31 states now collect sale tax on online orders.

ShootyMCstabby

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I placed an order last night with 1 of the major car parts distributor. And I notice I am being charged sales tax, on my out of state order. I just placed an order 2 weeks ago so I think its a mistake.

I do a little digging and find out the Supreme court passed the law and it went in effect as of Oct 1st 2018.
 

DSG2003Mach1

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I placed an order last night with 1 of the major car parts distributor. And I notice I am being charged sales tax, on my out of state order. I just placed an order 2 weeks ago so I think its a mistake.

I do a little digging and find out the Supreme court passed the law and it went in effect as of Oct 1st 2018.

yep, its going to be a total freaking nightmare to remit sales tax to all the appropriate agencies especially with many starts having multiple tax areas with different rates. You no longer have to have a physical presence in a state to have to pay sales tax
 

earico

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USE tax has been around a long time but the flaw in that was it was up to the individual to file it and pay. Since nobody was filing, except businesses, they have now decided to put the burden of collecting it on the vendors doing the selling. It's been a long time coming. I'm actually surprised we've enjoyed tax free buying online for as long as we have.
 

sleek98

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So I have a friend that builds stuff and sells it online, they only had to file 1 sales tax return and its rate was based on their zip code per missouri law. Now they have to charge based upon where the part is being shipped (outside of missouri) and file with that state, county, city. It is unreal. This administratively will cost them quite a bit of money.
 

Kevins89notch

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I know of one company that hired out their online chat support, and because those workers are in like 7 different states, the company now had to collect sales tax in those states. The other 43 are tax free.
 

2KBlackGT

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So I have a friend that builds stuff and sells it online, they only had to file 1 sales tax return and its rate was based on their zip code per missouri law. Now they have to charge based upon where the part is being shipped (outside of missouri) and file with that state, county, city. It is unreal. This administratively will cost them quite a bit of money.

Didn't most here think this was a good idea?
 

Mojo88

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In my crooked state, they not only collect sales tax online, they also collect a small percentage on my tax return (this was originally instituted to make up for the online buyers who 'neglected' to file and pay sales taxes), so I am now getting DOUBLE TAXED!

F this damn, rip-off state of mine.
 

DSG2003Mach1

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So I have a friend that builds stuff and sells it online, they only had to file 1 sales tax return and its rate was based on their zip code per missouri law. Now they have to charge based upon where the part is being shipped (outside of missouri) and file with that state, county, city. It is unreal. This administratively will cost them quite a bit of money.

This is my nightmare with the business my uncle and I are trying to get going. I'm hoping that someone will come up with a utility to help with this (like shopify since so many people use that and that's where we'll be starting)
 

sleek98

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This is my nightmare with the business my uncle and I are trying to get going. I'm hoping that someone will come up with a utility to help with this (like shopify since so many people use that and that's where we'll be starting)

I have been filing the single return for him since its easy. It will likely take a full day or two each quarter to fill out all the forms if they sign up for a company to track the actual tax due to each place. This is a 2 person show that is busy all the time. The platform will have to integrate into their website and check each order before they order based on shipping address to verify the tax due. The main company I worked for was going to do online sales and we found a company that does it for 50 cents a transaction plus a base monthly fee. They will file returns as well for another 75 a return, but if you end up with 100 returns that need to be filed, that is 30,000 a year plus the 6,000 base fee plus the 50 cents per transaction.

So lets just call it 37,500 a year in additional compliance cost. (these cost were based upon doing 200k transactions, so I assume its not going to cost them 37,500 but closer to 50k once they lose the volume discount my main company would have qualified for)
 

lOOKnGO

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I would have thought PayPal would have things set up already or a large credit card company.


Sent from my iPhone using Tapatalk
 

Coiled03

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This is my nightmare with the business my uncle and I are trying to get going. I'm hoping that someone will come up with a utility to help with this (like shopify since so many people use that and that's where we'll be starting)

Be the change you want to see. Sounds like that could be a great thing to develop.
 

DSG2003Mach1

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I have been filing the single return for him since its easy. It will likely take a full day or two each quarter to fill out all the forms if they sign up for a company to track the actual tax due to each place. This is a 2 person show that is busy all the time. The platform will have to integrate into their website and check each order before they order based on shipping address to verify the tax due. The main company I worked for was going to do online sales and we found a company that does it for 50 cents a transaction plus a base monthly fee. They will file returns as well for another 75 a return, but if you end up with 100 returns that need to be filed, that is 30,000 a year plus the 6,000 base fee plus the 50 cents per transaction.

So lets just call it 37,500 a year in additional compliance cost. (these cost were based upon doing 200k transactions, so I assume its not going to cost them 37,500 but closer to 50k once they lose the volume discount my main company would have qualified for)

ya theres no way we could support them filing the returns with this kinda business but the .50 per thing might work

Be the change you want to see. Sounds like that could be a great thing to develop.

I might be wrong but I feel like thats something a bunch of software giants are already knocking out and honestly that whole thing doesnt appeal to me with the other businesses I have going
 

sleek98

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ya theres no way we could support them filing the returns with this kinda business but the .50 per thing might work

That was based on 200k transactions a year, I cant remember exactly what it was to start but something in the $5 range plus a base monthly fee.
 

BrunotheBoxer

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How else are liberal **** shits Supposed to pay for all theses social programs?

Money don’t grow on trees. As usual the workingman has to pay for all this horse shit.

I might even take all my money out of the banks and out of my retirement because in the future liberal **** heads Might just takes the money out on their own to pay for this shit.
Have a great day.
 

JJackson515

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This is my nightmare with the business my uncle and I are trying to get going. I'm hoping that someone will come up with a utility to help with this (like shopify since so many people use that and that's where we'll be starting)

This is easy to Take care of IMO. im a huge online seller, so this effects me as well. there is a program called taxjar.com that integrates with shopping carts, amazon, ebay, paypal, etc. it tracks taxes per state, and you can assign nexus states as well for taxes. they even autofile for you. i think i pay $19 a month, and a minimal amount for them to autofile for me.

I think the biggest thing is the market place facilitator tax collection. Amazon does this for you already, they charge the tax to the consumer automatically, and sends it to the appropriate state for you. I would imagine a lot of platforms will switch to this.
 

Bearbo

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As usual, stupid way of doing things. No taxes was great but you know the government was not going to let this revenue stream alone.

What they should do to simplify is to charge a flat rate on all internet transactions say like 4%. Federal and State could split. If transaction was bought and shipped within the same state then say 5% all going to said state to even playing field between brick/mortar and online.

Taxes are going to happen unless we somehow rein these fools in. At least this would make tax collection and remittance much easier for businesses engaging in online transactions.
 

sleek98

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This is easy to Take care of IMO. im a huge online seller, so this effects me as well. there is a program called taxjar.com that integrates with shopping carts, amazon, ebay, paypal, etc. it tracks taxes per state, and you can assign nexus states as well for taxes. they even autofile for you. i think i pay $19 a month, and a minimal amount for them to autofile for me.

I think the biggest thing is the market place facilitator tax collection. Amazon does this for you already, they charge the tax to the consumer automatically, and sends it to the appropriate state for you. I would imagine a lot of platforms will switch to this.

Do you file for your sale tax id in each state or do they do it? Not having to have a presence now causes the need to get a sales tax Id anywhere you ship a product.
 

Recon

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This was enough motivation to see if my state (KY) does it. I’m not sure if it’s because it’s been a long day or I’m just slow but I couldn’t grasp what I read whatsoever. Lol.

It sounds more like yes and no, then a definitive yes or no.


Pick your poison.
 

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