We have to get a Sales Tax Permits for Kansas even though have only one sale?

[eastcoastmermaids]

I am a very small seller. I did go ahead and Join Tax Jar months and months ago When all this Internet Sales tax came out.  I wanted to make sure I was in compliance, they let you know if you have met the threshold and I have not. ..Well, there seems to be a lot of gray areas. To date I have read about each state and I am concerned about Kansas. according to Kansas, you still have to apply for a Sales Tax Permit even if you have just one sale for any amount. There is no Threshold, this is being appealed supposedly , but I want to be in compliance.  What have you other long time small sellers done about Kansas? Also Pennsylvania is a concern, I have not crossed a threshold there but according to the latest information from Tax Jar, they have a Notice & Report law (guess that's like use tax or so they can collect use tax)  and you have to set those up even if you don't cross any thresholds or apply for a Sales tax license in their state as well by March 1st. I know that Kansas sales tax Permit is  supposed to be easy to apply for  and free but what about Pennsylvania, this is all so wishy washy. I just would like some input Please.  Help. My tax advisor will not be able to help with this, they don't understand Online businesses. No one does.  Help. 

[johnrj1226]

@buyselljack2016 
There was a time Kansas had "blue laws" and an commercial airplane could not sell liquor over the skyways  of the state of Kansas.  Recall going to Topeka several times in the mid 70s and wanted to take my customers out for a cocktail or two or...  I had to join a club - cost $1.00 and a lot of signing in a registery book.  Then had to figure out how many  drinks we all would have.  Once  that was figured out I paid up front for 1/2 of the cost of the  drink  x the qty.  That was the states share - taxes.  Then we paid the other 1/2  to the waiter/waitress for the house's share.

Understand only a couple Kansas counties now  have those "blue laws".

[montana_echoes]

okay, so the jist of this post is that the Original Poster is going to file for a license in Kansas just so they can send them $2.00 in sales tax on one little sale. And the rest of us 1/2 million small time sellers that may or may not have ever sold to Kansas (me -- and no, I'm not even going to look, I don't care) will NOT be filing or paying any piddleling little amount to Kansas. Now if Kansas wants to come after me, oh, I so scared. As Mam Said, "HOW WOULD KANSAS EVEN KNOW?" The whole point of forcing ebay to collect sales taxes for states is because the states DIDN"T know about the sales and could only guess how much money in sales tax they were losing each year.

Its up to ebay.  

Frankly, I have to say to the OP -- get real, quit being scared of something that isn't going to happen, ignore Kansas sales like the rest of the hundreds of thousands of us ebayers will and stop sweating the small stuff. You are getting yourself into a frazzle for no reason.  If Kansas wants sales tax collected, it will join the market place faciliators  that the other states are doing and have ebay collect it.  

Quit worryingj. Gads... if you had a garage sale and a person from Kansas stopped in, would you fret about that tax also? 

[gracieallen01]

@mam98031 

Mam, did you read the bottom of the page where Avalara is one of the sites that helps people sign up for the Kansas tax program and assists helping lay and professionals understand it.  One might think that they might have a vested interest - and it is also from August of 2019.

[gracieallen01]

@montana_echoes 

You think the population of Kansas is enough to be able to go after everyone who owes $1.25 in taxes for the year?  And, that would be enough gas to get them about a 10 miles start, for most. 

[gracieallen01]

@eastcoastmermaids 

There are a lot more people making money -besides sales tax - off of this than just Kansas.

"

Kansas is a Streamlined Sales Tax (SST) state, so remote retailers can register through the  Streamlined Sales Tax Registration System and use a  Certified Service Provider (CSP) to fulfill most sales and use tax obligations. Businesses that qualify as a “voluntary seller” in Kansas may be eligible to receive those services at a significantly reduced cost. Learn more about the  SST and why you should care about it.

Avalara is an SST CSP and can help you register and apply for free sales tax services in Kansas."  -  Bolded red, poster added.

[myboardid]

I have made exactly 24 sales to residents of Kansas this year.  I will not be registering there.  They cannot put that burden on tiny businesses, it would be defying the Supreme Court. 

[gracieallen01]

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@myboardid wrote:

I have made exactly 24 sales to residents of Kansas this year.  I will not be registering there.  They cannot put that burden on tiny businesses, it would be defying the Supreme Court. 

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I agree and figure it will come back to the courts.

[eleanor*rigby]

Do you know what town is in Kansas? Dodge City. Home of Matt Dillon--the sheriff, not the actor. Where Wyatt Earp was an assistant marshal.

Those people don't mess around.

[mr_lincoln]

@eastcoastmermaids   In order to Sell online via Amazon, Ebay, Etsy, Bonanza, Poshmark, Etc you do NOT need to apply for any tax documents for any state.  If you want to buy item to resell and live in a state that has a Sales Tax then you apply for your state's tax ID.

ALL Sales / Use tax is being collected and remitted by the online venues ... Sellers do NOT have to report Sales / Use tax.  They can deduct it from their gross sales on the PayPal total for a tax deduction but there is no reporting for the Seller to do.

[performance_technology]

I would get advise from a CPA.  The laws right now are a huge mess.  All I can say is that dealing with rules and regulations of 50 states is a huge burden for small sellers.  I have no idea why some states have such low requirements for economic nexus but it's only to the benefit of the big players to make it harder for small businesses to start and operate.

[the*dog*ate*my*tablecloth]

All sales/use tax is NOT being collected by the venues. There are still several states where they do not have Marketplace Facilitator laws and sellers are still responsible for sales tax on sales within their own state.

Sellers could get into serious trouble if they stop collecting and remitting taxes when they are still required to.

[gramophone-georg]

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@the*dog*ate*my*tablecloth wrote:

All sales/use tax is NOT being collected by the venues. There are still several states where they do not have Marketplace Facilitator laws and sellers are still responsible for sales tax on sales within their own state.

Sellers could get into serious trouble if they stop collecting and remitting taxes when they are still required to.

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If it's a state that I don't live in that's going above and beyond Wayfair, they can stick it where the sun don't shine.

State law can't trump Federal law or the Supreme Court for residents of other states. In state is a different story.

[eleanor*rigby]

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@gramophone-georg wrote:

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State law can't trump Federal law or the Supreme Court for residents of other states. In state is a different story.

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I'm not sure how you think Kansas is going "above and beyond Wayfair." All the SCOTUS said in South Dakota v. Wayfair was that states have the right to charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. It didn't actually create a specific law per se. It especially didn't create a marketplace facilitator law.

Individual states can create their own laws concerning the assessment and collection of sales tax and are certainly not required to adopt a marketplace facilitator law. 

If there are any Federal laws concerning the assessment and collection of sales tax, I'd like to hear about it, since sales/use taxes are promulgated at the state level, not the Federal level.

[mam98031]

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@gracieallen01 wrote:

@mam98031 

Mam, did you read the bottom of the page where Avalara is one of the sites that helps people sign up for the Kansas tax program and assists helping lay and professionals understand it.  One might think that they might have a vested interest - and it is also from August of 2019.

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While some of there services are free, others aren't.  Somewhere along the line they have to make money to stay in business and offer the services they offer.  Anyone that wants to pay another company to handle this can.  To me it seems a complete waste of money, but it is a choice that each of us can make for ourselves.

[gramophone-georg]

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@eleanor*rigby wrote:

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@gramophone-georg wrote:

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State law can't trump Federal law or the Supreme Court for residents of other states. In state is a different story.

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I'm not sure how you think Kansas is going "above and beyond Wayfair." All the SCOTUS said in South Dakota v. Wayfair was that states have the right to charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. It didn't actually create a specific law per se. It especially didn't create a marketplace facilitator law.

Individual states can create their own laws concerning the assessment and collection of sales tax and are certainly not required to adopt a marketplace facilitator law. 

If there are any Federal laws concerning the assessment and collection of sales tax, I'd like to hear about it, since sales/use taxes are promulgated at the state level, not the Federal level.

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The law states that the Feds control interstate  commerce. Yes, states can set their own sales tax rates for businesses and residents IN THAT STATE.  A state can't just unilaterally subject sellers out of that state's jurisdiction to terms outside the SCOTUS Wayfair decision. It's not lawful because a) the Federal Government alone has the right to regulate interstate trade, and b) state law CANNOT trump federal law. PERIOD.

Here's the SCOTUS ruling:

https://www.aicpa.org/advocacy/state/south-dakota-v-wayfair.html

Here are the legal parameters:

"On June 21, 2018, The United States Supreme Court ruled 5-4 in South Dakota v. Wayfair that states can mandate that businesses without a physical presence in a state with more than 200 transactions or $100,000 in-state sales collect and remit sales taxes on transactions in the state."

I think you should be able to see quite clearly how this Kansas thing goes way beyond Wayfair and how it would be impossible for Kansas to come after sellers in other states over that overreach.

This is PRECISELY WHY the Kansas AG's office stated that they didn't believe this ruling is enforceable.