posted April 24, 2013 12:25 PM
quote:
You're still missing my point. The businesses are burdened with collecting and filing and paying for all the many jurisdictions, even though they are based in a state with no sales tax.
I'm not. Being based in a state with no sales tax has never, to my knowledge, given the business the right to not collect sales tax from transactions with states that do have sales tax. Once again, I think you're taking what has been the norm for decades, and making it out to be something new.
Do I need to collect California sales and use tax when my business is located outside the state?
You may. Retailers based outside California are required to pay California sales or use tax on sales of merchandise to
California customers if they are “engaged in business” in the state and must register to pay sales and/or use tax. http://www.boe.ca.gov/pdf/pub77.pdf There are qualifications, including:
[list]
Example:
Your company does not have inventory in California or employees who sell in this state. Instead, you
use an independent representative who sells your product along with many others. The representative works
on a commission-only basis.
That would be like an eBay. eBay would be the entity bringing the product sale to California for commission.
An entrepreneur lives in a state with no sales tax so that he/she doesn't have to pay sales tax locally for the stuff he/she buys. It has nothing to do with other states' sales tax requirements.
Here's Washington's law:
With passage of Substitute Senate Bill 5089 (“Streamlined Sales Tax”), Washington changed from an origin-based system for local retail sales tax to a destination-based system effective July 1, 2008.What is Destination-based Sales Tax?
Previously, Washington retailers collected local sales tax based on the jurisdiction from which a product was shipped or delivered - the "origin" of the sale. Presently, they must collect based on the destination of the shipment or delivery - the "destination" of the sale. This only affects shipments and deliveries to locations within Washington State.
Who is affected?
Destination-based sales tax applies only to businesses that ship or deliver the goods they sell to locations within Washington. Under the new rules, if a retailer delivers or ships merchandise to a buyer in Washington State, the sales tax is collected based on the rate at the location where the buyer receives or takes possession of the merchandise.
There is no change for deliveries outside the state or over-the-counter sales where customers take home goods from the store location. http://dor.wa.gov/Content/FindTaxesAndRates/RetailSalesTax/DestinationBased/MoreSST.as px
New Mexico:
Compensating tax is imposed on persons using tangible property, and in some cases, services, in New Mexico on which tax has not been paid to New Mexico or any other state (Section 7-9-7 NMSA 1978). The tax “compensates” for the absence of a gross receipts tax on the purchase of property for use.
The tax applies in three types of transactions.
1) The compensating tax is imposed if:
• the item is acquired inside or outside New Mexico from a person located outside New Mexico; and
• the sale would have been subject to New Mexico gross receipts tax if the seller had nexus with New Mexico. http://www.tax.newmexico.gov/sitecollectiondocuments/pu blications/fyi-publications/fyi-230__compensating%20tax_7-11.pdf
Arizona:
Who Pays Use Tax?
2. An out-of-state retailer or utility business making sales of tangible personal property to Arizona purchasers must register with the department for the collection of the use tax.Do I Need a License?
Out-of-state vendors who make recurring sales into Arizona must also register. There is no charge for a Use Tax License. If you currently have a Transaction Privilege Tax License, you do not need a separate license for use tax. You can report any use tax due using your Transaction Privilege or Use Tax License number.
https://www.azdor.gov/Portals/0/Brochure/610.pdf
Nevada (who would likely enjoy these new rules as much as any other state):
Why is Use Tax important?
Nevada Use Tax is important because it protects Nevada businesses from a competitive disadvantage with out-of-state vendors. Use Tax puts in-state and out-of-state businesses on the same competitive footing. Use Tax also helps generate the funds needed to provide services such as police and fire protection, road construction and repair, and for schools. 4. Who is liable for Use Tax?
Any individual, business, corporation or other entity can be liable for Use Tax, when Sales Tax is not collected by the seller. Below are examples in which Nevada Sales Tax is not collected by the seller and therefore, Use Tax is due from the purchaser.
... http://tax.state.nv.us/documents/TPI-01_02_Use_Tax_Questions_and_Answers_04-09-09% 5B1%5D.pdf
I'm just googling, "[State name] sales tax out of state seller". For every state that does this, you're going to find the same general language. Nothing about the collection of sales tax is contingent upon whether the business originates from a state that doesn't collect sales tax.
The only reason representatives from states that don't collect sales tax seem uninterested is because this bill won't bring any money into their states.
Lindaland
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posted April 24, 2013 01:20 AM
