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State Coalition Approves Internet Sales Tax Plan
An anonymous reader submits this story about the U.S. states banding together to figure out a way to tax mail-order transactions.
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why do you think we buy stuff on the internet? Cheap prices, and no tax! Even though we have to pay shipping its still a good deal. If we have to pay shipping and tax I will never buy anything online ever again!
keanmarine.com
Unless they impose a national sales tax or VAT, I don't see how this will work with all the different sales tax "districts."
Sales tax is levied at the state level. There is no need for any federal law on this. As it stands, if you buy something from an online store, and they have a business presence in your state, you pay sales tax to your state.
That's why I have to pay Texas sales tax on my crucial.com purchases even though they are not in Texas. If, on the other hand, I buy something from NewEgg.com, which is in California, I pay no sales tax because they do not have a business presence in Texas. California residents do pay sales tax.
Internet sales are just like mail-order catalogs, and the same tax rules apply. We have no need for new laws on this.
"It's better to keep your mouth shut and be thought a fool than to open it and remove all doubt."
Living in a state that spent money like a drunken sailor in a whorehouse when the booming economy artificially boosted tax receipts, and now has a 1.7 billion dollar hangover, I might suggest that they spend less money.
Mea navis aericumbens anguillis abundat
States can tax sales within their borders, but interstate commerce is up to the federal government. States have no right to do this.
It's called a lookup table.
Zipcodes are five digits long right? That's a lookup table of 100,000 tax rates. The tax rate for each cell in this lookup tables comes from one of approximately 50 entities, or about 2,000 zip codes per state.
100,000 tax rates and say 4 bytes per tax rate. That's a 400K table. Pretty small table overall.
Each state probably has at most 100 different state tax rates. That I am sure is a gross overestimate. I bet it's more like 10.
This seems like a pretty easy job of data asembling to do.
You can have each state make their own particular lookup table made available from their secretary of state, or available with their digital signature available from the state website.
Then start with one zipcode to state lookup table published by the USPS and available online, signed, at some well known URL.
The rest is a smop for the sophomore programmer.
If you're a legacy (*nix, windows) publisher, you assign an intern to call up each 50 states and get their tax rates tables and stick that into your legacy app.
OR, if you're an ASP/VSP, you can make one website surf the state urls for updates and make that available as one interface (SOAP, XML-RPC)
Pretty easy. I never understood the arguments that this was too hard to implement.
My little website is just one of thousands of tiny little businesses that are run part-time, or just barely pay the bills for one person to run it.
It's absolutely unbelievable what a lot of companies charge for "e-commerce" software. How likely is this to be a $49.95 turbo-tax package? Nope, it'll be targeted at businesses and a few blood-sucking companies will see this as a big opportunity to rake in the dollars from every on-line merchant. We've seen lots of this mega-expensive software, and we manage to get by and make customers happy without any of it. It's unheard of to be _required_ by law to purchase some particular (extreemly expensive) software. And with some special gov't appoval/certification process, you can be sure it'll be plenty expensive...
But for the little guys (like me), that money just isn't there. We can't spend thousands on software, or just about anything else for that matter. It looks like the company these states are working with is Taxware. Go visit their site and take a wild guess at what they're going to charge for this sort of software. It ain't gonna be cheap.
The fact is that there are many thousands of very small on-line merchants. VERY small. Filing 45 tax returns is going to suck. Paying for expensive software, or consulting fees to some "approved" company will only add injury to the insult. Our accounting software budget includes a new version of Quickbooks for next year. That's about all we can afford software-wise.
And it goes against all other tax paying practice to require specific approved software. You don't need special software from a specific "approved" vendor to file taxes. You do need to know how to do it, of course. My partner is a CPA and she knows ordinary sales tax very well (even though we live in Oregon where there is no sales tax). Why should we be held hostage to purchasing special software? Why does it need to be from specially approved vendors?
If the tax can't be paid by a company with an ordinary CPA, and some special software is required, and that software is so special that vendors need to be certified by some special approval process, they certain't haven't made great strides towards making this a simple enough process. Special software isn't required for paying normal taxes, and requiring a special certification process for tax calculation software is totally unheard of. It reaks of a back-room deal between GovOne (the makers taxware) and these states... if some complicated certification process is required for anyone else trying to enter the market for this new software that every on-line merchant is compelled to buy, guess what the prices will be in the first year when Taxware is the only product available and everyone is REQUIRED to buy it?
Well, enough ranting for one day. Maybe it won't be so bad. I'm just in a bad mood because a customer refused to pay the tax/duty on a package we shipped to the UK (and now we need to do something about it, and all the options suck....)
PJRC: Electronic Projects, 8051 Microcontroller Tools
Any idea what states were particapents to this meeting? I'd like to know if I should start writting my congressperson now or not.
"Not knowing when the dawn will come, I open every door." - Emily Dickinson
I work at a catalogue company-- we get orders in the mail, mostly. At the moment, the only people that have to pay tax are those that are ordering in the same state that we're located.
Do you know how many people don't know how to figure out how to add 6.5% on an order? How many times a day I have to call confused grandmas because of short checks?!?
I'm getting aggravated already just thinking about this. This is going to be hell for us. It's no wonder there's a big jar of Advil available for everyone in the office.
Taxation without Representation is what this breaks down to. What is to prevent your local legislature from heavily taxing all out of state transactions? Their constituents shouldn't care, the people affected are not in their districts! Then we get a war of continually raised levies on interstate goods. Then we revert back to colonial times. We might as well just print our own local currencies...
If you have a chance, contact your local and state representatives and let them know that this is the worst thing you've heard of. Otherwise, we'll all be screwed.
Yeah, lets have another sales tax! Alright! Party time!
... and more! Oh the joy!
... and so on ...
So lets enumerate a typical pay check on a typical day...
Federal Income Tax (unconstitutional BTW)
Unemployment Tax
Soc Sec. tax
medicaid tax
State Income Tax (likewise)
Gas Tax
Cigarette Tax
Excise Taxes
Sales Taxes
Personal Property Tax
Prepared meals tax
highway tolls
FCC charges
The thing I find troubling, almost ironic with almost every tax, especially sales taxes, is that I'm paying these taxes with income that has already been taxed. WTF.
And what do I get for the 50% of my income that goes to the government??
I get to wait in a long line at the supermarket while DaSheeki sorts her grocieries in 3 separate piles... one for WIC, one for Food Stamps, and one for cigarettes (which she purchases with a $100 bill). What a pleasure that can be.
I get to have my annual IRS harassment.
I get to have my annual BMV harassment.
Can anybody name one thing besides internet (mail order) sales that IS NOT taxed? Bueller?
How many of you gainfully employed lemmings actually study your pay stub every time you get paid, and identify the amount of money the government stole from you that week?
What are you going to do about it?
Skiers and Riders -- http://www.snowjournal.com
My wife runs a small internet business selling hot sauce and other scary things. She currently pays local inventory tax, business property tax, building tax, self-employment tax, state and federal income tax and use/sales tax on equipment used to run the business and now another tax to be applied to customer on sales. It is enough to make me start thinking of a having a tea party.
Damn but we do have some bitter 'merican slashdotters...
People gripe about taxes. But then they say, "Hell, could be worse, couldn't it? I mean, we could be livin in one o' them Yuro-peein countries and paying fifty percent in taxes. Hell, I don't know how they stand it."
And I always have the same response. "I don't care how much I pay, as long as it's spent efficiently." If the State takes 100% of my paycheck, then efficient spending provides that they are able to find a way to compensate me for 100% of the value I contribute to my company.
In the 'States we're definitely burning about 92 cents on the dollar, I agree. But most of the people clamoring for "reform" really want a system that is worse at stopping them from screwing people more than they are. Flat taxers are invariably rich. Rich people are almost invariably flat taxers. Rich people that aren't flat taxers have more heart than brains, and poor folk who are flat taxers just really don't know who to trust. Let's just say there are reasons they aren't rich.
I always thought Washington state was full of peacenik hippie freaks. Turns out it is, except they keep electing Democrats who keep out a state income tax (you read that right) in favor of a single-mother-crippling 9-percent sales tax.
Microsoft pays no federal income tax. Bill Gates pays no state income tax. Why do people vote for legislators that would rather have a dollar from a working mom than ten dollars from a billionaire? I can't say, but I intend to find out. I think it has something to do with how rare it would be finding Republicans campaigning on a state income-tax platform... Ah, another fine benefit of the two-party system.
Damn. Guess I'm one of them bitter 'mericans.