Supreme Court overturns Quill, subjects all internet transactions to sales tax

[barrysloate]

Every year I send $39 to Early American Coppers, an organization of large cent collectors, for my yearly dues. This week they sent me an invoice for $42.46. No, the rates didn't go up, but they did add $3.46 tax to my bill. Imagine paying sales tax on membership dues. My first experience with the new law.

[tschock]

Originally Posted by barrysloate

Every year I send $39 to Early American Coppers, an organization of large cent collectors, for my yearly dues. This week they sent me an invoice for $42.46. No, the rates didn't go up, but they did add $3.46 tax to my bill. Imagine paying sales tax on membership dues. My first experience with the new law.

Here's your second. In some states, dues and other services are subject to sales tax.

[barrysloate]

Originally Posted by tschock

Here's your second. In some states, dues and other services are subject to sales tax.

We'll soon find out who charges and who doesn't.

[BobC]

Originally Posted by barrysloate

every year i send $39 to early american coppers, an organization of large cent collectors, for my yearly dues. This week they sent me an invoice for $42.46. No, the rates didn't go up, but they did add $3.46 tax to my bill. Imagine paying sales tax on membership dues. My first experience with the new law.

And it is not just rates for sales tax that may vary by state and jurisdiction, each states has different rules and things they may tax for sales tax purposes, like dues in the state in Barry resides in.

I'm in Ohio and sales tax here is also on things like snow removal, exterminator services, physical fitness facility services, laundry and dry cleanings service, etc. The one fairly constant though among all states collecting sales tax is that it is collected on the sale of tangible personnel property to final users/consumers. In other words, baseball cards you buy as a collector are always going to be subject to sales tax. If you buy cards as a dealer and intend to resell them, your purchase would then not be subject to sales tax but, you would instead have to charge sales tax to whomever you sell those cards to, unless it is also another dealer going to resell them.

I've heard of people that will print off a sales tax exemption certificate from online and fill it out and then give it to an auction house or dealer they are buying cards from so as not to have to pay the sales tax by claiming they are a dealer themselves and going to resell the cards. Good luck if they ever get caught.