paws4God
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posted on April 19, 2004 03:08:24 PM
I just received a letter from the state on revisions in taxes. The way I read it I now have to pay taxes on every transaction regardless of whether the buyer lives in my state or not. I emailed a copy to my accountant so he can properly interpret it but I'm pretty sure that is what it means. I don't know why gov. agencies can't speak simple English.
This is part of what the letter says.
Legislation effective July 1, 2004, requires a retailer to collect and remit applicable local use taxes regardless of whether it is engaged in business in particular local taxing jurisdiction. As a result, many taxpayers must change the way they collect and report local taxes.....................
Collecting Tax on Services: Retailers providing taxable services must collect local (city, count, special purpose district, or transit) tax based on the location where the the service is performed or otherwise delivered to the purchaser.
Collecting Tax on Tangible Personal Property: Retailers selling, renting, or leasing tangible personal property will continue to collect local sales tax based on the retailer's place of business, plus any use tax based on the point of delivery, whether or not the retailer is engaged in business in the jurisdiction to which the items are shipped or delivered.
The letter goes on with some other things but the above is the main jest of it. How many of you guys collect taxes on your auction sales? I don't collect from TX buyers but I do pay the taxes, or did for the first time last year.
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stopwhining
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posted on April 19, 2004 03:18:43 PM
what state are you in??
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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fenix03
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posted on April 19, 2004 03:19:19 PM
I think trying to explain to my UK customers that they have to pay California sales tax is going to take a little more effort than I am willing to extend.
~~~ • ~~~ • ~~~ • ~~~ • ~~~
If it's really "common" sense, why do so few people actually have it?
[ edited by fenix03 on Apr 19, 2004 05:13 PM ]
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paws4God
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posted on April 19, 2004 03:26:04 PM
Hey Stop---
I'm in Texas. I think what I'll do is add $0.25 to the s/h and that will be my sales tax. I'm not going to add the tax to every sale....too much trouble plus I think it would discourage sales.
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ladyjewels2000
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posted on April 19, 2004 03:27:51 PM
It sound like it's just your state to me. I have not received anything in Florida yet.
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cblev65252
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posted on April 19, 2004 04:06:38 PM
It sounds just like what we have in Ohio. Where services were not taxed before (i.e., dry cleaning, massotherapy, etc.) they are now. Instead of it being a local tax (county here), it is a state tax. I don't interpret it to say anything about Internet sales tax. Shouldn't affect your auction sales at all.
Cheryl
http://www.kcskorner.com
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paws4God
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posted on April 19, 2004 04:16:33 PM
It doesn't say internet sales in the form but I think it is saying not just things sold to people in Texas. Up until now I just had to pay taxes on sales in Texas. When I filled in the application for a tax number I had to state where most of my sales were such as store location etc. I said internet on the form. I think they realize many people even with stores are also selling on the net and/or ebay so this is a way to get more money for the state. It just looks like most states are going to eventually make us collect tax on ALL sales period.
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cblev65252
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posted on April 19, 2004 04:32:49 PM
paws4god
Technically, in Ohio we are also supposed to pay a tax when we physically buy items outside of Ohio. For example, I buy something in Florida and bring it back to Ohio. I'm supposed to pay the Florida tax and then pay tax on the item in Ohio via my state income tax at the end of the year. Ya, right. The states can't handle their own budgets so the deficit is supposed to be made up by us. The "double taxation" thing went out the window a long time ago. A manufacturer makes a belt. It pays a tax on the belt. The distributor in the manufacturer's state buys the belt, again the belt is taxed. Along comes the consumer and it is taxed yet again. How much is the belt, really? And how much of the cost is due to tax? It's a wonder no one has challenged that one. I think the taxing authorities are waiting to see just how far they can tax us before we say no more.
Cheryl
http://www.kcskorner.com
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sparkz
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posted on April 19, 2004 05:07:52 PM
The form you received has nothing to do with collecting taxes on sales outside of Texas. They are telling you that if you sell an item to someone in Amarillo, it is up to you to ascertain what the state, county, and local city taxes in Amarillo are and collect them, regardles of whether you sold the item on Ebay or at an antique show. Same for a sale in Houston or El Paso. The people in Austin are getting you to do their leg work for them. Most states have similar laws, but California works theirs different. We know the overall sales tax rate for each county and we collect it and remit it to the state. They distribute it back to the cities and counties and special districts after they calculate the allocations.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
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sanmar
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posted on April 19, 2004 06:26:13 PM
fenix03. Where did you come with this? If you sell outside of CA, you do not have to collect Sales Taxes. I have had a "Sellers Permit" since 1997 & have never paid any sales taxes for out of state sales.
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stopwhining
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posted on April 19, 2004 06:40:34 PM
they can always ask ebay to figure out how much and withhold that much and remit all that much to whoever
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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fluffythewondercat
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posted on April 19, 2004 06:42:33 PM
The salient section of the letter from the state is "use tax".
plus any use tax based on the point of delivery, whether or not the retailer is engaged in business in the jurisdiction to which the items are shipped or delivered
This is specifically targeting Internet and mail order sales. There is no other possible interpretation.
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paws4God
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posted on April 19, 2004 06:49:29 PM
Fluff--
Exactly what I thought when I read that sentence! As I said above they (the states) know retailers are selling on the web and this is a way to collect more tax.
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cblev65252
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posted on April 19, 2004 06:49:55 PM
fluffy
Excuse my ignorance, but what exactly is "use" tax? Is it the same as "sales" tax? I collect sales tax, but only for items being sent to places in my state.
Cheryl
http://www.kcskorner.com
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sparkz
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posted on April 19, 2004 07:15:45 PM
The "use tax" as applied in California is a substitute for a sales tax. It is almost always used to prevent evasion of sales tax. For instance, I fly to Detroit to pick up the new Cadillac I just purchased through a dealer. Calif will collect a use tax from me that is identical to the sales tax. Same as if I go to Las Vegas to buy a car to avoid Calif sales tax. The use tax nails me as soon as I bring that car into the state within 6 months after purchase. As far as an internet tax, if and when it comes, it won't come from Austin or Sacramento. It will come from Washington D.C. Only the Federal Government can regulate and tax interstate commerce. States have tried several schemes over the years to get around the commerce clause in the Constitution and the Federal courts routinely knock them down.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
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Damariscotta
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posted on April 20, 2004 04:17:07 AM
Why not try contacting your state sales tax department for clarification? They may already have this on their web site. California has an excellent explanation of these issues/requirements on their site.
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paws4God
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posted on April 20, 2004 06:50:47 AM
Dama--
I will have to contact them. The letter also has a phone number where you can contact them if the tax will change what you pay they ask you call and request the long form instead of the short. I really don't know if I need the long or short but I have a feeling it will be the long. Here is the web address they sent. It says the same thing...gov. can't speak de English!
http://window.state.tx.us/taxinfo/taxpubs/tx96_237_1_04.html
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stopwhining
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posted on April 20, 2004 09:13:59 AM
i think sparkz is right,we will hear from uncle sam,not state on interstate commerce sales tax.
i am in texas as well,diff sales tax rate in different cities/counties.
we are expected to collect those sales tax.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
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fleecies
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posted on April 20, 2004 09:52:43 AM
I believe there is still a moratorium imposed by Congress on sales taxes on internet sales outside of your own state. I'm also in Texas, and from past news reports, I do believe the letter we received refers to collections of sales taxes within Texas. We have to figure the local taxes in each jurisdiction to which we might ship product--in other words, its a paperwork and coding nightmare, if you have to set a shopping cart with different tax rates for different jurisdictions within your state  Will probably just set mine to the maximum allowable sales tax rate and pay that amount.
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