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Comments     Threshold


RE: Lies!
By Mint on 5/8/2013 12:03:40 PM , Rating: 2
I don't know why you're making such a big deal out of this. The state that the item is being shipped to gets the tax. It doesn't matter where the warehouse or middlemen are.

Look at the shipping address, charge that state's sales tax, and transfer it to that state.

RE: Lies!
By jwbarker on 5/8/2013 1:30:14 PM , Rating: 2
Not quite correct, you might try reading the actual proposed law:

In the first place, taxes must be charged for localities, not just states. This means the counties/cities/etc where the item is delivered. And, as you may know, the city listed in the mailing address often has little to do with the city the location actually belongs to. This is, indeed, a very complex problem.

On the other hand, each participating state is required to provide, free-of-charge, software which performs all of these calculations. Further, they are required to either provide 90 day notice of any changes to the rules, or forgive any errors for 90 days after the change.

A bigger problem is that these entities often charge different tax levels for different items. For example, here in Ohio, food is not taxed at all. So now, sellers must categorize each item they are selling. This might seem simple at first, but keep in mind the categories must match each and every state's laws, a much more daunting task. (and also difficult to automate.)

RE: Lies!
By wempa on 5/8/2013 2:34:43 PM , Rating: 2
Well, the text is kind of hard to read. However, if they are required to collect local taxes too, then I agree that this law is a big mess. It'd be easier to just have a flat tax on online purchases.

