[Vision2020] Vision2020 Digest, Vol 19, Issue 130

Tue Jan 22 13:17:41 PST 2008

This is the same concept as buying your vehicle from an out of state dealer and being charged sales tax only in the resident state.  Doesn't seem strange at all.  Mail order and internet companies collect taxes directly for in state transactions, the rest have always been up to the honest buyer to report to their own state.  If you use one card for all online purchases (like default Paypal funding choice) it's pretty easy to add it all up at the end of the year.  Most cards even seperate this category for you.

Beats giving it all back after an audit!

Don

> > Message: 3> Date: Tue, 22 Jan 2008 08:52:15 -0800 (PST)> From: Paul Rumelhart <godshatter at yahoo.com>> Subject: Re: [Vision2020] Ringo's legislative report> To: Sue Hovey <suehovey at moscow.com>, Shirley Ringo> <ringoshirl at moscow.com>, vision2020 at moscow.com> Message-ID: <723531.14050.qm at web37601.mail.mud.yahoo.com>> Content-Type: text/plain; charset=iso-8859-1> > It just seems strange to me that I can buy a DVD from> Japan while traveling out-of-state, and still have to> count it on my State taxes. I see the unfairness to> brick-and-mortar stores, but I don't think they're> likely to come up with a solution that works in all> cases without being unfair to someone else.> > Paul> > --- Sue Hovey <suehovey at moscow.com> wrote:> > > Paul, I don't think very many people save those> > slips and enter the > > appropriate tax whether they use Turbo Tax or not. > > It also appears to me > > that there really must be a good solution to the> > taxing of Internet sales > > because some out of state companies do, in fact,> > include the state tax when > > the item is ordered. I don't know how they make> > their remittance to the > > state, but work on the assumption that they do. It> > just seems so unfair to > > me not to tax Internet items as they are being sold> > in direct competition > > with local vendors. All taxation is somewhat messy,> > and you make points I > > had not considered, but I am optomistic there has to> > be a good solution.> > > > Thanks, Shirley. I too, think this is an issue, as> > well as a > > reconsideration of all those exemptions, which needs> > to be examined.> > > > Sue H.> > ----- Original Message ----- > > From: "Paul Rumelhart" <godshatter at yahoo.com>> > To: "Shirley Ringo" <ringoshirl at moscow.com>;> > <vision2020 at moscow.com>> > Sent: Monday, January 21, 2008 8:15 AM> > Subject: Re: [Vision2020] Ringo's legislative report> > > > > > >A State sales tax is too parochial of a concept to> > put> > > on the Internet. Do you compute taxes on the> > State> > > the brick-and-mortar store that is selling the> > item is> > > located? Do you compute them based on which State> > the> > > corporation is incorporated in? What if it's a> > single> > > person selling something on e-bay, and not a> > > corporation? What if the business exists as an> > > Internet-only store? In some cases, the business> > not> > > only won't have a home office, it won't even have> > a> > > physical server - just data that can be hosted> > > anywhere. Do you compute taxes based on the State> > > that the servers are located in? What if you have> > > servers in different states? Do you compute taxes> > > based on where the transaction servers are> > located?> > > This is often a completely different State than> > where> > > the website server is located. What if the web> > server> > > is in one State and the database it connects to is> > in> > > another? Where do you draw the line? Any given> > > webpage could be directed either from the web> > server> > > or the database server (through the web server). > > Do> > > you compute taxes based on where the person buying> > the> > > item is located? What if they are in an airport,> > or> > > an Internet cafe on a trip? What if they are in a> > > plane?> > >> > > This is why the concept has never gotten off of> > the> > > ground. Once an answer is chosen, then everyone> > will> > > flock to State with the smallest sales tax, or> > host> > > their site overseas. The Internet is a mobile> > place.> > >> > > Maybe they could throw some sort of Federal use> > tax on> > > Internet sales that would be portioned out to the> > > States somehow. I don't know. It's not an easy> > > problem to solve.> > >> > > One good question might be: does the State deserve> > the> > > sales tax on the item sold? What part do they> > play in> > > the transaction? That answer will vary based upon> > > what choice is made about how to tax things, I> > guess.> > > I can see some States getting no tax because no> > one> > > has a store there, or some States getting the tax> > even> > > though nothing other than a hosting company was in> > > their State.> > >> > > Also, am I the only person that diligently saves> > their> > > packing slips and puts them down on their taxes> > every> > > year? I use TurboTax online, and it always> > prompts me> > > for it.> > >> > > Paul> > >> > > --- Shirley Ringo <ringoshirl at moscow.com> wrote:> > >> > >>> > >>> > >> This week in the Legislature> > >>> > >> Representative Shirley Ringo> > >>> > >> January 18, 2008> > >>> > >>> > >>> > >> A major disappointing development out of the> > Revenue> > >> and Taxation committee this week involves their> > >> refusal to consider legislation regarding the> > >> Streamlined Sales Tax. This is a multi-state> > effort> > >> to apply state sales tax to internet sales. > > Passage> > >> of this legislation would not commit us to> > specific> > >> action, but would give us a seat at the table for> > >> discussion.> > >>> > >>> > >>> > >> As a result, we will continue the unfair practice> > of> > >> requiring Main Street business to apply the 6%> > sales> > >> tax, while their competitors who sell over the> > >> internet are not required to do so. Supposedly,> > we> > >> are to pay the state a "use tax" of 6% when we> > are> > >> not charged a sales tax. This is rarely, if> > ever,> > >> done.> > >>> > >>> > >>> > >> Thus, out of state internet vendors get a 6%> > >> discount; home town vendors get the shaft.> > >>> > >>> > >>> > >> I would like to discuss two additional issues> > with> > >> regard to taxes. There are a number of> > exemptions> > >> and exceptions to the sales tax that have been on> > >> the books for some time. Each of them was added> > for> > >> a reason, but they stay on the books without> > being> > >> revisited. A great deal of revenue is lost> > through> > >> these exemptions. If some of that revenue were> > >> recovered, it would be possible to reduce> > taxation> > >> in other areas and move toward greater fairness> > in> > >> the system. I have suggested a systematic review> > of> > >> these exemptions - an investigation of which are> > >> serving no purpose and should be dropped. The> > >> majority of members on the Revenue and Taxation> > >> Committee continue to block such considerations.> > >> They have done so again this year, by refusing to> > >> consider the recommendations of a committee> > studying> > >> these issues.> > >>> > >>> > >>> > >> My colleagues and I will bring legislation this> > >> session to move towards phasing out the sales tax> > on> > >> food. We propose a plan to phase out the tax on> > >> food at 1% per year. This represents a> > substantial> > >> loss in tax revenue, so it must be approached> > with> > >> great care. In the end, we must seek a system of> > >> taxation that provides revenue for important> > needs,> > >> but is fair to Idaho citizens.> > >>> > > === message truncated ===
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