Online Sales Taxing...new law - TwoWheelForum: Motorcycle and Sportbike forums
 
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post #1 of 10 (permalink) Old 07-13-2005, 11:24 AM Thread Starter
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Online Sales Taxing...new law

I keep hearing this crap about bringing some new sales tax to some 17 states by Oct. Michigan being one of them... does anybody know anything more about this?

Bee..come on news man...




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post #2 of 10 (permalink) Old 07-13-2005, 12:06 PM
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post #3 of 10 (permalink) Old 07-13-2005, 12:19 PM
 
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New Jersey is proposing...

New Jersey wants tariffs on online music sales. Could this be the start of something big?

NEW YORK (CNN/Money) - They want to tax my Who. And my 3 Doors Down. And my Dr. Hook and the Medicine Show.

Sure, if I had their albums I'd have already paid the tax. But I don't. I got their songs from the Internet ... Napster (the legal one) and iTunes, to be exact. And I listen to the songs a lot.

But now my state legislators, some of them at least, are talking about taxing my downloaded songs. Yep. A budget committee in the New Jersey legislature just approved a measure that would slap the state's 6 percent sales tax onto music downloads. So my Alan Jackson download would go from $0.99 to $1.05. This and other tax moves ... like taxing gym memberships ... would add $175 million to state coffers.

Now I understand some of the logic for imposing taxes on Net-based sales. The bricks and mortar guys have to collect sales taxes, so why shouldn't the folks who compete with them over the Internet?

Except that my local Sam Goody won't sell me the Grace Jones single I want. I have to buy the whole CD. And the local bookshop isn't going to deliver the next Harry Potter to my door. I'm paying Amazon and FedEx (indirectly) for that.

"They're trying to tax ether!" squawked a libertarian colleague of mine. I don't know if I agree with that. Digital or not, my Guns N' Roses still sounds real to me.

Yes, the drumbeat for Internet sales taxes is growing. States need the money. Some are already making a stab at getting it at tax time.

Nevertheless, the song sellers don't seem too worried.

"It is premature for us to comment on the implications of a proposal that has not yet been accepted," Napster wrote in an email response to my queries. "However, this is among the issues we are monitoring for future developments."

Apple had no comment. Guess this isn't enough for them to think different on.

And so my songs are probably going to get taxed. But there will be a fight first. The governor of Wisconsin pushed a similar proposal, but it went down in flames last May. That gives me hope for New Jersey, where the final votes have not yet been taken.

Maybe the gym guys will stop it.
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post #4 of 10 (permalink) Old 07-13-2005, 12:53 PM
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Quote:
Originally Posted by Gas Man
I keep hearing this crap about bringing some new sales tax to some 17 states by Oct. Michigan being one of them... does anybody know anything more about this?

Bee..come on news man...

I heard that Elvis is still alive and working at Burger King too. LOL
However I do know Michigan is making a HUGE push to do that for online tobacco sales. They are already going after people who purchase tabacco online and have shipped to Michigan and penalizing them for taxes and fines. But I do not think they will do this anytime soon for plain merchandise we buy online.
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post #5 of 10 (permalink) Old 07-13-2005, 04:19 PM
 
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I know some online stores make it where when you purchase something online you either pay the tax in the state the store is in, or the state you live in. So is this new internet sales tax thing another sales tax? if it is that double taxing which is
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post #6 of 10 (permalink) Old 07-13-2005, 04:46 PM
 
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Quote:
Originally Posted by SVupON1
I know some online stores make it where when you purchase something online you either pay the tax in the state the store is in, or the state you live in. So is this new internet sales tax thing another sales tax? if it is that double taxing which is
Here's the deal. The way the sales tax laws are set up now, you are legally responsible to pay sales tax on *every purchase you make* provided the state in which you are making the purchase has a sales tax - ours doesn't .

The tricky part is where interstate commerce gets involved.

When you walk into a physical store ... you pay the sales tax in that state/location, and they send it to the state.

When you buy something and it gets shipped to you ... the seller is only responsible for collecting the tax if you live in a state where they have a physical presence. If they do business in your state, you pay your state sales tax to the retailer and they send it to the state.

If they are not doing business in your state, you don't pay sales tax *to them*, but by law ... you're supposed to report the purchase on your state tax return and pay the sales tax (again, provided your state has a sales tax).

Now ... of course, *no one* does this, so states are losing millions of dollars in unreported sales tax from internet purchases. They want their money. They are trying to get laws passed where retailers collect sales tax no matter where the product is going. Or have the retailer collect sales tax for all the states. Both of which IMHO are ridiculous.

- Roach
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post #7 of 10 (permalink) Old 07-13-2005, 04:49 PM
 
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Thanks for clearing that up roach!
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post #8 of 10 (permalink) Old 07-13-2005, 07:32 PM
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You knew Uncle Sam was gonna get his mitts into it, don't see what's so surprising about it. I know this has been in the works for like years.
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post #9 of 10 (permalink) Old 07-13-2005, 11:26 PM Thread Starter
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Bee that is way off from what I'm fishing for.

SW...that is what I'm talking about. Michigan and 16 other states are trying to get on board with this taxing thing. Some way to tax us.




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post #10 of 10 (permalink) Old 07-14-2005, 07:27 AM
 
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I can remember a time when the government asked the people for more money to provide services instead of demanding, kicking, screaming and threatening, like a spoiled child. I thought they were suppose to work for us?? When did we start serving them??
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