Are Jegs and Summit collecting out of state sales tax now?

I heard on the news recently that there was some court ruling saying that a state can require businesses that don't have a physical location in that state to still collect sales tax for purchases made by residents of that state. Are the big online parts vendors doing that now?

They better not that case is in the early stages of being resolve it what I remember, maybe not
I hated working for the state of CA collecting sales tax for them and not getting paid for it
Dang the uncontrolled government anyways

I've read about it, but nothing as far as I know has been set in place... but I suspect it will happen eventually because of the amount of $ they can make on this tax.

Read it and weep.

https://www.usatoday.com/story/news/poli...ases/699556002/

heck they collect tax for the Australian government now


Tex

I always had a problem with it, but with online sales being so pervasive and really taking a toll on local stores I am on the other side.

I would like to see less people shopping on line and return to buying local.

On the receipt from my last summit order said it was my responsibility to pay the tax at tax time. Yup I’m right on that

Too bad they didn't do it before online shopping killed mom and pop stores.

According to that article it only effects South Dakota.

The supreme court ruled on that case but there were 30 other states that were attached to that case. IT is a mess at the moment and nobody seems to know for sure what is going on. If we as a business are forced to collect sales tax on every purchase and remit it to correct taxing authority dear god help us. WE have been required to collect sales tax in PA at Carlisle for many years now and we have to submit quarterly if we sell anything or not. But you would have to remit the taxes to the state where it is due or that seems like a pretty clear case of taxation without representation. I seem to remember a war being fought over that but I could be wrong. I believe they have just set the table for a National Sales Tax. I could be wrong but how else could you possibly manage and enforce it. Todd

That’s great for things you can find at most any local store.
Not so much if you’re trying to build/restore a car.

I file as a vendor in NY (over 40 years now).
If this becomes law, I will have a new job: filing 196 extra returns (49 other states X quarterly) every year, whether I sell anything there or not.

I'll just pass my extra labor on to my customers. What a great idea.

Todd, I think you will soon have a selection of companies that will want to offer to figure then report sales taxes based on where you ship your orders. Actually I can see this as something credit card processors might do to get merchant business. Will there be a charge for this, certainly, but it will probably be less than what it would cost to do it yourself. However it will still be a cost you will have to pass on.

I live in Oregon. Zero sales tax here.

This decision by SCOTUS will leave it up to the individual states to whether they will require online retailers to collect taxes. Some states already require taxes to be collected and I would expect the rest to follow suit.
I'm surprised this hasn't happened sooner.

I didn't read too in detail about this all... but I took it as, since I live in PA, I would have to collect tax for sales anywhere in the usa, but that tax $ would go to PA, not the state where the buyer lives. So I wouldn't be filing to 50 states, just the state I do business in.

Or do I have this wrong and would have send tax money to states I sold stuff to?

I would imagine since the ruling has been made if they are not doing it in your state they soon will be. Its an opportunity for states to grab money I cannot imagine they will not take advantage. It will put a pretty large burden on small businesses, as in some places you will have state, county and city sales taxes to keep track of. Sure will be a mess for some.

If you are collecting sale tax on behalf of a state, county or city you will need to pay those taxes to the entity collecting them, not just your home state

I didn't either, but your understanding/suggestion makes the most sense, if it is applied across the nation, in that, no more exemptions/non collection of sales tax for shipped out of state sales. Hard to believe every state would agree to that,

From what I heard/understood on the news the state where the customer lives would receive the tax money. Several years ago when four wheelers got popular lots of people from Ky were going to Tn and buying them and paying no sales taxes. After a few years the two states agreed to allow each other to do audits to see where the four wheelers were going. I know of several people who had to pay the taxes and a pretty harsh penalty.

For now. You can bet the rest of the bloodsuckers will be lining up to get similar rulings now.

Things we know to be true:
1. they like money
2. and will bend laws to get it
3. and create an inefficient bureaucracy (their campaign manager is in charge, staffed with their own political party) to manage it
4. to raise the cost of all consumer goods
5. without any benefit to the user

The concept is that a seller needs to collect the appropriate sales tax for the state of their buyer and submit that tax to the state where the buyer lives.

I've been expecting this to happen for years. I was talking w/ the owner of a shop I used to frequent about 15 years ago and he was saying back then that all the lost sales tax income from mail-order & online sales with businesses out of state was going to have to come to a stop.

It makes sense, even if you don't like it. If your state isn't receiving the expected sales tax due to lost sales from this, they're going to raise the sales tax rate on what is sold in state, raise property taxes, and increase other fees such as vehicle registrations, etc.

Yeah, in some places you can game the system, like living in Washington (no state income tax) and shopping in Oregon (no state sales tax). However, the money for your school system, your police force, your fire department, the local library system, etc., has to come from somewhere. You're not "saving" the tax when the local jurisdictions can't meet their budgets and have to resort to these other ways to bring in money; you're only shifting where the funds are coming from. The bills gotta get paid, or the services are no longer supportable.

Is it more work for businesses that have a large volume of out-of-state sales on taxable items? No doubt, although I'd expect there will be some minimum annual sales volume requirements to determine who needs to comply. I can't see someone like Dwayne Porter having to deal with it, but Jeg's & Summit? Oh, yeah.

EDIT: Virginia, where I live, has had a section on their state tax form for years for submitting sales tax due for non-taxed out-of-state purchases you've made during the taxable year. My wife and I actually do a reasonable job of tracking it so we don't raise any red flags w/ our returns. Other people may choose do to it differently... for now. At some point I can see this being a much more closely watched item, if the states aren't able to collect out-of-state sales tax directly.

I'm not so much against the actual tax, but if I'm the seller in my state, why wouldn't my state get the sales tax? That would be the part I have a problem with, since the sale is coming from my state. If you come from out of state to PA, buy something at the local store, you pay that store the tax, not your home state.

If they make it where you have to keep records for 50 states and sending out a check every 3 months or even once a year, it will be a major pain. Enough of one, that I'll probably quit selling online once again.

IIRC, it has to do with where the purchaser receives the merchandise, not where the seller is located. Yep, it's kind of odd.

Example from my past: Customer who lived across state lines only about 30 minutes from where I worked had a tax status that let him order items from us and not pay our state's sales tax when we shipped the items. However, if he was in a hurry and drove over to pick up the items directly, he had to pay our state's sales tax.

Don't ask me why, I didn't make the rules. And this is from 30 years ago, so my memories may not be 100% accurate, but that's the gist of it.

You keep stating the obvious.

Only thing you omitted, with these increased collections, they will collect a lot more money to help pay for this new intrusive likely to be bloated bureaucracy with unforeseen thousands of out of state sales tax POS audits..

although I'd expect there will be some minimum annual sales volume requirements to determine who needs to comply.
In New York, here are the choices for filing:
1. zero sales (not zero taxable, zero total) requires a return, although you can apply to file annually (instead of quarterly)
2. if you have discontinued the business, your return says so

The reason for the residence state and County (New York has 62 Counties and even more jurisdictions - some cities are separate also, which you must identify in your return) getting the money is simple: that's where the local vendors didn't collect the tax on a walk-in sale.

I thought i always paid tax on summit and they are not in my state?

Maybe not.

they(jegs) havent taxed my orders yet and ive made several in the last 10 days or so, i suspect they will soon but we will see.

It's going to take some time for the various states to get apparatus in place to enforce this.

I heard on the news yesterday that my state will start on October 1st.

There are over 10,000 tax jurisdictions in the United States going all the way down to city level. It gets even more complicated with the taxes themselves as there can be exceptions carved out for particular goods based on ingredients and other crazy crap.

If the flood gates truly are being opened then expect so see an entirely new industry that crops up offering services to businesses that aid in collecting these taxes. This cost will passed down to customers in addition to the additional taxes.

Fun times...

I certainly don't make enough money selling online to justify the hassle this will be. Be it the time involved or cost. Guess we can just wait and see how things play out. It would be nice if say ebay for example would collect the tax itself instead of it going to the seller.

Someone with a brain should just write a law that says all internet sales are taxed at 5% with the taxes thrown in a pot. Then the pot is split 50 ways between the states and everyone is told to shut up and share.

You can't POSSIBLY be serious!

That is some funny stuff there. Coming from a guy in Oregon which has zero sales tax. So you want to pay 5% more just for the fun of it??

I ordered yesterday from Summit, no tax, but this message.

Kinda what I was thinking. We don't need the feds to start a VAT too.

The good ole days are behind us now


They want us all working a W-2 job with direct deposit and zero cash

Keep that darn muscle car collection much longer and values get much higher nobody will be able to get that much cash out of the bank to pay you so you will be forced to accept bank wired funds and since you did much of the work yourself and bartered and flea marketed your way for all those parts and labor your receipt basket will be lacking so your "basis" as tax guys call it will be low and your taxes will be high on the sale

Clock is ticking--you get a cash offer these days you better take it or your kids will be eating it on the tax bill when the cars are sold

We can always have a "Flash Mob Swap Meet" sell quick and disperse LOL!!!!

With the internet and growth of shipping it really makes sense to just eliminate sales taxes and replace them with income taxes. A side benefit is you can collect more from those with 7,8,9-digit incomes where that excess money will just pile up in hedge funds, offshore bank accounts, private equity funds, etc. To any state that doesn't want to go that route, tough turds, and have fun collecting.

good luck with that

Here in oz we went to the VAT/GST system a couple of decades ago, It did take the complications out of our sales tax system - I was selling computer gear and items would be taxed differently for all sorts of BS reasons, the flat 10% made life very easy on that front, it did make every business have to collect and pay the duty, many service based businesses didnt have to do that previously, meh

The big problem they made was the unequal distribution, they are just working out a "fairer" system now, we had the problem of one state mining a butt tonne out of the ground, but the bulk of the tax revenue went to the states with higher population

Nothings as easy as just splitting it 50 ways

I've read lots of books and seen plenty of movies with "dark futures" but so far nothings come close to what i can see coming.

Anyone remember the movie Idiocracy?

You mean the current running reality show?

FWIW, I ordered something from Amazon last night that was listed as both being available directly from Amazon and also from Jeg's.

When I started to check out after having selected the item directly from Amazon (same price), they added tax. Then I checked again and saw that Jeg's expected delivery date for the same item was earlier, so I switched to the Jeg's-listed item strictly to get it sooner. When I checked out w/ the Jeg's purchase via Amazon, the purchase did not collect tax.

Ordered from both this week and no tax on either order. It will happen eventually, but I haven't been able to find too much more on it. South Dakota law says it's for sellers who sell over 100k into the state. So may not effect a lot of the smaller businesses.

Bought a part on ebay today from VA, there was a message in below the payment confirmations:

If Pennsylvania sales tax was not collected on this purchase, you may be required to remit use tax directly to the Commonwealth. For more information about your use tax obligations, please visit the Pennsylvania Department of Revenue at the link below.
Pennsylvania Use Tax

I got an order from Del City in Wisconsin this week. It had sales tax on it. I don't remember them ever collecting it before.

This was released a couple days ago, for Indiana collecting taxes.

"INDIANAPOLIS (AP) – Indiana residents purchasing products online from out-of-state sellers will soon be charged the state’s 7 percent sales tax.

The (Northwest Indiana) Times reports that the Indiana Department of Revenue plans to begin enforcing the 2017 online sales tax state law on Oct. 1.

The law requires retailers who annually sell at least $100,000 in the state or do business with more than 200 Indiana customers to collect and remit state sales tax."

Safe to say places like summit, jegs, rockauto etc will be collecting this tax soon. I think you'll find even the ones who don't, your state will expect you to keep track and pay the tax yourself.

Rockauto has for the last couple weeks.

So the good news is maybe this will get people back to their local speed shops since you are paying tax now there will be savings there. I patronize my local shops as much as I can. The generally price match or get close to the big guys. Just a thought for those who still have a local speed shop.

Possibly, but my local speed shop is 40 miles away.
I don't order online to get away from a sales tax. Time, cost of travel and convenience is why I shop online. It doesn't make me any difference whether I pay sales tax through an online or local retailer. Sometimes it takes my local parts store 2-4 days to get standard replacement parts.