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Thread: Online purchases and state taxes

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    Online purchases and state taxes

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    Since I haven't figured out polls on here and this could become a debate I am posting this here


    There is no national sales tax and Congress has not moved ahead with proposed legislation that would give all states the power to enforce their sales tax laws on Internet retailers.


    WASHINGTON Diverging high court rulings in New York and Illinois over 'Amazon taxes' point to a possible U.S. Supreme Court case to settle questions about the legality of states taxing online retail sales, lawyers said on Monday.

    With Congress failing to take action on the issue, courts have been intervening case-by-case in a long-running struggle between state governments and major online retailers, including Amazon.com Inc, over sales tax.

    On Friday, the Illinois Supreme Court voided a state law attempting to collect sales taxes from online purchases. A trade group representing Amazon and other online businesses had challenged the state's online sales tax in court.

    In New York, though, the state's high court decided earlier this year that Amazon and Overstock.com Inc could be compelled by the state to collect tax from online sales. Amazon and Overstock have appealed to the U.S. Supreme Court. New York has until Wednesday to file its response.

    Different decisions in different states improve the odds that the Supreme Court will tackle this issues, said Stephen Kranz, a partner at law firm McDermott Will & Emery.

    "There will continue to be additional litigation at the state level exacerbating the problem," Kranz said. "That is clear and should be a factor considered by the court in deciding whether to take the New York or Illinois case."

    The Supreme Court accepts only a small portion of the thousands of petitions it gets each year, but it is often more inclined to step in when lower courts disagree. If the New York case were taken, oral arguments could come by April.

    "The Illinois Supreme Court acknowledged the New York decision, but ruled for a different reason, setting up a possible challenge to the U.S. Supreme Court," said David Blum, a partner at law firm Levenfeld Pearlstein LLC.



    To read the entire article:

    States' online 'Amazon tax' fight may land in Supreme Court


    What are your thoughts?
    Should all online purchases be taxed?
    Should they be taxed based on the state the company resides in or based on the state the purchaser lives in?
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    I think it should be up to each business. I online shop a lot. Some places charge tax and some don't. Even for states that have a state income tax it isn't consistent. And I don't mind. Either do away with it completely for internet sales (that are going to different states) or allow each business to choose.
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    From my understanding online purchases are taxed but you have to self report, the problem is that people don't report the purchase to their state when they file.

    I don't like paying taxes on every dang thing so I wish there were no online taxes. Since I don't have the option of avoiding the tax I am going to over simplify my stance and go with I would rather pay taxes to my state of residence since its where I vote, i.e. "no taxation without representation". Why should I have to pay taxes to another state? I don't live there and I don't use the public services.
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    I can't remember how the tax code works, does the business have to pay sales tax on online transactions? If so, I have no problem paying the tax. If the tax only pads the pockets of the businesses and doesn't actually go to to the government then I don't want to pay it.

    I think it should be taxed on the place the items are shipped to. State Sales Taxes benefit the state in which they are taxed... the person who is purchasing the item resides and uses the roads and other stuff that the local government has to pay for. To me, it only makes sense to keep the money in that economy.
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    I know I've paid taxes with other businesses. I don't see the big deal I guess. Although Anchorage has no sales tax and Wasilla where we're moving has 2% sales tax, so not a deal breaker for us.
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    I think this is a nightmare for very small businesses. Suddenly someone who sells handmade yarn on Etsy has to figure out how to properly calculate sales tax for sales that they make to different states (and then some counties within states have different rates). I think that is too much of a burden and just isn't reasonable.
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    #7
    Quote Originally Posted by villanelle View Post
    I think this is a nightmare for very small businesses. Suddenly someone who sells handmade yarn on Etsy has to figure out how to properly calculate sales tax for sales that they make to different states (and then some counties within states have different rates). I think that is too much of a burden and just isn't reasonable.
    Personally, I would imagine Etsy would responsible for providing the calculation in the system. And I would imagine the system would know the tax dependent the state.

    Or do you use PayPal? Lol I have never used those websites. Then I imagine it would be PayPal who enhanced their system.
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    in GA we are taxed for ALL online purchases. the state of GA says that we pay sales tax when we go to the store, why should purchases be exempt just because they are purchased on line.
    the state loses a lot of money when they online purchases are not taxed.

    for example- I only buy coffee on line, I but 100 dollars worth of coffee every 8 weeks, I CAN find the same coffee locally but get a better deal buy buying it online, I pay a couple of dollars for taxes and nothing for shipping. really there is no big difference to me.

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