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Tourer
Posts: 394
Tucson, AZ | As of today California is charging 7.75% sales tax on sales made in their state. Is this the new trend? Your thoughts. | |
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Visionary
Posts: 1359
New Bohemia, Va | There are some purchases from the internet, depending on the state, that state tax is charged. In the scheme of things, what makes what you buy from the internet than if you buy in person from the state that it is sold in. I'm no fan by any means of sales taxes or any other tax, but I've never understood the difference, but greatly appreciated it when no tax was charged when I bought it from the internet.
Right, wrong or indifferent, it is the way of life. | |
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Cruiser
Posts: 189
Baltimore, Md | There is a big difference between the current (pre-California) method of charging tax on the internet and what was just passed by Brown and the CA. legislature. The previous situation involved sales on the internet where the company selling had a presence in those states specifically - so the theory was that buying online was no different than buying in the actual state. So, the conclusion was that the online purchase was merely a means of escaping the local sales tax. This new tax is nothing more than a general, overall revenue grab to shore up a failing CA. economy on the backs of others. They now tax any purchase, even though it has no direct presence or impact on CA., other than to grab unearned revenue. It is already showing how such taxes will negatively affect the economy, as Amazon has stopped their CA. business. So, in just that case, balance the lost revenue through sales-jobs-shipping, with the slightly increased revenue through the taxes. | |
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Iron Butt
Posts: 742
North Orange County CA | flint350 - 2011-07-01 7:29 AM
This new tax is nothing more than a general, overall revenue grab to shore up a failing CA. economy on the backs of others. They now tax any purchase, even though it has no direct presence or impact on CA., other than to grab unearned revenue. It is already showing how such taxes will negatively affect the economy, as Amazon has stopped their CA. business. So, in just that case, balance the lost revenue through sales-jobs-shipping, with the slightly increased revenue through the taxes.
Excuse me if I call BS. This is not a "revenue grab".
All states that have sales taxes require purchasers who buy items over the internet to pay a sales or use tax on item they buy. The CA law just shifts the burden of collection of those taxes from the state, to the retailers who are making the sales and have easy access to the transactions.
Here is an example - Maryland's Law.
http://individuals.marylandtaxes.com/usetax/default.asp
This new law is simply an effort to collect taxes that are legitimately owed by Californians.
The cost to an online retailer is small - push a couple of buttons on the software to activate the sales tax for CA and cut a check once a month. It has been a while since I had to fill out the forms personally but many states compensate retailers with a percentage of the tax collected for their trouble.
What Amazon and other online retailers are concerned about is potential loss of sales, since they will loose a 7.75% (in CA) price advantage. An advantage that they enjoy because citizens don't pay the taxes that they owe. Every state has the same problem, and have legal departments that are jumping all over themselves trying to figure out a ways to capture that lost revenue.
As to your assertion that the new law is already hurting CA , we'll see , my guess is that in the long run it will bolster local business not hurt it.
BTW: The state also reduced the overall sales tax rate by 1% today.
Edited by Tarpits99 2011-07-01 12:07 PM
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Cruiser
Posts: 189
Baltimore, Md | Tarpits99 - 2011-07-01 12:01 PM Excuse me if I call BS. This is not a "revenue grab". All states that have sales taxes require purchasers who buy items over the internet to pay a sales or use tax on item they buy. The CA law just shifts the burden of collection of those taxes from the state, to the retailers who are making the sales and have easy access to the transactions. Here is an example - Maryland's Law. http://individuals.marylandtaxes.com/usetax/default.asp This new law is simply an effort to collect taxes that are legitimately owed by Californians. The cost to an online retailer is small - push a couple of buttons on the software to activate the sales tax for CA and cut a check once a month. It has been a while since I had to fill out the forms personally but many states compensate retailers with a percentage of the tax collected for their trouble. What Amazon and other online retailers are concerned about is potential loss of sales, since they will loose a 7.75% (in CA) price advantage. An advantage that they enjoy because citizens don't pay the taxes that they owe. Every state has the same problem, and have legal departments that are jumping all over themselves trying to figure out a ways to capture that lost revenue. As to your assertion that the new law is already hurting CA , we'll see , my guess is that in the long run it will bolster local business not hurt it. BTW: The state also reduced the overall sales tax rate by 1% today. Excuse me while I refute BS. Maryland does NOT collect taxes on internet sales except - as I noted - for purchases from companies that already have a presence in the state. Read your own link. Before you "call BS" get your facts in order. You may support this revenue stream because as you say "the cost to an online retailer is small". I don't. My "assertion" about the law "already hurting CA" was stated at the very story itself. This from one of your own state's newspapers, the Orange County Register: Gov. Jerry Brown has signed into law California's tax on Internet sales through affiliate advertising which will immediately cut small-business website revenue 20% to 30%, experts say. The bill, AB 28X, takes effect immediately. The state Board of Equalization says the tax will raise $200 million a year, but critics claim it will raise nothing because online retailers will end their affiliate programs rather than collect the tax. Amazon has already emailed its termination of its affiliate advertising program with 25,000 websites. So "call BS" to them. And by the way, the word is "lose" not "loose". I call BS.
Edited by flint350 2011-07-01 7:09 PM
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Iron Butt
Posts: 742
North Orange County CA | Sorry if misspelled a word, but if you want to get anal about my spelling, be my guest.
While you may be correct that Maryland does not collect the sales tax on internet sales, you as a resident are still responsible to pay a 6% tax on every purchase made out of state.
You didn't follow the entire link, so I will quote it.
"When you purchase goods from businesses located outside of Maryland, they are not required to collect Maryland's sales tax unless they have a physical location, or deliver services, in Maryland. Also, you are not required to pay the sales tax in the state where the business is located.
However, you are required to pay the 6 percent use tax directly to the Comptroller of Maryland by filing the consumer use tax return by the appropriate due date.
If you do not pay Maryland's use tax on purchases made out of state, you could be liable for penalties and interest in addition to the tax due."
http://individuals.marylandtaxes.com/usetax/usetax.asp
Just because the retailer doesn't collect the tax does not change the fact that you owe it.
Edited by Tarpits99 2011-07-01 9:06 PM
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Cruiser
Posts: 189
Baltimore, Md | On the "use tax", you are correct and I was wrong. They can, technically, force you to pay it, though it is largely ignored. I apologize, my bad. | |
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Visionary
Posts: 1229
Rancho Cucamonga, CA | This is really going to affect the sales of internet companies here in California. Most already do not get the business of their fellow Californians' because it means their products are %7.75 more costly than the same product sold from an internet company in any other state. Now they will lose business from customers in other states as well whom do not want to pay the extra %7.75 just for the privledge of buying from the left coast. It is true that every Californian is suppose to claim on their taxes all purchases made 'out of state' and pay taxes on them, but other than vehicles that require registration, the state has no way to check up on this, So no one ever does. What this law does, is collect taxes from people in other states that are supposed to be paying a use tax on that item as well (double taxing).
So, should taxes be based on where you buy an item, or where you use an item? or both (like the new CA law), that's the question. | |
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Tourer
Posts: 492
Indianapolis, IN | In general taxes hurt business. Especially when they keep raising the percentage. Politicians that don't have the kahunas to be straight with the public they represent are scum. We all need to learn that we've all been sold a bill of crap for the past 60 years and that no government that spends more than it takes in can remain solvent for long. We have allowed this to go on way to long and believe me when it comes time to pay the piper they ain't nobody gona be happy! We haven't seen anything like it's going to take to get us out of this hole, and there's not a damn thing we can do to change it now.
Edited by hoosiervic 2011-07-02 10:47 PM
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Visionary
Posts: 1324
So Cal | The government just spent billions bailing out the BIG BOYs. They need you tax money! Pay up you dead beats! They did it with everything else, the internet is next. The new helmet law. | |
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Iron Butt
Posts: 741
Central New York | I can't be bothered about who charges tax and who doesn't, that what makes internet shopping so great. I shop price + shipping + tax, best bottom line for a like item gets the sale. I don't really care if the vendor makes the money or Calf., if they got the deal, I but, if not, I move on.
It is just a matter of time before there is no business in CA or NY to buy from anyway, they will both just be empty waste lands. | |
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Tourer
Posts: 323
Troy, NY | Where is the Victory talk in all this? The less taxes from government the better IMO. I guess I won't buy any victory parts from Cali - lol!
Edited by adirondacks 2011-07-04 2:57 PM
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Tourer
Posts: 329
scotts valley, California | FROM THE MIDST OF THE EMPTY WASTE LANDS, g'day, gentlemen. This whole thing is just another small example of how desperately in trouble our entire national economy really is, world economy too, for that matter. The good news is that we have Victory. Where is my Bike? Out in the carport waiting for me. She won't have to wait long! | |
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Boycott California internet sales?