Tax collecting

M

Mr. Clean

The Man Who Knows The Man
How closely have the online vendors been following the efforts of some states to begin requiring you to collect taxes on all taxable items even on purchases made from those in locales where you do not have a physical presence? It seems that the state of NY has become fairly aggressive in attempting to collect those taxes, due at least in some part to the downturn in "normal" tax revenues. Several other states including FL and TX have expressed at least a passing interest in getting in on some of these tax resources.

How would the requirement to collect these taxes impact your (cost of) business?
 
We would roll with it. It definitely would not be good for e-commerce though.

I haven't paid any attention to that stuff. I have enough to worry about.:redface:
 
I'm sure you would (roll with it) and do (have enough other stuff to worry about) :) I know that many of you all currently have to deal with the associated paperwork in for sales in your respective states. I was just curious what the additional papework would do to your workloads to deal with all of the other states. It would seem somewhat daunting, but I don't know that from experience.
 
Mr. Clean said:
How closely have the online vendors been following the efforts of some states to begin requiring you to collect taxes on all taxable items even on purchases made from those in locales where you do not have a physical presence? It seems that the state of NY has become fairly aggressive in attempting to collect those taxes, due at least in some part to the downturn in "normal" tax revenues. Several other states including FL and TX have expressed at least a passing interest in getting in on some of these tax resources.

How would the requirement to collect these taxes impact your (cost of) business?
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i have read about it but it seems to me that it would be almost impossible to do. I believe 16- or 17 states have adopted a similar tax law to be able to tax internet sales ... where i find it impossible would be the book keeping needed to pay each state :crazy: right now Amazon.com is fighting it, so I'll just watch :inspector:
 
I just attended a Sales Tax seminar here in KS. In Kansas there is a specific law that says that washing a car is subject to sales tax, so I just applied for my KS sales tax ID on-line.

Some other interesting things I learned today is for example, Amazon.com has a Nexus, meaning that they have a building, employee or realestate property basically a presence in pretty much all states, so if you purchase a book on-line out of state you will be charged sales tax. Wal-Mart is also another company like this.

I also learned that any Internet purchase you make personal or business is subject to use tax if purchased from another state. However, the instructor which is also an auditor said they don't go after the personal violators but small businesses.

He said you'll get caught if you are registered to collect sales tax and not registered to pay use tax. If you deduct an extractor you purchased on Ebay on your taxes and you are audited and you don't have either proof you paid sales tax or filed use tax you are in violation and subject to penalties, etc.
 
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