Now I Have To Pay Sales Tax For Internet Purchases
Posted by
Matt Margolis
in
Local Issues on
June 3rd, 2008 at 09:19am with
6 responses.
Tags: Science, Taxation.
Tags: Science, Taxation.
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The internet tax is coming… and now I have to pay it as a resident of New York state…
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6 Responses to “Now I Have To Pay Sales Tax For Internet Purchases”
Caucus of Corruption
We’ve had it in California for several years. It’s sort of on the ‘honor system’ where there is an item on the California Franchise Tax Board income tax return that asks how much you buy on-line for which you did not pay sales tax. You wind up having to deduct it from any return you may get or add to any tax liability you may have.
So when you buy stuff online it magically appears at your house without ever traveling on public roads where an infrastructure or a police presence may be helpful?
The internet sales tax is LONG overdue.
That’s right Patrick,
A. We don’t pay enough taxes.
B. Our tax money is wisely used by our government.
Lemmings like you are why we are having such problems.
neocon, this isn’t an issue of whether or not tax should be collected at all, but whether or not it should be collected on internet purchases. What is the reason why purchases over the internet should be treated than purchases from other stores?
Brick & Mortar and the required infrastructure (fire, police,etc.) is the reason for sales tax. You pay a sales tax for internet purchases in the state they reside or have a physical presence–we shouldn’t anywhere else.
Patrick,
The federal government stipulates that states cannot force companies that do not have a physical presence within the state (brick and mortar as David indicates) to collect sales tax for them.
Part of the gray area here is when institutions like Amazon, who resides in state ABC, receives an order for goods over the internet and sends that order onward to the company that warehouses the goods but resides in state XYZ. If the recipient resides in state XYZ, that state wants the institution receiving the original order to collect sales tax as the goods are being sent from within the state.
In reality the state really wants to collect sales taxes on all goods purchased by consumers within the state. They’re just having a hard time doing it within the context of federal law. Add to that mix a number of gray areas like the one mentioned above and the battle continues with state governments pushing the boundaries and challenges to it in court.