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JimMeade
Veteran Advisor

Do You Want To Pay Online Sales Tax?

Online purchases as I understand it only pay state sales tax if there is a brick-and-mortar footprint of that company in the state.  That makes online purchases attractive, especially if you have a high state sales tax.

 

Some states don't like that and would like to tax you on all purchases based on where you live.

 

Businesses without a big online presence contend they are losing sales to out-of-state retailers.  Shops on main stream are shuttering, it is claimed.

 

Would you like to pay an online sales tax to your state?

 

Do you think it will keep local brick-and-mortar stores open?

 

My guess is if you make a lot of money, you like a sales tax.  The alternative is a possible increase in income or property taxes.  If you are on the lower income side, you probably would prefer little or no sales tax and more income or property taxes.

 

My own guess is the sales tax difference won't make much difference in keeping local stores open.  What is your guess?

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2 Replies
k-289
Esteemed Advisor

Re: Do You Want To Pay Online Sales Tax?

This issue is a topic of   '' feel good ''  political stumps of  ''voluntary undisclosed  initiatives '' where the retailer '' can or may '' participate in a 17 MultiState Tax Commission sign up with  '' amnesty '' of liability of previous sales volume - - -

 

Seems as though  '' Pretend-ism '' might be alive and well in our governing bodies---

 

Reflecting back when the Montgomery Wards, Sears, J.C. Penny catalogs came out after Thanksgiving, wonderment thrived in my visions of anticipation if maybe 1 brown paper wrapped package might be delivered before Christmas, with no tell tale signs of disclosing what the contents were ?  Our post office was also deluged with shipments from relatives far away on our rural route delivery's ---

 

Then in the mid 60's came the shopping mall 40 miles away where you could buy the merchandise in person, today, with 30 different merchants under 1 roof with the absence of slick sidewalks while moving about in a 60 degree environment - ahh priceless --- 

 

Jim , I'm guessing the delivery truck shopping sprees will be robust, un-till the returning of regretful purchased of exuberant items become a burden in the sellers'' return's warehouse ''--- Price adjustments will be forth coming, as for now ,on-line full speed ahead ---   

     

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hardwayfarmer
Veteran Contributor

Re: Do You Want To Pay Online Sales Tax?

Most every state that has a sales tax also has a "Use tax" that purchasers are "supposed" to pay, usually with their annual state income tax return, on any purchases from out of their home state, and on mail-order and online purchases that they didn't pay sales tax on.  In my years of tax preparation experience, not one in a hundred clients will admit to any purchases subject to the use tax.  Voluntary compliance doesn't generate much revenue, and enforcement doesn't pay very well, either.  Random enforcement causes a little ripple effect, but not much.

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