Sales Tax on Internet Sales

Default

Super Moderator
Platinum Supporting
Joined
Jul 30, 2007
Messages
13,596
Reaction score
3,008
Location
Philly, or thereabouts
Guild Total
11
All I know is I'm going to need a bigger work truck pretty soon. Internet sales tax or not, I get a ton of packages every day, and it used to be light this time of year...
 

GAD

Reverential Morlock
Über-Morlock
Joined
Feb 11, 2009
Messages
22,594
Reaction score
17,816
Location
NJ (The nice part)
Guild Total
112
All I know is I'm going to need a bigger work truck pretty soon. Internet sales tax or not, I get a ton of packages every day, and it used to be light this time of year...

I've gotten to the point that I can't even get half the stuff I want or need locally AND I'm so spoiled that I whine like a 13-year-old if I can't have it in two days.
 

HeyMikey

Enlightened Member
Joined
Jul 12, 2018
Messages
5,422
Reaction score
4,733
Location
MA
Guild Total
9
:) :)

Good on you guys for keeping this a moderation-free zone.

How about those Red Sox?!?! :) (just kidding!!! :) )

Yep. Can't wait to see the dirt dog back to playing second!
 

fronobulax

Bassist, GAD and the Hot Mess Mods
Joined
May 3, 2007
Messages
24,708
Reaction score
8,836
Location
Central Virginia, USA
Guild Total
5
I won't try and quote the nuances but Virginia residents are required to pay sales taxes on purchases they make. The income tax form includes a self reporting section where a taxpayer is supposed to report the amount of purchases they made where sales tax was NOT collected and then pay it by adding it to the income tax liability. The language and penalties for false statements ("No purchases made") in this section are the same as in other sections of the tax form so buying a guitar from an out of state retailer and not paying tax at the time of purchase and not paying that tax at income tax time is against the law.

Thus it is worthwhile to consider whether the indignation needs to be directed at an unpopular law (sales taxes) or at the fact that existing laws are now being enforced.

I don't buy cars often but over the decades when the selling dealer was not in my state of residence I was required to pay my state's tax. So other states have been collecting my state's tax for them for quite some time, at least on big ticket items.

This is becoming an issue now because of of the Supreme Court ruling cited by Al (above) and the Federal tax changes that allow for the deductability of local sales taxes. The states want their money and the technology to give it to them is becoming feasible.

When I sold goods at retail in Virginia, whether I was actually required to collect tax at the point of sale was based on my total sales volume over a year. But my in state customers still had to report and pay (or break the law).
 

adorshki

Reverential Member
Joined
Aug 21, 2009
Messages
34,176
Reaction score
6,791
Location
Sillycon Valley CA
All I know is I'm going to need a bigger work truck pretty soon. Internet sales tax or not, I get a ton of packages every day, and it used to be light this time of year...
I've gotten to the point that I can't even get half the stuff I want or need locally AND I'm so spoiled that I whine like a 13-year-old if I can't have it in two days.
Yeah we're just grousing about music-related stuff but the 900lb gorilla in the room, and the reason Steve's route loads haven't declined is of course Amazon whom I've come to see as the new evil empire.
On the plus side they're driving the revival of some American industries like cardboard for shipping boxes, but on the downside I've been grousing about this for a few years now:
Can't get Stresstabs brand or Williams mug shaving soap in the drugstore anymore.
So what I used to be able to purchase as part of my regular weekly shopping now requires a special trip to Amazon and planning to buy $25.00 of goods to get the "Free Delivery" (I'm usually not in any big hurry).
Then along comes this "Prime" scam which guarantees 2 days on just about anything and no minimum on some stuff, but guess what?
Now a heater fan that in 2015 was only $14.99 is $26.99.
And the drugstores stopped carrying 'em because of all the sales lost to the internet.
Adding insult to injury, it was a counterfeit!
Before that it was the bike inner tube that was damaged on arrival. Inside its box, because it appeared to have been damaged by the folding/insertion mechanism when it was originally packaged.
Then it was somebody else's delivery on my doorstep and I was lucky to find my package on their doorstep and do the swap.
This is probably right up there with those g-----n electric rent-a-scooters for me right now, that I'm forced to buy stuff over the internet because I CAN'T buy it off the shelf anymore.
Grrrrrrrrrr..........

I won't try and quote the nuances but Virginia residents are required to pay sales taxes on purchases they make. The income tax form includes a self reporting section where a taxpayer is supposed to report the amount of purchases they made where sales tax was NOT collected and then pay it by adding it to the income tax liability. The language and penalties for false statements ("No purchases made") in this section are the same as in other sections of the tax form so buying a guitar from an out of state retailer and not paying tax at the time of purchase and not paying that tax at income tax time is against the law.
Same in CA and I'd be kind of surprised if any state that has both a sales and personal income tax didn't also incorporate this now.
This is becoming an issue now because of of the Supreme Court ruling cited by Al (above) and the Federal tax changes that allow for the deductability of local sales taxes. The states want their money and the technology to give it to them is becoming feasible.
The most up-to-date explanation I could find, for Mikey:
"Should You Charge Sales Tax for Out-of-State Customers?"
 
Last edited:

Guildedagain

Enlightened Member
Joined
Jun 8, 2016
Messages
9,002
Reaction score
7,167
Location
The Evergreen State
So much to ponder...

Ad, speaking of counterfeit, why is it that why in many cases, a USA Shubb 12 string capo for example, the lowest price available is from China? This is on eBay right now, one of many examples of what little is left of our USA manufacturing, strangely available in China at the lowest price...
 

chazmo

Super Moderator
Joined
Nov 7, 2007
Messages
25,475
Reaction score
7,132
Location
Central Massachusetts
^
GA, this is borderline firestarter material... Folks, please refrain from discussion of this and bandwagoning or moderation will be coming.
 

adorshki

Reverential Member
Joined
Aug 21, 2009
Messages
34,176
Reaction score
6,791
Location
Sillycon Valley CA
^
GA, this is borderline firestarter material... Folks, please refrain from discussion of this and bandwagoning or moderation will be coming.

Acknowledging that with due respect, let me clarify and admit I was guilty of casual usage when I said "counterfeit", it was in fact gross misrepresentation.
I was seeking a certain brand of heater fan I've had good experience with, and the one that came up with the best price fooled even a careful shopper like myself.
Most listings specified the brand, Optimus, like this one:
https://www.amazon.com/Optimus-H-13...ay&sprefix=optimus,aps,193&sr=8-1-spons&psc=1
The one I selected says "Portable Electric Fan Compact Heater with Thermostat by Optimus"
https://www.amazon.com/gp/product/B078Z7B8KM/ref=ppx_yo_dt_b_asin_title_o02_s00?ie=UTF8&psc=1
Since I wanted to try to figure out why it was so much cheaper than the others, I clicked on the link.
When you click on "by Optimus", it goes directly to the same review page as the first listing.
As soon as I opened the box I could see it was a different brand, an exact look-alike even using the same housing (thus my casual use of the term "counterfeit"), but missing a safety detail and of obviously cheaper quality fan motor and heating element.
Reiterating my real gripe:
Seeing these 2 alternatives on the shelf to make an informed decision is one thing; being misled while not being able to inspect product in hand is quite another.
And is enabled by the internet marketing model.
And FWIW, BOTH products are shipped from US origins and are both from the same country of origin, and what that country is is therefore irrelevant.
So no matter that get a refund, I'm still out the time and effort required to return it and re-order the real thing, but I wonder how many folks shrug and live with it, and if those reviews like "noisy" and "died quickly" are actually about the inferior product that was foisted off on me?
I'm gonna go sledgehammer some scooters left in the middle of the sidewalk now.
Oh, those are rented with an app over the 'net, too.
 
Last edited:

twocorgis

Venerated Member
Gold Supporting
Joined
Jan 8, 2010
Messages
13,923
Reaction score
6,520
Location
Lawn Guyland
Guild Total
18
So much to ponder...

Ad, speaking of counterfeit, why is it that why in many cases, a USA Shubb 12 string capo for example, the lowest price available is from China? This is on eBay right now, one of many examples of what little is left of our USA manufacturing, strangely available in China at the lowest price...

Probably because it's a bootleg Chinese knock-off of the real thing. We've known for a long time that China pays little attention to intellectual property laws, and if you need a reminder of that, just visit Canal Street in New York City.
 

adorshki

Reverential Member
Joined
Aug 21, 2009
Messages
34,176
Reaction score
6,791
Location
Sillycon Valley CA
Sandy I think that's exactly where Chaz didn't want to go.
I think we're all aware of the issue but in fact naming a culprit in this specific case is still just speculation and implies there's only one.
In both your example and my case, somebody's buying the stuff and pushing it, are they any less guilty?
 
Top