Internet Sales Tax...I think it's coming sooner then we thought...

[skids]

If this legislation passes, and I buy something from Bob Marino, am I supposed to pay the Illinois tax rate or the Ohio (or New Jersey, or whatever) rate?

If this legislation passes, you would be obligated to pay the Illinois tax rate.

Bob

If this legislation passes I may have to consider a workshop full of craftsman instead.  [wink]

 

[Bob Marino]

Peter, I would imagine the threshold applies to all businesses so the tax only applies to incremental sales, similar to a personal tax allowance.

Not sure how that would work though. If a month out of year's end, you  reach that threshold and you have plenty of sales coming in, do you then start collecting tax? Incrementally? How so?

Bob

 

[erock]

If this legislation passes, and I buy something from Bob Marino, am I supposed to pay the Illinois tax rate or the Ohio (or New Jersey, or whatever) rate?

If this legislation passes, you would be obligated to pay the Illinois tax rate.

Bob

If this legislation passes I may have to consider a workshop full of craftsman instead.  [wink]

LOL...... Then you can sell me your Festools to help you buy the Craftman tools you want.
No you will still buy the Festools on your wish list!  LOL    Craftsman tools.    You're a funny guy!
The tax isn't going to make that much of a difference to switch over to crapsmans.  LOL

Eric

Eric

 

[skids]

If this legislation passes, and I buy something from Bob Marino, am I supposed to pay the Illinois tax rate or the Ohio (or New Jersey, or whatever) rate?

If this legislation passes, you would be obligated to pay the Illinois tax rate.

Bob

If this legislation passes I may have to consider a workshop full of craftsman instead.  [wink]

LOL...... Then you can sell me your Festools to help you buy the Craftman tools you want.
No you will still buy the Festools on your wish list!   LOL    Craftsman tools.    You're a funny guy!
The tax isn't going to make that much of a difference to switch over to crapsmans.   LOL

Eric

Eric

[thumbs up]

 

[Bob Marino]

They should change the entire system if it is really about the consumer paying the tax.  When you buy a product at a brick/mortar store, you pay the rate where that store is located.  If I live in Illinois and travel to Florida to buy a pair of shoes on vacation, I don't pay the Illinois sales tax, I pay the Florida rate.  If this legislation passes, and I buy something from Bob Marino, am I supposed to pay the Illinois tax rate or the Ohio (or New Jersey, or whatever) rate?

Technically, yes, if you haven't paid sales tax on the online purchase from another state, you are supposed to pay your local tax on that purchase.  Of course, no one does that, and because online retailing has exploded over the last ten years, local economies have suffered, and municipalities are forced to raise tax rates to make the difference (exacerbating the problem.)

Can't disagree with that statement - like it or not.

I recently received a sales call from a new Festool dealer based on the East Coast (I'm in CA.)  When I asked the salesman why I should consider their company, his first answer was that I could avoid sales tax!

Not cool. In the last few years, I have de-emphasized that on my website - made the font size smaller and took it out of HEADLINE area. When customers call and ask the same question, I mention good service, good knowledge, free shipping and only rarely or lastly, mention the no-tax thing.

I am fortunate to have a knowledgeable and independent Festool dealer not very far from me. (Shout out to Anderson Plywood in Culver City!!!)  I told the salesman that I would prefer to support local jobs and pay the tax that funds our schools.

Not everyone is lucky enough to be so close to a good retailer, and people like Bob Marino are then able to step up and give people the personal service they deserve, so I do think that there will continue to be a good market for internet sales.

I think so, Joe.

I am glad that Festool structures their pricing in the US, so that everyone has an equal chance to make a profit providing sales and service.

Me too!

Bob

 

[Bob Marino]

I'm looking at this from both perspectives; as a consumer and as a small retailer.

As a consumer, it is not a big deal. I don't go to the internet for the purpose of skirting sales tax. Yes, it is nice not paying it on larger purchases, but I use internet sales mainly when there is something I can't go pick up immediately at a local store.

However, as a small retailer, the paperwork would kill me unless they also included some simple manner for recording and submitting to a single entity. Even in the metropolitan area that I live, there are several different tax rates depending on which suburb the sale is made. There is a single state-wide tax, but some cities also impose a local tax as well.

So even ignoring any local (city) taxes, it would still mean keeping track of 50 different state taxes, and filing 50 different tax submissions. The money isn't an issue because that just gets passed on to the buyer. It would be the bookkeeping nightmare it would "possibly" create.

For the large retailers, the added paperwork would not be a hardship, and many of them already have to do this for a lot of different states because they have a physical presence in them. It's the small retailers (like myself) that would get crushed by this. I have heard that some companies are advocating some sort of minimum threshold of either sales volume or company size before this would kick in. Then it wouldn't be so bad.

I have to agree, Rick.
  I file sales tax for 2 states  NJ and Ohio. NJ is rather simple - it's 7% everywhere in the state and I file quarterly. Ohio, on the other hand, has may, may different tax rates depending on the area. Also, Ohio insists that I file monthly, not quarterly. I don't have the time to do that now, sooooooooooo, I have my accountant do that at a decent fee, but it's almost a grand a year for the monthly filing - ouch! I think I just may start doing that myself. To do it for all the states would require way, way more time and expense, but according to the proposed legislation, the software would be provided to the retailers. Who knows?!?

Bob

 

[Bob Marino]

  So, I think the legislation will pass, if not this year, than perhaps next year, maybe two years, but I think it is inevitable. Whether you think it's a blessing or a curse; it's a train that's coming. Will it directly affect my business? You bet!
For better or worse, I hope to somehow ride that train rather than be run over by it.

  Bob

 

[tjbnwi]

I ordered a little over $4,000.00 worth of tools from Tom last year, about the same the year before. When I do my state taxes it asks if I purchased anything online and did not pay tax on it. Rather than falsify a legal document, I check the yes box and pay the taxes on any online purchases. The advantage to the change is I won't have to separate the purchases.

Tom

 

[rrmccabe]

I am a web developer and its going to be a nightmare from a shopping cart standpoint in some cases.  In our state we have local option sales tax by county and some city. How we are going to drill down and handle that I have no idea.

Bob, I can assure you its not going to effect your business from me because I cant get Festool support from my local dealer like I do you.  So I would rather buy online !

 

[tbellemare]

I don't want to violate Forum Decorum so if I have, Bob, please let me know and I'll gladly delete this...

I think this is something that a lot of municipalities, counties, states, etc. would like to see done, purely for self-serving reasons. I also don't think they can agree on how it should be done.

If the Congress can come together on additional taxing, however they couch it, I might wear a dress while I mow the lawn.

Luckily, I have almost all gravel now.

Tom

 

[Corwin]

I don't want to violate Forum Decorum so if I have, Bob, please let me know and I'll gladly delete this...

I think this is something that a lot of municipalities, counties, states, etc. would like to see done, purely for self-serving reasons. I also don't think they can agree on how it should be done.

If the Congress can come together on additional taxing, however they couch it, I might wear a dress while I mow the lawn.

Luckily, I have almost all gravel now.

Tom

You well know our forum rules:  Photos, or it didn't happen.  Heck, even Rick (who doesn't look that great in purple) knows that...   [unsure]

.

 

[tbellemare]

The good thing is, Corwin, that I don't own a dress... Unlike Rick.

Tom

 

[Bob Marino]

I am a web developer and its going to be a nightmare from a shopping cart standpoint in some cases.  In our state we have local option sales tax by county and some city. How we are going to drill down and handle that I have no idea.

Bob, I can assure you its not going to effect your business from me because I cant get Festool support from my local dealer like I do you.  So I would rather buy online !

Well, thanks for your kind words!

Bob

 

[Bob Marino]

I don't want to violate Forum Decorum so if I have, Bob, please let me know and I'll gladly delete this...

I think this is something that a lot of municipalities, counties, states, etc. would like to see done, purely for self-serving reasons. I also don't think they can agree on how it should be done.

If the Congress can come together on additional taxing, however they couch it, I might wear a dress while I mow the lawn.

Luckily, I have almost all gravel now.

Tom

Tom,

  No problem at all posting here; I welcome other dealer's take on  it.
The bill has bipartisan support; the particulars will be worked out I'm guessing, but their is just too much coin involved for this not to pass.
BTW, as how you put it; I'm glad you have gravel, not grass. ;D

Bob

 

[Rick Christopherson]

Geez! I leave you children alone for a few minutes....and what happens? ....Ya start talking about dresses.  [crying] Can you guys just get back to arguing or something.....anything?  [tongue]

 

[tbellemare]

Geez! I leave you children alone for a few minutes....and what happens? ....Ya start talking about dresses.  [crying] Can you guys just get back to arguing or something?  [tongue]

I knew it wouldn't take long!

Tom

 

[Rick Christopherson]

Yeah Tom, but my legs look good in a dress. hehehehe

 

[tbellemare]

But seriously, sort of, I would look pretty ridiculous in my wife's dresses. She's like a pixie and I'm like a pixar...

Tom

 

[Rick Christopherson]

Just to get back on topic, let me re-dress what I said earlier.....

When I first posted, I didn't realize that there was a $1 million threshold. However, now that I have thought about it, that threshold is pretty low. When you consider profit margins and salaries, that would categorize a pretty small company of only a couple employees. Any company operating near that threshold would be hit very hard by the extra overhead. I agree with eBay's stance that it should be increased to something larger than $1 million.

 

[tbellemare]

Back to the subject...

I think you make very good points, Rick. It is a very difficult thing to consider, how to square collection activities over many jurisdictions that all have their own authority.

I sincerely think that what is happening in our Nation's Capitol, (yes, I mean that domed building that is smaller than ours here in Austin, TX), is pandering to the base(s) because there is an upcoming election.

I really doubt that it will go anywhere. The States have already cracked down and are continuing to find significant sources of income that can line their coffers. That won't likely stop.

Tom

EDIT:
Pardon me, Rick... I think we hit the post button almost simultaneously.