The marketplace fairness act

[AprilBaby]

If you are thinking about a big purchase, do it soon. The marketplace fairness act will put taxes on all online transactions! On a big ticket item that could be a big charge!

 

[iLander]

This should be interesting.

There's a big opportunity for someone to create a simple software for this.

I would LOVE to be Overstock.com's IT provider, though, they are GOUGING! From an article;

Writing in the Wall Street Journal last summer, Overstock.com's chairman/CEO, Patrick Byrne, and president, Jonathan Johnson, warned against complacency:

"It took our team of 20-30 experienced IT professionals 9,412 hours over five months to install, test and integrate the software that let us properly calculate use tax in one additional state. The annual software license fees for the first year, the internal and external development and installation costs, and the cost of collateral hardware and software came to $1.3 million. And that's just for one state."

What total BS. His IT company totally ripped him off.

 

[Laila619]

If you are thinking about a big purchase, do it soon. The marketplace fairness act will put taxes on all online transactions! On a big ticket item that could be a big charge!

Ugh! Do you know when this is going to be happening, April?

 

[MissStepcut]

I am glad states will be collecting the revenue.

 

[AprilBaby]

No idea but its supposed to be real soon!

 

[amc80]

We just bought a tv, sound bar, and 3D Blu-ray player on amazon. We did a lot of price shopping and while local rates were the same as amazon, we saved $225ish by buying online. I justify it because the amazon distribution center is right outside of town, so I'm keeping those people employed.

 

[Circe]

For what it's worth, I believe this only applies to companies raking in more than a million dollars a year.

 

[iheartscience]

Yeah I can't get really too worked up about this, since in theory we were all supposed to be paying taxes for online purchases all along. Plus I live in PA and there's no tax on clothes, which rules. ETA there's also no tax on groceries. Food and clothing are considered essentials, apparently.

 

[April20]

For what it's worth, I believe this only applies to companies raking in more than a million dollars a year.

From what I understand, this is correct. It would exempt "small businesses", small being those with sales under $1M.

I have an online business and it's a PITA to collect for my state (every county is a different rate and some cities have city tax on top of county and state), let alone all the rest of them. I understand the need to collect it on the front end being that just about no one files "use tax" for their online purchases and that revenue is "lost", but I really hope that it only applies to "big businesses".

 

[perry]

I suspect it will pass as this is not a new issue and things are much better set up for it now. However, when it first came up in Congress about a decade ago the objection was that each state had completely different categories for what was taxed with sales taxes - and how would anyone really be able to keep track of all the possible variations of who taxed what. That led to an collaborative effort by the states to standardize which products would be taxed by sales taxes - and last time I looked (a year or so ago) over 40 states had adopted the "standard" category/item list (and if you dig back to a thread within a year of my joining you will see a long discussion on this). Each state (city or county) could then apply whatever tax rate they wanted. But everyone in the nation would know which products were subject to sales tax and which were not due to the standard category list.

I believe that most likely the way this bill will be passed would be that companies must collect sales taxes for states which have the "standard" sales tax item list. At that point the software to implement becomes relatively simple.

Have a great day,

Perry

 

[Dancing Fire]

What if i buy a used diamond from another PSer?

 

[Laila619]

Yeah I can't get really too worked up about this, since in theory we were all supposed to be paying taxes for online purchases all along. Plus I live in PA and there's no tax on clothes, which rules. ETA there's also no tax on groceries. Food and clothing are considered essentials, apparently.

Man, I need to move to Pennsylvania!

 

[MissStepcut]

Yeah I can't get really too worked up about this, since in theory we were all supposed to be paying taxes for online purchases all along. Plus I live in PA and there's no tax on clothes, which rules. ETA there's also no tax on groceries. Food and clothing are considered essentials, apparently.

I had been meaning to look this up, since we will be moving to Philly in August. Glad to hear it!

 

[iheartscience]

Layla and MSC, it's awesome, I love it! I'm from VA originally so there's not a huge sales tax, but it makes a difference! Especially because I have expensive taste in clothes! (Not my fault, I got used to my discount when I was a buyer at a clothing store and I can't go back. )

MSC I live in Philly and I love it, moved here about 2 years ago. Feel free to ask any questions you might have about neighborhoods and such. I'm no Philly expert since I'm fairly new myself, but I do know the neighborhoods that are in the city pretty well.

 

[VRBeauty]

For what it's worth, I believe this only applies to companies raking in more than a million dollars a year.

To clarify, I think that's gross, not net.

But I also think it's time to do this.

I just got an email from ebay telling me I should tell my congress person to vote against this.

Instead, I replied to ebay, saying "I will not."

As for ebay sellers, it would be easy enough for the ebays and amazons to provide a tax tracking or whatever service to its sellers - who knows, it could even make them more attractive to small businesses.

 

[chrono]

Come to PA. Shoes are non taxable too!

Yes, I received the email from eBay but choose to delete it. I think small business needs the break but large corporations should collect the tax.

 

[TC1987]

PA has no annual personal property tax on vehicles, either.

 

[Smith1942]

Another reason I'm so glad that I completed my lifetime jewellery collection already! Well, I've got one or two items to go, but it's mainly done. I want the marquise earrings from Blue Nile, and then a couple of things from Tiffany which I will probably wait till the Mass tax-free shopping weekend to get. And then I'm done!

 

[MissStepcut]

Layla and MSC, it's awesome, I love it! I'm from VA originally so there's not a huge sales tax, but it makes a difference! Especially because I have expensive taste in clothes! (Not my fault, I got used to my discount when I was a buyer at a clothing store and I can't go back. )

MSC I live in Philly and I love it, moved here about 2 years ago. Feel free to ask any questions you might have about neighborhoods and such. I'm no Philly expert since I'm fairly new myself, but I do know the neighborhoods that are in the city pretty well.

I think we already picked out our apt, in/near Rittenhouse Sq. DH is going to be working in Byrne courthouse, where the baby will also be going to daycare, and I'm commuting to Wilmington. We lived in Wilmington last summer, just long enough to decide that I'll be commuting from Philly

 

[justginger]

The Australian government started making noise about this last year as well -- with the strong Australian dollar, people have been spending a lot of money online over the last couple of years.

It went down in a ball of flames, the public was furious. Our cost of living is already so high here, online shopping is a tiny refuge in the storm of bills.

I assume that they will not tax out-of-country purchasers?