Sales tax . . . the problem has begun

[k-mansparts]

SCOTUS  has ruled 

the problems will be enormous 

[paulie_58]

Here is the thing: 

If big box retailers already have brick and mortar and sell online--- like Walmart, Target etc----how is that levelling the playing field. 

They collect sales tax and pay the IRS end of year. 

Why would ebay be any different.

[goodluckselling]

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@paulie_58 wrote:

Here is the thing: 

If big box retailers already have brick and mortar and sell online--- like Walmart, Target etc----how is that levelling the playing field. 

They collect sales tax and pay the IRS end of year. 

Why would ebay be any different.

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I have never heard of any state that allows collecting sales tax and paying once a year?  It is usually every quarter in most states.

Good Luck Selling!

[tealt]

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@paulie_58 wrote:

They collect sales tax and pay the IRS end of year. 

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The IRS does not collect sales tax.  Ever.

Usually sales taxes are paid to a state.

[tealt]

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@goodluckselling wrote:

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I have never heard of any state that allows collecting sales tax and paying once a year?  It is usually every quarter in most states.

Good Luck Selling!

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I'm in California, and I pay once a year--on January 31st.

In California, how often you pay depends on taxable sales volume.

[the*dog*ate*my*tablecloth]

I pay MA sales tax once a year. I don’t have a lot of sales in my state so it’s usually less that $100

[keziak]

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@goodluckselling wrote:

It has been suggested that the states will bring in between 12 Billion to 33 billion depending on the state. It we just average it out to 20 Billion per state in generated Internet taxes that equals one trillion dollars collected in total.

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Wait, let's say a state getting $12 billion in state sales taxes (a year?). How on Earth much money is being spent by people in that state online? 

Or is that gross receipts spent by people in that state?

[charleskinney]

You people thought it was only about state sales tax? Wait for it.........There WILL be a Federal Sales Tax on every transaction. People forget they have been talking about that for a very long time. 🙂

[goodluckselling]

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@keziak wrote:

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@goodluckselling wrote:

It has been suggested that the states will bring in between 12 Billion to 33 billion depending on the state. It we just average it out to 20 Billion per state in generated Internet taxes that equals one trillion dollars collected in total.

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Wait, let's say a state getting $12 billion in state sales taxes (a year?). How on Earth much money is being spent by people in that state online? 

Or is that gross receipts spent by people in that state?

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I am not sure how they came up with these totals, but these are consistant with several different articles.  This link talks about total commerce online and it was just published a few days ago.  1.3 Trillion in the 1st quarter 2018.

https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

Good Luck Selling!

[southern*sweet*tea]

State of MS

http://www.djournal.com/news/court-ruling-allowing-online-collection-of-taxes-could-lead-to/article_...

"There also is a question of how much new money the state will receive because of the Supreme Court ruling. In early 2017 Revenue Commissioner Herb Frierson reached an agreement with many major online retailers resulting in them collecting the 7 percent use tax on the items they sell to Mississippians and remitting that revenue to the state.

During a June 2017 to October 2017 period, the state collected $47.8 million from the voluntary taxpayers."

Four months, $48 million in a state of less than 3 million, half of which do not even have internet access and don't shop online. That's A LOT of money.

Imagine how much larger states will collect...

[craigstevensstudio]

ya what a joke!

[keziak]

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@goodluckselling wrote:

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@keziak wrote:

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@goodluckselling wrote:

It has been suggested that the states will bring in between 12 Billion to 33 billion depending on the state. It we just average it out to 20 Billion per state in generated Internet taxes that equals one trillion dollars collected in total.

---

Wait, let's say a state getting $12 billion in state sales taxes (a year?). How on Earth much money is being spent by people in that state online? 

Or is that gross receipts spent by people in that state?

---

I am not sure how they came up with these totals, but these are consistant with several different articles.  This link talks about total commerce online and it was just published a few days ago.  1.3 Trillion in the 1st quarter 2018.

https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

Good Luck Selling!

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That appears to be gross receipts. What the states will get in sales tax would be like 6% of that. Still plenty of money of course.

[k-mansparts]

States will move faster and the politicians will sell it as taxing those outside your state.  Revenue without taxing their voters is a politicians wet dream.

[turnsby777]

Hey- wait a minute. The flood of knock offs- all the China sellers- are they going to have to do sales tax also?

[arumugar]

I am a small seller on eBay and I am confused about this tax as of now.

Hope it will get more clear.

I will stop selling if I have to manage all those taxes and not eBay.

If there is a limit then I will reduce myself to big margin items.

Yes my sales have dried up since May 2018.