Maybe the State should take a cut of the shipping charges for every item shipped to someone in that State. Of course, the shipping charges will go up to compensate.<br><br>Paul<br><br><b><i>Sue Hovey <suehovey@moscow.com></i></b> wrote:<blockquote class="replbq" style="border-left: 2px solid rgb(16, 16, 255); margin-left: 5px; padding-left: 5px;"> Maybe not, but surely if we can envision a solution to global warming and <br>Iraq, this should be easy.<br><br>Sue<br>----- Original Message ----- <br>From: "Paul Rumelhart" <godshatter@yahoo.com><br>To: "Sue Hovey" <suehovey@moscow.com>; "Shirley Ringo" <br><ringoshirl@moscow.com>; <vision2020@moscow.com><br>Sent: Tuesday, January 22, 2008 6:52 AM<br>Subject: Re: [Vision2020] Ringo's legislative report<br><br><br>> It just seems strange to me that I can buy a DVD from<br>> Japan while traveling out-of-state, and still have to<br>> count it on my State taxes. I see the unfairness to<br>> brick-and-mortar
stores, but I don't think they're<br>> likely to come up with a solution that works in all<br>> cases without being unfair to someone else.<br>><br>> Paul<br>><br>> --- Sue Hovey <suehovey@moscow.com> wrote:<br>><br>>> Paul, I don't think very many people save those<br>>> slips and enter the<br>>> appropriate tax whether they use Turbo Tax or not.<br>>> It also appears to me<br>>> that there really must be a good solution to the<br>>> taxing of Internet sales<br>>> because some out of state companies do, in fact,<br>>> include the state tax when<br>>> the item is ordered. I don't know how they make<br>>> their remittance to the<br>>> state, but work on the assumption that they do. It<br>>> just seems so unfair to<br>>> me not to tax Internet items as they are being sold<br>>> in direct competition<br>>> with local vendors. All taxation is somewhat
messy,<br>>> and you make points I<br>>> had not considered, but I am optomistic there has to<br>>> be a good solution.<br>>><br>>> Thanks, Shirley. I too, think this is an issue, as<br>>> well as a<br>>> reconsideration of all those exemptions, which needs<br>>> to be examined.<br>>><br>>> Sue H.<br>>> ----- Original Message ----- <br>>> From: "Paul Rumelhart" <godshatter@yahoo.com><br>>> To: "Shirley Ringo" <ringoshirl@moscow.com>;<br>>> <vision2020@moscow.com><br>>> Sent: Monday, January 21, 2008 8:15 AM<br>>> Subject: Re: [Vision2020] Ringo's legislative report<br>>><br>>><br>>> >A State sales tax is too parochial of a concept to<br>>> put<br>>> > on the Internet. Do you compute taxes on the<br>>> State<br>>> > the brick-and-mortar store that is selling the<br>>> item is<br>>> > located? Do you compute them
based on which State<br>>> the<br>>> > corporation is incorporated in? What if it's a<br>>> single<br>>> > person selling something on e-bay, and not a<br>>> > corporation? What if the business exists as an<br>>> > Internet-only store? In some cases, the business<br>>> not<br>>> > only won't have a home office, it won't even have<br>>> a<br>>> > physical server - just data that can be hosted<br>>> > anywhere. Do you compute taxes based on the State<br>>> > that the servers are located in? What if you have<br>>> > servers in different states? Do you compute taxes<br>>> > based on where the transaction servers are<br>>> located?<br>>> > This is often a completely different State than<br>>> where<br>>> > the website server is located. What if the web<br>>> server<br>>> > is in one State and the database it
connects to is<br>>> in<br>>> > another? Where do you draw the line? Any given<br>>> > webpage could be directed either from the web<br>>> server<br>>> > or the database server (through the web server).<br>>> Do<br>>> > you compute taxes based on where the person buying<br>>> the<br>>> > item is located? What if they are in an airport,<br>>> or<br>>> > an Internet cafe on a trip? What if they are in a<br>>> > plane?<br>>> ><br>>> > This is why the concept has never gotten off of<br>>> the<br>>> > ground. Once an answer is chosen, then everyone<br>>> will<br>>> > flock to State with the smallest sales tax, or<br>>> host<br>>> > their site overseas. The Internet is a mobile<br>>> place.<br>>> ><br>>> > Maybe they could throw some sort of Federal use<br>>> tax on<br>>> >
Internet sales that would be portioned out to the<br>>> > States somehow. I don't know. It's not an easy<br>>> > problem to solve.<br>>> ><br>>> > One good question might be: does the State deserve<br>>> the<br>>> > sales tax on the item sold? What part do they<br>>> play in<br>>> > the transaction? That answer will vary based upon<br>>> > what choice is made about how to tax things, I<br>>> guess.<br>>> > I can see some States getting no tax because no<br>>> one<br>>> > has a store there, or some States getting the tax<br>>> even<br>>> > though nothing other than a hosting company was in<br>>> > their State.<br>>> ><br>>> > Also, am I the only person that diligently saves<br>>> their<br>>> > packing slips and puts them down on their taxes<br>>> every<br>>> > year? I use TurboTax online, and it
always<br>>> prompts me<br>>> > for it.<br>>> ><br>>> > Paul<br>>> ><br>>> > --- Shirley Ringo <ringoshirl@moscow.com> wrote:<br>>> ><br>>> >><br>>> >><br>>> >> This week in the Legislature<br>>> >><br>>> >> Representative Shirley Ringo<br>>> >><br>>> >> January 18, 2008<br>>> >><br>>> >><br>>> >><br>>> >> A major disappointing development out of the<br>>> Revenue<br>>> >> and Taxation committee this week involves their<br>>> >> refusal to consider legislation regarding the<br>>> >> Streamlined Sales Tax. This is a multi-state<br>>> effort<br>>> >> to apply state sales tax to internet sales.<br>>> Passage<br>>> >> of this legislation would not commit us to<br>>> specific<br>>> >> action,
but would give us a seat at the table for<br>>> >> discussion.<br>>> >><br>>> >><br>>> >><br>>> >> As a result, we will continue the unfair practice<br>>> of<br>>> >> requiring Main Street business to apply the 6%<br>>> sales<br>>> >> tax, while their competitors who sell over the<br>>> >> internet are not required to do so. Supposedly,<br>>> we<br>>> >> are to pay the state a "use tax" of 6% when we<br>>> are<br>>> >> not charged a sales tax. This is rarely, if<br>>> ever,<br>>> >> done.<br>>> >><br>>> >><br>>> >><br>>> >> Thus, out of state internet vendors get a 6%<br>>> >> discount; home town vendors get the shaft.<br>>> >><br>>> >><br>>> >><br>>> >> I would like to discuss two additional
issues<br>>> with<br>>> >> regard to taxes. There are a number of<br>>> exemptions<br>>> >> and exceptions to the sales tax that have been on<br>>> >> the books for some time. Each of them was added<br>>> for<br>>> >> a reason, but they stay on the books without<br>>> being<br>>> >> revisited. A great deal of revenue is lost<br>>> through<br>>> >> these exemptions. If some of that revenue were<br>>> >> recovered, it would be possible to reduce<br>>> taxation<br>>> >> in other areas and move toward greater fairness<br>>> in<br>>> >> the system. I have suggested a systematic review<br>>> of<br>>> >> these exemptions - an investigation of which are<br>>> >> serving no purpose and should be dropped. The<br>>> >> majority of members on the Revenue and Taxation<br>>> >>
Committee continue to block such considerations.<br>>> >> They have done so again this year, by refusing to<br>>> >> consider the recommendations of a committee<br>>> studying<br>>> >> these issues.<br>>> >><br>>> >><br>>> >><br>>> >> My colleagues and I will bring legislation this<br>>> >> session to move towards phasing out the sales tax<br>>> on<br>>> >> food. We propose a plan to phase out the tax on<br>>> >> food at 1% per year. This represents a<br>>> substantial<br>>> >> loss in tax revenue, so it must be approached<br>>> with<br>>> >> great care. In the end, we must seek a system of<br>>> >> taxation that provides revenue for important<br>>> needs,<br>>> >> but is fair to Idaho citizens.<br>>> >><br>>><br>> === message truncated ===<br>>
<br><br></ringoshirl@moscow.com></vision2020@moscow.com></ringoshirl@moscow.com></godshatter@yahoo.com></suehovey@moscow.com></vision2020@moscow.com></ringoshirl@moscow.com></suehovey@moscow.com></godshatter@yahoo.com></blockquote><br>