Shipping out of State soon to be useless?

[G.D.BeanCounter]

Without getting into all the details of the Wayfair case, which may potentially result in all internet and catalog sales eventually being subject to sales tax across the US, any thoughts on whether this will apply to ADs shipping watches across state lines? I assume most grays with an internet presence would certainly be affected. The days of deferring sales tax at the time of purchase, may be coming to an end.

[WS9D]

I thought the same thing when I saw the ruling. I'm just trying to figure out how it would be enforced though...Maybe someone smarter than I can chime in.

[jrs146]

Originally Posted by Ks6pd

I thought the same thing when I saw the ruling. I'm just trying to figure out how it would be enforced though...Maybe someone smarter than I can chime in.

I would imagine the enforcing would be the same as it is today. As with all accounting, it’s the responsibility of the person/company to timely report/file/pay their taxes. The hard part is that every state has different rates, filing frequencies, methods of filing, etc. that will make it very hard for small businesses to keep up with.


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[RedwinGV]

Subject to is different from collecting or paying. Not an easy task. They will have to be a few "casualties" to change behavior.

[Jerz616]

This is why I love living in Delaware. No sales tax no matter where I buy something.

[superstarmar]

Originally Posted by Jerz616

This is why I love living in Delaware. No sales tax no matter where I buy something.

And Oregon from my understanding... might be
a couple of other states as well with no sales tax
on goods or commodities...

[SoCal_Batman]

Originally Posted by Jerz616

This is why I love living in Delaware. No sales tax no matter where I buy something.

Perks of being the first state!! Must be nice, 9.5% out here :(

[Hodog16]

Don’t know details but if AD doesn’t have presence in the state being shipped to, don’t see how they can charge sales tax?

[wristmatic]

my dealer shipping me a watch tomorrow out of state. so i don't believe its true yet

[tyler1980]

Originally Posted by G.D.BeanCounter

Without getting into all the details of the Wayfair case, which may potentially result in all internet and catalog sales eventually being subject to sales tax across the US, any thoughts on whether this will apply to ADs shipping watches across state lines? I assume most grays with an internet presence would certainly be affected. The days of deferring sales tax at the time of purchase, may be coming to an end.

they already are subject to sales tax... you are supposed to pay it and that has always been the law. Since you most likely don't retailers are collecting it on your behalf now. Nothing has actually changed, except they are scrapping the "honor system"

[tyler1980]

Originally Posted by Hodog16

Don’t know details but if AD doesn’t have presence in the state being shipped to, don’t see how they can charge sales tax?

If the buyer has a presence in the state... IE you live there you owe tax if you are bringing it into the state

[tyler1980]

Originally Posted by Jerz616

This is why I love living in Delaware. No sales tax no matter where I buy something.

im from montana, same there too. However local and county taxes on property, vehicle registrations etc are way, way higher than sales tax states. They have to make the revenue somewhere and if its not one thing, then its another. No practical difference IMO.

[jrs146]

Originally Posted by tyler1980

they already are subject to sales tax... you are supposed to pay it and that has always been the law. Since you most likely don't retailers are collecting it on your behalf now. Nothing has actually changed, except they are scrapping the "honor system"

You’re right. This law is closing a very old loophole that does cost states lots of tax revenue. It also does incent people to shop online instead of with local retailers. It’s probably long overdue. But the accounting will be a massive headache for small businesses. Also it appears that in some states businesses will have the option of remitting a use tax notice at the end of the year so that the consumer has to file. That sounds like a headache too!


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[brandrea]

Great, now move to Canada

[1William]

I have not read the complete ruling but the devil is in the details. If the court is addressing internet sales that will be for click purchases and payment. I believe the possible loophole maybe purchases that are not completed by the internet. If I call a TS on the telephone and make a purchase on the phone will that purchases be looked at the same as a internet purchase. If so, how to you track it? Some interesting questions yet to be answered.

[jrs146]

Originally Posted by 1William

I have not read the complete ruling but the devil is in the details. If the court is addressing internet sales that will be for click purchases and payment. I believe the possible loophole maybe purchases that are not completed by the internet. If I call a TS on the telephone and make a purchase on the phone will that purchases be looked at the same as a internet purchase. If so, how to you track it? Some interesting questions yet to be answered.

I originally thought the same thing after having read a few articles online. But I think the stipulation will be for any business that conducts more than $10,000 in sales in any state. But perhaps I’m wrong and it will only be for click purchases.


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[beshannon]

Good long overdue, we need a level playing field

[Art 1]

Been discussed on a few other threads. It's about time and I'm very happy that it's finally about to happen.

[dmhines]

Originally Posted by Art 1

Been discussed on a few other threads. It's about time and I'm very happy that it's finally about to happen.

First I heard somebody being happy about it ...

[Abdullah71601]

Originally Posted by 1William

I have not read the complete ruling but the devil is in the details. If the court is addressing internet sales that will be for click purchases and payment. I believe the possible loophole maybe purchases that are not completed by the internet. If I call a TS on the telephone and make a purchase on the phone will that purchases be looked at the same as a internet purchase. If so, how to you track it? Some interesting questions yet to be answered.

The Use Tax closes all loopholes by taxing tangible items used, consumed, or stored in the resident’s state. It doesn’t need to be purchased in state (sales tax covers that) or via the internet to be taxed under the Use Tax rules.

The states will need to agree on how the remote seller nexus (hybrid origin) will work. It’s coming. Better buy that grail now.

[jrs146]

Originally Posted by Abdullah71601

The Use Tax closes all loopholes by taxing tangible items used, consumed, or stored in the resident’s state. It doesn’t need to be purchased in state (sales tax covers that) or via the internet to be taxed under the Use Tax rules.

The states will need to agree on how the remote seller nexus (hybrid origin) will work. It’s coming. Better buy that grail now.

States agreeing on something is the scary part!


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[V25V]

I am fairly certain this is only going to apply to online transactions. If you have a relationship with an AD or TS, we make a transaction over the phone, I do not think this will be the case.

[Abdullah71601]

Originally Posted by V25V

I am fairly certain this is only going to apply to online transactions. If you have a relationship with an AD or TS, we make a transaction over the phone, I do not think this will be the case.

I think states will pursuit Use revenue from B&M sales above a threehold limit as well as online sales. Once they establish the technical requirements, any commercial seller will get roped in.

Think of all the liquor and cigarette money some states are missing out on now, for example. They will chase this down once the marketplace framework is in place.

[Abdullah71601]

.

[swils8610]

It’s going to be nearly impossible for retailers to enforce.


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[RichM]

Originally Posted by Jerz616

This is why I love living in Delaware. No sales tax no matter where I buy something.

I'll second that!

[Abdullah71601]

Originally Posted by swils8610

It’s going to be nearly impossible for retailers to enforce.


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It will be easier with any non-cash payment method. Look for retailer payment processing services to pick up this utility.

Amazon and others have been charging me sales tax for a while. Other retailers will be forced to do so as well.

[Jocke]

It will end you all american's will have american watches.

[michaelodonnell123]

Originally Posted by brandrea

Great, now move to Canada

Yeah and pay VAT.