idiots...
I did sent an email to the author of the article... here it is:
A couple things I don't understand...
1. They provide 'software' to do the collection? So are we to assume that said software will easily integrate into any web application, or are we talking about some annoying program like Oregon's OTTER program that we would have to manually run in addition to any automated software? Or are we talking about software that would force us to use Windows and .NET?
2. Taxing the destination instead of the seller's state? How is that going to work? The seller is going to be taxed based on income made from the sale -- to tax the recipient would be double taxation. I really doubt the seller's state is going to so easily give up the taxes they are already collecting.
3. Neither Oregon or Federal law require it unless there is a presence in the other state -- how would they force an Oregon store to collect Tennessee taxes when Tennesse law doesn't apply to them?
4. Do we have any recourse if this is instituted?
I responded to someone in their chat as well:
ReplyDelete>> For those who answer no, what is the real difference between an internet sale and sale in the old days through a catalog? Catalog sales were typically taxed.
My parents live in Northern California. They do their grocery shopping in Southern Oregon because of the tax advantage. They do not pay California taxes on items they buy in Oregon.
I live in Northern Oregon. If I buy something in Southern Washington, I just have to show them my driver's license to avoid paying Washington taxes. I do not have to pay Washington taxes because I am an Oregon resident.
Both situations are exactly the opposite -- but both are based on physically going there. Either you choose to pay local (to the store) taxes, or have the store fill out some paperwork explaining why you are paying out-of-state taxes and how much was charged (or not).
For the physical stores, it is a lot more work for them to collect out-of-state taxes rather than assume everyone is local.
With a catalog, customers are writing down how much their tax is and paying it up front. The customer has already calculated the tax before even submitting the order. The store has much less work to do -- though I am sure they still have paperwork to fill out to send those taxes to another state.
I have a wholesale catalog from a company. To buy anything from their catalog, you are required to have a local (to them) business license. What is the purpose of that? I did not choose to incorporate my business in their state, why would I want to pay a yearly business license for every state (and possibly county and city) in order to buy something from them? The only reason it is required is so that they can justify letting you pay their local taxes instead of them collecting them.
Now, you have a business of any kind (internet, mail order only, retail location, etc). You pay taxes on all income you receive. When someone places an order, I am going to collect their money and pay taxes on that money. Why should I be collecting taxes for some other state/county/city? Wouldn't that be double taxation? And if the money was given to me in the form of a credit card or check, and I also going to be taxed on whatever state that bank is in because the money went through their network and get triple taxation?
And wasn't that money you are buying those items with taxed before you received it?
When you work a job, you are going to get taxed before you receive your Net pay. When you use said Net pay to buy something from a store, that store is going to get taxed on that money you gave them. Ad infinitum for middle men and suppliers and distributors.
How should it work? They should figure out how to make it so that all money is only taxed once. However, I doubt any of us see that happening any time soon.