Sales tax on online purchases

[Tico]

I thought nothing really changed ... because when filing our state tax we all file and pay our legal obligation via that Use Tax every year by claiming everything bought from out of state.

You mean one or two Americans have been breaking the law!?!

[Blueser100]

Yes. I have a seller account on Amazon mostly for old academic books and I’m lucky to earn a few dollars. It’s like tax on tax on tax.

[chistrummer]

Originally Posted by crnazz

Just got an email from Reverb with the states involved. WA is "live" on that issue now. Reverb automatically adds the taxes upon purchase..

So I'm just lamenting the taxes I've had to pay on a couple of recent online purchases - to include an expensive guitar from a Reverb store in Arkansas.

If the seller is a dealer than call their store direct.

[chistrummer]

Originally Posted by Tico

I thought nothing really changed ... because when filing our state tax we all file and pay our legal obligation via that Use Tax every year by claiming everything bought from out of state.

You mean one or two Americans have been breaking the law!?!

Exactly! People complaining about sales tax don't seem to understand the laws.

[Dirk Hofman]

Originally Posted by TBman

My opinion on sales tax runs into the "political" area so I can't say what I really think about sales tax and the cause of it to begin with.

Everyone’s opinion on sales tax is political, it’s a purely political issue.

How new laws affect guitar sales and related online transactions is a practical discussion, and a worthy topic.

[KevWind]

Originally Posted by Dirk Hofman

Everyone’s opinion on sales tax is political, it’s a purely political issue.

How new laws affect guitar sales and related online transactions is a practical discussion, and a worthy topic.

I am guessing ( I could be wrong) there will not be a significant hit to online transactions. But hopefully it might make brick and mortar a bit more attractive ....

[Mr. Jelly]

Originally Posted by robj144

I believe even before this change, you are supposed to pay tax on everything. If you didn't, you needed to report it on your income tax return which no one does.

We've been kind of using a sort of ignorance "loop hole" to this point.

Wow! Good point. I love it when facts put things in perspective.

[chistrummer]

Originally Posted by Dirk Hofman

Everyone’s opinion on sales tax is political, it’s a purely political issue.

How new laws affect guitar sales and related online transactions is a practical discussion, and a worthy topic.

Nothing political about sales tax and opinion has nothing to do with it. Either it's the law or it's not.

[sdelsolray]

The law changed in 2018 due to a SCOTUS opinion. Here's a link to the case:

https://www.supremecourt.gov/opinion...7-494_j4el.pdf

Basically, this is how things are:

1. A State can now require an out-of-state internet seller who sells retail goods to consumers in that State to collect the sales tax that an in-state brick and mortar retailer would charge that consumer for the same transaction. A certain level of "nexus" is required, e.g., $100,000 in sales per year or 200 transactions per year.

2. State must first pass a law which allows the State to tax such "remote seller" transactions and require the seller to register with that State, file returns, etc.

3. Some States have already done this. Others will likely follow.

It is more complicated than this, but this is the essence.

[TBman]

Originally Posted by Dirk Hofman

Everyone’s opinion on sales tax is political, it’s a purely political issue.

How new laws affect guitar sales and related online transactions is a practical discussion, and a worthy topic.

Well, saying you don't like to pay sales tax isn't political.

Just keep off the grass, okay kid?

[chistrummer]

Originally Posted by sdelsolray

The law changed in 2018 due to a SCOTUS opinion. Here's a link to the case:

https://www.supremecourt.gov/opinion...7-494_j4el.pdf

Basically, this is how things are:

1. A State can now require an out-of-state internet seller who sells retail goods to consumers in that State to collect the sales tax that an in-state brick and mortar retailer would charge that consumer for the same transaction. A certain level of "nexus" is required, e.g., $100,000 in sales per year or 200 transactions per year.

2. State must first pass a law which allows the State to tax such "remote seller" transactions and require the seller to register with that State, file returns, etc.

3. Some States have already done this. Others will likely follow.

It is more complicated than this, but this is the essence.

Thanks for that link.