Supreme court rules that States can force online retailers to....

Supreme Court rules that States can force online retailers to collect sales tax.

[URL removed]

I wonder how this will eventually have an impact on the small online sellers. I imagine they are also referring to sellers like us who have their own website, etc. In the article and on the news this morning they feel strongly that the big businesses will do fine with it.

Would you plan to quit selling online because of this?

I do not think I would…but not entirely sure until I see how everything plays out.

Your thoughts on this?

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2 Comment

abigdogmom says: June 23, 2018

I think I am going to have to pull listings from a couple of other sites. I think the individual seller will be responsible for taxes and there is no way to know the rates in every state and county. It feels like double taxation if taxes were paid in the original purchase of collectible/used items.

EmpressDepot says: June 23, 2018

abigdogmom, hold tight for a little while before pulling. I do not think things are going to go fast ahead just yet. Wait till we get more clarity on how best to handle things. But yes, I do think this will get passed.

8 Answer

More than likely this will pass through congress now that the supreme court’s ruling gave permission for states to collect online sales tax. When exactly, we do not know, unfortunately.

From what I understand, all states are able to collect online sales tax but of course, it does have to pass through congress like said. Yes, it is up to each state what they will do with this ruling.

The full impact is not yet known.

I believe we will have to lean on each other to understand this and when/if once it goes through keep each other updated on changes. Sort of like what we’ve always done when Google shopping makes their changes but on a different kind of scale.

I also believe Bonanza would help to have our backs on this like they’ve always done and we’ll not be left scrambling to do it all on our own in the dark.

Last but not least, we should all call and email our congressman.

Here is a link to a list of state sales tax per each state along with mention of local sales tax.
[URL removed]
It is current. Most all of them collect state sales tax.

Like Tom says, it’s hard to know if they expect us to pay local sales tax along with state tax…one more reason why it is all the more important to contact our congressman. I would think they would know though what kind of nightmare it would be to have to divvy out local sales tax, too.

Sharon

[URL removed] If some of you have read this post prior and are reading it again, you’ll probably notice I made some edits. I’ll leave it as it is now 06/23

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1 Comment

Kats_Cauldron says: June 23, 2018

well, I think any online sellers platform would be working on the programs orshould bethinking aobut it right about now to make this as painless as possible because i can’t see all individual sellers able to go through these loops.

Any new laws will have to be passed first (except in the state that took it to the Supreme Court – their tax law was upheld) to allow states to collect taxes. Many states may exempt small sellers (like eBay, etsy, Bonanza). It needs to play out before Bonanza MAY have to get involved re-writing code to help sellers collect taxes for multiple state and local governments.

The sites will currently determine taxes for you if you set up taxation rules in your accounts and they will be included in your sale. However, there are too many local government add-ons to the state sales taxes to make this easy. Sellers would then be responsible (unless small sellers get an exemption) to actually forward collected taxes to each individual government.

IMO, they will have to have a system to make it easy to pay to each govt. entity. For example, see how many different taxes there are in [URL removed] [URL removed]

If small sellers don’t receive an exemption, maybe the best we can hope for is each government to collect a flat rate (for the state) and exclude any local cities/counties from the collection. At least, then I would only have to enter 50 rates into my account settings.

[URL removed] By the way, I have yet to sell one of my items to any buyer in Hawaii. So, if I do sell a $7 movie, I would owe the State of Hawaii a whopping 28 CENTS. What a hassle to send them a check for $0.28

I would think they would want to exclude small sellers (or set a limit like the 200 transactions AND $20,000 sales limit that PayPal has before issuing a 1099-K form) before they spend money and manpower collecting 28 CENTS.

EDIT #2 — it appears that the states involved may be BOTH Dakotas.

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tomwayne1
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8 Comment

EmpressDepot says: June 23, 2018

lol on the 28 cents…I guess they better start handing out free stamps or envelopes that have free postage specifically for taxes OR set it up so that we can go online and pay it for free if under $5.00. Oops, just thought of another way they may get money out of us…if we pay online and they…

EmpressDepot says: June 23, 2018

and they charge a fee…of course I’m being sarcastic though but don’t get the word out to them on this.

EmpressDepot says: June 23, 2018

Question, and I’m just asking so that all of us can understand, I’m not seeing on the internet any specific states that the Supreme court did the ruling for. I am seeing this mention [URL removed] “Supreme Court rules states can require online sellers to collect sales tax”

tomwayne1 says: June 23, 2018

one state (North Dakota) had a law to collect taxes, the Quill Corporation challenged the law, and the SC ruled in favor of ND.

tomwayne1 says: June 23, 2018

Oh crap…. I may owe ND $0.32

tomwayne1 says: June 23, 2018

There are four states with no sales [URL removed] Delaware, Montana, Oregon, and New Hampshire. A fifth, Alaska, has no state-level sales tax but allows municipalities to impose the retail-level tax. As a result, the average sales tax rate in Alaska is 1.69%.

EmpressDepot says: June 23, 2018

I had a sale once for $1.99 to Florida…so for Florida at the time that was 14 cents. lol I was going to say sew me but I better not.

EmpressDepot says: June 23, 2018

Yes, I can spell. I meant “sue”

Thats okay as Bonanza did not answer you

answered Translation missing: es.datetime.distance_in_words.almost_x_years ago

I haven’t sold on here in a while but have been on another platform – I did pull all listing this morning after much thought and listening to many news reviews / reports. I think there are just so many unknowns and I don’t want to get a letter from a state in the mail saying I owe them bo-cu back bucks. While listening to many news outlet Fox news Neil Cavoto got my attention when he stated “that supreme court decision yesterday which argued that no matter where you sell you better make sure your paying state taxes on what your selling” – I found Tax jar as a way to collect and file quarterly, HOWEVER one has to REGISTER with all the states as a foreign business of which all states have different fees for that of which is a yearly cost also. Some I know are taking that the South Dakota way as a standard rule, however there are other states such as Tennessee who from the last I knew wanted to retro the taxes owed – and then Washington State has a confusing one as well, and on and on. Bottom line from what I have found out is a seller no matter how small at this point will have to fork out some dough just to sell small profit items. I think Congress needs to step in and put some clarity to this – I called my congressman this morning – in the mean time I am at an all stop.

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2 Comment

EmpressDepot says: June 22, 2018

Kudos to you for contacting your congressman about this. Really hope that when you hear back you will share. This is definitely a can of worms.

EmpressDepot says: June 22, 2018

I’m also understanding it like you in that no matter what, ultimately the seller is responsible for our own dealings. If we somehow get help along the way to help streamline things, then that is great.

I’m doing a Hades of a lot better in sales on FB. I have a seller account here and on another site geared toward crafts and craft supplies. Neither one has done well. So it really doesn’t affect me. I haven’t had a sale on Bonanza-style platforms in months. So this really won’t affect me right now.

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I sell so little here that I am staying put for now but really need a whole lot more clarity on the whole process. Trying to get a clear answer from the government is just about impossible Cant even find out when this officially starts. Like anything else the government does, this will be one big mess and nothing good will come out of it.

answered Translation missing: es.datetime.distance_in_words.almost_x_years ago

Hi all,

Our business is licensed in the states we sell in. We have always been in compliance with our sales and use tax. We buy wholesale and sell retail. We pay for our business lic in the states we do business in. For starters – there is no such thing as HOBBY sellers. You all should have been collecting sales tax in your state if required in all counties etc. There is no double tax paying because wholesale purchases are not taxed. It is up to us businesses to comply with the laws in our state (s) So HOBBY sellers can thank themselves for this at some level. Lost sales tax revenue for your state. It’s frustrating and as this unfolds will in fact take many of us offline due to huge expenses to comply. If you collect sales tax you must legally turn it over. The more I read about this, trying to understand how it affects small businesses… the more I see, selling online could become a thing of the past for us. On the pro side. We started as a brick and mortar store and will always have that.

[URL removed]

The above link is to a discussion about the various impacts and possible future for online sellers.

In my annoyed state – thank you to all you sellers hat haven’t been on the up and up with collecting sales tax in your state… This could have been possibly avoided. I always wish small businesses much success and profits. I hope the best for everyone.

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13 Comment

EmpressDepot says: June 24, 2018

There is a such thing as hobby sellers but not a great one. If someone has a business for 3 years and shows a loss, then it becomes a hobby business.

EmpressDepot says: June 24, 2018

We’re talking about sales tax for states out of the state lived in..

EmpressDepot says: June 24, 2018

Of course if someone is a hobby seller it does not mean they are not suppose to show their internet sales in their tax returns. It just means that if the fourth year is another loss and they have a W2, they cannot claim that loss on their taxes.

EmpressDepot says: June 24, 2018

Something I did not think about on the plus side is that maybe this will now stop people who are selling online to get rid of their household stuff making it so that we can get better money for our items listed..that would be nice.

felixmybizz says: June 24, 2018

Hi EmpressDepot – I think you misunderstood perhaps? I am talking about sales tax. And as a licensed business we do not have a W2 ever. We do file a schedule C profit and loss schedule at tax time. Sales tax is paid in our state Monthy, quaterly, or annually depending on gross sales per month.

felixmybizz says: June 24, 2018

I should state insted of hobby sellers. I mean anyone that sells without a Tax ID. All should have been doing so and collecting sales tax for thier own state.

felixmybizz says: June 24, 2018

This has been a problem for us online sellers within our own states when a buyer complains that I collect sales tax. ahah I hope your business does well. :)

EmpressDepot says: June 24, 2018

I c what u r saying. Good luck to you also.

EmpressDepot says: June 24, 2018

I was telling my husband today that I do still plan to sell online unless we have to do local tax. I’m thinking they will not do this though.. Have a nice rest of the day.

felixmybizz says: June 24, 2018

To be clear – we always collect our sales tax and some buyers complian we do already. But it’s the law and it has never caused a refund. Hope you have a fabulous night. :)

abigdogmom says: June 24, 2018

I’d bet a lot of people on Bonanza are downsizing by selling their household stuff and collectibles.

EmpressDepot says: June 24, 2018

I bet you they are, abigdogmom. I hope what I said on people selling their household stuff did not come out sounding the wrong way :) I meant for people who already do this before this came up about the ruling. I’ve always said I understand why people sell their household stuff and not wanting…

EmpressDepot says: June 24, 2018

to make a profit but get something back for their item but it is hard to compete with that for a seller that is trying to make a profit. Maybe this will make more room for us to make more of a profit in the long run.

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