Sales Tax Collection Now Applies Across the Nation

[rustyrail]

Now that the Unites States Supreme Court allows all states to collect sales tax on all online sales by a 5 to 4 vote, how are we as small businesses going to be able to stay in business. It will be impossible for me as a small business to process sales tax payment for every entity in every state in the United States.

Only large corporations with huge resources will be able to comply with this ruling.

Question -

Would it be possible for eBay to collect and process the sales tax from all of our sales?

Any thoughts or Suggestions ????

[allkindagoods]

Today's Supreme Court ruling will give the states the authority to collect sales tax from ANY BUYER in ANY STATE, for goods sold and shipped from ANYWHERE.

You are stating the facts of the old ruling. It was instituted over 50 years ago to benefit mail order companies, whose sales were a mere "drop in the bucket" compared to what ECommerce companies take in now.

When one reviews the facts of this, it is really unfair for states to lose sales taxes on items that were formerly purchased at brick-and-mortar stores. Overall, our national infrastructure and public education systems will benefit from the increase in funds.

[cs43ls]

I think that ebay will  sooner or later be pressed into collecting the sales taxes for all sales made.. ( here comes an other fee)

I would like to know how this will impact  the chinese ( and other foreign ) sellers. Are their american  BUYERS going to be exempt from the sales taxes ? 

 If yes, then this is again a very uneven playing field and a very costly one for sellers on Ebay and other domestic venues. Somehow, I just cant see the foreign companies  collecting taxes  and forwarding to the local taxing authorities.

 Happy selling,

[stuff4divas]

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@allkindagoods wrote:

Today's Supreme Court ruling will give the states the authority to collect sales tax from ANY BUYER in ANY STATE, for goods sold and shipped from ANYWHERE.

You are stating the facts of the old ruling. It was instituted over 50 years ago to benefit mail order companies, whose sales were a mere "drop in the bucket" compared to what ECommerce companies take in now.

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No- i am quoting from this article: 

http://www.kusi.com/u-s-supreme-court-says-online-shoppers-can-be-forced-to-pay-sales-tax/

U.S. Supreme Court says online shoppers can be forced to pay sales tax

June 21, 2018

[rixstuff]

You only collect sales tax IN YOUR OWN STATE for sales IN YOUR OWN STATE.  I, in Virginia would not (and WOULDNT) collect or pay Pennsylvania taxes.  and what if we dont? What will they do to me in Virginia? There is no legal remedy for them to come after me IN MY STATE for taxes FOR THEIR STATE.  I also wouldnt even pay Virginia taxes in most cases even for sales WITHIN Virginia.  Second hand items dont apply and I am not a licensed business and there is no requirement for one for yard sales and such.

[allkindagoods]

Exactly Correct.

The ruling which was overturned did NOT require buyers to pay sales tax on anything shipped to them from another state.

Now the states will have the power to collect tax on all purchases made, no matter where they are shipped from.

[rixstuff]

Dozens of times since Ebay came to be greedy states have looked longingly at our sales and coveted taxes they felt they were missing out on.  The problem wasnt even whipping up enough support to pass legislation to create the taxes but the reality of how to collect it.  It just wasnt possible and STILL just isnt possible.

[rixstuff]

Other states will get taxes from me when they pry from from my cold dead hand.

[tyler@ebay]

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@rustyrail wrote:

Now that the Unites States Supreme Court allows all states to collect sales tax on all online sales by a 5 to 4 vote, how are we as small businesses going to be able to stay in business. It will be impossible for me as a small business to process sales tax payment for every entity in every state in the United States.

Only large corporations with huge resources will be able to comply with this ruling.

Question -

Would it be possible for eBay to collect and process the sales tax from all of our sales?

Any thoughts or Suggestions ????

---

Hi everyone. We have a statement about today's decision here.

The Court’s decision is focused on large retailers who engage in a significant quantity of business in a state, and the retailers involved in the case are large, national companies. In other words, it remains to be seen what today’s ruling may mean for small businesses. 

As a next step, we are calling on Congress to step in and provide clear tax rules, with a strong small business exemption, to help small businesses take advantage of the Internet to grow and create local jobs.

[stuff4divas]

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@allkindagoods wrote:
Exactly Correct.

The ruling which was overturned did NOT require buyers to pay sales tax on anything shipped to them from another state.

Now the states will have the power to collect tax on all purchases made, no matter where they are shipped from.

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OK so the article tyler from ebay provided is wrong too regarding SMALL businesses?:

https://www.ebaymainstreet.com/news-events/supreme-court-rules-internet-sales-tax

[junkjungle]

You're missing the point. This law gives the state the right to collect tax from any seller without regard to what state the seller has a presence. So if you are in NY and sell something to a person in IL you will be required to pay sales tax if IL requests it. IL also will have the right to charge you more or less than the sales tax they charge their locals. And when you buy a ticket for a plane or place a bet online expect to pay sales tax. IL is crazy enough they may even charge you a sales tax if you buy a ticket on a plane that crosses over the state boundaries regardless of it's final destination. This law opens pandora's box to all kinds of crazy stuff. Just wait.

[junkjungle]

There will have to be a database for every zip code for every state and locality that passes laws for collection of online taxes. Since each state will have different requirements it will be virtually impossible for small businesses to manage. Avalara is a new IPO whose business is to make sales tax software. Their stock ticker AVLR jumped 13.4% today on the news.

[stuff4divas]

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@junkjungle wrote:
You're missing the point. This law gives the state the right to collect tax from any seller without regard to what state the seller has a presence. So if you are in NY and sell something to a person in IL you will be required to pay sales tax if IL requests it. IL also will have the right to charge you more or less than the sales tax they charge their locals. And when you buy a ticket for a plane or place a bet online expect to pay sales tax. IL is crazy enough they may even charge you a sales tax if you buy a ticket on a plane that crosses over the state boundaries regardless of it's final destination. This law opens pandora's box to all kinds of crazy stuff. Just wait.

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Not missing the point. I live in Chicago, so what u say about IL is OLD OLD news.

We are talking about SMALL sellers here, so U r missing the point.

This decision is for LARGE businesses.

[somanypostcards]

This decision is NOT just for large businesses.  I took the time to read the entire 41-page US Supreme Court South Dakota v. Wayfair, No. 17-494.  In it they say "South Dakota affords small merchants a reasonable degree of protection."  That protection is South Dakota sales of $100,000 or 200 transactions.  I am a high volume, low cost seller.  It's entirely possible that I could have 200 SD transactions sell for a quarter each, so that the $48.00 from these sales would mean I would have to collect and pay taxes to South Dakota.  Pennsylvania and Washington have laws (beginning in 2018, I believe) requiring collection of sales tax.  These laws are now valid, since the Supreme Court, as of today, says that even if you do not have a physical presence in a state you can be required to collect sales/use tax.  Amazon and Etsy collect the sales tax for PA and WA and send it to these 2 states, so their sellers don't have to worry.  eBay does not provide this service at present.

[seeknfind115]

If I am not mistaken they already collect taxes for those items your speaking of. Maybe it would be a nice idea if they used the money they collected wisely instead of taxing and taxing and taxing and taxing and taxing and taxing and taxing and taxing.....

[rustyrail]

According to Stuart Varney on Fox News and Fox Business New this morning small retailers will have to collect and submit sales tax for over 12,000 entities across the United States. He also indicated that there is no remedy in sight for this situation.

His guest also indicated that almost every state will implement requirements that online sellers to
collect and remit sales taxes very shortly.

Basically it seems that the SCOTUS ruling is a DEATH NAIL to small retailers!!
Advantage Brick and Mortar and large online sellers.