NEPAForum Admin wrote:Well currently there is no taxes on anything sold over the internet and that's the way it should stay. About the only thing I could see is flat national tax, other than that it would be a nightmare for the anyone wantng to set up a online store to keep track of who pays what not to mention all the paperwork that is bound to go along with it.
not entirely true. In most states, maybe every state, to conduct business legally one needs a business certificate and also a certificate of authority to collect sales tax. I have an Ebay store and I have to collect sales tax on everything that I ship to New York or if someone comes over and buys it at my house I have to charge them tax and then send it in every 3 months. It is a royal PITA because each county has a different tax rate. NY charges 4% and each county (or a specific city within the county) charges between 3% and 5%. Now to make matters even more complicated in NYC there is a MCTD on certain items, yada yada. Ebay is 2 steps ahead on this matter, as a seller I can set the tax rate for each state, so for NY I charge 8% and I cover the difference when I send in my payment to the state. If I ran a high volume business I'd have something like this: http://www.earthodyssey.com/sales_tax.html
(no affiliation), if I had a warehouse in PA I'd have to charge PA residents tax too. Technically almost everything you buy on the internet you must report on a state "USE TAX" form, so if the seller didn't collect it it's your responsibility to send that money to your state. I don't know anyone who actually does it (besides myself of course
) but you are supposed to. If the gov. ever decided that everything on Ebay had to be taxed there is an easy way to accomplish the task; Paypal would collect the tax on every transaction from the buyers and send checks to each state monthly. That would eliminate the problems with trying to educate 100 million people on 10,000 different tax laws for every state. You guessed it, everyone would pay via Money Order and then those would be taxed at a flat 8% or whatever. Wait until Hillary or Obama gets in we'll see some of this BS up close and personal.
The good news about collecting tax for the state is I don't have to pay tax on things used for my business to be resold, I collect the tax when the item sells.