SUPREME COURT RULES THAT STATES CAN CHARGE TAXES ON INTERNET PURCHASES

[mallontown]

How will this pertain to ebay?

Do sellers have to look up all 50 state tax rates?

Will this cause sellers to leave ebay?

https://www.12newsnow.com/article/news/nation-world/supreme-court-allows-states-to-collect-sales-tax...

[courtneypmbowie]

This is asinine. If the government had to actually strictly follow all the ridiculous laws they implemented and rulings that courts passed like small businesses do, we'd have 80% of them gone in a heartbeat.

[sfc_auto_parts]

I think each state will have its own threshold in which sellers have to collect sales tax, example South Dakota requires any business that’s generates $100k annually or 200 transactions to collect. I assume most states will have a similar threshold

[k-mansparts]

Sales tax codes are much more complicated then the state itself. 50? try over 10,000 different codes. Within my state alone, you have a state sales tax, county sales tax that some have and some don't and city sales tax. Within 10 miles of me, there are at least 5 different sales tax codes based on location, not to mention different codes on certain items and we have a sales tax discount for senior citizens.

[babalu20]

When I used to sell, Ky. collected every penny on every in-state sale whether it was 2.00 or $250. Cannot imagine that poorer states will not now force sellers to collect on all sales, just like they require taxpayers to report all untaxed internet purchases and pay any sales tax owed. No way to validate that though, just an honor system of reporting.

[lewisburggold]

Here we go.  Its time for the tax train.  Looks like will all be getting a visit soon.  Sellers are struggling already with what they have to deal with .  We feel yes it will run some good people off.  Best regards

[the*dog*ate*my*tablecloth]

The threshold may apply to the marketplace though, not to the individual seller.

I got a letter from the PA department of revenue the other day explaining that marketplaces or single sellers needed to collect taxes if they have sales above a certain threshhold. My website doesn't come close to qualifying but Ebay will.

They had specific wording for marketplaces.

[fern*wood]

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@sfc_auto_parts wrote:

I think each state will have its own threshold in which sellers have to collect sales tax, example South Dakota requires any business that’s generates $100k annually or 200 transactions to collect. I assume most states will have a similar threshold

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The 200 transactions will include a lot of sellers even if this were the case, and will each state set different thresholds?  How would a seller know before the end of the year how many transactions they will have in order to know they needed to collect the tax?

[ymeagainlord]

I'm going to assume the offshore sellers will be exempt?

[the*dog*ate*my*tablecloth]

The PA letter said the requirement to collect sales tax was based on the sales for the previous year.

[fuestor0]

Essentially we're screwed. i already collect for my state..Now my fees just went up at least 7%

[papermoneyforme]

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@fuestor0 wrote:
Essentially we're screwed. i already collect for my state..Now my fees just went up at least 7%

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Your fees did not go up.

You collect the tax from the buyer so his cost goes up.

[southern*sweet*tea]

Mississippi has been collecting online sales tax since the first of the year. Amazon has been charging it "voluntarily" since last year. 

"Any company marketing to Mississippi customers and making sales of more than $250,000 a year into the state must collect."  So small internet sellers need not worry about Mississippi.

[k-mansparts]

A lot of that will change quickly. Most states didn't fight for lower thresholds because of the previous rulings.  Now it will become a free-for-all. 

A federal flat interstate commerce sales tax for packages that cross state borders (since states have their own collection laws, not to mention rates within counties and cities) of 3-5% would be more than fair and much easier (cheaper collection cost for sellers & states) with distribution to the states based on companies locate within those states. 

[dugoldstuff]

> Sales tax codes are much more complicated then the state itself. 50? try over 10,000 different codes. Within my state alone, you have a state sales tax, county sales tax that some have and some don't and city sales tax. Within 10 miles of me, there are at least 5 different sales tax codes based on location, not to mention different codes on certain items and we have a sales tax discount for senior citizens.

Right!

    And different states tax different things.  Like in PA, they don't tax food (but do tax candy) and don't tax clothes (but do tax bathing suits and purses). 

    And, like the poster said, different municipalities within a state levy their own taxes. For example, in PA, Philadelphia has a 2% tax on taxable goods. So, you will have to know where you are shipping, for example, and give some to the state and some to the municipality.

   So, is eBay's coming Ayden or Arden or whatever it's called, set up to subtract all these taxes and funnel them to the proper place in our name? Or, and I going to write a $2.00 check to Philadelphia, for instance?

   Finally, how is any state/municipality going to demand CHINA pay taxes? HA HA, good luck with that!