Taxes. And more taxes.

[CIC]

10 hours ago, JLSleather said:

I don't think you understood what he's telling you.

Please specify.

[mrwatch]

I have followed this some. Many USA states now require sellers from other states to collect the sales tax and pay to the state of customers location. whether or not you have an actual store in that state.   One business article I read lady said it will cost at least $25,000  to set up a computer program and manage it.she must do a lot of sales?  In my state It falls under "use tax", I/e like if you buy something under your sales tax license then use it for personal use you must now pay the sales tax, or "removed" from inventory. How will they tract everybody I have no idea. But if you have a sales tax number and ship out of state you need to be looking into this. Use tax seems to be rationale behind the new law as it hurts the states revenue and local businesses. 

 

[Bmwmoa67707]

Amazon's (and other entities similar to them), motives are not completely what they appear to be....they "appear" to be compliant with various state sales tax laws, and that they are.  But the real benefit to Amazon, et.al., is the massive amounts of money they have in their bank accounts, that they have zero investment in, that is the sales tax monies they collect.  They remit the sales taxes due to the states every thirty days, and yes, it's probably done every day due to the unimaginable amounts of dollars they collect every day in sales tax, but they get to "borrow" if you will, massive amounts of money "free" on a monthly basis....that's why Amazon didn't object to the states requiring the collection of sales taxes.  Aside from a relatively small amount of expense to administrate the collection and remittance of the sales taxes collected, it's a HUGE win for Amazon and their ilk. 

[JLSleather]

1 hour ago, mrwatch said:

Use tax seems to be rationale behind the new law

Use tax is not the same - there has "always" been a use tax, separate and distinct from sales tax.

 

[mrwatch]

On 1/11/2020 at 8:20 AM, JLSleather said:

Use tax is not the same - there has "always" been a use tax, separate and distinct from sales tax.

 

Yes I do understand use tax. However in an online article I read it was mentioned, right or wrong. One time while shopping in Chicago a clerk said he could mail me the purchase so I would not have to pay the Illinois and Cook County taxes. But rightly I would have had to pay it to my state upon receiving it so just paid it. Which has a lot to do with so many states wanting in.