Washington State Encourages Internet Sales Tax
prostoalex writes "Washington state Governor signed a tax bill encouraging out of state businesses to collect sales taxes on purchases made by Washington state residents. It should be noted, though, that Washington state does not collect personal income tax, and hence relies on state sales tax for 53.1% of its revenues." As the article notes, "People who purchase items from out-of-state Internet or catalog companies are currently supposed to pay the sales tax, but rarely do." Looks like Washington-staters won't be able to fib on their tax returns about internet purchases, starting in 2008.
I don't think this is legal under the constitution. The sales are made outside WA and therefore cannot be taxed by the WA government. A lot of governors have tried this crap, I don't think any have succeeded though.
It's stupid anyway. Sales taxes in Seattle are up to 9.1% which is pretty damn ridiculous. If I were living in WA and this went through, I'd move. Internet purchases help make WA living more affordable.
Latewire
The fact you have individual City tax rates is the biggest problem.
While the current situation in Canada is similar to the U.S., out of province purchase isn't subject to sales tax unless the company has a local presence, or you live in Quebec. (They are always the exception).
Implementing tax collection based on destination in Canada is simple, a table containing the province, tax rate, expiry date, and gl code are probably sufficient.
In the U.S. you would need a complete database of Zipcodes, and, or addresses to resolve the tax rate. Ugh! Now you have to maintain that, and that is probably on a monthly basis, not even yearly.
what exactly, did the state of the purchaser do, or provide to deserve 'their share'
seriously.. I pay property taxes to my community, which benefit my community..
if I don't like them, I can move- and pay taxes (or not) elsewhere...
I can see a state requiring businesses to pay sales tax based on their location- you sell from delaware, you have no other locations, you charge no taxes..
benefit to deleware? lotsa companys move to delaware for real.. and increase the states revenue in other ways (new UPS center, new fedex center, new airports, new train hubs)
you sell fron NYC, you pay NYC taxes, all the way down to the city level......
but, if I sell from delaware, and sell to WA, how is the states infrastructure involved that they deserve anything?
if I am a bad merchant, which states attorney general/BBB is going to be contacted?
(hint, the seller's state)
it should be evolutionary taxation, 50 little economic centers- stodgy states can charge the high/heavy taxes and just have funds from heavy handedness and spend it on tax collection/enforcement, enlightened states can charge no sales tax, and enjoy increased revenues from having more citizens, employed in more jobs....
every day http://en.wikipedia.org/wiki/Special:Random
"Washington state Governor signed a tax bill encouraging out of state businesses to collect sales taxes
...
Looks like Washington-staters won't be able to fib on their tax returns about internet purchases, starting in 2008.
Why? Washington state has NO power to do anything more than "encourage" out-of-state companies to comply. Not only can't they practically enforce this, trying to do so would violate Article I, Section 8, Clause 3 of the US constitution.
States can pass all the stupid laws they want regarding what you have to pay for "use" tax and the like. But at the end of the day (at least, at the end of April 15th), cash still lets you make untraceable (and untaxable after-the-fact) purchases.
I will really never understand why we accept "death and taxes" as somehow magically inevitable. The governments of the world have demonstrated themselves completely incapable of responsibly allocating the resources of the citizenry for the common good. Why do we still let them?
We should view tax evasion as one of the most noble of "crimes", depriving aggressive social parasites of their sole form of food.
Well, that's not really an issue since there's no state income tax in Washington state.
(Although having residents like Bill Gates and Paul Allen is a good reason to consider it.)
Tired of paying idiotically high taxes which support the bread and circuses that keep the mindless proles from thinking too hard about how much this sucks? Try electing somebody other than far-left Democrats for a change!
Yeah, because those Republicans are doing such a good job at keeping taxes down. I mean, my Federal income tax has been plummeting over the past 6 years of Republican rule. Oh, wait, no they haven't...they've gone up...and they've been spending way more than they bring in, which means they're only going to continue going up. Huh. Well, at least they're still for "smaller government", right? Oh, wait, no, that's just what they _say_ they're for. They're actually all for rolling back civil liberties and spending way too much...
ZuluPad, the wiki notepad on crack
Sure, avoid the 6$ on the hundred, however its going to cost ya 30$ to ship it. Plus tax.
1) "Plus tax?" I think you probably didn't mean to tack that on there, in-context.
2) If I pay FedEx $30 to ship something, the money goes to people employed in getting my goods to me, providing me with a service. If I pay $6 to the government, it goes to enforcing the WO(s)D, to killing Iraqis, to free healthcare for 5th-gen welfare mommies and illegal immigrants. I'll choose to pay the $30 every time, given that choice.
3) Many online companies offer free shipping if you spend more than a fairly small amount, like $50. Obviously that cost gets rolled into the price of the product, but since they still need to compete, you pay the "real" $0.98 shipping rather than the massively inflated $29.95 S&H. And 2% costs less than 6%.
I've got a friend who lived under Soviet rule for most of his life, he also lived in Canada for a while and he swears up and down that when you add up all the taxes you pay at every level, the USA has the highest taxes AND that USians don't get as much for their tax dollars as they do in Canada.
Does this sig remind you of Agatha Christie?
The state has no income tax so for the most part state residents don't file returns. There is a form(PDF) people fill out if they bought things online or out of state but if you were going to lie on that form you wouldn't fill it out at all. Far fewer than 1% of Washington residents fill out this form.
Back when car tabs on a big RV cost more than $5,000/yr it was quite common to go to a neighboring state to buy the thing, which cost the state a great deal of money in lost sales tax. To recover this lost tax an enforcement program was begun, and several people were prosecuted and fined up to the full value of the vehicle. This raised public awareness of the tax to the point where a series of initiatives was passed to make the registration tabs on all vehicles a flat $30. A series of (IIRC) three initiatives was required because each initiative that was overwhelmingly passed was immediately opposed by the government, the courts, and the attorney general's office. It was turning into a parody of democratic principles. They even did a hatchet job on reputation of the citizen who started and pushed the $30 car tab movement, Tim Eyman. Eventually though they got the idea that the people weren't going to tolerate this tax any more and even though the AG had the initiatives that passed declared unconstitutional the legislature reduced the tax to $30 anyway.
Immediately after this Seattle and some other jurisdictions passed new add-on taxes for vehicles but called them by a new name. At present the taxes on vehicle registrations are still much more reasonable even in the worst case. The struggle on this issue in Washington continues and likely will not end.
There is currently a movement to install a personal income tax in Washington in the name of fairness. It is likely to get a lot of press, but no traction. The only way this would get popular support was if it was promised to lower other taxes also and the people of Washington know that would be a flat lie. Besides, several of the wealthiest business people in the world live in Washington and they can afford to have a state income tax quietly killed.
FTA:
This "mitigation" sounds like a way for some bureaucrat to increase the "fairness" to his friends and family. That's going to end well.
Help stamp out iliturcy.
Neither US political party has much to brag about on tax an spend issues. They both are quite greedy.
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l Title=secrets_in_the_senate&ns=JohnStossel&dt=09/1 3/2006&page=full&comments=true
Take a look at the CATO Institutes 2006 report card on state governors:
http://www.cato.org/pubs/pas/pa581/reportcard_tab
In case you are too blinded by ideology to even look, I'll post the scores of the governors above and below Washington :
Bob Riley (R) -- Alabama, 47, F
Christine Gregoire (D) -- Washington, 47, F
Mike Huckabee (R) -- Arkansas, 46, F
The full report, with analysis and discussion:
http://www.cato.org/pubs/pas/pa581.pdf
BTW, John Stossel had an interesting report on 20/20 last night about Senator Tom Coburn, who is fighting federal pork-- and taking on heavy fire from both sides.
He wrote about the story last year:
http://www.townhall.com/columnists/column.aspx?Ur
Reread your economics book. No good has intrinsic value. A good is only valuable if someone else desires it, and only to the degree they desire it. Gold has no special magical property that gives it an intrinsic value.
I still have more fans than freaks. WTF is wrong with you people?
Did your friends ever think beyond their own wallet, as to the damage that they were doing to Washington's brick and mortar businesses? Did your friends ever consider if Washington would be such a great state to live in if most of the brick and mortar stores said "Fuck it. We can't compete with these people who just want to avoid paying taxes. We're closing up shop"? There is a flipside to that too: some of us Portlanders will cross the river to buy cars because the auto dealers like to say "Cars sell for less in Vancouver." This is because we can buy a large amount of groceries or an automobile, show our Oregon driver's licenses, sign our name on a form, and have the sales tax taken off. It's not perfect, but there is some balance there. I haven't done that often myself--more like when I happened to be up there and grabbing stuff before the trip back home. The exception would be the annual pilgrimage around the 4th of July because of the better fireworks. ;-)
"The only legitimate use of a computer is to play games." - Eugene Jarvis
As far as I can recall the federal government regulates this and has shot it down repeatedly. It will be challenged and shot down again. There's no sales tax for interstate purchases for a reason. This is a usurpation of those reasons.
There's little they can do to enforce it as purchases from out of state are not trackable. Also it puts a burden on businesses with licenses to set up with every possible company they do business with in line to verify their business license.
It will also turn many companies away from doing business with the state businesses.
You can lead a man with reason but you can't make him think.
United States Constitution trumps Washington State law.
http://www.usconstitution.net/const.html
Section 9.
"No Tax or Duty shall be laid on Articles exported from any State."
There is court precedence to back it up, too.
http://tinyurl.com/2pyvoh
When I was working retail, all a customer had to do was show an out-of-state ID, and their purchase would be sales tax exempt.
I would assume this wouldn't apply to the newer Hotel/Rental car taxes tho.
Is the man who sweeps the warehouse in the MidWest not my Brother also? Is the UPS driver not my neighbor? Is there a way I can choose products where I know all the people involved got a living wage, and not break the benefit of the commerce by making it impossible for me to afford? Does the clerk at your local store make more than the ones at mine? Mine are poor. Do your neigbors not invest their retirement funds in large companies that make these transactions? Is it not a benefit to encourage businesses to compete in the field of supply chain efficiency?
My understanding of hard drives far exceeds the level of maintenance a reasonable person would consider worthwhile. If you require guidance in this area, I can appreciate your willingness to pay a premium for it.
And this "hard drive" you speak of... is it not made in Asia by robots and packaged by enslaved children? When you're done with it, will you ship this toxic component to your local landfill or will you "recycle" it by having it shipped back to asia, where it will be dismantled and strewn across farmers fields for the lead to leach into the groundwater?
I don't see the karma here.
Help stamp out iliturcy.
Looks like Washington-staters won't be able to fib on their tax returns about internet purchases, starting in 2008.
We don't have to file (state) tax. It says so in the article quoted about 2 sentences above this moronic comment: Washington State has no income tax.
So now editors don't even read the blurbs. Or did they before?
Comment of the year
1992 1993 2001 2002 2003-2006
-2000
10.0% 10%
15% 15.0% 15.0% 15.0% 15%
28% 28.0% 27.5% 27.0% 25%
31% 31.0% 30.5% 30.0% 28%
36.0% 35.5% 35.0% 33%
39.6% 39.1% 38.6% 35%
I don't know where you got your mathematics degree from, but for me:
2000 -> 2006
15% -> 10%
28% -> 25%
31% -> 28%
36% -> 33%
39.6% -> 35%
Looks like they've gone up doesn't quite fit the numbers.
(Yes, the tax brackets get wider, but they do that every year.)
I'll be happy to pay your "out-of-state sales tax" if you'll provide me with the ability to vote in your elections. [Palpatine] Awlll of them. [/Palpatine]
I expect representation for the taxation.
If humans no longer wished to live, the food would have no value. Meaning - humans desire food because it's required for their survival. If they suddenly stopped caring about life, they would not desire food and food would be worthless.
Article I, Section 9:
"No tax or duty shall be laid on articles exported from any state."