Quote:
Originally Posted by Robbie
I saw this on the news today.
I wondered about it...because I've been paying taxes on stuff online for years anyway.
Not on everything...but just from some places.
For instance, I paid zero sales tax on an order from B&H Photo
But on this order from American Musical Supply I did pay tax:
Ship To
Robert Boyette
7310 Falvo Ave
Las Vegas, NV 89131
Summary
Subtotal: $2,399.98
Sales Tax: $196.18
Shipping & Processing: $21.95
Total: $2,618.11
So I'm guessing that this new ruling will require all companies to collect state sales tax as opposed to companies picking and choosing?
For instance here is a Go-Pro I bought back in May of 2017:
Subtotal $349.97
Shipping 2-Day $0.00
Sales Tax $28.87
Order Total $378.84
They charged sales tax.
And here is an order from a couple of weeks ago at Sweetwater Music. No tax:
Mesa/Boogie Triple Crown TC-50 - 50-watt Rackmount Tube Head
✓ Free Tech Support ✓ Free 2-Year Warranty
1 $1,899.00 $1,899.00
Dunlop CBM95 Cry Baby Mini Wah Pedal
✓ Free Tech Support ✓ Free 2-Year Warranty
1 $100.00 $100.00
Subtotal: $1999.00
Shipping & Handling: $70.30
FREE SHIPPING: -$70.30
Total Before Tax: $1,999.00
Estimated Tax: $0.00
Order Total: $1,999.00
Been wondering why I pay tax on some stuff and not on others.
|
Previously, online vendors only were required to collect state sale taxes for sales with-in states they operated in with a physical location. The problem is now a website will have to collect state and maybe even country/city sales taxes all over the country which will be a massive burden for small companies..
This will include your websites.. This ruling will directly affect you and your business..
Not sure why AMS would charge you sales tax as they appear to be based in NJ, but it's possible they have a distribution center in your state perhaps.
edit, yes they have a distribution center in your state, hence the reason you get charged sales tax.
This obviously wont start overnight, might even take a few years for some states, but it's gonna start soon you can bet your ass on that if states can collect taxes they will want that money..
On the flip side the processing companies will probably cash in on this by offering up automated solutions for a nice fat fee sometime down the road, but until there is a automated system this will be hell on small vendors.