Get ready to start paying tax on Internet purchases

[reefraff]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases#post_3485813
Ummm, this is nothing new to me and I bet if you did some digging you would find out you are taking advantage of a tax loophole. When I file my state taxes, it asks about purchases made online and if tax was paid. According to the tax laws, I am supposed to pay taxes on my Internet purchases. The problem is that most people don't do this. Now, the taxes will be collected when the purchase is made.
Same here, nobody pays it. Colorado passed a law that required any companies with any ties to Colorado had to collect sames tax. Amazon told them to pound sand and let go all of their Colorado based affiliates. The law eventually got tossed. The bill they are talking about would just require the business to collect the sales taxes and it is based on the address the goods are shipped to, not from.

 

[bionicarm]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases#post_3485813
Ummm, this is nothing new to me and I bet if you did some digging you would find out you are taking advantage of a tax loophole. When I file my state taxes, it asks about purchases made online and if tax was paid. According to the tax laws, I am supposed to pay taxes on my Internet purchases. The problem is that most people don't do this. Now, the taxes will be collected when the purchase is made.
Texas doesn't have a state income tax, and I don't file state income tax forms.

 

[gemmy]

Quote:
Originally Posted by bionicarm http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3485885
Texas doesn't have a state income tax, and I don't file state income tax forms.
Just because you don't file a state income tax does not mean you do not owe the money. You are still supposed to pay the sales tax when you purchase items that are mail order or from the internet. Your state is more dependent than others on sales tax revenues since the residents do not pay state income.
This is an excerpt from the tax laws of your state.
3. Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise?
Yes. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. If you purchase merchandise through a catalog or the Internet from a seller located in Texas, you owe Texas sales tax on the purchase. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser.

 

[bionicarm]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3485890
Just because you don't file a state income tax does not mean you do not owe the money. You are still supposed to pay the sales tax when you purchase items that are mail order or from the internet. Your state is more dependent than others on sales tax revenues since the residents do not pay state income.
This is an excerpt from the tax laws of your state.
3. Do I owe tax on goods purchased via mail-order catalogs or Internet merchandise?
Yes. A seller who uses catalogs or the Internet to sell goods is treated the same as any other seller of taxable items. If you purchase merchandise through a catalog or the Internet from a seller located in Texas, you owe Texas sales tax on the purchase. If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase. An out-of-state mail-order company or an Internet company may hold a Texas Sales and Use tax permit and collect Texas tax. If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser.
Never seen this law, and I've been purchasing items online for more than 20 years. I bought an $1800 MacBook a few months ago, and the Internet store didn't charge me sales tax. I've bought thousands of dollars of computer equipment from sites like Newegg, Tigerdirect, and EBay, and never paid any sales tax. So I'm supposed to send the state the taxes on these purchases how? If I don't sell items online or through a catalog, I have no reason to own a Texas Sales Tax ID. There's no place on my Federal Tax form to pay Texas sales tax. Is this some sort of "honor system" that as a "good Texas citizen" I'm supposed to pay these taxes? Texas has absolutely no way to track Internet or catalog sales unless the business the Texas buyer purchases the item from reports those purchases to the Texas Tax Authority, which they aren't legally obligated to do at this time. That's the debate about this new law and initiative. States want Internet and catalog businesses to collect taxes for them. I simply look at it as Duty Free purchases until the government states otherwise. If the state wants me to pay taxes on items I purchase that are sold outside of my state, then they have to request/require those companies to access the tax when I purchase the item from them.

 

[gemmy]

Quote:
Originally Posted by bionicarm http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3485945
Never seen this law, and I've been purchasing items online for more than 20 years. I bought an $1800 MacBook a few months ago, and the Internet store didn't charge me sales tax. I've bought thousands of dollars of computer equipment from sites like Newegg, Tigerdirect, and EBay, and never paid any sales tax. So I'm supposed to send the state the taxes on these purchases how? If I don't sell items online or through a catalog, I have no reason to own a Texas Sales Tax ID. There's no place on my Federal Tax form to pay Texas sales tax. Is this some sort of "honor system" that as a "good Texas citizen" I'm supposed to pay these taxes? Texas has absolutely no way to track Internet or catalog sales unless the business the Texas buyer purchases the item from reports those purchases to the Texas Tax Authority, which they aren't legally obligated to do at this time. That's the debate about this new law and initiative. States want Internet and catalog businesses to collect taxes for them. I simply look at it as Duty Free purchases until the government states otherwise. If the state wants me to pay taxes on items I purchase that are sold outside of my state, then they have to request/require those companies to access the tax when I purchase the item from them.
Just because you never see a law does not mean it does not exist or that you do not have to abide by it. You should be filing a 01-156, Texas Use Tax. Remember all items you purchase online creates a paper trail and YES the state can trace your purchases back to you if they want to. This has happened to 3 of my friends and they were required to pay the sales tax on their items and a penalty. However, it is not feasible for the state to do this for each individual. This is why congress wants the sales tax to be collected at the time of purchase. You are griping about a law that is going to collect the sales tax that is rightfully due to the state and then you state "if the state wants me to pay taxes on items I purchase that are sold outside of my state, then they have to request/require those companies to access the tax when I purchase the item from them." I do not get it.

 

[kiefers]

Lol.

 

[flower]

I haven't read thru all the thread..but I heard about internet tax about a year ago at least, maybe two. Anyway, the news folks were saying that we had a certain amount of time to come forward and pay taxes or they would come after us later. I can understand the tax, and add it to whatever purchase, and let the buyer decide if it's worth it to them...but to go back a year or so and charge taxes for stuff is unfair and crazy...a dollar extra here and there as you pay is not a bank buster, but to add up years of purchases and tax that...outrageous.

 

[bionicarm]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3485952
Just because you never see a law does not mean it does not exist or that you do not have to abide by it. You should be filing a 01-156, Texas Use Tax. Remember all items you purchase online creates a paper trail and YES the state can trace your purchases back to you if they want to. This has happened to 3 of my friends and they were required to pay the sales tax on their items and a penalty. However, it is not feasible for the state to do this for each individual. This is why congress wants the sales tax to be collected at the time of purchase. You are griping about a law that is going to collect the sales tax that is rightfully due to the state and then you state "if the state wants me to pay taxes on items I purchase that are sold outside of my state, then they have to request/require those companies to access the tax when I purchase the item from them." I do not get it.

Again, I've never heard of this law, nor have I heard about a 01-156 Texas Use Tax. If this was so important to the state, you'd think they'd broadcast this to every media outlet available. I guarantee you that if you walked the street and polled Texans if they were aware of this law, you'd probably get less than .05% response that they did. What paper trail? The state doesn't have legal access to my bank accounts or credit cards. If I pay cash for an item, the only "trail" is the sale by a company that doesn't have to provide ANY tax or sales information to the Texas Taxing Agencies. Your friends probably purchased something in Texas, and the seller didn't charge the sales tax at the time of the purchase. I imagine those types of purchases could be tracked.
Considering the millions of dollars Slick Rick wasted on his futile and failed attempt at running for President, then had the audacity of running up another couple hundred thousand living the lap of luxury in some overpriced house rental while the Governor's Mansion was being rebuilt, I have no qualms whatsoever taking advantage of some tax loophole that may provide a few hundred dollars for Ricky to waste on some other boondoggle.

 

[darthtang aw]

Again, I've never heard of this law, nor have I heard about a 01-156 Texas Use Tax.  If this was so important to the state, you'd think they'd broadcast this to every media outlet available.  I guarantee you that if you walked the street and polled Texans if they were aware of this law, you'd probably get less than .05% response that they did.  What paper trail?  The state doesn't have legal access to my bank accounts or credit cards.  If I pay cash for an item, the only "trail" is the sale by a company that doesn't have to provide ANY tax or sales information to the Texas Taxing Agencies.  Your friends probably purchased something in Texas, and the seller didn't charge the sales tax at the time of the purchase.  I imagine those types of purchases could be tracked.
Considering the millions of dollars Slick Rick wasted on his futile and failed attempt at running for President, then had the audacity of running up another couple hundred thousand living the lap of luxury in some overpriced house rental while the Governor's Mansion was being rebuilt, I have no qualms whatsoever taking advantage of some tax loophole that may provide a few hundred dollars for Ricky to waste on some other boondoggle.
Ignorance of the law does not make one innocent.

 

[bionicarm]

Quote:
Originally Posted by Darthtang AW http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486079
Ignorance of the law does not make one innocent.
Yea, right. Do you know every single law that's on the books in your state? I just bet you pay sales tax on internet purchases you make.

 

[reefraff]

Tax cheat

 

[darthtang aw]

Yea, right.  Do you know every single law that's on the books in your state?  I just bet you pay sales tax on internet purchases you make. :^^&:
Nope...hell i wouldnt know half the posted speed limits...but i will get the ticket just the same.
I only do business purchases online.....which are tax exempt anyway. See i understand the way taxes work. I spend at small businesses in my local community. 70 cents of every dollar i spend locally stay in my state this way..enhancing my state further due to tax revenue increased and people employeed......i dont buy personal crap off the net...it costs a bit more.....but not that much more.

 

[bionicarm]

Quote:
Originally Posted by Darthtang AW http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486109
Nope...hell i wouldnt know half the posted speed limits...but i will get the ticket just the same.
I only do business purchases online.....which are tax exempt anyway. See i understand the way taxes work. I spend at small businesses in my local community. 70 cents of every dollar i spend locally stay in my state this way..enhancing my state further due to tax revenue increased and people employeed......i dont buy personal crap off the net...it costs a bit more.....but not that much more.
You can't see a sign on the side of the road with the posted speed limit?
Not a very smart shopper I suppose. I've saved 20% - 30% on big ticket and even basic items off the net as opposed to local purchases. That's even factoring in paying shipping instead of sales tax. What a good citizen you are. Meanwhile, your state legislature takes your hard-earned money and use it for their pet projects. If your local businesses want to stay competitive, I guess they need to stay up with what their products are selling for online. Ninety percent of your brick-and-mortar stores sell online these days anyways. They've figured out how to expand their businesses from the local market, to international sales. Can't count the number of business owners I know that have more than 20% of their sales occur on the Internet.

 

[flower]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3485952
Just because you never see a law does not mean it does not exist or that you do not have to abide by it. You should be filing a 01-156, Texas Use Tax. Remember all items you purchase online creates a paper trail and YES the state can trace your purchases back to you if they want to. This has happened to 3 of my friends and they were required to pay the sales tax on their items and a penalty. However, it is not feasible for the state to do this for each individual. This is why congress wants the sales tax to be collected at the time of purchase. You are griping about a law that is going to collect the sales tax that is rightfully due to the state and then you state "if the state wants me to pay taxes on items I purchase that are sold outside of my state, then they have to request/require those companies to access the tax when I purchase the item from them." I do not get it.

Well, I live in Illinois and they did not have such a law...it's brand spanking new here. So how can they go back three years or so and charge a tax on items that at the time were not taxed. I say if they pass a law.....pay from that point on, and I agree that it should be taxed at the time of purchase. The deal has always been, we pay the tax and the seller reports it and pays the state. I have never in my 54 years of life had to go pay tax on an item from the store I purchased anything from and send the 5% sales tax to the state myself.

 

[gemmy]

Quote:
Originally Posted by bionicarm http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486072
Again, I've never heard of this law, nor have I heard about a 01-156 Texas Use Tax. If this was so important to the state, you'd think they'd broadcast this to every media outlet available. I guarantee you that if you walked the street and polled Texans if they were aware of this law, you'd probably get less than .05% response that they did. What paper trail? The state doesn't have legal access to my bank accounts or credit cards. If I pay cash for an item, the only "trail" is the sale by a company that doesn't have to provide ANY tax or sales information to the Texas Taxing Agencies. Your friends probably purchased something in Texas, and the seller didn't charge the sales tax at the time of the purchase. I imagine those types of purchases could be tracked.
Considering the millions of dollars Slick Rick wasted on his futile and failed attempt at running for President, then had the audacity of running up another couple hundred thousand living the lap of luxury in some overpriced house rental while the Governor's Mansion was being rebuilt, I have no qualms whatsoever taking advantage of some tax loophole that may provide a few hundred dollars for Ricky to waste on some other boondoggle.
I would have to say that they are ignorant of the law. This does not mean it is right. There is a paper trail whenever you make purchases on the internet. There is your paper trail with the website as well as the bank/credit card company. The states can easily get legal access to this whether you want to believe me or not. It is true.
I live in Jersey and so do my friends. They purchased items online out of state and the state fined them for not paying the tax and assessed a penalty. This can happen in any state where you pay a sales tax. Like I said, the current form is in good faith, which no one follows.
That is awesome that you will take advantage of tax loopholes.
Quote:
Originally Posted by Flower http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486146
Well, I live in Illinois and they did not have such a law...it's brand spanking new here. So how can they go back three years or so and charge a tax on items that at the time were not taxed. I say if they pass a law.....pay from that point on, and I agree that it should be taxed at the time of purchase. The deal has always been, we pay the tax and the seller reports it and pays the state. I have never in my 54 years of life had to go pay tax on an item from the store I purchased anything from and send the 5% sales tax to the state myself.
They do.
The problem is that tax laws have not kept up with the internet and in the current form it is in good faith. Which most people do not abide by this.

 

[bionicarm]

Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486153
I would have to say that they are ignorant of the law. This does not mean it is right. There is a paper trail whenever you make purchases on the internet. There is your paper trail with the website as well as the bank/credit card company. The states can easily get legal access to this whether you want to believe me or not. It is true.
I live in Jersey and so do my friends. They purchased items online out of state and the state fined them for not paying the tax and assessed a penalty. This can happen in any state where you pay a sales tax. Like I said, the current form is in good faith, which no one follows.
That is awesome that you will take advantage of tax loopholes.
They do.
The problem is that tax laws have not kept up with the internet and in the current form it is in good faith. Which most people do not abide by this.
Doesn't Jersey have a state income tax? If so, I assume they have to report all sales tax owed. Still don't know how they could track the purchases unless the businesses they bought the items from reported them to the state. There's probably millions of internet purchases performed each day. States don't have the resources or the legal rights to track and verify every internet transaction made. How can the state get legal access to my bank and credit card records? Again, they don't have the legal resources. There's what, 10-20 million people who live in Texas? They're going to track each of these individual's every purchase they make? The only way they could obtain a "paper trail" is they'd have to petition every single business that sells stuff on the internet, and try to legally acquire all their sales receipts. You'd have too many companies that would fight that tooth and nail that it would be stuck in the courts for years.
That's why they want to pass legislation to force any business that sells on the internet to report their sales, and collect taxes for any of those sales. Of course if this happens, prices will go up because of the extra work and people they would need to comply to the new regulations.

 

[gemmy]

Quote:
Originally Posted by bionicarm http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486177
Doesn't Jersey have a state income tax? If so, I assume they have to report all sales tax owed. Still don't know how they could track the purchases unless the businesses they bought the items from reported them to the state. There's probably millions of internet purchases performed each day. States don't have the resources or the legal rights to track and verify every internet transaction made. How can the state get legal access to my bank and credit card records? Again, they don't have the legal resources. There's what, 10-20 million people who live in Texas? They're going to track each of these individual's every purchase they make? The only way they could obtain a "paper trail" is they'd have to petition every single business that sells stuff on the internet, and try to legally acquire all their sales receipts. You'd have too many companies that would fight that tooth and nail that it would be stuck in the courts for years.
That's why they want to pass legislation to force any business that sells on the internet to report their sales, and collect taxes for any of those sales. Of course if this happens, prices will go up because of the extra work and people they would need to comply to the new regulations.

You have a way of twisting words. Bravo!

 

[darthtang aw]

Doesn't Jersey have a state income tax?  If so, I assume they have to report all sales tax owed.  Still don't know how they could track the purchases unless the businesses they bought the items from reported them to the state.  There's probably millions of internet purchases performed each day.  States don't have the resources or the legal rights to track and verify every internet transaction made.  How can the state get legal access to my bank and credit card records?  Again, they don't have the legal resources.  There's what, 10-20 million people who live in Texas?  They're going to track each of these individual's every purchase they make?  The only way they could obtain a "paper trail" is they'd have to petition every single business that sells stuff on the internet, and try to legally acquire all their sales receipts.  You'd have too many companies that would fight that tooth and nail that it would be stuck in the courts for years.
That's why they want to pass legislation to force any business that sells on the internet to report their sales, and collect taxes for any of those sales.  Of course if this happens, prices will go up because of the extra work and people they would need to comply to the new regulations.  
The law would be in effect until the courts ruled against it......just like obamacare was. So it would not get "tied" up.

 

[reefraff]

Quote:
Originally Posted by bionicarm http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486177
Doesn't Jersey have a state income tax? If so, I assume they have to report all sales tax owed. Still don't know how they could track the purchases unless the businesses they bought the items from reported them to the state. There's probably millions of internet purchases performed each day. States don't have the resources or the legal rights to track and verify every internet transaction made. How can the state get legal access to my bank and credit card records? Again, they don't have the legal resources. There's what, 10-20 million people who live in Texas? They're going to track each of these individual's every purchase they make? The only way they could obtain a "paper trail" is they'd have to petition every single business that sells stuff on the internet, and try to legally acquire all their sales receipts. You'd have too many companies that would fight that tooth and nail that it would be stuck in the courts for years.
That's why they want to pass legislation to force any business that sells on the internet to report their sales, and collect taxes for any of those sales. Of course if this happens, prices will go up because of the extra work and people they would need to comply to the new regulations.
Not much more work. They already track, collect and pay sales tax for items bought in states where they have a physical presence, just a matter of changing the software.

 

[flower]

Quote:
Originally Posted by Flower http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486146
Well, I live in Illinois and they did not have such a law...it's brand spanking new here. So how can they go back three years or so and charge a tax on items that at the time were not taxed. I say if they pass a law.....pay from that point on, and I agree that it should be taxed at the time of purchase. The deal has always been, we pay the tax and the seller reports it and pays the state. I have never in my 54 years of life had to go pay tax on an item from the store I purchased anything from and send the 5% sales tax to the state myself.
Quote:
Originally Posted by Gemmy http:///t/392511/get-ready-to-start-paying-tax-on-internet-purchases/20#post_3486153
They do.
The problem is that tax laws have not kept up with the internet and in the current form it is in good faith. Which most people do not abide by this.
MOST people would be me. I pay what I am told is the amount owed. It isn't a matter of abide by the law. The ONLY time I ever actually had to pay the state for anything is once a year at income tax time. I pay the sales tax on intems I purchase, I have never chased the state down to pay the 5% sales tax if somebody forgets to bill it. Nobody does that.
First, I'm not a business person.(I don't have a tax number)..so what do I do? Should I send a check for what I think is owed with a little note attached? Should it read... I think I purchased this amount of internet items so here you go, I hope it covers it...seriously?
I don't order on the internet because I am trying to avoid taxes. No store by me carries octopus skimmers or JBJ ATO or healthy fish with a 14 day guarantee...So you really think I should be a good citizen and sit down and make a list...
Hectors goby $??.00 from 3 years ago?
25 snails at $0.59 each
Pot Belly Seahorses..4 at $110.00
Kuda seahorses 4 at $65.00
5 green/blue chromis -$6.99 each....3 died..oh but I still owe the tax, or do I because I have credit that I haven't used yet?
Catalina goby $26.99
Oh and lets not forget to pay our fair share in taxes for the shipping charges...OMG..I wouldn't know where to start.
The rest of what I have ordered I don't remember...no doubt Uncle Sam kept track. So the government sat on their hands for 3 years and now they want me to dip into my fixed income and pay their tax money in a lump sum, and add interest....I wonder after they suck me dry, and I can't pay my mortgage or afford to eat anything but cat food...if I can get a voucher to pay my rent and get free food? Just like the other 86% of the non-working folks who never contributed a dime to the state in the last 3 years.
You know what I think...if they put me in jail for tax evasion at least I will have a roof over my head, and meals 3Xs a day, and medical if I need it. So the great state of Illinois can kiss my little brown spot, and get their money that way...because it's the only way they will get it from me.
If they want their tax money...talk to the merchants who failed to charge it, who do have a tax number, and an obligation to know the tax law pertaining to them and what they are supposed to charge when they sell their goods. In fact they have to pay taxes on their merchandise no matter what they charge the people. They just get a smaller profit if they didn't charge enough to cover their overhead. ... So the merchants will charge us more to make up the money they lost as profit. Cry me an ocean, at least that way it is in affordable chunks. I will just purchase less from them because I can only afford so much, that's how that works.
Okay...deep breath, I'm finished ranting now.