REAMOND
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posted on October 19, 2001 11:48:17 AM
Looks like we may have to start collecting taxes for interstate sales.
http://news.cnet.com/news/0-1007-200-7581493.html?tag=mn_hd
I think this same moratorium prevented taxes on your internet service too.
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holdenrex
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posted on October 19, 2001 12:02:28 PM
My civics are a bit rusty.
The House voted to extend the moratorium, but the Senate did not. Where does it go from here? A game of rock-paper-scissors perhaps?
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misscandle
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posted on October 19, 2001 12:10:58 PM
From the article:
"A Supreme Court decision forbids states from collecting taxes on out-of-state retailers unless they have a physical presence in the state. But Congress could pass an enabling law that would allow them to do so."
So for now we change nothing.
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REAMOND
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posted on October 19, 2001 12:17:29 PM
The moratorium is off Sunday. The enabling law will need to be passed to collect taxes for out of state purchases.
But didn't this moratorium also include a moratorium on internet access taxes ?
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paperfan
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posted on October 19, 2001 12:19:47 PM
Here's another story with a slightly different take on the same issue:
http://www.foxnews.com/story/0,2933,36844,00.html
Evidently, the moratorium isn't dead yet. The states screaming about the lost revenue has complicated the issue and will likely be dealt with separately, which is why the blanket extension wasn't passed by the Senate yesterday.
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REAMOND
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posted on October 19, 2001 12:59:26 PM
The Fox article seems to allude to internet access taxes.
"But given enough time and a need for revenue, we could eventually be paying the piper to browse the Web."
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computerboy
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posted on October 19, 2001 01:02:50 PM
Regardless of what our Government is saying on this issue, the fact remains that it will take years for the tax program to be initiated. States and the Feds will be arguing over who gets what share of the pie and even more complicated will be how the taxes will be collected.
Definately not something we need to worry about in the short term...
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REAMOND
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posted on October 19, 2001 01:11:15 PM
The access taxes could come into effect anytime after Sunday.
It will be interesting to see who tries access taxes first. I imagine they will say that the access taxes are only until the sales tax issues are resolved.
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imme
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posted on October 19, 2001 01:29:54 PM
I live in Oregon we have no sales tax how would this affect me?
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Greengate
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posted on October 19, 2001 01:34:03 PM
Wait a minute... Im in Oregon, No Sales Tax here. My customers come to me on the internet, I don't go to them so why should I pay tax to another state? And just how do they police that tax issue? All a seller needs to do is move their website or email address to Burmuda..... No jurisdiction., for any state.
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REAMOND
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posted on October 19, 2001 02:06:08 PM
The businesses physical presents in a taxing jurisdiction will due, not matter where the business is registered or otherwise.
Unless or until they come up with a universal taxing system, there is no way to do it. Will California come after a seller in S Carolina for not collecting taxes on sales to California buyers ? Will S Carloina aid California in making their resident sellers collect taxes from California sales ?
There will probably have to be a universal tax that will then have to be divided up between the states.
By the way, there are internet companies in the U.S. collecting VAT (value added tax) for sales to European customers already.
As commerce becomes universal, laws will have to become universal too. I don't think anyone is ready for that. If we can't get it done in the U.S., how can the world do it.
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dman3
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posted on October 19, 2001 02:17:19 PM
The thing this moritorium was holding off mostly was sales tax on your ISP service but everyone who has DSL or Cable knows were already paying tax for our service so they are getting a good chunk of this tax now..
My guess is that they will more then likely end up extending this in the end for a few more years till states can figure out how the tax will work.
and even then these taxes wont effect none businesses ..
if your selling on ebay as a hobby and not registered as a business it still wont effect you.
if you are a business selling online your already collecting taxes on in state sales what states are looking for is a cut of the out of state sale busnesses are makeing..
http://www.Dman-N-Company.com
Email [email protected]
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ahc3
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posted on October 19, 2001 04:30:17 PM
That is true about Oregon, I am an Oregonian too. I can drive a few miles into Washington, and they charge 8% or so sales tax. I show my Oregon Driver's License, and I get to pay zero tax. I think it would probably affect Oregonians the same way.
I also think this is probably more of an issue of larger companies. It would be a horrible mess to deal with so many sales tax agencies. It is something that I agree is way down the line, not like we have to start charging out ot state sales tax in the coming weeks, or possibly even years.
The "solution" would be a national sales tax, like Canada and so many other countries, but I would hate to go there unless I knew that income tax went away. The problem is that once you start taxing, you generally don't stop. The last thing we need in an economic downturn is more taxes!
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magazine_guy
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posted on October 19, 2001 06:32:59 PM
Nobody should get their panties in a twist about this.
The moratorium was about INTERNET ACCESS TAXES, not sales taxes. House passed an extension, Senate didn't, but will soon.
The sales/use tax issue is very complex, and it's not gonna get resolved quickly and be tacked onto this legislation. Separate, but related issue.
Here's a piece at OAUA (from June) that explains the moratorium issue a bit better:
http://www.auctionusers.org/newsletter/0106-inet-taxes.shtml
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