The Supreme Court just potentially impacted your ho-ing

[DavePelz4]

The SC decided that states can force companies to charge sales taxes on all online purchases. There were some gray area on this but the decision seems a bit more clear now.

 

Here's an article from the Chicago Tribune on the topic...

 

http://www.chicagotribune.com/news/nationworld/ct-supreme-court-sales-tax-20180621-story.html

[deadsolid...shank]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

[rawdog]

Gonna get political eventually, so I'll bite.

 

I really struggle with how this is going to burden small businesses.

 

Mom and pop shop is going to set up infrastructure and be up-to-date on tax policies of every state they do business in?

 

Yeah, ok.

 

http://thehill.com/opinion/finance/384399-online-sales-tax-exemptions-critical-to-many-small-businesses

[rawdog]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

I would be interested in having some actual WRX retailers chime in, but I think this hurts the small shops.

 

Keeping track of tax policies, cost of compliance, all going to hurt. A lot of the big boys already like Amazon are already collecting sales tax.

 

___

 

http://thehill.com/opinion/finance/384399-online-sales-tax-exemptions-critical-to-many-small-businesses

 

"In its 1992 decision, the Supreme Court expressed concern that mail-order retailers faced difficulties in complying with tax obligations from some 6,000 separate state and local taxing jurisdictions nationwide.

 

The number has since nearly doubled to 12,000, each of which might have different rates for different products. Large retailers like Walmart can have teams of lawyers and accountants to handle this type of complexity. Small retailers, often using tax software alone, can't do this as efficiently.

 

Therefore, the major beneficiaries from the exemption repeal would likely be big retailers like Walmart, Best Buy and even Amazon itself. They are already killing in-state small retailers and should not be given extra ammunition."

[deadsolid...shank]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

I would be interested in having some actual WRX retailers chime in, but I think this hurts the small shops.

 

Keeping track of tax policies, cost of compliance, all going to hurt. A lot of the big boys already like Amazon are already collecting sales tax.

 

___

 

http://thehill.com/opinion/finance/384399-online-sales-tax-exemptions-critical-to-many-small-businesses

 

"In its 1992 decision, the Supreme Court expressed concern that mail-order retailers faced difficulties in complying with tax obligations from some 6,000 separate state and local taxing jurisdictions nationwide.

 

The number has since nearly doubled to 12,000, each of which might have different rates for different products. Large retailers like Walmart can have teams of lawyers and accountants to handle this type of complexity. Small retailers, often using tax software alone, can't do this as efficiently.

 

Therefore, the major beneficiaries from the exemption repeal would likely be big retailers like Walmart, Best Buy and even Amazon itself. They are already killing in-state small retailers and should not be given extra ammunition."

 

Good point Rawdog. Too bad there’s not a size or amount stipulation that might exempt the smaller guys.

[rawdog]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

I would be interested in having some actual WRX retailers chime in, but I think this hurts the small shops.

 

Keeping track of tax policies, cost of compliance, all going to hurt. A lot of the big boys already like Amazon are already collecting sales tax.

 

___

 

http://thehill.com/o...mall-businesses

 

"In its 1992 decision, the Supreme Court expressed concern that mail-order retailers faced difficulties in complying with tax obligations from some 6,000 separate state and local taxing jurisdictions nationwide.

 

The number has since nearly doubled to 12,000, each of which might have different rates for different products. Large retailers like Walmart can have teams of lawyers and accountants to handle this type of complexity. Small retailers, often using tax software alone, can't do this as efficiently.

 

Therefore, the major beneficiaries from the exemption repeal would likely be big retailers like Walmart, Best Buy and even Amazon itself. They are already killing in-state small retailers and should not be given extra ammunition."

 

Good point Rawdog. Too bad there’s not a size or amount stipulation that might exempt the smaller guys.

 

I'm sure at some point there will have to be, by law or by practice.

 

Is the government really going to waste its time going after the guy who flips clubs on the side?

 

...wait, don't answer that!

 

 

 

As with things like minimum wage in Seattle, or federal healthcare, usually the number of employees a company has is used as a gauge to figure out how much the government wants to punish them :D

[heavy_hitter]

Most of the small mom and pops in our field aren't selling online. Can't compete on pricing with huge companies. We don't sell on Amazon at all because their policies will only allow us to break even. We are ecstatic over the policy just for the simple fact it will somewhat level out the playing field in terms of companies having to charge state sales taxes. Our thinking is it will bring more companies back to our brick and mortar.

[QuigleyDU]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

and taco bell. Remember demolition man??

[deadsolid...shank]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

and taco bell. Remember demolition man??

 

Well, we do have to eat!

 

Most of the small mom and pops in our field aren't selling online. Can't compete on pricing with huge companies. We don't sell on Amazon at all because their policies will only allow us to break even. We are ecstatic over the policy just for the simple fact it will somewhat level out the playing field in terms of companies having to charge state sales taxes. Our thinking is it will bring more companies back to our brick and mortar.

 

That was my thinking, I hope it does.

[DavePelz4]

Most of the small mom and pops in our field aren't selling online. Can't compete on pricing with huge companies. We don't sell on Amazon at all because their policies will only allow us to break even. We are ecstatic over the policy just for the simple fact it will somewhat level out the playing field in terms of companies having to charge state sales taxes. Our thinking is it will bring more companies back to our brick and mortar.

 

Think you're spot on in terms of levelling the playing field. And while I'm no tax expert, it "appears" that the tax will be paid to the state where the sale was made.

[Naptime]

I read that it applies only if they do over $100k annually in the state. I think most mom and pops won't hit that number.

[heavy_hitter]

I read that it applies only if they do over $100k annually in the state. I think most mom and pops won't hit that number.

 

$100K in online sales only?

 

Honestly, that isn't as big a number as you think. We barely try and do over $50k a year. We have a niche market that we use it for which is really only 2 or 3 months out of the year. I do have friends in the industry that do well over $100k a year in online sales.

[smalls]

"The Supreme Court just potentially impacted your ho-ing"

 

 

Only if they somehow made it illegal for hackers to buy tour-issued gear.

[Naptime]

I think the issue is $100,000 in each individual state to have tax liability in that state. Haven't seen the full SCOTUS opinion but am guessing there's an attorney or ten on WRX who does that for a living and who can walk us through the nuances. ?

[rawdog]

The $100k or 200 transaction threshold was South Dakota's policy.

 

The ruling today gives states the power to collect sales tax if they choose, not how they choose.

 

So each state will likely have its own threshold.

[QuigleyDU]

I read that it applies only if they do over $100k annually in the state. I think most mom and pops won't hit that number.

 

$100K in online sales only?

 

Honestly, that isn't as big a number as you think. We barely try and do over $50k a year. We have a niche market that we use it for which is really only 2 or 3 months out of the year. I do have friends in the industry that do well over $100k a year in online sales.

 

I work at a golf store that does 20K a day plus in store sales. Zero online though.

[golfnhack]

Pretty sure if you buy from a shop located in a sales tax free state like Oregon, that they can't charge you tax.

[rawdog]

Pretty sure if you buy from a shop located in a sales tax free state like Oregon, that they can't charge you tax.

 

The sales tax you pay goes to the state you live in, not the state you are purchasing from.

 

And, as a side note for everyone, a lot of states (including Ohio) required people to pay taxes on items they purchased out of state. That is what's known as a "use tax."

 

However, use taxes are very hard to enforce, so people usually don't pay them :D

 

So, there was already an even playing field, it just wasn't enforced. Now, states can go after sellers regardless of if there is a physical presence in the state.

[spazo]

The $100k or 200 transaction threshold was South Dakota's policy.

 

The ruling today gives states the power to collect sales tax if they choose, not how they choose.

 

So each state will likely have its own threshold.

as long as it's "not unduly burdensome" to interstate commerce

 

No definition given as to what that means

 

I'm not sure much will change

[LeoLeo99]

Gonna get political eventually, so I'll bite.

 

I really struggle with how this is going to burden small businesses.

 

Mom and pop shop is going to set up infrastructure and be up-to-date on tax policies of every state they do business in?

 

Yeah, ok.

 

http://thehill.com/o...mall-businesses

 

Amazon has the infrastructure and storefront for small business to use.

 

I don't think the change will impact brick and mortar that much. I shop online for the convenience; not just to save money.

[rawdog]

The $100k or 200 transaction threshold was South Dakota's policy.

 

The ruling today gives states the power to collect sales tax if they choose, not how they choose.

 

So each state will likely have its own threshold.

as long as it's "not unduly burdensome" to interstate commerce

 

No definition given as to what that means

 

I'm not sure much will change

 

Agreed

[Singapore Joe]

Not sure how it works in USA between states but in Australia we have a pretty unattractive retail scene and for a lot of products Internet is the only buying option. Now that the tax-free threshold for overseas purchases is being brought down more and more online shops are not selling to Australia. Amazon also came to Australia and will no longer ship to Australia from Amazon.com but forces the buyers to go to Amazon.com.au with pretty pathetic selection. Good for my budget as I just stop buying stuff and buy when travelling but makes this place even more isolated and backwards as it already is.

 

Is it plausible that online shops in the USA stop shipping to the states where the cost of tax compliance becomes too high?

[spazo]

Plausible? Yes. But if that happened en masse it would be proof of some violations of some esoteric provisions of the U.S.constitution, specifically in interpretation of the commerce clause and the negative construct known as the dormant commerce clause

[FairwaysToHeaven]

If it helps bring back a little more brick and mortar shopping, I’m on board with it.

 

Won’t be long and we’ll all be working for Walmart or Amazon. They’ll be the only places left.

 

i shop online to avoid brick and mortar. i often pay more for the product just to never have to step foot in the store. i'm against the decison by the courts, but i don't think long term this changes much for the outlook in brick and mortar retail.

[FairwaysToHeaven]

Gonna get political eventually, so I'll bite.

 

I really struggle with how this is going to burden small businesses.

 

Mom and pop shop is going to set up infrastructure and be up-to-date on tax policies of every state they do business in?

 

Yeah, ok.

 

http://thehill.com/o...mall-businesses

 

exactly. these decisions put the increased burden on the small businesses. too many people think this is somehow a dagger to amazon, when in reality increased tax regulation only hurts the businesses who can't afford to keep up with the ever changing laws and regulations. amazon has tax professionals on staff, attorneys to fight cases, etc. small business now will be asked to cut profits even further to pay for increased costs in collecting this tax. often the very regulations created to 'protect' a consumer from a big mean corporate chain do nothing but prevent their smaller competitors from giving them any competition.

[FairwaysToHeaven]

Pretty sure if you buy from a shop located in a sales tax free state like Oregon, that they can't charge you tax.

 

technically you're supposed to pay use tax in this situation when filing tax returns....

[One_Putt_Blunder]

I do not buy or sell a ton of golf gear once my bag sorted which it is good for the next few years. However I wonder how this will impact places like Discount Dans who reside in a 0% sales tax state? Are they going to need to start charging tax to out of state sales even though they are a "brick and mortar" If not then there is a potential loophole. Edit nevermind just saw a similar post.

 

 

For me personally I do buy a lot on Amazon prime. I get a $100 gift card from my boss each month we meet our agency customer sat goals which is every month. Whether it is restocking golf balls. $45 a dozen is bad enough but being able to save $4-5 buying tax free on Amazon was a nice perk. For my other hobby outdoors hiking, backpacking and soon to be mountaineering. I kinda mix up my purchases via Amazon, REI and some other online retailers. I found for outdoors gear most of the newer stuff was priced the same no matter where you bought it through REI, Amazon, other online retailers etc. For previous season models prices tend vary more across the web. Now that I'll need to pay tax on all those purchases likely another $3,000-$5000 over the next year or so for additional mountaineering gear (it aint cheap to spend free time outside and stay warm/dry) I will probably shift a bigger chunk to REI where at least I get a 10% dividend back at the end of the year which covers our local tax 9.75%ish. Plus it is going to a private company.

 

Prior to this shift in the market my general rule of thumb was to support REI and my dividend by buying direct through them if the price was the same. Amazon or another retailer if I was saving 5-10% off Amazon prices and it was tax free. For bigger ticket items $300 plus I would also be more inclined to purchase via tax free source like amazon as well. Most of my outdoors apparel was sourced outside REI mostly because this is the one area REI suffers more in terms of price and selection, but a lot of the better deals I found North Face etc all charged tax already on their own website.

[highergr0und]

Im surprised it took this long for the ruling to be handed down as states and municipalities are cash starved. Just annoying as I live in a 9.75% sales tax area.

 

Curious to see how much of an increase to forum marketplace transactions like the BST...

[FlyingLaw1]

As an attorney the decision made for a pretty interesting read very brief scan-through. As a consumer who buys most of what he buys from the internet.... BOO.

[NoTalentLefty]

As a consumer it sucks but for mom and pop it’s a good thing . I’ll side with them.