Senators Vow To Renew Bid For State Taxes On Remote Internet Sales 268
jfruh writes "A bipartisan group of U.S. Senators are working hard to make it legal for U.S. states to collect sales tax on any sales made to their residents, even if the sellers live elsewhere. They tried to add an amendment making the change to an unrelated defense appropriations bill, but the attempt was defeated. They have vowed to try again."
Re:Creates a near monopoly (Score:2, Informative)
these companies exist but are very expensive. Probably because it's a nightmare to figure out what to charge for which address at what time for which product.
The rules are beyond insane in one state alone for one company and one product, let alone trying to figure this out for a huge range of products. Also note that these tax zones are not split on zip code boundaries! Getting it wrong means huge liabilities...
Source: I take care of sales taxes for two states.
Re:Why is this a states issue?... (Score:5, Informative)
Seems to me that the states shouldn't be trying to deal with the taxes on this, and instead congress should be doing it under the mantle of "Regulating Interstate Commerce". Pass a law that says all sellers must collect and report both federal and state income tax on sales as if the sale were occurring at the buyer's physical location, or the location to which the product is delivered. (Whichever is easier to make into an enforceable law).
Simple, clean, unambiguous, very few loopholes, and understandable to customers.
It is anything BUT clean - it is a complete mess for businesses to try and figure out what tax to charge and who it gets sent to. It is not just 50 states, it is as you suggested the buyer's physical location, so every other tax on top also must be calculated, collected, and paid to the local parish, county, city, district, etc. And add in some audits by each of these taxing authorities. Paying local taxes is is easy when Mom and Pop hardware is selling to it's walk in customers, they pay the city, county, state and federal govt. And it is almost workable for a large corporation that pays for a top tier ERP system and adds a tool like vertex (expensive and must be maintained by a team). But your proposal just cut off any small - medium business that wants to sell beyond the physical locations they occupy. I hep you like Walmart, because they and others sized like them will be your online provider of products.
Re:Um... (Score:5, Informative)
Try again, loser. CA pays the feds quite a bit more than it gets back. *WE* are paying to support *YOUR* failed state.