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