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...

[the*dog*ate*my*tablecloth]

I'm sure Mississippi will change and add a marketplace clause just like Pennsylvania has done. I'm surprised Ebay hasn't implemented sales tax for that State yet.

[fuestor0]

You're assuming all sellers are going to charge the tax, there will be sellers who currently still...do not pay taxes like you and i. Unless eBay forces the issue. Is what i was saying.

[the*dog*ate*my*tablecloth]

As I posted on another thread, the days sellers can skip paying taxes is coming to an end. Both for sales and income taxes. Some States are lowering the reporting requirements for 1099s. Non-reporting sellers are going to find it much harder to hide going forward.

[Anonymous]

Fellow PA seller here. Do you recall what the threshold is? As I sell clothing which isn't taxed here, I hadn't previously worried about sales tax collection, as only the random swimsuit (which is taxable) sold to a PA resident would likely contribute to the threshold, not my total sales to PA residents...I hope.

[the*dog*ate*my*tablecloth]

I had to go to the website. I think the level was 10K. The website is www.revenue.pa.gov/marketplacesales

[djmovers99]

Would you think that we would at least have until the end of the year before any state implements this tax?  I would like time to dump my inventory.

[Anonymous]

Did the ruling just give STATES the right to tax? Or does it apply to any taxing body (i.e. municipalities and counties, too)? I need to read the actual ruling.

[the*dog*ate*my*tablecloth]

[the*dog*ate*my*tablecloth]

The key line in the letter is make or facilitate. That's how they're going to get Ebay and other marketplaces.

[grasshopperx]

Internet selling has been a good gig for millions. Now, as always, the greed will ruin it. It's been a great economy that has sprung up over the last 20 years. With internet taxes ,people may as well go back to the B&M stores. Revenue will be lost in the end by billions. So be it. Stupid is as stupid does.

[ymeagainlord]

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@dugoldstuff wrote:

> 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!

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Exactly

[b86fiero]

Take a deep breath everybody and try to understand that this is not the final decision regarding sales tax collection on internet sales.

The federal government will not allow a financial meltdown of businesses that operate online.  Online businesses will not go down like dominos.  The ruling overturns two previous rulings and in a slim 5-4 majority now agrees that states can collect sales taxes from internet sales, however, it does not instruct states how to accomplish that.  Nor does it instruct businesses on how to collect and remit monies due.

There will be appeals.  The President will probably weigh in and muddle the landscape.  

Congress can implement new laws.  A flat 5% sales tax has been kicked around for years, with collection at the time of payment, and remittance to a US government entity for distribution to individual states.  

New laws enacted at state levels can be appealed to State Supreme Courts and then appealed again to the US Supreme Court.

There will be vast amounts of sales tax money moving around the country which will require more government oversight.  This oversight mechanism will need to be legislated then implemented. 

There will be a time period of chaos as businesses and state legislators hammer out workable laws and collection systems.  

The government understands that if this ruling forces mass business closures to occur unemployment rates will skyrocket and another great recession is quite possible.  Many families and businesses across the country are still struggling from the effects of the last recession.  I believe the federal government and legislators will step up to see that another recession does not occur.

On the States side, I imagine those 5 or 6 states that do not charge sales tax may rethink that position.  All of that additional money flowing into some coffers might encourage those states to grab some of that easy cash.

Currently I believe when it comes down to it, online businesses will have to pay one set sales tax percentage per state.  Forget about all of those 12,000+ individual taxing jurisdictions. 

This is only the beginning.  Implementation will take time.   

[ersatz_sobriquet]

Senate and house representatives will be on this like white on rice...votes and all, more money for their states. I don't think this will take as long as you think....

[b86fiero]

My opinion is that politicians will tread carefully as this ruling pits taxing authorities against consumers.

Consumers vote. 

Taxing authorities take money away from consumers who vote.

[k-mansparts]

I agree with a lot of what you say . . . only one problem.
The American people and what they elect . . . simple and efficient when it comes to government happens very little.
The first thing that will happen is multiple states changing their laws as quickly as possible for a money grab. Things will get screwed up badly before any change for the better.