Councilman
DP Veteran
- Joined
- Apr 25, 2009
- Messages
- 4,454
- Reaction score
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- Location
- Riverside, County, CA.
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- Male
- Political Leaning
- Conservative
Push to collect online sales tax gathers steam - Business - Personal finance - Tax Tactics - msnbc.com
With budgets in crisis, enforcement efforts gather steam
It’s too early to know exactly how much the Nebraska chapter of the March of Dimes raised this week at its annual Signature Chefs Auction in Omaha, but odds are that more than 10 percent of the charity’s proceeds are going straight to the tax man.
That’s because the March of Dimes went online when it bought about 4,000 T-shirts from a Florida vendor to give to donors during its March for Babies Walk last April. The charity often buys supplies and other materials online, and it also raises money online by selling items at auction — racking up a big tax bill in each case.
“We didn’t know that,” said Rosemary Opbroek, director of the Nebraska chapter. “We wish the law was different. It is taking money away from helping ... babies.”
Specifically, it is taking away about $26,000, the amount the State of Nebraska says the March of Dimes owes for unpaid taxes on the April purchase and other online transactions over the past five years.
Raising taxes in a recession is counter productive and only serves to feed the problems.
Cut the darn spending
and cut taxes and the revenues in the States and the Federal Gov, will go up and jobs will start to come back.
Keep on the Obama out of control spending course and our economy is a dead duck.
Sales taxes or similar levies have always been in place on most online purchases in most states. But they are almost never paid. And with their budgets in crisis, states are more determined than ever to get their share.
. . . .
Under a 1992 Supreme Court ruling, businesses are responsible for collecting sales taxes on every sale they make in a state where they have a “physical nexus.” In other words, if the business has a store, an office or even a single sales rep in your state, it’s supposed to tack the state’s sales tax onto your bill.
When are the idiots in Public Service get their heads out of the nether regions and see the light.
Raising taxes in a recession is counter productive and only serves to feed the problems.
Cut the darn spending and cut taxes and the revenues in the States and the Federal Gov, will go up and jobs will start to come back.
Keep on the Obama out of control spending course and our economy is a dead duck.
I find it incredible that this threat has been up for 12 hours and no one has an opinion about this terrible mistake and attempt to control thought, the spread of information, and opposition.
Well, I agree that raising taxes during a recession is bad.
But this situation is *not* the same thing as raising existing taxes or levying NEW taxes.
They're simply enforcing regulations that have BEEN around.
Bottom line: when you are an organization or company - and you deal with MONEY and the sale of products - you MUST be fluid with tax codes or higher someone who IS - and then take their advice.
If you're a business who doesn't know your legalities and rights you can find yourself OUT of business rather quickly due to 'bad business.' - it's kind of a no-brainer.
The real question is whether the t-shirt company from Florida where the shirts came from has a physical presence in Nebraska. According to the Supreme Court ruling you quote, a "physical nexus" must be in the state before sales taxes are due.
A physical nexus, according to the article, is: "if the business has a store, an office or even a single sales rep in your state, it’s supposed to tack the state’s sales tax onto your bill."
This is akin to minimum contacts when it comes to issues of litigation - in which merely advertising your business or organization and doing any sort of transaction by approach in any state satisfies this contacts stardard.
I have an opinion. The State of Texas gives a sales tax exemption to all non-profits. I don't know about Nebraska, but the March of Dimes in Houston doesn't pay a cent, if what they are purchasing is going to be used in the every day business of that charity. That's why I think that either Nebraska is a medieval hick backwoods, or that this story just doesn't pass the smell test.
Blaming Obama doesn't pass the smell test either, since he has absolutely no say on what states do to impose and collect their sales taxes. Therefore, I call hyperpartisan BS on this one. Why even bring him up?
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