Internet Sales -- States getting pissed about lost revenue.

[IHT]

this bill was brought up last year as well. it's aimed at online cigarette purchases, but some people will try to add cigars in there as well. an all encompassing wording that would include cigars because it's "tobacco".

i wrote my congressman, just as many others did, using the same letter that JRs sent out last year. i also included a few things of my own.

if you search, you'll find it somewhere around here.

[LastClick]

Sounds like a load of crap. Just a bunch of libs wanting more money to mismanage. Assho**s!!

[LastClick]

I sent some letters too, as well as emails.

[Mr. White]

Originally Posted by Jeff

Just ordered from JR. Didn't have to pay tax because its from out of state. I choose JR over Holts because with Holts being a PA company I would have to pay tax. If states want to levy an internet tax, I think they will shoot themselves in the foot.

hehe, I have news for you... Many states are actually charging for out of state orders now.. On anything, not just smokes.


Louisiana started sending forms to "claim" what you had ordered online... It'll take em a few years, but they will find a way to make it automatic. :P

And it will probably include an invasion of Privacy, such as having your bank send statements to the state every month. I've heard some states are pushing for this.

[Eichen]

RM -- thanks for brining this to our attention.

[Da Klugs]

Its strange. If I buy a Dell computer they collect Ohio sales tax. If I buy some nice sticks from Cigars International .... Nada.

We live in the inbetween good space of no sales tax. Imagine if the local "sin taxes" were also collected. Fortunately these are primarily levied against cigs not stogs.

Did some reading oh no Ohio signed up for the plan better get that new humi and stock up... aged cigars are better anyway.

Congress Tackles Taxing Issues

Internet access, online sales taxes will be debated this year.

Shop Talk
A second bill, called the Streamlined Sales and Use Tax Act, would allow states to collect sales taxes from retailers selling across state lines. The bill would allow such sales tax collections after 10 states, representing at least 20 percent of the total U.S. sales-tax-paying population, had adopted a simplified sales tax collection plan.

As of October, 21 states, including California, Texas, and Ohio, had adopted the plan to adopt uniform definitions of taxable goods, according to the National Governors Association.

Proponents of the plan, sometimes called the Streamlined Sales Tax Project, say it's only fair that e-commerce companies pay the same taxes as bricks-and-mortar businesses. They argue that states are losing money that's rightfully theirs by not being able to collect sales taxes on e-commerce, catalog, and telephone sales by companies based elsewhere. In a 1992 lawsuit, the U.S. Supreme Court ruled that states cannot collect sales tax on businesses operating outside their borders because of the burden those businesses would face when trying to comply with thousands of local taxing jurisdictions.

Opponents of the plan say sales taxes could cripple e-commerce, which still only makes up about 1.5 percent of U.S. retail sales each year. They argue that the relatively small amount of sales tax states would generate wouldn't compare to the potential harm to Internet sales.

Sponsors of the streamlined sales tax bill say they hope to have hearings in both the Senate and the House early this year.

[Jeff]

Thanks for that report Klugs. I wonder how the states think they can enact this if the Supreme Court allready ruled it illegal? Am I missing something? The only way to over rule the SC is an ammendment to the constitution.

[Da Klugs]

Originally Posted by Jeff

Thanks for that report Klugs. I wonder how the states think they can enact this if the Supreme Court allready ruled it illegal? Am I missing something? The only way to over rule the SC is an ammendment to the constitution.

Ah but grasshopper the Supreme court ruled that a given state could not impose taxes without reciprocity and that the complexity of some items being taxable in one state and not in another (Like food and beverage differences)was an undue burden on the retailers. The uniform tax process is a set-up by the states to overcome the objections the Supreme court used in ther ruling. They hole they are sliding through is this is not a new tax like trying to impose taxes on internet access, this is merely an attempt to collect taxes already on the books and level the playing field for in state retailers.

[Mr. White]

Originally Posted by Da Klugs

Its strange. If I buy a Dell computer they collect Ohio sales tax. If I buy some nice sticks from Cigars International .... Nada.

The thing with Dell, and Gateway, etc. is because they usually have a brick and morter somewhere in the state, so they have to charge taxes, which really negates buying online all together from them, since you also get hit with shipping charges unless they're running a deal.



Also, what states don't realize is that often, the shipping cost is considered tax by a lot of people (i do.) Some items are better, bought online, and some it's easier just to go to the store and pick them up. I agree that they'd end up hurting sales for internet businesses, as opposed to gaining more income.

Eh, it's all about greed, our government worships 1 thing... The Almighty Buck.

[kansashat]

If this ever passes, it might just start my slide down the slippery slope. I think I'd rather play a cat & mouse game with customs than pay more taxes. Maybe Fidel would like some of my US dollars.

[Thurm15]

"ATTENTION NEW YORK STATE RESIDENTS - New York State Residents must allow for State Tax(8.25%) and Tobacco Tax(33%). This includes any tobacco purchased from a different state, province, or country being shipped to a location inside New York State, USA. This Tax will be manually added to your order after checkout and only applies to tobacco items."

New York has to be the worst taxed state in the Country. They also started a new Internet Tax declaration in 2004 when you file your state Taxes. You are basically supposed to report how much you spent in that year online. Right now it's sort of voluntary but eventually they will fix it. Mail Order has been around long before the Internet but states like NY are Hurting Financially and are going after every dollar they can get there hands on. Especially when they've raised the Tax so high on Tobacco.