Say goodbye to tax free purchases

[Theo]

Today might be your last chance to buy "stuff" tax-free on the Internet.

 

[amplify]

Why buy a 72" when you can get a 152" plasma?

http://www.gizmag.com/panasonic-hd-3d/13842/

 

[Gerry]

Yeah, bad thing for consumers looking to save a few bucks. Potentially a good thing for the state coffers.

Perhaps Amazon will allow NC affiliates once more since Amazon will have no choice but to collect state sales tax.

 

[Source]

You don't need to start stockpiling goods from your favorite online stores just yet. There are still a few hurdles before states can start collecting sales tax on online purchases. The earliest it could go into effect is October 1, 2013. (Source: CNN)

 

[Gerry]

The earliest it could go into effect is October 1, 2013. (Source: CNN)

Amazon has already started as well as many other merchants that I have been dealing with over the years.

Really sucks. Dollar to dollar, if the same item cost the same at tiger direct vs. best buy, I could not only save with free shipping but also on tax.

 

[draggar]

IMO this can be good for the economy - it will push some people to start getting out of their houses to shop at local B&M stores once again (despite the fact that 99% are big box chain stores). The sad part is that a lot of small-sellers on the internet will get hurt from this. Plus, I'd love to see how they calculate everything plus a lot of merchants will have to factor in each state's sales tax (or will it be based on where the product is sold - in that case expect a lot of businesses opening up in sales-tax free states like NH).

 

[DomainsInc]

IMO this can be good for the economy - it will push some people to start getting out of their houses to shop at local B&M stores once again (despite the fact that 99% are big box chain stores). The sad part is that a lot of small-sellers on the internet will get hurt from this. Plus, I'd love to see how they calculate everything plus a lot of merchants will have to factor in each state's sales tax (or will it be based on where the product is sold - in that case expect a lot of businesses opening up in sales-tax free states like NH).

we've always been taxed online in canada and it doesn't stop people from buying online at all. prices are often still better online than in stores.

 

[Gerry]

we've always been taxed online in canada and it doesn't stop people from buying online at all. prices are often still better online than in stores.

That's what I am counting on.

In terms of something like ebay, that will be a nightmare if tax is collected on the final sale price.

 

[chipmeade]

My guess will be that the tax is pinned to where it is sold, simplifying the process for small businesses. FYI, consumers have ALWAYS been responsible for paying their share of sales tax, they just were to do it voluntarily. This is a collection issue, not a tax increase issue.

 

[Gerry]

This is a collection issue, not a tax increase issue.

That is the biggest issue here...does Amazon and ebay become every US Citizen's (and Uncle Sam's) accountant? In other words, the sales tax collected by ebay, does ebay file that on my behalf? Are the sales tax paid to PayPal in addition to everything else? Huge, huge nightmares.

For full disclosure, I have been filing, collecting, and paying income tax on all personal property (including domain names) purchased and sold for nearly two decades now.