Don't know what kind of rate it would be but for software in particular, I love the ability to gain instant gratification and not have to wait until the next evening after a visit to CompUSA. I also don't mind not having to go to the mall and fighting for a parking place and then waiting for endless hours waiting for a clerk to take my $$$$$.
Perhaps a new Boston tea party would be in order if such a tax is passed. First of all, it's unconstitutional because the Constitution expressly states that no taxes may charged on goods shipped from one state to another. And let's remember that the original party was over a mere 10% tax.
Originally posted by TSB8C Perhaps a new Boston tea party would be in order if such a tax is passed. First of all, it's unconstitutional because the Constitution expressly states that no taxes may charged on goods shipped from one state to another. And let's remember that the original party was over a mere 10% tax.
While you may not have to pay sales tax in the state where you bought the goods or services, you must pay state use tax on taxable goods or services purchased for use in your home state. You cannot be taxed by the state you bought the product in (unless you purchased it in your home state), but your home state can tax you on the purchase.
Most states are working on something called "Streamlined Sales Tax Project" which will address some of the inconsistencies between state laws which makes is such a nightmare for Internet/Catalog retailers.
Amazom.com, Walmart and others are already collecting the state taxes on good purchased over the internet.
There is no law in the US that prohibates taxation on goods sold between states. The Internet Tax Freedom Act (ITFA) set no restrictions on whether states can tax sales over the Internet. Instead ITFA only prohibited states and local governments during a three-year moratorium, from October 1, 1998 to October 1, 2001.
"No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it's inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress."
Unless congress passes a bill at the federal level, no state can impose a tax or duty on goods exported from or imported into that state. And if congress does pass it at the federal level, the revenues collected must be sent to Washington, not retained by the state.
Of course our government (federal or state) doesn't spend much time looking at the Constitution anymore anyway. The previous paragraph in that same section states, "No state shall ... make anything but gold and silver coin a tender in payment of debts"
Now my question is What about mail order catalogs? Are they going to have to start charging for taxes outside of the state thy are located in as well?
I may tighten my online buying if I am only saving a few cents over a brick and mortar. But the one thing I love about online buying is I find products that are not available in my area. One resent example is I had been searching for a USB to Serial adapter (for my old PDA) I am in the Seattle area. One would think you could find this item locally, but I never did find one. At Best Buy I had the clerk even try to tell me that no such device even exists! I finally just bought one via eBay.
So I guess I shall still purchase many items via online.
Federal law allows states and local governments to tax Net sales if the seller has a physical presence in the jurisdiction. But the Supreme Court has ruled that states can't tax sales from electronic retailers that do not have a physical presence within their jurisdiction. The problem is that the definition of physical presence varies from state to state. In Colorado, if a company maintains an office or warehouse in the state or regularly sends a sales staff here, it has a physical presence. States don't have the authority to tax sales from online companies who don't have a physical presence in the state, but even when an online sale isn't subject to a levy, some state laws requires residents to pay a use tax on the purchase. Few are aware of this requirement.
While the Constitution does have that article, Congress has long given the states rights to collect taxes.
What is needed is the states "Streamlined Sales Tax Project" that I gave the link to below. Congress will never take away the right of states to collect the taxes since so many of them require the money to pay for services. Internet sales taxes are going to happen, I just hope they all get on the same page or retailers are going to have a nightmare trying to figure it out.
Also did you know seven states currently have the right to tax Internet access because those states levied taxes on Internet access before Congress passed the first moratorium in 1998. However, the states -- New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas and Wisconsin -- have largely respected the moratorium and refrained from imposing the access taxes.
Ehhh. . . I will still shop online if I can find what I want. Most of the places I shop at already charge me TN sales tax anyway (which is almost 10%), so there will not be alot of difference. :crooked:
__________________ There are only two truly infinite things, the universe and human stupidity; I am unsure of the former.
-Albert Einstein
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I'll shop on-line. What kills me though is that stupid argument that states are saying they 'lost' 40 million or whatever in taxes. That's just dumb. It was never their money it's not like we used to pay it them and now we don't. That's like saying I 'lost' billions of dollars because Bill Gates has it. It's his. It wasn't ever mine. Most of the time whatever I am buying I am buying because I can't get it locally (so I would not have ever paid tax for it anyway.) And if I can get it locally then odds are good the online store is charging me tax for it already.
Since my state has no sales tax, I don't pay any now...
If there is a net sales tax, I suppose I'd consider a sale, IF it was still cheap, but I'd be likely to buy, at least real items (as opposed to software), at a store.
We Oregonians will do just about anything to avoid a sales tax.
Taxes are a lot lower than the cost of fuel along with the aggravation of going to a brick and mortar store. I'll continue to do as much as I can on line as it saves me time too... time is a very valuable commoditity these days.
Ciao,
Ron
__________________
"The first step begins any journey, no matter the distance"
I will probly always buy as much as possible online. Online has that one advantage for me and its selection. You can find anything and everything if you just look a little
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