Looks like B&H, Adorama, etc will start collecting sales tax

unfocused

Photos/Photo Book Reviews: www.thecuriouseye.com
Jul 20, 2010
7,184
5,484
70
Springfield, IL
www.thecuriouseye.com
fullstop said:
i find it amazing that "in one nation under god" there is not "one unified, nationwide sales tax, applicable on any and all sales, be they online or locally "offline"...

Remember that the U.S. was founded by a bunch of tax protesters who were deeply skeptical of strong central government. Over 200 plus years our federal government has slowly absorbed more authority, but the concept of separate states united together and reserving to themselves all powers not specifically grated to the central government remains a core constitutional principle.
 
Upvote 0

unfocused

Photos/Photo Book Reviews: www.thecuriouseye.com
Jul 20, 2010
7,184
5,484
70
Springfield, IL
www.thecuriouseye.com
Graphic.Artifacts said:
The roots of "one nation under god" only go back to 1950's McCarthyism and have nothing to do with the founding principles of the United States of America.

Let’s not nitpick. Clearly Fullstop was placing the emphasis on “one nation”in the context of a single unified government. The specific phrase he used has a history of its own, but I don’t think it’s necessary to devolve into political debates about 1950s anti communism. I did not use that phrase and was only explaining why we the United States has a patchwork of state and local tax laws, instead of a true national system.
 
Upvote 0

unfocused

Photos/Photo Book Reviews: www.thecuriouseye.com
Jul 20, 2010
7,184
5,484
70
Springfield, IL
www.thecuriouseye.com
neuroanatomist said:
unfocused said:
Remember that the U.S. was founded by a bunch of tax protesters who were deeply skeptical of strong central government.

Yeah. An unacceptably onerous tax rate of 3%.

That didn’t come anywhere near the cost of supporting and protecting colonies that were halfway across the world.
 
Upvote 0

stevelee

FT-QL
CR Pro
Jul 6, 2017
2,379
1,063
Davidson, NC
The Boston Tea Party is somewhat relevant to this discussion. The protesters were not complaining about a tax, but the lack of a tax. The East India Company didn't have to pay tax, thus undercutting local merchants. That is not the way it was explained to us as kids.

I will refrain from pointing out the levels of irony in the current Tea Party movement, especially when they get elected to Congress. That would get us too political, though issues of taxation are relevant to the current discussion.

As for the Pledge, when I was a kid, I learned the original Baptist version that said "one nation, indivisible." That would be more to fullstop's point.
 
Upvote 0
Apr 23, 2018
1,088
153
stevelee said:
As for the Pledge, when I was a kid, I learned the original Baptist version that said "one nation, indivisible." That would be more to fullstop's point.

yes! thanks. did not want to make references to mc carthian anti-communism. just wanted to express my surprise that a (big, powerful, well-organized?) country does not seem able to design a unified/harmonized sales tax system that applies to all its citizens, wherever they live and wherever they shop and purchase products.

in europe only switzerland comes to mind as a country with strongly differentiated tax regimes for each "state" ("kanton"). anyways, so far their model has also been reasonably successful. and definitely "well organized". :)
however, even in Switzerland VAT is an (indirect) federal tax with unified rules for the entire country. normal rate VAT is a surprisungly low (for Europe) 7.7% with a reduced rate of only 2.5% and a special rate of 3.7% for tourism (lodging). due to their non-membership in the EU, correct handling of taxes, duties and incurred VAT is an absolute bureaucratic nightmare for both dealers and customers for any cross-border transaction, no matter whether online or offline. ;-)

but at least *within one country* VAT on offline and online trade should not be such a complicated matter in 2018. but politics, public administration and laws are always behind the times. what was good governance when out of state purchases were an exception and goods delivered by wells fargo stage coach (unless it was raided en route) is not necessarily adequate any longer in 2018. ;-)
 
Upvote 0
Seems to me this was less an issue prior to Internet sales and the development of effective and efficient door to door shipping. Most often in the past, we would usually head down to the local store, buy our equipment, become friends and customers ... pay tax, and forget it.

Suddenly, UPS and FEDEX, and the like became cost-effective to deliver merchandise, and that's when the issue of sales tax becomes relevant to each state ... even tho, in law, the tax should be added to tax return or some other method in the state of habitation (or the employment??)

But, I venture to guess most purchasers of out/state equipment either 'forget' or 'don't realize' that tax is still due in home state. I'll leave that one alone for now - but the major tax collection runs hand in hand with internet ordering and transport across state lines. Legal, of course, but awkward for any in-state tax system.

I'd be curious to know how a company distributes the tax, once collected?? Does it send each state a portion depending on where it ships >>> and what about no-sales-tax states, like New Hampshire??
 
Upvote 0
Jul 21, 2010
31,202
13,073
monkey44 said:
I'd be curious to know how a company distributes the tax, once collected?? Does it send each state a portion depending on where it ships >>> and what about no-sales-tax states, like New Hampshire??

They collect the tax appropriate for the billing address of the customer, and remit that tax (in aggregate) to each state periodically.
 
Upvote 0
unfocused said:
neuroanatomist said:
unfocused said:
Remember that the U.S. was founded by a bunch of tax protesters who were deeply skeptical of strong central government.

Yeah. An unacceptably onerous tax rate of 3%.

That didn’t come anywhere near the cost of supporting and protecting colonies that were halfway across the world.

It appears they didn't need protection.
 
Upvote 0
neuroanatomist said:
monkey44 said:
I'd be curious to know how a company distributes the tax, once collected?? Does it send each state a portion depending on where it ships >>> and what about no-sales-tax states, like New Hampshire??

They collect the tax appropriate for the billing address of the customer, and remit that tax (in aggregate) to each state periodically.

In the state I live in, sales tax rate varies by county and municipality. State tax is consistent, the other two are not and all three get a cut. If a retailer is to collect a tax appropriately there is a State website that will give the exact rate.

This law in some ways helps B&H, they will have the staff and resources to implement collecting taxes. Start up online retailers will be at a disadvantage.
 
Upvote 0
Dec 25, 2012
750
376
Old Sarge said:
kphoto99 said:
Mt Spokane Photography said:
privatebydesign said:
That's a naive expectation. I believe the intent is for sates to start collecting money left on the table, nothing more or less.
Exactly, states relying on sales tax for income are suffering. Its Walmart and the Big chains pushing for the new rules.

Instead of relying on sales tax, why not eliminate it completely and raise income tax. It is the same people who pay income tax and sales tax. This would reduce the cost of the extra bureaucracy for collecting sales tax.
There are nine states which have no state income tax (though two of those states tax investment income) so that would be an issue. And the sales tax is often divided between state/county/city (in Texas it is divided between state/city with limits on both and how it is distributed). I once did some research on states with income tax vs. states without income tax but a higher sales tax. Using my estimated figures in retirement it worked out to about the same (I also figured in property taxes). Those states with higher property/sales taxes and no income tax ended up with about the same amount of my income and those with lower property/sales taxes and an income tax. Can't escape
taxes, I'm afraid.

I did the same exercise and found the same results. Here in California we have some of the lowest property tax rates in the nation and an income tax with surcharges for the very wealthy. What it creates is a volatile revenue stream for the state that swings wildly with economic conditions. Yet the native cowardice of legislators coupled with the foolish notion that somehow we can have low taxes AND government services prevents any remedy.

What many are ignoring here is that the decision was on SD law which exempted smaller businesses from the law.
As for filing in multiple tax jurisdictions, yes, pay a service to do it. Then pass the cost on to your customers just like everyone else does.

I am astonished how many people feel that they have to shield their customers from cost increases. When my rent goes up, I pass on the cost. When my insurance goes up, I pass on the cost. When my gas goes up, I pass on the cost.
If you think you can't pass on the cost maybe you are in the wrong business.
 
Upvote 0