required to Report and Pay Sales or Use Taxes
For consumers that order tax-free items online, but live in states that charge a sales tax, they are technically required to report that purchase to their state tax agency and pay the sales tax directly to the agency. When consumers are required to do so, it is often called a "use" tax.
The sole difference between a sales tax and a use tax is the person that ends up giving the money to the state government.
When it is a sales tax, the retailer is the one handing over the money, while a use tax is handed over directly by the consumer. However, collecting use taxes on small purchases often costs more than simply letting the consumer not pay the use tax. Instead, state tax agencies try to focus more on collecting use taxes for big ticket items that are purchased online with no sales tax, such as cars and boats.
Be aware, there are a number of states that have stepped up their enforcement of their use tax laws and are now trying to make their state residents pay the taxes that should be paid."
Source: Findlaw
"But just because the retailer doesn't collect the sales tax doesn't mean the purchase isn't subject to tax. Purchases made on line aren't automatically exempt from tax. If the retailer does not collect the sales tax, the purchaser has the obligation to pay the use tax directly to the state where the property is used as long as the item is taxable.
Use tax is defined as a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. Use tax is a complimentary tax to the sales tax and does not apply if sales tax was charged."
Source: Sales Tax Institute
So curious because even for myself Internet purchasing was fundamentally attractive because I myself never paid a tax on any items that weren't taxed. Some Amazon items had been but so I am curious as to how many other people knowingly defrauded their own STATE on purchases and either did not pay taxes on such items or can i get a show of hands for all of you pillars of the community? Come on now.. Whose paid their out of state sales taxes?
Don't be shy...
OK, now ya'll just being obstinate.. put your damn hands up if you're the model citizen!
yeaaaaaa... that's what I thought. LOL
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Roman courtier during the reign of Nero.
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