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PostPosted: Tue Apr 17, 2018 1:09 pm 
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Scotus is taking up the issue of State Sales Taxes in the arena of ecommerce with the South Dakota v. Wayfair case.

To me this should be simple. A businesses connection to a computer for purpose of a sale is a physical presence. Plus the issue of managing the thousands of different tax rates has been resolved through software. States should be paid the appropriate sales taxes.

http://www.cpapracticeadvisor.com/news/ ... -retailers


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PostPosted: Tue Apr 17, 2018 4:01 pm 
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It makes no sense that a company with no physical presence in a state should be required to collect taxes for that state, especially since that business enjoys none of a taxpayer’s benefits.

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PostPosted: Tue Apr 17, 2018 4:44 pm 
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https://www.supremecourt.gov/oral_argum ... 4_7lho.pdf

A copy of the transcript from the SCOTUS arguments can be found at the link above.

Here are the closing lines of the argument from the South Dakota AG:

"I truly believe that if you go to look at what is at issue here, it goes back to what I originally said. Small businesses are not being treated fairly. We're not asking remote sellers to do anything that we're not already asking our small businesses to do in our state. And that is simply to collect and remit a tax."


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PostPosted: Tue Apr 17, 2018 7:51 pm 
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Wow, Librarian articulates the liberal position, Ike the conservative position.

Son of a gun.


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PostPosted: Wed Apr 18, 2018 9:46 am 
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Wow, Librarian articulates the liberal position, Ike the conservative position.

Son of a gun.


I actually agree with Librarian on this as well. Amazon and others are not doing incidental sales. The volume is significant enough to create nexus. You don’t have to have brick and mortar in a state to have a presence.


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PostPosted: Wed Apr 18, 2018 10:01 am 
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I actually agree with Librarian on this as well. Amazon and others are not doing incidental sales. The volume is significant enough to create nexus. You don’t have to have brick and mortar in a state to have a presence.


They've got brick and mortar now, with the Whole Foods acquisition (I could be wrong but I believe that was part of the purpose of the acquisition.) Those are also dropoff/pickup sites for Amazon.

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PostPosted: Wed Apr 18, 2018 12:07 pm 
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Amazon has huge bricks and mortar. It has fulfillment centers all over the map for its Prime program. They are just nondescript warehouses that are designed not to say GOOD JUNK IN HERE, PLEASE BREAK IN. They're all over. They have a big one down the road from here.

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PostPosted: Wed Apr 18, 2018 2:22 pm 
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Wow, Librarian articulates the liberal position, Ike the conservative position.

Son of a gun.
I don't think this is a liberal vs conservative issue.

There are a lot of liberal, small businesses that would be affected. This isn't about Amazon. They, in fact, support the tax, as they now have nexus to so many states. It certainly would be a burden on many small business which do utilize the internet.

There are many potential ways to deal with this....perhaps a national interstate sales tax......(what, you can't regulate/tax interstate sales? yep. that's what the issue is about.)

There are also low and non-sales tax states that are likely to take advantage by having shipping centers, where people purchase expensive items and then have them reshipped.

States both lose money and gain money. If a business in state x sells to y, perhaps neither state gains sales tax, but state X taxes income, profits, generates other business and tax revenues. State Y gets that from business in their state who are selling to Z.


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PostPosted: Wed Apr 18, 2018 7:15 pm 
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I don't think this is a liberal vs conservative issue.

There are a lot of liberal, small businesses that would be affected. This isn't about Amazon. They, in fact, support the tax, as they now have nexus to so many states. It certainly would be a burden on many small business which do utilize the internet.

There are many potential ways to deal with this....perhaps a national interstate sales tax......(what, you can't regulate/tax interstate sales? yep. that's what the issue is about.)

There are also low and non-sales tax states that are likely to take advantage by having shipping centers, where people purchase expensive items and then have them reshipped.

States both lose money and gain money. If a business in state x sells to y, perhaps neither state gains sales tax, but state X taxes income, profits, generates other business and tax revenues. State Y gets that from business in their state who are selling to Z.


I live in a state where the individual tax payers are burdened so that the small businesses which would be affected will not be burdened. On our state income tax form we have a question which must be answered, "do you owe use or sales tax?" If so we have to account for it and pay it. It's quite a book keeping burden.


It's quite a burden to be in business.


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PostPosted: Wed Apr 18, 2018 7:43 pm 
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They've got brick and mortar now, with the Whole Foods acquisition (I could be wrong but I believe that was part of the purpose of the acquisition.) Those are also dropoff/pickup sites for Amazon.

Good point. Legally they may be seperate Companies for sales tax purposes. Depends on the acquisition. But you could very well be right on that point. But owning property is not the only criteria which creates nexus in many states. You may very well be required under some state law to pay sales taxes if you sell enough volume in a state. I would think Amazon would meet that criteria.


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PostPosted: Wed Apr 18, 2018 9:13 pm 
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I don't think this is a liberal vs conservative issue.

There are a lot of liberal, small businesses that would be affected. This isn't about Amazon. They, in fact, support the tax, as they now have nexus to so many states. It certainly would be a burden on many small business which do utilize the internet.

There are many potential ways to deal with this....perhaps a national interstate sales tax......(what, you can't regulate/tax interstate sales? yep. that's what the issue is about.)

There are also low and non-sales tax states that are likely to take advantage by having shipping centers, where people purchase expensive items and then have them reshipped.

States both lose money and gain money. If a business in state x sells to y, perhaps neither state gains sales tax, but state X taxes income, profits, generates other business and tax revenues. State Y gets that from business in their state who are selling to Z.

Agree completely, Viewer. Amazon fought this tooth-and-nail for years, but then the decided to put warehouses across the nation for same-day service, and they reversed themselves and supported it. Before I moved, I was about four miles from a huge, sprawling warehouse, and most of my stuff was delivered within two hours.


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