posted on July 8, 2001 03:05:42 AM new
reddeer, you asked, "Why would one need to have a business license in order to sell their second hand clothing, etc?"
I don't know what the laws are in Canada, or even from state to state in the U.S.....but the law in MY state says that everyone selling ANYTHING, ANYWHERE, whether it be new goods in a store or used goods in a garage (tag) sale, is SUPPOSED to obtain a sales tax permit/license ('temporary' permits for garage sales), collect sales tax, and turn the tax proceeds in to the state sales tax authority. I learned this 30 years ago when I had my first garage sale, when two agents from the tax office on their lunch break happened by my house. The law isn't strictly enforced here, as almost no one collects and turns in tax from flea market and garage sale transactions.....but tax people DO show up at antiques & collectibles flea markets and shows to check dealer licenses. Under current law, I only collect and turn in sales tax for in-state transactions, but I can assure you that my sales would be closely scrutinized if the State thought I were cheating them out of any sales tax. I personally know of several businesses that 'kept' some sales tax proceeds and got into deep trouble for doing so.
Assuming the federal government doesn't pass legislation requiring the collection of "Internet Sales Tax" (which has been rumored for several years now), it would be a simple matter to require all online auction sellers to register their Social Security numbers or business license/tax resale permit numbers before being allowed to sell. Any non-business seller could obtain a 'temporary' state tax resale permit and provide the numbers to eBay before posting their "second hand clothing" on the Auction, and many of the sellers who are running eBay businesses "off the books" (not reporting any of the income) would be forced to start claiming it or find somewhere else to sell.
Granted, this would probably all but eliminate non-business sellers on eBay (and greatly increase the number of garage sales again).....but, at the same time, it would make the IRS's job much easier, remove many of the "black market" sellers, and force "tax honesty" upon countless others. In my state, the sales tax number is the dealer's Social Security number plus a few other digits, making it fairly easy to verify with my eBay user registration information. I would guess that similar ID numbers could be used for all international sellers from the countries in which Ebay is now doing business.
In fact, the practice (like it or not) would be so simple to implement and so effective in tying sales records to individual taxpayers, that I wouldn't be surprised to see such a requirement passed into law sometime soon.
posted on July 8, 2001 08:09:27 AM new
FWIW, government can govern, impose laws and taxes, etc, on its people only to the extant that we let them...
Remember the 55 mph speed limit ....
And Prohibition, for that matter...
I heard, recently, a well-known government official saying, when in Russia, that it's much easier to track down a citizen here than in their former communist country. If so, how free are we really...?
Prediction....pass a law requiring individual citizens to report sales (I didn't say pay taxes) of personal items on the internet, flea markets, garage sales, etc.....and watch everyone with any spinal fluid left ignore it...
Having said that, I operate a business and pay the government its required ransom of cash and my valuable time every year...it's a choice I have consciously made but I would not want it foisted on every individual.
Just say "no" to more government intrusion into our lives!
posted on July 8, 2001 08:17:30 AM new
i do not mind collecting sales tax and turning them over to the states,it is the brueaucracy of the state,and the paperwork and regulations and the continuous reminding and threats and whatever which drive a small operator crazy.
i would be very happy to remit all the sales tax the state deserves if there is an easier way/
posted on July 8, 2001 08:32:49 AM new
To the best of my knowledge there are very few States, [or countries for that matter] that require a sales tax permit in order to sell personal "used goods".
Now, the moment granny starts buying items for resale, that's a different story altogether.
posted on July 8, 2001 08:36:45 AM new
how does one know granny is buying something for resale??
granny has a garage sale and on the table are old stuff,some from her attic and some she bot somewhere else.
if she does it regularly,will it be a sign ??
posted on July 8, 2001 08:44:19 AM new
Currently, there are many sales tax statutes on the books which are ignored by citizens...
The most common is paying local sales tax on an out-of-state purchase where none is collected...it's called "use tax" in California...
The IRS requires people to report income from "all" sources, even illegal ones.....yeah, if I was a criminal or made a few bucks on the side helping out a friend, I'd fill that box right in...
The same will apply if they start requiring people to register at any sales venue with their SS number...
Trust me, the cash economy of this country is quite well...
E-mail has made it very easy to express displeasure with these onerous laws.......I encourage it.
Just because the government passes a law, doesn't mean it's right or just or equitable...
I know a few of those grannies. They come into our shop, don't want to pay sales tax, say they're dealers...but (surprise!) don't have a resale number...
posted on July 8, 2001 08:58:24 AM new
in my city,there is a big resale shop where dealers frequent and most PAY SALES TAX,because they dont want anyone to know they are in the business??
to avoid paying sales tax,dealers need to file a form.
one wholesaler told me forms are not good enough,the state told him some of his retailers are not your traditional gift shop type retailers,they operate a gas station and dedicate a small alcove in the premise as GIFT SHOP.
carpenter,plumber,garage mechanics,dry cleaner,beauty salon,food carry out do not qualify.
