Buying Online Will Change Forever

Rokwiia

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Yesterday's U.S. Supreme Court ruling opens the door for states to tax sales of internet products even where the seller has no attachment to the state the buyer is from. It overturns the Quill decision.

Why is that significant for us? Anyone who's looking to buy a big ticket item may want to do so sooner than later. Once states enact laws to tax internet sales, and I suspect that will occur quickly, you'll be paying sales tax on products you never had to before.

As you may already know, if a Colorado retailer sold a tent to someone living in Georgia, no sales tax was charged on that tent unless the Colorado retailer had a bricks and mortar location in Georgia. Now, tents, backpacks, electronics, scopes, clothing, firearm accessories, and more may now be subject to sales tax if states enact legislation.

You way want to pull the trigger sooner than later on something you've considered buying.
 
Joined
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It's been just a matter of time. I just bought a new tent and at ck out I saw the tax and went with a different retailer that didn't charge tax.

It is what it is.
 

go4thegusto

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States are going to get it somewhere. With all the brick and mortar stores closing there has been chatter of higher property and/or income tax to make the state and local budgets. I would rather see consumptive taxes.
 
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I agree that it’s time for an internet sales tax, both to keep the revenue from being funded elsewhere and to help the smaller brick and mortar stores compete.

If Trump wants to encourage “buy American”, I’d rather see American made products be sold tax free than tariffs on imports.
 

Beendare

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Had to happen. Its all about leveling the playing field.....without tax the online sellers had a strategic advantage.

Do we want all of the brick and mortar stores to close shop because they cannot compete? I think not.

The online folks will always have the advantage of being more convenient.

Speaking for myself, what is the cost of driving around looking for what I want, traffic, crowds....vs shopping online...and in some cases its at my doorstep 2 days later. The brick and mortar models are still going to struggle to compete with the convenience factor of online.
 

Crippledsledge64

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Unfortunate but I also think it had to happen. If the brick and motor stores continue to close Amazon (and their dubious stance to hunting) will basically have a monopoly. I think thought the future will be mostly online stores with small brick and motor outlets to try stuff on (kuiu, sitka, etc) than just one or the other. The convenience of ordering online coupled with the ability to try things on or buy without waiting for shipping if your close. I imagine most of the bigger non grocery brick and motor stores will probably still close. I know cabelas, bass pro, dicks, gander mountain, etc have all felt the pressure from online competition coupled with the cost of all that overhead.
 
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Saving money on sales tax is really low on my list of reasons I prefer to ship online. I don't foresee it having an effect on where I spend my money.
 

cg2737

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Most business's I spend my money with have both brick and mortar and online sales. This also seems like a very complicated tax situation, and additional expense for the business owners.
 

Randy Newberg

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As a CPA, this decision is a head scratcher. It is contrary to prior cases and tax law principles used to establish what "creates taxable nexus." In other words, what about the transaction gives the taxing jurisdiction (state in this case) the right to tax the transaction.

California lost a case that said CA could not tax retirement benefits of state employees who moved out of CA. The rationale presented by CA was that since the money was a benefit earned while living in CA and it was paid from CA to the retiree, CA should have the right to tax it. CA lost, and their case, at least based on tax law principles, was a lot stronger than this case.


With this new case weakening past tax law principles and precedent, I expect states to get a lot more aggressive in taxing anything they can get their hands on. This case surely makes it more likely for states to prevail in new efforts.

Odds are this case will affect a lot more than just sales tax assessed against online sales. Hold on to your wallets.
 

Trial153

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I can undersatnd that its and individuals responsibility to pay sales tax to the state they reside in on items they purchase on line. However I don’t think it’s constitutional to force an individual or company to collect and remit a sales tax to a state that company doesn’t doesn’t physically in.

Sent from my SM-G950U1 using Tapatalk
 

LostArra

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Nothing surprises me when it comes to taxation in the US. Needlessly complex at all levels. No offense Randy :)

It does surprise me the Supreme Court is even involved in the case. As the dissenters mentioned it looks like a legislative/Congress issue but I'm sure those groups were happy to hand it to judges who don't face reelection..
 

Beendare

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Nothing surprises me when it comes to taxation in the US. Needlessly complex at all levels.
^ agreed....its a convoluted mess.

Can you imagine being a Pro Basketball player that has to file in every state they played in? Not that I feel sorry for them....


It does surprise me the Supreme Court is even involved in the case. As the dissenters mentioned it looks like a legislative/Congress issue but I'm sure those groups were happy to hand it to judges who don't face reelection..

Congress is worthless. All the Dems do is fight Trump and cause a logjam, they don't want whats best for the people. For that matter, the Reps don't necessarily want whats best for the people either....congress is all about grandstanding and staying in office so politicians maintain power. All of the important issues end up having to be decided by the courts
 

Cdpp880

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Now starts the states fighting for the lowest online sales tax to try and get the internet based business to come the their state. Should be interesting and frustrating at the same time.
 

cnelk

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Mar 1, 2012
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The ‘little businesses’ are impacted most.
They don’t have the software for all the states different taxation districts.

But guess who does?
Amazon.

Amazon will now sell that software to the small businesses and that cost will be reflected in higher prices to cover.
 

Mike7

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I understand the concept of the CA decision, because those individuals are no longer CA State residents and I understand the concept of this Supreme Court decision on interstate commerce and online sales (because out of state e-commerce companies are not being discriminated against and don't need to sell into that state if they don't collect the sales tax), but I don't understand this jock tax.

Do long haul truck drivers paid by a company based out of Oregon for instance, break their pay up 50 different ways and fill out 50 different state income tax forms? If not discriminatory, at the very least that is unduly burdensome and not supported by the interstate commerce clause I would think. So that seems unconstitutional and unfair to me, not that I otherwise really care about a good portion of pampered, hypocritical, unpatriotic basketball players.
 

SoDaky

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Apr 6, 2018
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sd
Doubt the future bodes well for Ma/Pop brick n mortor shops regardless of the tax scene.'Easy' convenience prevails nowadays almost regardless of costs.On the other hand,if you 'rich' States want to help us out here in SoDak,thanks in advance.Anything to keep us away from an income tax appreciated.Greed is good.
 
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