FEATURED Taxation of Online Orders

[ATMINSIDE]

Just an FYI to all you guys and gals, I received the following email from B&H Photo.

Important Message Regarding Sales TaxAs you may know, based on a June 2018 U.S. Supreme Court ruling, North Carolina is now requiring out of state sellers to collect sales tax. As a result, B&H will begin to collect sales tax on shipments to North Carolina on November 1st. All reputable retailers are complying with the new laws and collecting sales tax.

All of us at B&H thank you for the opportunity to serve you and look forward to continuing to provide you the very best in creative technology – photo, video, audio, computers, and more. We encourage you to take advantage of all we offer at*www.bandh.com, including our team of experts available by phone, chat, or email to help with your technology questions; the most extensive product information available in the industry; and of course, always the best value. We pride ourselves on having what you want, when you want it – we stock the broadest assortment of technology in the industry.

If you haven’t shopped B&H in a while, please visit our website to see our latest offers. Our new B&H Credit Card, for example, offers customers special financing with no interest if paid in full within 6 or 12 months. For terms and conditions,*click here.

If you are a tax-exempt customer, please visit our*website*for information about how to complete tax-exempt certification.

If you have questions about sales tax collection, please email us at*[email protected]*or call us at*212-465-4284.

We are grateful for your business and appreciate the opportunity to continue offering you the best service in the consumer electronics industry.

Sincerely,Customer Service Team
B&H Photo & Video

 

[Alaric]

When I (eventually) move back to SC you can have them ship to my address and I'll send the stuff up to you.
It's unfortunate that the governmental sense of entitlement to OPM (Other People's Money) has reached the stage of being cancerous. Amazon Prime has been collecting sales tax on most orders for as long as I can remember, due to those things frequently being in stock in the state in which the order was placed.

 

[ATMINSIDE]

Also, NC isn't the only one.

To my awareness this is the list:
Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.

 

[Robert17]

It's simply a matter of time before most, if not all, states find a new source of 'free' money in this type of taxation. Don't count on being allowed to vote for the representatives in those interstate transactions though. Taxation without representation seems to be a trend. Years ago I lived just outside Atlanta into the next county, worked in Atlanta officially which was one mile away. The Atlanta city council attempted to pass a law taxing income derived in Atlanta on workers commuting from outside the city, a city income tax. The state's AG had to get involved in shutting that effort down. Seems that politicians can never tire of spending other folks money.

 

[Alaric]

Hence the term "cancerous". LOL I was just offering to help you out because I'll be practically next door.

 

[ATMINSIDE]

I'm not sure how this is taxation without representation. Please correct me if I'm wrong, but this is my understanding:

- Online seller required to collect tax for state it is not physically in
- Tax is collected at local sales tax rate
- Tax is remitted with typical yearly tax to the state where the customer lives

 

[Johan45]

You guys have had a good ride, too bad it came to an end is all I can say. I pay tax on everything I buy no matter where it comes from other provinces or other countries makes no difference. I still get nailed 13%

 

[Alaric]

You guys have had a good ride, too bad it came to an end is all I can say. I pay tax on everything I buy no matter where it comes from other provinces or other countries makes no difference. I still get nailed 13%

Yup. That's that "free" health care, and if that's your total sales tax rate it isn't that bad. There are places near me that hit 13.5% when you add state, county, and municipality sales taxes. And they do the same with income taxes here. We have a collection of podunk fiefdoms with delusions of grandeur. At least you get health care. All we get is health care and welfare for illegal foreign nationals.

 

[ATMINSIDE]

Yup. That's that "free" health care, and if that's your total sales tax rate it isn't that bad. There are places near me that hit 13.5% when you add state, county, and municipality sales taxes. And they do the same with income taxes here. We have a collection of podunk fiefdoms with delusions of grandeur. At least you get health care. All we get is health care and welfare for illegal foreign nationals.

Easy on the political.

 

[Alaric]

??? I was complimenting their ability to actually pull that off, compared to my local situation. I wasn't taking shots at Shawn or Canada at all. I would have thought their sales tax would have been much higher. I'm duly impressed, is all.

 

[Robert17]

I'm not sure how this is taxation without representation. Please correct me if I'm wrong, but this is my understanding:

- Online seller required to collect tax for state it is not physically in
- Tax is collected at local sales tax rate
- Tax is remitted with typical yearly tax to the state where the customer lives

I understand your point; but the history of the U.S. reading from the Commerce Clause as originally written states that interstate commerce is not to be taxed. Local taxing authorities are pushing this, not the U.S. Congress.

 

[ATMINSIDE]

??? I was complimenting their ability to actually pull that off, compared to my local situation. I wasn't taking shots at Shawn or Canada at all. I would have thought their sales tax would have been much higher. I'm duly impressed, is all.

It's the last sentence, not the first bit while not incorrect it is quite an exaggeration.

I understand your point; but the history of the U.S. reading from the Commerce Clause as originally written states that interstate commerce is not to be taxed. Local taxing authorities are pushing this, not the U.S. Congress.

So what are we supposed to do, let all of business go online, then nobody get taxed unless there is a physical location in their state? That's how a government goes under, losing almost all their revenue.
I, for one, like Canada's tax model. It is simple and it works. My hope is that this is all a move toward a system more akin to theirs. Make all purchases taxed equally, no matter what, and continue to make income taxes simpler.

 

[Alaric]

Honestly, I was trying to compliment CA's ability to provide the services they do at a tax rate that was surprisingly (to me) low. The last sentence was fact, not political.

 

[Robert17]

So what are we supposed to do, let all of business go online, then nobody get taxed unless there is a physical location in their state? That's how a government goes under, losing almost all their revenue.

Perhaps a more positive incentive for businesses to have a physical presence in a state would be in order. After all, the OCF vendor discussion has many posts regarding RMAs, shipping issues, and other forum posts regarding touchy feely questions that could be more easily addressed in person, even to building more personal relationships with vendors. Just as you, my 2¢. I doubt we'll solve it all today.

 

[Mr.Scott]

Yup. That's that "free" health care, and if that's your total sales tax rate it isn't that bad. There are places near me that hit 13.5% when you add state, county, and municipality sales taxes. And they do the same with income taxes here. We have a collection of podunk fiefdoms with delusions of grandeur. At least you get health care. All we get is health care and welfare for illegal foreign nationals.

Honestly, I was trying to compliment CA's ability to provide the services they do at a tax rate that was surprisingly (to me) low. The last sentence was fact, not political.

 

[Johan45]

Honestly, I was trying to compliment CA's ability to provide the services they do at a tax rate that was surprisingly (to me) low. The last sentence was fact, not political.

Our HST (harmonized sales tax sounds so sweet when you put it like that) is just the beginning. Income/payroll tax is ~30% and up depending on income we also have CPP (canada pension) and EI (employment insurance) deductions ~ $75/wk, cigs, booze, gasoline all have heavy built in taxes that you don't see. We always say that June 1st is tax free day since up till then you've been working for the gov't.

 

[ATMINSIDE]

Our HST (harmonized sales tax sounds so sweet when you put it like that) is just the beginning. Income/payroll tax is ~30% and up depending on income we also have CPP (canada pension) and EI (employment insurance) deductions ~ $75/wk, cigs, booze, gasoline all have heavy built in taxes that you don't see. We always say that June 1st is tax free day since up till then you've been working for the gov't.

Tobacco, alcohol, and gas all have built-in taxes here as well.
My last check from work has federal income tax, state income tax, social security, and medicare all taken out of it before it landed in my pocket.

Perhaps a more positive incentive for businesses to have a physical presence in a state would be in order. After all, the OCF vendor discussion has many posts regarding RMAs, shipping issues, and other forum posts regarding touchy feely questions that could be more easily addressed in person, even to building more personal relationships with vendors. Just as you, my 2¢. I doubt we'll solve it all today.

I won't argue one bit, that would be a much better way to approach it. Unfortunately it's all about bottom line for these companies.

 

[mackerel]

Our HST (harmonized sales tax sounds so sweet when you put it like that) is just the beginning. Income/payroll tax is ~30% and up depending on income we also have CPP (canada pension) and EI (employment insurance) deductions ~ $75/wk, cigs, booze, gasoline all have heavy built in taxes that you don't see. We always say that June 1st is tax free day since up till then you've been working for the gov't.

Sounds similar to the UK system. Sales tax (VAT) is 20% on most things, lower or zero rate for some specific items like fresh food (not processed), physical books and children's clothing. Income tax is tiered, 0% for first X, 20% for next Y (most of mine is in this group), 40% for next Z (I occasionally hit this group), and 45% that really rich people don't pay as they hide their income in tax shelters overseas. There is also another income-like tax (National Insurance) at low % that is separate and supposed to help fund benefits. Tobacco, alcohol and gas are heavily taxed. There is a regional tax (council tax) that is supposed to pay for local services (schools, waste disposal, libraries, maintenance of public spaces) - this tax is scaled loosely based on house value and charged to occupants of a property.

On my short trip to the US, the sales tax system does seem a mess. I never remember until I see the total when paying and even then I have no idea how much it is supposed to be.

 

[ATMINSIDE]

Sounds similar to the UK system. Sales tax (VAT) is 20% on most things, lower or zero rate for some specific items like fresh food (not processed), physical books and children's clothing. Income tax is tiered, 0% for first X, 20% for next Y (most of mine is in this group), 40% for next Z (I occasionally hit this group), and 45% that really rich people don't pay as they hide their income in tax shelters overseas. There is also another income-like tax (National Insurance) at low % that is separate and supposed to help fund benefits. Tobacco, alcohol and gas are heavily taxed. There is a regional tax (council tax) that is supposed to pay for local services (schools, waste disposal, libraries, maintenance of public spaces) - this tax is scaled loosely based on house value and charged to occupants of a property.

On my short trip to the US, the sales tax system does seem a mess. I never remember until I see the total when paying and even then I have no idea how much it is supposed to be.

Oh yeah... I almost forgot about house tax. Pay yearly taxes to your county for your home and each vehicle as well. Sounds like the same thing as your council tax.

 

[Robert17]

I moved out of a large metropolitan area early this year into a rural home and the taxes that I pay on the rural property are 75% less on a property that is substantially larger and the home itself 1/2 again as large. Likewise, the local sales tax is 1.75% less. I think of property taxes as organization taxes. City -> hires firefighters, police, water, sewage, street maintenance, parks & recreation, libraries, schools, social welfare, and beau coup administrators. Rural -> sheriff, schools, roads, less of everything else. All else is privately funded, voluntary (volunteer fire department for example), or ignored. Having lived in both types of taxation, I understand the benefits of each. And feel blessed that I'm able to escape the craziness of the big city.