E-commerce Sites to Collect Sales Taxes Nationwide

aengblom writes "An agreement between 38 states and some of the nation's largest retailers is bringing taxes to the net, The Washington Post reports. In return for collecting taxes for all U.S. sales, the retailers would not be held liable for taxes they 'failed' to collect previously. Best quote: 'If we disclose who these companies are, it's like putting a target on their back.' The Post reports that Wal-Mart, Marshall Fields, Target, Toys R Us and Mervyn's have all 'independently' announced plans to collect taxes nation-wide." Internetnews.com has a story about the taxes and an article claiming it won't hurt online sales.

Comments

Fair Enough

[endoboy]

If (big if...) one accepts the proposition that sales taxes are legitimate, then there's no reason Amazon should be any less taxed than the bookstore down the street....

Last I checked, the UPS guy was driving on the road that local taxes paid for...

Re:Fair Enough

[meowmonster]

Yes but UPS is paying taxes on that road because for them to operate in your state they are being taxed. Their vehicle tax paid for the road along with your vehicle tax. You paid their vehicle tax as part of the shipping fees.

But then again sales taxes are not legitimate, it's double taxation. You are taxed for earning and you are taxed for spending and you are taxed for saving (unless you put it in your mattress, but sooner or later the IRS is going to wonder and you'll be audited anyway). You are constantly being punished for being a productive member of society. If you decide not to be a productive member of society then the income of those that are productive is redistributed to you, therefore you are rewarded.

Yes we need a tax but don't double tax. Make it an income tax or a sales tax but not both.

That started to get a bit off topic, but by paying sales tax for goods and services out of your state you are being taxed for services you do not use. If I buy something at my local target I am driving on the roads, burning fuel and participating in commerce within my own state. That (although arguably) takes resources that the state collects taxes on.

If I buy something out of state, that business does pay taxes on their income in their state so the "cost of commerce" is covered. The truck that picks the packages up and brings them to UPS facility paid taxes to be licensed so that is covered. If it is a ground shipment, most states have regulations taxing the trucks that go through them in the form of licensing or fuel costs (or both) so that is covered as well. I didn't make my money in that state so they are not entitled to my income (that of course leaving out the argument that govt is entitled to any of your money or we would be arguing our own state's taxation again). And the truck that brings it to my door is licensed in my state and the income they earn for bringing that package to me is taxed so my state is already getting their share. Seems to me that any additional taxation is unfounded, not to mention that I have NO say in the state's gov't that I bought the package from so me paying them any kind of tax (directly, as apposed to indirectly like the portion of my money that is income tax for the store) is taxation without representation which is unconstitutional. Isn't that what was behind the revolutionary war (among other things - not I don't need a history lesson), just on a MUCH smaller level?

Abolishing the income tax on ALL levels and going to a national sales tax would of course solve these issues (but create others), then the feds can ration out money to the states based on their population. And when everyone is paying 50% sales tax they will get a better idea how badly goverment is bloated and maybe change their voting habbits...

Legislative stupidity

[0x0d0a]

So I can just buy from a Canadian e-retailer. Or a Mexican. Doesn't really affect me where they're based, and now they have a 7% price advantage over US-based companies. Way to go in a poor economy, US government. Now, instead of keeping the cash *in* the economy and picking it up on income taxes each time around, we throw it out to other countries. Kind of stupid. AFAIK, mail order companies are still tax-free, to show how arbitrary and lobbist-based this is.

I was wondering how long it would be from the time Bush took office (and left the Clinton/Gore approach of "fund the Internet to build it up, but keep it hands off as much as possible") to the time big companies (brick-and-mortar types) started getting their way legally.

Some already have been

[ackthpt]

Internet retailers who have a physical presence in California have charged me sales tax, last year. It's not like there's any secret, you get to see your total before submitting payment. A few sites are forthright, displaying the tax policy on their home page.

It's just a leveling of the playing field. At some point I expect mandatory for all businesses, including those without a physical presence, which could be difficult for the Mom & Pop, HOWEVER(!) that doesn't prevent some sharpie from starting up a business to track it for them, if you get my drift.

Use the phone.

[Garg]

Before online shopping, I used to mail-order everything 'cause if you bought out-of-state, there was no sales tax.

So now just look up what you want online, and call their 800 number to order instead of using the Web.

I suppose they'll plug that too though...

Sigh.

Garg

Hmm .. stupid

[RembrandtX]

First off .. we all need to keep in mind that Internet sites that do e-commerce are REQUIRED to collect sales tax if they are selling to a state which they have a Brick & Morter store located.

So Sites like Walmart, Toys R Us, and my own Black & Decker have to pay taxes; Where sites like Crazy Aaron's Thinking Putty or Old Glory Games - do not.

That being said:

If I *DRIVE* to virginia (or deleware etc) and buy a car .. I don't have to pay sales tax on it. [although I do get taxed when I register it in my own state.]

If I order something over the phone, I don't have to pay tax in some states. Same if I order a magazine.

While internet stores are no replacement for a good Brick and Morter store .. they do sometimes fill a nitch. Example .. 3 weeks ago I was looking for 2 things : An Ospry Book for Eastern Front German Uniforms in WWII, and German winter gear figurines (25m) of the same timeframe.

I went to FIVE hobby shops local to me that carry minatures .. and none of them had what I wanted. [I called 6 more .. getting smarter after the 5th to get the same result.] *EVERY* single shop was willing to 'special order' said product for me.

Now, I tried to buy them in a REAL store first .. because I wanted to support my local stores.
Granted - I was looking for some rather specalty items, but when a store CARRIES said items .. at least ONE out of 11 should have SOME representative in inventory.

All my real stores failed me .. so I ordered from an online store.

Internet shopping is only good if you know exactly what you want - its very hard to browse for something on the net .. because its forced marketing - you see only what a seller wants you to see about their product.

Three days later, product in hand .. I had what I was trying to find.

I guess my point is, Internet stores generally do business across state lines. [hence no income tax .. due to fluxing tax rates between states.]
Trying to regulate income tax for a NON store fronted web-store is stupid. If they had a local store, most folks prefer to go to them first. The E-Commerce-replaces-real-stores that everyone was afraid of in retail sales .. never happened .. and honestly .. probally never will.