posted on July 27, 2010 10:26:21 PM
Got this today. Isn't is a bit ironic that eBay uses the phrase, "would require small online retailers to comply with varying and regularly changing sales tax rules and rates"
Hmmm... sounds like eBay crying foul for the very thing they already do to sellers by constantly changing the rules. Perhaps eBay can add a DSR rating for sales tax fees. Really. The buyer already knows what shipping will cost and they get to rate us on that, why not have a DSR for tax, because it is the sellers fault that shipping and taxes are so expensive.
My opinion is that this will further weed out sellers, and the only real reason why eBay is making hay out of this is that it will directly affect their pocketbook.
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On July 1, a bill was introduced in the United States House of Representatives that would impose complex sales tax collecting requirements on internet retailers and entrepreneurs, including our eBay sellers. If passed, HR 5660, the so-called, "Main Street Fairness Act," would require small online retailers to comply with varying and regularly changing sales tax rules and rates for thousands of tax jurisdictions, and to collect and remit sales taxes from each customer. This new sales tax scheme would be extremely burdensome and costly to small online retailers like you who have set up shop on the internet. A similar bill is expected to be introduced in the Senate as well. eBay is working very hard to stop this bill from becoming law, but we need your help.
Please join our effort to stop the passage of this anti-small business bill. In three minutes or less, you can sign this petition urging your lawmakers to protect small, online retailers by opposing new tax burdens.
posted on July 27, 2010 11:54:41 PM
Many city,state and municipalities are under water,one in Rhode Island and many more are going bankrupt,some cant afford policemen,fireman etc,if you hold municipal bonds,do your homework.
Should Ebay sellers charge sales tax?
Should Ebay sellers report their income?
Collecting and remitting sales tax could be the job of Ebay the venue provider,AKA it would be included in the Paypal invoice and collected when the bidder makes payment.We the sellers dont have to do anything ,Ebay IT workers would have their work cut out for them programming such implementations .
As for reporting Ebay income,years ago a professional antique dealer who has a brick and mortar store was audited by IRS and IRS asked Ebay to produce his sales figures and Ebay complied.
He was fined for under reporting his income,Ebay income is a small amount,it was his store income he was under reporting,but it shows IRS can and will look into online sales/
Many of us have been selling online for years,after deducting home expenses,mileage and what not,IRS would get to see first hand how little profit Ebay sellers make.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 01:38:32 AM
I wonder why they didn't send it to all their seller.
I sure wouldn't want to see something like this pass. What a mess that would be.
posted on July 28, 2010 03:39:59 AM
Setting up tax collection should not be difficult - it would be like the toll road systems where you can use get one bill for travel over multiple roads, bridges etc. in different states - the money then gets distributed to the various agencies.
Internet shopping sales taxes would be driven by zip code of delivery address against a table of states/localities; the clearing house would distribute the money.
So it is funny to see an enormous business built on complex computing resources trying to act like they are like the corner store about to be put out of business.
posted on July 28, 2010 04:16:41 AM
We all know Ebay bidders are a bunch of cheapskates,so if they have to pay sales tax,they may as well go to their local 99 cents store and avoid shipping fee?
OMG,they will have to pay sales tax and shipping fee for their online purchases.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 06:35:40 AM
Well,those who sell items available in local stores either have to offer them for less to compensate for sales tax and shipping or find something else to sell?
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 06:42:47 AM
I recently went searching on eBay for a scale I found at a thrift store for $18. It seemed to be quite nice and perfect for large packages where I can read the digital screen. I found it on eBay for $75 and $150. While doing a google search, I found that the scale is sold at Harbor Freight Tools, a cheap tool store with tons of crap. I found the scale at Harbor Freight for less than what people are selling the scales for on eBay. The other day we went to Harbor Freight to get a furniture dolly. While there I noticed a motion sensor that I had looked at on eBay. It was the same brand. eBay price: $29.99 + $10 shipping. Harbor Freight price: $19.99. I bought it a Harbor Freight, but will return it b/c it is too big for our front door at our store. Either way, I saved $20 buying it local, and I can easily return it without the hassle.
My point... too many people are buying things at these cheap discount stores and offering them on eBay for more than the retail price locally. Consumers have become lazy. They don't bother shopping locally any longer. This tax would discourage people from online shopping and hopefully funnel money into the local economy, which creates local jobs and helps your community thrive. Something I am in full support of.
When the economy thrives, our government gets comfy spending like Octomom at the Baby Gap on Bill Gates dime. I have no problem paying taxes for good programs that help our community thrive. Infrastructure, police, fire, education, libraries, parks, road maintenance, social programs, health care etc. are necessary to keep our economy strong. I'm willing to pay a tax if it means it goes to the right things and is used efficiently.
posted on July 28, 2010 07:25:56 AM
I have no problem with paying taxes or collecting sales tax as it stands now. I currently collect the sales tax for my state. But if the paperwork becomes burdensome and I have to collect and distribute sales tax to all 50 states, that would be a major hassle. I don't know if I would continue to sell online, if that's the way it's set up.
posted on July 28, 2010 07:37:07 AM
Paying tax to all 50 individual states isn't going to happen. It would be a logistical nightmare, which is exactly what eBay wants you to believe so you side with eBay.
If anything, you'll likely pay sales tax for the state you live in. You'll just have to charge tax to every customer as if that person entered your store in your state and paid sales tax at your counter.
I'm all for it... but a personal disclaimer, I live in Oregon and we have no sales tax. I pay 9% income tax which is much higher than paying sales tax. We are taxed on our total income, not on goods or services we spend money on. So, in essence Oregonians and residents of states with no sales tax will have an advantage over states with sales tax... which is exactly what happens here anyways. Portland is on the border of Washington, and the hotels along the border get jammed on the weekends with people from Washington coming here to shop tax free. They buy their tvs, computers, stereos, clothes, etc without paying any tax to Washington. I'm sure this is a drain on Washington economy too. I am sure the same is true for border towns close to Idaho and California.
posted on July 28, 2010 08:10:39 AM
All Ebay has to do is to figure the sales tax and add it to the Paypal invoice,we wont see the money,Ebay will collect the money and send them to different states/
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 08:11:50 AM
Ever browse the Home Depot and LOWE'S mark down tables,this is where Ebay sellers pick up some items for resale.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 08:43:41 AM
yes, ebay will have to manage the sales tax because it is their venue where the sale happened.
case in point, an antique dealer mall. the mall will charge/pay sales tax for all transactions occurring in the store. dealers are responsible to pay tax on their income.
eBay is using scare tactics to get people into a frenzy and to side with them. typical corporate fear tactics. eBay is no different. the only thing eBay cares about is their bottom line.
posted on July 28, 2010 10:33:05 AM
It is also our bottom line,if bidders have to pay sales tax,then they may want to shop locally so they dont have to pay shipping.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 28, 2010 10:47:58 AM
Yes, they will buy Charity Seals, and stamps at their local stores. Too bad Woolworth's and Kresge's have closed. They always had stamp collecting material in their stores.
The real losers will be the eBay sellers who sell markdown junk and items easily found at the 99 cent stores.
The ever increasing cost of postage, coupled with poor postal service is the killer for future business growth.
posted on July 28, 2010 12:16:47 PM
Shag, I hope you are right, but I don't know why you think that Ebay will have to manage the sales tax. They don't manage it now.
Other than the initial set-up, that adds state sales tax to the Ebay invoice. They don't collect that money, I do. and they don't keep track of how much sales tax I've collected, I do. And they don't turn the sales tax over to my state, I do.
posted on July 28, 2010 02:03:44 PMPortland is on the border of Washington, and the hotels along the border get jammed on the weekends with people from Washington coming here to shop tax free. They buy their tvs, computers, stereos, clothes, etc without paying any tax to Washington. I'm sure this is a drain on Washington economy too.
Not unless the law has changed since I was a mere infant growing up in Hood River (Oregon), the most scenic spot in the majestic Columbia Gorge.
There was a car dealership in Bingen or White Salmon (Washington) that advertised "NO SALES TAX TO OREGON BUYERS!"
It's a testament to the power of radio advertising that I still remember that.
Remember when laptops were expensive? I bought my Mac TiBook in Hood River and had them ship it to me. Saved hundreds in taxes.
posted on July 28, 2010 02:35:50 PM
Washington has placed an exemption for sales tax to Oregonians who shop there. It is up to the retailer to offer the exemption or not. It can be an advantage for Oregonians to shop in Washington too. However, Washington residents still drive to Oregon to take advantage of no sales tax.
Interesting that eBay chose to focus the attention on "small businesses" as if we would be the ones most affected by it.
I don't have time to read the bill at the moment, but for at least 15 years I have said that the Feds and States should tax investment transactions (excluding 401K). Any type of e-trades, buying stocks, etc. should be taxed.
posted on July 28, 2010 03:35:01 PM
Taxing investments and e trades etc will increase the cost of raising capital for businesses which will reduce tax revenue of those state and city bozos who are now caught with their #*!@ pants down because they never know #*!@ #*!@ of balancing their budget and living high on those #*!@ municipal bonds they issued with triple A rating from those #*!@ whores like Moody.Fitch.S&P.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 29, 2010 09:20:53 AM
Fluff,
Automobiles are different. You pay taxes based on the state you reside not were the car is purchased. So a Washington dealer could advertise no sales tax for Oregan residents. Now on the other hand if a Washington resident bought a car in Oregan thinking they would pay no sales tax would be presented a bill for sales tax when they plated the car in Washington.
Now that has changed. The dealer must collect sales tax based on the tax rate of a persons state of residence then its disbursed to the the buyers state.
The really rich part of this is that sometimes a dealer may only make a couple of hundred bucks on a $30,000 car but a state like Indiana would make $2,100 at 7% sales Tax.
posted on July 29, 2010 09:31:30 AM
hwa- if your business invests in the stock market, you can afford it. most small businesses don't have the capital to invest in the stock market. we see huge profits for banks and insurance companies who invest in the stock market all the time. they gamble our money.
claiming it would hinder business capital doesn't fly. Add a 1-5 cent tax per trade. A tax like this affects a tiny fraction of Americans who generally pay less in taxes anyways because they can hire accountants to squeeze out enough deductions to avoid paying any tax to begin with.
posted on July 29, 2010 12:59:35 PM
"My point... too many people are buying things at these cheap discount stores and offering them on eBay for more than the retail price locally."
I hear you!..Free Enterprise really chaffs my knick-knacks too!
I wish there was a place for those people and we could send them there and, and, and...you know, be all the better for it.
Damn internet riff-raff! Ruining it for our soft and fuzzy local riff-raff!!
posted on July 29, 2010 03:50:34 PM
In states that have a sales tax, you are supposed to re-imburse your own state for non-taxed purchases (although the lack of compliance here is the obvious issue). Items such as automobiles are easier to tax since you need to go to your state for registration and verification that tax has been paid.
At some point the states will need to address this, and with automated payments and tracking involved in internet purchases, it will be feasible to start collecting.
posted on July 29, 2010 04:57:21 PM
We live in NJ, bought items in NY, through the mail. Did not pay sales tax, guess what, several years later we got a bill from the great state of NJ including interest and penalty for the sales taxes we avoided paying by buying from a NY seller.
Our income tax form has an area that asks you if you have bought items out of state and if so, you are to send them the taxes you would have paid.
A friend of mine got a bill for the taxes he would have paid when he bought cigarettes through the mail.
They are watching, especially with bordering states.
posted on July 29, 2010 05:24:04 PM
Shag,
Taxing stock/any financial transactions raise the cost of capital for those who are raising money in the capital market.
Think of it that way,if bidders found out they have to pay sales tax buying on internet,they start crunching numbers and realise may be it is cheaper to buy locally at brick and mortar store.
Same with people who trade/invest in stocks/bonds,when they find out there is a new tax in town besides the capital gain tax they have to pay to Uncle on April 15,they may look for something else to do with their money,thus reducing the liquidity of the stock/fixed income market,you dont want to own stock because you dont want to pay tax,then I dont want to own stock as I may not be able to sell it when I need money.
So a company who wants to issue stock/bond would have to make it attractive enough for us to buy its stock/bonds by raising the coupon rate or dividend.
This is how a company ends up paying more for borrowing.
Besides,what do the state,city and municipalities do to deserve a piece of the action?NADA!
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 29, 2010 05:28:46 PM
Merrie,
When I lived and worked in NYC back in the 80s,I always envy folks who know someone with a NJ address,usually a co worker who will bring them their NYC packages shipped to NJ to avoid sales tax.
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on July 30, 2010 09:41:34 PM
I shop in Washington all the time, and never pay sales tax as an Oregonian. Without the exemption for Oregon residents, I wouldn't ever go there.
However, they are at a big disadvantage for Washington residents. If you go to any of the border shopping centers (and there are a lot, Jantzen Beach right off the 5, and Cascade Station off the 205) you see tons of Washington license plates - and why not? You buy a computer for $1000, you save $90 in sales tax.
I think Southern Washington residents have it best - they pay no state income tax (our income tax here in Oregon is among the highest in the country) and they can come to Oregon to shop sales tax free. The one disadvantage is if you are a Washington resident but work in Oregon, Oregon makes you pay state income tax EVEN THOUGH you are not a resident.
Too bad Woolworth's and Kresge's have closed. They always had stamp collecting material in their stores.