Re-recession: States playing games with interstate sales tax on internet

[AZRedhawk44]

http://blogs.forbes.com/janetnovack/2011/03/10/illinois-governor-signs-amazon-internet-sales-tax-law/

Chicago is stupid.

Illinois Governor Pat Quinn today signed controversial legislation requiring Internet retailers like Amazon.com and Overstock.com to collect Illinois’ 6.25% sales tax if they have affiliate sellers in the state.

Translation:

Illinois just compelled Amazon/Overstock to divorce themselves from self-employed cottage retailers and increase unemployment in their State.  I gay-run-tee you that Amazon's response to this will be to shut down subordinate retailers located in Illinois.

A percentage of those will move and relocate to other States without such legislation, preserving their source of income and robbing IL of the corporate/personal income taxes associated with those gainful citizens.

The rest will go on unemployment.

More:

http://www.csmonitor.com/Business/Tax-VOX/2011/0308/The-battle-over-Internet-sales-tax

In just the past few days, lawmakers in Colorado, Minnesota, Connecticut, and Missouri have joined California and a fistful of other states in moving to make online sellers collect sales taxes. Last month, Texas—not exactly a hotbed of aggressive taxation—presented Amazon with a bill for $269 million in uncollected sales taxes.

Fistful, knock it off!  Once again, all this is your fault.

I loathe every Legislature that tries to change this.

THE PURCHASE WAS NOT MADE IN YOUR STATE.  YOUR STATE'S TAX INFRASTRUCTURE IS TOO HIGH TO ALLOW COMPETITION WITH BUSINESSES THOUSANDS OF MILES AWAY WHO MUST PAY RETAIL-RATE SHIPPING RATHER THAN BULK-RATE FREIGHT TO GET PRODUCT INTO YOUR CONSUMERS' HANDS.  YOUR MANAGEMENT OF LOCAL ECONOMY IS FAIL BECAUSE YOU HAVE TOO MUCH TAX.  YOU COLLECT TAXES OFF OF DELIVERY FEES FROM UPS/FEDEX TRUCKS AND VEHICLE REGISTRATIONS.  THAT IS ALL THE INFRASTRUCTURE USED AS FAR AS YOU HAVE A MORAL CLAIM.

ESAD.

[RevDisk]

My state's revenue department has admitted that there is universal noncompliance with our "use tax".  Technically speaking, if you order something from outside the state, you are supposed to pay a tax equivalent to the sales tax.  Out of several million Pennsylvanians, only a few hundred do so. 

I don't understand why they just don't strike the tax if no one pays it and there's no way to enforce compliance.

[RaspberrySurprise]

My state's revenue department has admitted that there is universal noncompliance with our "use tax".  Technically speaking, if you order something from outside the state, you are supposed to pay a tax equivalent to the sales tax.  Out of several million Pennsylvanians, only a few hundred do so. 

I don't understand why they just don't strike the tax if no one pays it and there's no way to enforce compliance.

Michigan's use tax is about as well respected.

[Scout26]

I don't understand why they just don't strike the tax if no one pays it and there's no way to enforce compliance.

Did you really think we want those laws observed? said Dr. Ferris. We want them to be broken. You'd better get it straight that it's not a bunch of boy scouts you're up against... We're after power and we mean it... There's no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What's there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced or objectively interpreted – and you create a nation of law-breakers – and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game, and once you understand it, you'll be
much easier to deal with. ('Atlas Shrugged' 1957)

[Waitone]

IIRC NC has the obligatory "if you purchased X out of state you are required . . . "  Then it goes one step further and assess an internet tax based on income.  Gets you coming and going.   Don'tcha just love fascism?

[Angel Eyes]

As expected, Amazon has cut ties with its Illinois affiliates:  http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/03/11/financial/f115429S85.DTL&tsp=1

[Boomhauer]

I don't understand why they just don't strike the tax if no one pays it and there's no way to enforce compliance.

Because a tax, once applied, never goes away and you can bet they are busy trying to figure out how to effectively collect internet sales tax.

[Monkeyleg]

Because a tax, once applied, never goes away and you can bet they are busy trying to figure out how to effectively collect internet sales tax.

"They" want to go after the online merchants and have them collect for all the states. Years back that would have been an easier task, but Amazon, Ebay and other online retailers are in the big leagues now.