Hey @seeds, you just happened to run across a new boundary. While we’re still adults and open to discussion that includes all of our favorite words; we’ll be keeping f-bombs out of topic titles and URLs from here on out.
At some time over the past 2 years we reached a general consensus that F-bomb subject lines were doing more damage than good. The positive awareness (of how open/uncensored our forums were) is just not worth establishing while also driving away two-thirds of our audience who think they no longer are a match for participating.
We didn’t tell anyone and in general may have even let some more instances slide. Now that we have a legit scapegoat, we’re blaming @Seeds
@snapster Hmm so that now you are resorting to blaming @seeds for this (thus proving that meh does need goats after all) are you going revive the goat trophy tradition that fell by the wayside a number of goats back?
@moonhat South Dakota v. Wayfair is about a state’s right to assign liability for collection and payment of sales and use tax to out of state businesses which have no business location, offices or employees within the state.
Arguments for each party were heard in the Supreme Court last month, and a ruling is expected in June, before the Court adjourns for the summer.
Prescient is “the Quill case” (Quill Corp. v. North Dakota, ca. 1992) in which the Court ruled Quill was not liable for collecting and paying use and/or transaction privilege tax (sales tax).
That’s the short of it. The long of it is much, much more involved.
For what little it’s worth, Mediocre supports a national policy to mandate sales tax collection by medium-size and up online and catalog retailers. Working around travel restrictions and affiliate triggers is a nuisance. Local taxes are important.
@moonhat@ruouttaurmind technically, we consumers are supposed to self assess any sales tax owed to our jurisdictions if the merchant does not collect it on behalf of the state.
NewEgg just made a huge client faux pas. They chose to report all sales in CT to the DOR for the past two or three years, rather than collect it. People were getting fined and interest on top of the taxes they failed to pay – the emails weren’t pretty!
(I don’t think NewEgg has nexus in CT, but I am not sure.)
Mediocre supports a national policy to mandate sales tax collection by medium-size and up
I’m curious what you consider “medium-size and up”? Is this a test of revenue or number of employees, or?
Given the current process, it would be prohibitive for my company to begin assessing and reporting sales and use tax across all jurisdictions. It’s a matter of staffing for me. Though I acknowledge this may be more a fear of the great unknown than actual knowledge of what will be involved.
Within my home state, and I’m sure many others, the state acts as a clearinghouse for TPT collection and disbursement among the various municipalities (town, city, county, state). We are still required to report on origin of revenues, however. Reconciling, calculating and reporting, preparing forms and submitting payments currently requires around 45 minutes to an hour. Negligible, surely.
My concern is multiplying that by 35x or 40x if we were required to report out of state sales. Suddenly I’m looking at the possibility of adding another headcount just to keep track of sales/use tax.
EDIT: Perhaps implementation of such tax reporting should include a federal reporting process similar to the state process I currently work within? The US Treasury via IRS would become a clearinghouse for reporting and disbursement much the way my state dept. of revneue currently handles this?
In it’s most rigid implementation, this ruling could potentially even affect casual eBay and Etsy sellers.
@ruouttaurmind I think it’s possible to argue that the market for third-party cloud-based transaction tools could close the gap for even small business today. But until that’s more obvious, I would say to delay it with a schedule like this:
2019 revenue: $20M or greater
2020 revenue: $10M or greater
2022 revenue: $5M or greater
2025 revenue: $1M or greater
the market for third-party cloud-based transaction tools could close the gap for even small business
Much like the cloud based payroll services currently available. Good thought.
If I were more motivated, this could be a potential business op. Though I’m sure HIG (via QuickBooks) is well ahead of this curve and ready to begin romancing small business TPT reporting if things turn that way.
@ruouttaurmind@snapster we (the company for which I work) use Vertex in the cloud to track our sales tax by lines of business and for a variety of jurisdictions, it is some complicated information! From what I have heard from the filers, it is a nice reporting engine. Not advocating it, but Vertex is already a market leader in tax software, with a cloud solution
P.S. I am not a tax person, just have to understand it for integration with our billing software…
@ruouttaurmind@snapster Its freeping unconstitutional. Restraints on interstate trade, making residents of a state ‘subjects’ whose interaction with people and businesses in other states can be taxed (call it a ‘use’ tax or whatever to get around ‘sales’ tax restrictions) simply because they live there. Its as grotesque as the VAT taxes the europeans are so fond of. Its an abomination. It should not be allowed.
@duodec Obvs municipalities justify it by crying “lost revenue” because stuff which used to be purchased locally and thereby subject to sales tax, has substantially migrated to online sales.
So, yes, I get that tax revenues are down because of online sales… but I think this strategy isn’t the proper solution. But let’s face it: municipal operating costs haven’t gone down just because local retail sales have.
If they don’t recover the lost funds this way, they will just raise local sales tax, property tax, income tax, vehicle registration tax, or (Insert your least favorite tax here). One way or another, they’re gonna get their pound of flesh.
@ruouttaurmind You think they’re not doing all of those things too? And implementing or increasing soda tax and ammo tax and luxury tax and entertainment tax and hotel room tax and employer tax and gas tax and toll increases and license costs and fee increases, along with using law enforcement as revenue enhancement through huge penalty increases. How long will it be before counties start demanding the same, so f*cking crook county says I owe them sales tax on the stuff I drove up to Lake county to buy because the taxes there are lower. Then maybe the cities and townships! Won’t that be fun.
Just because I live somewhere should not entitle the governmental units that serve (ha!) the area tax every damn thing I buy. And that used to be understood until the faux ‘use’ taxes started popping up (unsurprisingly ill-annoy jumped on that bandwagon early, but of course that is also not ever enough).