Taxes for online shopping gaining support in Congress and Amazon

[Top100EbooksRank]

http://www.chicagotribune.com/busine...,1334697.story

A Web trade association that includes eBay, Overstock.com and Facebook is fighting the new bills. But notably, Amazon.com appears to have waved the white flag and supports the sales tax measures. Some analysts said they observe a shift by the online retailing leader, which could lead to a fundamental change to the rapidly growing e-commerce business.

Technically, when consumers shop online, they are supposed to pay sales tax by reporting it on their state tax returns. But as it turns out, Americans aren't always honest when it comes to paying their taxes.

For that reason, traditional retailers say that their online counterparts should collect sales tax when a consumer makes a purchase.

http://www.washingtonpost.com/busine...pWW_story.html

The latest federal proposal — the Marketplace Equity Act — has strong bipartisan support and appears to be moving forward.

“We strongly support passage of the Marketplace Fairness Act because it’s time to resolve the sales tax issue,” said Scott Stanzel, a spokesman for Amazon.

The new bill exempts online businesses making less than $500,000 a year from collecting sales tax. NetChoice says that threshold is too low. It also notes that the amount states will gain from online sales taxes is less than 1 percent of total state tax revenue.

The measure, sponsored by Sens. Mike Enzi (R-Wyo.), Richard J. Durbin (D-Ill.) and 12 others, was introduced in November. The House Judiciary Committee is set to hold a hearing on it July 24.

Look like it will just be a matter of time.

Say hello to ebook sales tax.

[tubemonkey]

I have no problem with a sales tax for online purchases.

[HarryT]

Speaking as a European, it's always seemed a strange anomaly that sales tax isn't charged for online purchases. It's terribly inconvenient for the consumer to have to declare online purchases on their tax return in order to pay to owed tax.

[Top100EbooksRank]

Originally Posted by HarryT

Speaking as a European, it's always seemed a strange anomaly that sales tax isn't charged for online purchases. It's terribly inconvenient for the consumer to have to declare online purchases on their tax return in order to pay to owed tax.

How many Americans actually do that?

1 out of 10,000?

Technically, when consumers shop online, they are supposed to pay sales tax by reporting it on their state tax returns. But as it turns out, Americans aren't always honest when it comes to paying their taxes.


Anyhow, I support online sales tax as long as it is fair for everyone.

[tubemonkey]

Originally Posted by HarryT

Speaking as a European, it's always seemed a strange anomaly that sales tax isn't charged for online purchases. It's terribly inconvenient for the consumer to have to declare online purchases on their tax return in order to pay to owed tax.

Since most of the online stores I shop from have a physical presence in my state, I'm already charged a sales tax on my purchases. It's rare when I don't have to pay sales tax.

Even Amazon collects sales tax from me, because they have their headquarters here.

[danskmacabre]

I assume we all automatically pay Sales tax/ Vat etc for online purchases here in the uk?
I never really thought about it tbh.

[murraypaul]

Originally Posted by danskmacabre

I assume we all automatically pay Sales tax/ Vat etc for online purchases here in the uk?
I never really thought about it tbh.

Yes. Because there is a single national rate for sales tax, this is not an issue for retailers.
In the US, there can be multiple levels of sales tax (state, municipal), each of which can be different.

[tubemonkey]

Originally Posted by Top100EbooksRank

Technically, when consumers shop online, they are supposed to pay sales tax by reporting it on their state tax returns. But as it turns out, Americans aren't always honest when it comes to paying their taxes.

Washington doesn't have a state income tax. We have high sales taxes; well over 9%.

[tubemonkey]

Originally Posted by murraypaul

In the US, there can be multiple levels of sales tax (state, municipal), each of which can be different.

Exactly! I pay a different rate when I shop in different cities and counties.

[Apache]

In Georgia the retailer gets to keep a small percentage of the sales tax collected. This is supposed to offset the paperwork involved. Maybe Amazon has figured out a new revenue stream?
Apache

[crossi]

I support it. It seems fair as long as it is the same as normal state/city sales tax. It is a lot easier for Amazon's servers to automatically take care of it than me having to note down every purchase and not lose the note among all my other scribbled notes.

[jbcohen]

I have an on topic question: The way the current laws are written I believe that you only pay sales taxes if the company you are buying from is in the same state you live in. Is this correct or do I have the law all wrong?

[rhadin]

Originally Posted by tubemonkey

Washington doesn't have a state income tax. We have high sales taxes; well over 9%.

New York has an income tax and I still pay 8.25% in sales tax. I'd consider Washington's situation a tax break.

[rhadin]

Originally Posted by Apache

In Georgia the retailer gets to keep a small percentage of the sales tax collected. This is supposed to offset the paperwork involved. Maybe Amazon has figured out a new revenue stream?
Apache

Same in New York, which may well be why Amazon put up a half-hearted fight against collecting the sales tax here.

[tubemonkey]

Originally Posted by jbcohen

I have an on topic question: The way the current laws are written I believe that you only pay sales taxes if the company you are buying from is in the same state you live in. Is this correct or do I have the law all wrong?

My understanding was that sales tax was generally collected if the company you were buying from had a physical presence in your state - store, warehouse, headquarters. As usual, there were exceptions.