California passes Internet Sales tax

[Shane]

The Press Democrat newspaper reported that the Senate passed a tax on internet sales. The Govenor has NOT signed it yet.

Davis vetoed a similar internet sales tax three years ago, but is expected to sign it this time since the state is in such a deficit, thanks in part to Davis. This means that we may not get around the 10 cent ammo tax by ordering online (from out of state) since now the internet sales will be taxed too. Write to your reps, as the 10 cent ammo tax and the internet sales tax are really bad ideas for this state.

This also means if we want to buy other gun related stuff, we'll not only be charged for shipping but also taxes. :banghead:

 

[Frohickey]

Do you have the Senate and Assembly bill numbers?

 

[pittspilot]

And they will enforce the tax, how?

 

[Shaggy]

Yeah, how is CA going to force a company in TN to collect CA sales tax? That's half the reason there is no sales tax on mail orders now. Imagine a company having to charge and collect 49 other states sales taxes. What a nightmare.

 

[Standing Wolf]

Yippee! Free money in the People's Republic of California!

I have no idea what happened to the color choices.

 

[redhead]

I think enforcing this would be a problem. Purchases made out of state and over the internet are already taxable - it's called a use tax, and is supposed to be reported and paid with your tax return. I keep track of everything I buy out of state and over the internet, estimate what the tax should be, and pay it with my tax return. Doesn't everybody?

 

[Inoxmark]

The bill that passed is SB103 and it does not have any dramatic changes, although it is definitely another step toward taxing all internet purchases.

Basically if before only companies with physical presence in the state were required to collect sales tax, if this bill passes companies that have employees in the state or hire independent contractors in the state (for installation and service, for example), would also be required to collect sales tax.

 

[CZ-75]

Yeah, how is CA going to force a company in TN to collect CA sales tax?

If they have retail locations in the state, then they would have to even now.

I bought some shoes from a TN company and had to pay state tax b/c they had retail locations in the state (albeit 250 miles away). This wasn't even California.

 

[Graystar]

What if you put in the order by phone?

 

[Waitone]

Hey, we here in NC have you beat. The state just assumes you'll purchase over the internet AND that you'll not pay taxes in NC AND the more you make the more you purchase over the internet.

Sooooo, the state just assess you sales tax for internet purchases based on you income.

Simple, neat, no muss, no fuss and completely Marxist.

 

[redhead]

Waitone! That does have California beat ! but shhhhh. Don't give those clowns in Sacatomatoes any more ideas. They've got too many bad ideas already.

 

[Ledbetter]

So...

If you're browsing for stuff to buy on the internet, you'll either be able to buy it at additional cost, or from somewhere besides California.

Brilliant.:banghead:

 

[Mike Irwin]

Redhead has it -- the "use" tax.

Virginia has this, as well.

If you purchase more than X dollar amount of goods outside of Virginia for use inside Virginia, you're supposed to declare it.

Uh huh.

Right.

 

[Battler]

Also, if a company wants to have a branch somewhere, and has to decide between state X and California:

"Gee - if I park in California I have to collect California sales tax". Remember, sub-office presence in California does not make collecting sales tax any easier.

Ditto with contractors - great, as if paying California taxes doesn't make it hard enough to do business in California without singling out their out-of-state customers for hassle for dealing with them.


Battler.

 

[BigG]

California is sure battling hard to make it into the turd world.

 

[Poodleshooter]

For companies without nexus in the state of California, it's going to be quite difficult to enforce.
BTW, lots of companies have nexus in all of the states. My company has to collect sales tax from every state that has one.
There have been so many judgements on what constitutes nexus that it boggles the mind. Catalog sales companies were the first to face this, now the internet gets it's turn. Use taxes were supposed to solve this, but they're quite obviously treated as a joke by most citizens (if they are even aware of them).