 |
| |
|
|
asleepathewheel
|
|
listening too long to one song
Mar 2002
time: 00:35
|
|
http://www.9news.com/acm_news.aspx?...47-c589c01ca7bf
quote:
DENVER - 9News has learned that 43 states have joined together in a coalition to collect sales tax on all Internet purchases.
You already pay sales tax when you go online to buy from an established business like Eddie Bauer or Wal-Mart. But a lot of small Internet businesses and individual transactions float under the radar.
The coalition is seeking expertise from Colorado's high tech industry to get the tax collection done electronically.
"The Internet Tax Freedom Act says that states cannot treat sales on the Internet differently than they treat any other kind of sale--and this system that we've created does exactly that," says Scott Peterson with the Conforming States Committee, which is spearheading the effort.
"It treats every sale exactly the same regardless if it's over the counter, over the catalogue, over the phone or over the Internet," he says.
The states say they've been losing as much as $16 billion annually to the Internet. They say that new software will make collecting the money almost automatic and that they can have a system in place by Oct. 1.
Colorado Governor Bill Owens says he doesn't like the idea and that Colorado won't be part of it.
"We're getting lots of taxes in terms of income taxes and other taxes because of the rise of the Internet, we shouldn't tax sales over the Internet," said Owens.
The proposal is for the new system to initially be voluntary. "So (unless) Congress were to act and make this mandatory, there would be no penalties," says Peterson. But there's a plus for businesses who do adopt the software. The states say the electronic system is so good, they'll designate participating businesses "audit proof."
|
I hope my state (Indiana) isn't one of the 43, but I can't fathom them not having their hands in the pie.
|
|
| |
|
| |
|
|
|
asleepathewheel
|
|
listening too long to one song
Mar 2002
time: 00:35
|
|
I actually don't oppose this, so long as the tax goes to the right place. And if they tax the consumer, they damned better start actually making sure that businesses are paying their taxes for online sales as well
|
|
| |
|
|
|
asleepathewheel
|
|
listening too long to one song
Mar 2002
time: 00:35
|
|
I don't know much tax law, but there is, I think, a distinction between a hobby and a job. If its a good percentage of your income, then it should (in the fed's view) be taxed. A bit here and there, no. Part of the cottage ebay reselling industry, yes. just depends on how much you're raking in.
|
|
| |
|
|
|
asleepathewheel
|
|
listening too long to one song
Mar 2002
time: 00:35
|
|
do you get taxed when purchasing a used cd at a record store?
|
|
| |
|
|
|
mrmitchell
|
|
quote:
don't know much tax law, but there is, I think, a distinction between a hobby and a job. If its a good percentage of your income, then it should (in the fed's view) be taxed. A bit here and there, no. Part of the cottage ebay reselling industry, yes. just depends on how much you're raking in. |
Some people already report eBay sales on their income taxes. I think there's a certain amount of profits you make past which you have to report it, or maybe if it's your major source of income (making the hobby vs livelihood distinction again.)
|
|
| |
|
| |
|
|
|
MichaeltheGreat
|
|
Apolyton Grand Executioner
|
 |
mooning the house that Ruth built.
Oct 1999
time: 21:35
|
|
quote:
Originally posted by The Emperor Fabulous
Does this mean eBay would be taxed? I don't pay a tax at a garage sale. |
There are two taxation issues - sales and use taxes, and income taxes.
Other than certain large personal property, such as boats, automobiles, aircraft, etc., sale of used personal property from one private party to another does not trigger sales tax in at least the vast majority of states with sales taxes.
If you're an eBay or similar business, routinely engaged in the business of selling such items, then it's a taxable transaction.
If you're a hobbyist who routinely sells something you make, that is also generally subject to sales tax.
The difference is whether you buy something for personal use, use it for a while, then sell it, on a non-routine basis, compared to buying something for the purpose of later resale.
That covers the sales and use tax issue.
Income tax implements in different ways, and has different taxpayers (seller as opposed to buyer) but the underlying logic is similar with sales tax, in determining whether the sale is incidental, or a transaction within a business or hobby context. Generally, when you sell used stuff, you sell it for less than you paid, so there's no income to tax, even if the sale was taxable. In a business transaction, you try to sell for more than you pay, and you have a significant number of sales.
Income from items sold may not be taxable income, or they may be taxed as ordinary income or capital gains, depending on how long you've had the item and if it was bought for eventual resale.
|
|
| |
|
|
|
Vesayen
|
|
May I be the first to tell these 43 states to go fornicate with themselves?
|
|
| |
All times are GMT. The time now is 05:35.
Apolyton Time is 00:35. |
top of page
|
|
|
Forum Rules:
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
|
HTML code is ON
vB code is ON
Smilies are ON
[IMG] code is ON
|
|
|
|
|
|
06-06-2005 07:42
|