So
here are some interesting facts supporting those online shoppers out there. So
lets say you finally have that income to finally build your own home studio or
just see some really cool instruments or you are just in need of new hardware.
Buy online especially if you know already what you need and you really don’t
have to look at the equipment or even test it out, depending where you are
purchasing your item from you can actually save some money. If you’re wondering
how, it’s because you will not be taxed on your purchase. Depending where you
are living some states don’t require for you to pay a tax, as long as the
company you are purchasing from does not have a physical presence in your
state. For example they don’t have a warehouse where they ship their entire
products from or have employees working in your state. There has been an act
that is trying to be passed currently to all the states called The Marketplace Fairness Act and with
this act in place it will allow your state to tax you on your online orders no
matter from what source you a purchasing from and or where they are located.
Now some states have not passed this yet. For example in Connecticut the
Commissioner of Revenue said that any Connecticut shopper must still pay their
6.35 percent even if the website did not charge them for tax. Also states such
as Arkansas, California, Georgia, Illinois, Maine, Minnesota,
New York, North Carolina, Rhode Island, and Vermont passed a so called
“Amazon Tax” law this requires online retailers to still collect sales tax even
if they do not own any property in your state or have any in state employees.
If The Marketplace Fairness Act was implemented
on every state the government could collect well over 1 million in tax Internet
sales annually. You be surprised to find out that Amazon is actually on board
with this act, but may people still feel that it is just something else for our
government to collect money from us. How do you guys feel about this?
Interesting post, Alex I feel that it is not different from being taxed when buying from a physical store. I think that the whole idea being online is what makes people believe that it is different and not right. What I don’t get is how they will tax each state. Are they going to have a fixed tax fee for everyone? Or are they going to tax each state differently even though they could be buying something from out of the country or a different state. I honestly think that this act will threaten small businesses who have online stores. These small businesses will be affected by having to update their account systems like installing tax software and possible mistakes will be made that could result in audits and what not.
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