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  #46  
Old 06-22-2018, 10:30 AM
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Cypress Knee Cypress Knee is offline
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Quill should have very little impact on purchasing decisions. The buyers were already responsible for remitting the sales tax on internet purchases, most simply refused to do so and enforcement at the level is practically impossible. Now the burden of remitting sales tax has been removed from the buyer and placed on the seller, where compliance is much easier to enforce.

Just think of it this way - if the employer was not forced to withhold income tax and FICA from worker's paychecks, and the worker was required to remit the taxes due, could this be enforced? Most people would take the whole check, blow it, and have nothing left to send at tax time.

It will be interesting to see how this impacts Buy Sell sections of internet bulletin boards. At an average 7 - 8 % state sales tax rate, there has to be a crossover point where it makes sense to aggressively scour those boards for sellers who are not remitting the sales tax. For example, a seller could list the price of a Martin D 45 at $5,000 plus 8% sales tax and then "forget" to send the $400 tax to the state. (I made up the 5k price). At what point does the actual enforcement kick in?
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  #47  
Old 06-22-2018, 10:39 AM
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Yes it will have a major impact on my buying habits. I will shift some purchasing to used venues, and spend much less in general.
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  #48  
Old 06-22-2018, 11:46 AM
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No, I'm used to paying sales tax, but...... Any further comment may be unpolite regarding the use of funds in my home state, lol.
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  #49  
Old 06-22-2018, 05:33 PM
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Default Won’t change my buying habits

My online shopping habits won’t be affected at all. I still plan to buy what I want just like always.
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  #50  
Old 06-23-2018, 07:11 AM
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Quote:
Originally Posted by Cypress Knee View Post
It will be interesting to see how this impacts Buy Sell sections of internet bulletin boards. At an average 7 - 8 % state sales tax rate, there has to be a crossover point where it makes sense to aggressively scour those boards for sellers who are not remitting the sales tax. For example, a seller could list the price of a Martin D 45 at $5,000 plus 8% sales tax and then "forget" to send the $400 tax to the state. (I made up the 5k price). At what point does the actual enforcement kick in?
There is no sales tax on private party sales in most states that I am aware of.
Seems to me the state would have to first determine that party in question was actually running a commercial enterprise.
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  #51  
Old 06-23-2018, 07:37 AM
Gmountain Gmountain is offline
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This isn't new, by the way. It's just that more people know about not paying sales tax. Years ago we bought some jewelry in New York City, and as long as it was sent to us out of state we didn't have to pay sales tax. That happened on a lot of transactions, long before the internet existed. (Well, Display Writers existed.)
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  #52  
Old 06-23-2018, 11:26 AM
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Quote:
Originally Posted by Shoreline Music View Post
...Will an effective national internet tax drive you back to your local guitar store? ....
Okay. Your question did not ask if it would change buying a guitar. So, no. The decision has no bearing on my purchasing. Everyone should be paying sales tax on all purchases anyway. As stated, your sales taxes pay for infrastructure, schools, emergency services, etc. The ruling will still result in less taxes as I believe it only addresses state sales taxes not county or city and certainly not add-on taxes such as transportation districts and other special taxes. When I purchase on line it's for either convenience or availability, not taxes.
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  #53  
Old 06-23-2018, 11:37 AM
Silurian Silurian is offline
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Quote:
Originally Posted by KevWind View Post
There is no sales tax on private party sales in most states that I am aware of.
Seems to me the state would have to first determine that party in question was actually running a commercial enterprise.
This is aso the case in the UK. HMRC do use software to trawl sites such as ebay to identify trading patterns to indicate whether a 'commercial' enterprise is being run.
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  #54  
Old 06-24-2018, 10:02 AM
IBKuz IBKuz is offline
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Does this ruling effect "out of country" purchases at all? Usually when I purchase anything from the US (I'm in Canada), I have to pay local Canadian taxes when assessed (not US taxes), this is usually only applied at a certain threshold point (not exactly certain how this is applied as it varries in different situations). Will US retailers now assess me US taxes on my purchases?

In my case I also try to support local vendors, but the available market of different products can be limited at times. If, as an international buyer, I'm now assessed US taxes, this would curtail some of my purchases due to a double tax being paid. Likely I could get this info with a Google search but thought I would bring this up as this ruling may affect US buyers decisions in looking outside the US for buying some products.
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  #55  
Old 06-25-2018, 11:53 AM
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Quote:
Originally Posted by Cypress Knee View Post
... The buyers were already responsible for remitting the sales tax on internet purchases, most simply refused to do so and enforcement at the level is practically impossible...
I would be willing to bet that only an incredibly small percentage of consumers are/were even aware they were supposed to pay local sales tax on out of state purchases. I was only made aware of this after a sales tax audit when I owned a business and paying said tax was an actual line on a form. The item was called a "usage tax" without definition. I honestly didn't know what it was and therefor disregarded it (and paid the price for my cavalier attitude). After the audit, I started paying it. However as I told people about my tax audit / (mis)adventure, the vast majority of both private people and business people were totally unaware of this requirement. And like you said, it was realistically unenforceable.

As to the Supreme Court decision and those gnashing their teeth about the burden to sellers, I'm sure an entire cottage industry is cropping up to write software that will account for all of the different state/county percentages that are now in play. Seriously, a well written piece of computer software can handle this without breaking a sweat.

I have no idea how much this will cause a redirecting of purchases towards local vendors but no matter how "low" a percentage it becomes, it will make a world of difference to those who benefit.

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  #56  
Old 06-25-2018, 12:05 PM
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My prediction for the future is that the electronic payment systems will be adjusted to automatically calculate sales tax due to any given state. The program will apply the shipping destination zip code to the final price, calculate the tax due, and the electronic processing system will automatically deposit the tax directly into the comptroller's account of each state.

This will extend to Paypal, Square, and other third-party electronic processors. They will be compliant because the tax is not borne by them and the long-term effect of an 8% tax will be to increase the processing fees collected by the organization.

It will be up to private buyers and sellers to document that their transaction is a private transaction with no sales tax due with severe penalties otherwise. As a result, private transactions will result in a face-to-face meeting and likely cash transaction to avoid the headaches associated with electronic documentation.

It may sound Draconian, but so many states are desperate to raise money, and their only avenues are increased tax, tolls, and fees for services.

The biggest impact will probably be on the hobby buyers and sellers who trade over the internet and are happy to check out numerous instruments and other things as long as they can basically break even on the transaction costs. That extra sales tax could put a damper on that.
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