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-   -   Supreme Court overturns Quill, subjects all internet transactions to sales tax (http://www.net54baseball.com/showthread.php?t=256539)

rats60 06-22-2018 06:04 AM

Quote:

Originally Posted by JustinD (Post 1788819)
I would doubt eBay has any need to change software, I can not see where that line of thinking is coming from. Much like why you do not charge sales tax at a garage sale, future laws should in all cases not affect a occasional seller on eBay.

As was quoted earlier South Dakota brought this forth will a set of guidelines that the seller have 100k in business or a minimum of 200 transactions. To take it lower as was theorized earlier would be a enforcement nightmare, the states see this as some cash cow, but will soon find the costs of an enforcement group for this will outpace easily the rewards against crossstate small sellers.

This is for large internet sellers and companies.

I would assume that if you are an eBay seller that is big enough to be going after as a state agency and have it think there is a reward in it, you are either already collecting it or known this was coming eventually because you have been using this income on your 1040 as a job.

I don't think you will see states going after small retailers. It took South Dakota's levels to get 5 votes in the Supreme Court. Anthony Kennedy, who was the driver of this case, praised South Dakota for taking a moderate approach. He also pointed out that states may not place undue burden on interstate commerce. Trying to collect sales tax on every online sale with individuals would certainly fit. Probstein and PWCC will be affected. Most eBay sellers will not.

JustinD 06-22-2018 07:39 AM

Quote:

Originally Posted by rats60 (Post 1788860)
I don't think you will see states going after small retailers. It took South Dakota's levels to get 5 votes in the Supreme Court. Anthony Kennedy, who was the driver of this case, praised South Dakota for taking a moderate approach. He also pointed out that states may not place undue burden on interstate commerce. Trying to collect sales tax on every online sale with individuals would certainly fit. Probstein and PWCC will be affected. Most eBay sellers will not.

Totally agree on the point with small retailers,

The case was pushed because of Wayfair.com. Those are the folks in the crosshairs, retailers that have millions in sales and only charge tax in states of operations.

Brian Van Horn 06-22-2018 07:44 AM

1 Attachment(s)
My initial reaction before loopholes:

steve B 06-22-2018 10:07 AM

Quote:

Originally Posted by BobC (Post 1788652)
Leon,

These aren't NEW taxes. States have had Sales AND Use tax laws in effect so that if the seller isn't required to collect the Sales tax, the buyer is supposed to report and pay the comparable Use tax on what they purchased. Very few people voluntarily do this. Just look back at the threads where people complain about having to pay Sales taxes on auction winnings from some AHs and not others.

It is exactly because of all those people that have not followed the law and properly calculated and paid the Use tax on their online and other such purchases that the states have had to resort to finally going after the large online retailers to make them start collecting it. To try going after all the individual buyers would be unbelievably complicated, difficult, and most likely political suicide for any state politicians who tried to get that going and backed such a plan. By going after the big online retailers instead, the states can get more revenue all at once than they would by trying to go after each individual buying online. And even though the individual consumers/buyers would still end up ultimately paying the sales taxes, the states and politicians have a little more cushion and less direct anger by not going directly against the individual buyers themselves.

On the state's side of things, as more and more people switch to online/internet buying, the states are losing out on Sales tax revenue they used to get from the brick and mortar stores. It is also helping to more quickly kill off many brick and mortar stores as they can't compete with online retailer prices. When the buyers know they aren't going to get charged Sales tax from an online vendor but, if they buy the exact same item from a store down the street from where they live, they know they are going to get charged sales tax at the store. So guess where the buyer is more likely to make their purchase from, especially the higher the price of the item they are looking to buy?

All the states are trying to do is figure out how to best get the current laws on their books complied with by the buyers, the majority of whom seem to always be trying to figure out how to get around paying Sales or Use taxes they actually owe.

So if I get back to selling off my extra stuff, I should bear the burden of
A) Figuring out what your state tax is
B) Finding out if you have a county and /or city sales tax
C) Filing paperwork with possibly multiple agencies and paying multiple agencies whatever that tax comes out to.
D) figuring out how to pay them, because I'm sure some will only take electronic payments and filings, others will want hard copies, etc.

Because it's "too unbelievably complicated/ difficult" for the state to handle their own tax collection in THEIR state?
Hey, how about we just make sure that every store makes the customer total their own sale, and handle their own paying, and if it's cash make their own change. Cause, you know all that stuff about getting paid is just way too hard.....

So if I sell a couple 1981 Topps commons to someone, it looks like I'll have a couple hours of overhead. Because politicians and their relatives they've made tax collectors are too lazy.

The only local card shops that have survived are the ones that are good at using the internet. That's true for a lot of small businesses.
This won't help brick and mortar at all, and I believe it will essentially shut down many small businesses especially ones that deal in hobby stuff.

ValKehl 06-22-2018 10:49 AM

Quote:

Originally Posted by rats60 (Post 1788860)
I don't think you will see states going after small retailers. It took South Dakota's levels to get 5 votes in the Supreme Court. Anthony Kennedy, who was the driver of this case, praised South Dakota for taking a moderate approach. He also pointed out that states may not place undue burden on interstate commerce. Trying to collect sales tax on every online sale with individuals would certainly fit. Probstein and PWCC will be affected. Most eBay sellers will not.

Sorry to be a contrarian, but unfortunately, I suspect that in the not too distant future, we will see eBay adding sales tax to ALL invoices from ALL sellers, except for purchasers who are exempt because they are resellers. Being a huge organization, it should not be difficult for eBay to do this. eBay would transfer the sales tax info to PayPal so that PayPay can collect the taxes and remit them periodically to all the state and local jurisdictions on behalf of ALL the eBay sellers. Being a huge organization, it should not be difficult for PayPal to accomplish this. While eBay sellers will thus not be burdened, I assume that eBay and/or PayPal will increase their fees to sellers for handling the sales tax collections and remittances.

keithsky 06-22-2018 10:50 AM

Just another way to generate more money for the stinking politicians and their pork projects

Santo10Fan 06-22-2018 10:52 AM

Quote:

Originally Posted by brianp-beme (Post 1788643)
And how will this affect Auction House sales...I assume all winners would be paying some sort of sales tax. Even more pain on top of hammer price painl for the buyer, an extreme hassle for the auction house (if sales tax is to directed to state of buyer).

Brian

This reminds me that Heritage, who has a physical presence in Illinois, charged me sales tax before and it was at the rate of it's office address in Chicago. The levy was significant-over $200.

Santo10Fan 06-22-2018 11:04 AM

Quote:

Originally Posted by ValKehl (Post 1788935)
Sorry to be a contrarian, but unfortunately, I suspect that in the not too distant future, we will see eBay adding sales tax to ALL invoices from ALL sellers, except for purchasers who are exempt because they are resellers. Being a huge organization, it should not be difficult for eBay to do this. eBay would transfer the sales tax info to PayPal so that PayPay can collect the taxes and remit them periodically to all the state and local jurisdictions on behalf of ALL the eBay sellers. Being a huge organization, it should not be difficult for PayPal to accomplish this. While eBay sellers will thus not be burdened, I assume that eBay and/or PayPal will increase their fees to sellers for handling the sales tax collections and remittances.

I concur with this sentiment, and I do have some evidence to back it up. On May 31, I received an email from ebay asking me to sign a useless petition-the "last chance" to "make my voice heard". I disregarded it as absurd, since the Supreme Court makes decisions based on reasoned argument-not whining. It got my radar up however, because I forgot the Court was considering it, and I realized ebay had a dog in the fight in the from of seller backlash. Considering how expensive it is do business on ebay, combined with the risks-I firmly believe it is the administrators' responsibility to integrate the new tax initiatives into the site.

Santo10Fan 06-22-2018 11:10 AM

Quote:

Originally Posted by Rhotchkiss (Post 1788537)
Have not read the decision -- when is it effective? I mean, by what date do sellers need to charge/buyers need to pay, sales tax?

I assume Supreme Court decisions are effective immediately. South Dakota may be able to retroactively collect from the time the court case began. But if the SC overturns a criminal conviction, that person is freed pronto. If anyone sees sales tax crop up on ebay seller/buyer invoices this week please let me know.

rats60 06-22-2018 11:17 AM

Quote:

Originally Posted by ValKehl (Post 1788935)
Sorry to be a contrarian, but unfortunately, I suspect that in the not too distant future, we will see eBay adding sales tax to ALL invoices from ALL sellers, except for purchasers who are exempt because they are resellers. Being a huge organization, it should not be difficult for eBay to do this. eBay would transfer the sales tax info to PayPal so that PayPay can collect the taxes and remit them periodically to all the state and local jurisdictions on behalf of ALL the eBay sellers. Being a huge organization, it should not be difficult for PayPal to accomplish this. While eBay sellers will thus not be burdened, I assume that eBay and/or PayPal will increase their fees to sellers for handling the sales tax collections and remittances.

I don't see that ever happening. Why would EBay want to destroy their business? Why would they want to take on an unnecessary burden? If they force all sellers to charge sales tax when 90%+ don't need to, most of those sellers will leave. I collect sales tax on sales within my state and send it to them. In the unlikely event I need to do it for other states I will. I will not charge people sales tax on items they don't need to pay it on.

This decision is aimed at large resellers like Warfare, who hurt small business by not charging sales tax and states who have seen revenue decrease because of large online retailers. It is not aimed at trying to collect on every single sale, even if it is an individual selling an used item that they no longer have need of.


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