SCOTUS ruled. Regardless of state location. Ergo store front..

 

Expected result. 

Weren’t all sales already taxable. But out of state businesses were not required to collect it. Buyer had to submit it (somehow).  What changed?  Are all sellers now required to collect tax for any state?

15 minutes ago, voyager9 said:

Weren’t all sales already taxable. But out of state businesses were not required to collect it. Buyer had to submit it (somehow).  What changed?  Are all sellers now required to collect tax for any state?

This is my understanding.

Just now, Zeke said:

This is my understanding.

It’s called a sales tax so it should be collected by the state where the seller resides. If they want to use the buyer’s state then they should change the name. 

34 minutes ago, voyager9 said:

Weren’t all sales already taxable. But out of state businesses were not required to collect it. Buyer had to submit it (somehow).  What changed?  Are all sellers now required to collect tax for any state?

Correct. As long as the merchant does not have "tax nexus" in the state to where they are shipping (i.e. any kind of facility, building, office, warehouse or those kinds of presences), then the merchant is not required to collect sales tax on any orders shipped to that state. The "buyer" OTOH, is required to declare "use tax"  (i.e. same amt. as the sales tax they would have paid if bought in the buyer's home state) on their State Income tax return. I do recall the NJ-1040 having such a line on that form.  How the states "police" those amounts, I do not know...    I'm thinking they can't, right now. Only if they come to audit your house, or something like that....

It's why, for example, various states were offering Amazon incentives to build warehouses/fulfillment centers in their state so that they would gain tax nexus and be required to collect tax on items "Sold by Amazon LLC."  Now, some items are not "Sold by Amazon LLC" but by a third party. They're just "fulfilled by Amazon" at their fulfillment center. In that case, tax would *not* be collected if the "sold by" merchant and the buyer were not in the same state.

EDIT:  Ah, I see where SCOTUS has just ruled 5-4 that merchants may now be required to collect sales tax even if they don't have tax nexus in the state. So, Internet merchants will have to start collecting it if the state demands they do (and what state wouldn't require that???)...   

Hmmmm..... game changer. 

 

26 minutes ago, HBecwithFn7 said:

Correct. As long as the merchant does not have "tax nexus" in the state to where they are shipping (i.e. any kind of facility, building, office, warehouse or those kinds of presences), then the merchant is not required to collect sales tax on any orders shipped to that state. The "buyer" OTOH, is required to declare "use tax"  (i.e. same amt. as the sales tax they would have paid if bought in the buyer's home state) on their State Income tax return. I do recall the NJ-1040 having such a line on that form.  How the states "police" those amounts, I do not know...    I'm thinking they can't, right now. Only if they come to audit your house, or something like that....

It's why, for example, various states were offering Amazon incentives to build warehouses/fulfillment centers in their state so that they would gain tax nexus and be required to collect tax on items "Sold by Amazon LLC."  Now, some items are not "Sold by Amazon LLC" but by a third party. They're just "fulfilled by Amazon" at their fulfillment center. In that case, tax would *not* be collected if the "sold by" merchant and the buyer were not in the same state.

EDIT:  Ah, I see where SCOTUS has just ruled 5-4 that merchants may now be required to collect sales tax even if they don't have tax nexus in the state. So, Internet merchants will have to start collecting it if the state demands they do (and what state wouldn't require that???)...   

Hmmmm..... game changer. 

 

Let the confusion begin 

So are all online retailers now required to collect sales taxes for every state? I wonder how that will work out for small online retailers and international purchases?

Cluster Fuck. 

I, as a retailer, will no longer sell online, AND in store prices will be raised, as the customer will be paying sales tax on those out of state purchases, leveling the field.

As far as me personally, it won't change much, as most purchases are already taxed, ie Amazon, Walmart, Target, etc.

5 minutes ago, PK90 said:

Cluster Fuck. 

I, as a retailer, will no longer sell online, AND in store prices will be raised, as the customer will be paying sales tax on those out of state purchases, leveling the field.

As far as me personally, it won't change much, as most purchases are already taxed, ie Amazon, Walmart, Target, etc.

Can we get some mags from you first? I’ll tell her to hurry 

it's even worse.  Apparently there are at least 10,000 taxing municipalities (across all state and local) that each and every vendor would have to have understanding on how to submit.  @PK90 will only be the first of what I predict will be many a company that will refuse to ship out of state from now on.

1 hour ago, sota said:

it's even worse.  Apparently there are at least 10,000 taxing municipalities (across all state and local) that each and every vendor would have to have understanding on how to submit.  @PK90 will only be the first of what I predict will be many a company that will refuse to ship out of state from now on.

I think a lot of the e-commerce / e-store software available have tax modules in them to handle at least the 50 states.  They might have to expand it for the county/municipal entities as well. Ultimately, I think it will be handled after a few initial hickups. Now, those who take phone orders or don't use modern e-commerce sites may have a problem.  But I recall there being rather robust tax handling modules in Drupal, so I'm sure the professional sites could handle it.

 

Most retailers that collect NJ sales tax already do, but chew on this, NJ sales tax is assessed on the shipping charges if the item is subject to NJ sales tax.  So that adds another bite to the equation. Wow, and the new proposed gun licensing fees, 50 for pistol permit, 100 for FID, and a few others up his sleeve, I hope the illegals can afford the millionaires tax, because they will be the only ones with the money!

8 hours ago, MartyZ said:

So are all online retailers now required to collect sales taxes for every state? I wonder how that will work out for small online retailers and international purchases?

My understanding iirc is the ruling had to do with Utah pushing for it. Anyone with less than 100k in sales/200 transactions *in the state of utah* is exempt, IE 99.99% of small businesses that arent already stationed there.

I placed orders with Cableas and in the past there were no sales tax. Apparently that's changed as the last order a few days ago had taxes added to the order. Do they have a presence in NJ now or they are they just following the new rules? 

19 minutes ago, My1stGlock said:

I placed orders with Cableas and in the past there were no sales tax. Apparently that's changed as the last order a few days ago had taxes added to the order. Do they have a presence in NJ now or they are they just following the new rules? 

That was for a slightly different reason... they merged not that long ago with Bass Pro Shops, and there's at least one of that chain's stores in NJ... hence, Cabela's began to charge tax to NJ residents.

44 minutes ago, T Bill said:

Most retailers that collect NJ sales tax already do, but chew on this, NJ sales tax is assessed on the shipping charges if the item is subject to NJ sales tax.  So that adds another bite to the equation. Wow, and the new proposed gun licensing fees, 50 for pistol permit, 100 for FID, and a few others up his sleeve, I hope the illegals can afford the millionaires tax, because they will be the only ones with the money!

Well, obviously it's not the merchant's responsibility for the hike in the FPID/P2P fees.  But I wonder if any of the additional "gun" fees (other than std. sales tax) will be collected by the FFL upon the delivery phase...

16 minutes ago, Mrs. Peel said:

That was for a slightly different reason... they merged not that long ago with Bass Pro Shops, and there's at least one of that chain's stores in NJ... hence, Cabela's began to charge tax to NJ residents.

I heard about that but wasn't sure if that was just rumor. Guess it happened. Now only if they can finally get setup in Sayreville over by the Garden State Parkway southbound side.

https://www.nj.com/middlesex/index.ssf/2018/03/sayreville_riverton_25_billion_redevelopment_proje.html

18 hours ago, My1stGlock said:

I heard about that but wasn't sure if that was just rumor. Guess it happened. Now only if they can finally get setup in Sayreville over by the Garden State Parkway southbound side.

https://www.nj.com/middlesex/index.ssf/2018/03/sayreville_riverton_25_billion_redevelopment_proje.html

Riverton was once called "The Point".  "The Point" is DOA!  The big secret is they wanna build it right next to a shit plant:  Middlesex Co. Sewerage Authority!  This is all pie-in-the-sky BS.  The MCSA is already overburdened with capacity limits and the local town boards have already allowed additional residential units to hook-up throughout the area.  This will result in an older, over-taxed sewerage treatment facility being asked to never break down.  Worse yet, I live a town away and have enjoyed a very "ripe summer" for the last 20 years when the wind blows the right way.  How they're gonna ask people to PAY $2-3 GRAND a month to LIVE there and not hand them a gas mask is BEYOND ME, lol!

By the time Murphy is done you'll need metal detectors & anal cavity searches to go into BassPro, and THAT will be the death of anything over there.