Buying Online Will Change Forever

[Btaylor]

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.

At least in my mind sales tax is a point of sale tax to consumers charged at the time of purchase and income tax is withheld at the time income is received. It sounds as if CA in essence was asking to pre-tax income to circumvent the "at the time it is received" aspect of income taxation.

It would be nice if this lead to a move towards a straight consumption tax so we could do away with the inequitable IRC so every individual and business was taxed on a level playing field.

 

[NDGuy]

I am just disappointed I won't be able to get steals on ammo purchases using an online retailer anymore. Won't be finding 9mm for >$.17/round or 5.56 for > $.27/round anymore

 

[super]

Whatever their agenda might me, it’s not gonna work. We will all be criminals because they can’t monitor all online sale. Will we also pay tax for yard sale? The idea itself is laughable.

 

[Murdy]

Doesn't Amazon have a brick-and-mortar presence in a lot of states already? Particularly with their acquisition of Whole Foods as well as their internal distribution system (a lot of what I buy from Amazon no longer is delivered by UPS but by Amazon itself). Not sure why they aren't collecting sales tax already (I looked at recent orders and tax was collected from some but not all).

 

[MallardSX2]

Only thing I know is that I hope the idiot in the 250K yacht (that drove around me in circles playing "Rains in Africa" all night long while I was trying to crappie fish) gets his taxes raised.

I would have sunk that boat given the opportunity.

 

[tlowell02]

I am curious if this comes to fruition, how will that affect Pittman-Robertson funds? I assume more funds would find their way to those coffers which may offset the issue of fewer hunters contributing less dollars.

 

[wapitibob]

Oregon doesn't have a sales tax.

 

[MIKEYB]

Amazon has already started collecting sales tax in states with no current B&M presence. Example: New Mexico. I believe the state requested and Amazon obliged.

According to this article, Amazon only has three states without an agreement to collect Sales Tax.

Amazon to Collect Tax in New Mexico; Only Three States Lack Similar Deal | Bloomberg Tax

 

[Beendare]

Whatever their agenda might me, it’s not gonna work. We will all be criminals because they can’t monitor all online sale.

The gov just ends around it....they will go after the online sellers not buyers....just as NY and Ca has targeted the gun and ammo manufacturers. They can't take away our guns...so they do the next best thing [for them] go after the manufacturers by adding crazy restrictions.