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Attention all shop owners /sellers/ebayers/etsy etc


Mountain_Annie

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OverSoyed, I don't sell. Therefore every time I buy from some of you, I'd have to pay. And if your customers are having to pay more the chances are good they're going to buy less, therefore hurting all of you who sale. And it doesn't matter who has to pay; they already rob all of us of far too much. Also I'd rather decide for myself what good purposes I want my money going to.

Pricing in general is a fine line. If someone wants something, 9 times out of 10, a 5-10% increase isn't going to stop them from buying it.

At little off the subject, but pricing in general. I look at these companies that sell "designer" candles for $50-75 each. They don't do anything differently than 99% of the crafters on here, yet they still sell.

We had the same problem with one of our businesses (body jewelry). Major company's sell their high quality jewelry for $50-60. We offer the exact same product, same quality stainless steel, same supplier... for $5-10. People question why it's so low.

ANYWAY... back to the original topic. If the taxes were equal across the board, you may lose a few customers here and there, but I wouldn't expect a large drop off.

AND... the use of the tax revenue, be it a specific program or a general fund, would change the outcome.

Take the stimulus for example. The plans for upgrading the power grid, new energy sources, so on... if everyone chips in for it... way to go! We need some upgrades in this country!

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If it was just that tax, it would be fine, but with internet shopping, you have the added expense of shipping so it would make a difference. People look at the fact that they don't have to spend a few bucks in taxes to offset the fact they have to pay shipping.

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Bottom line it is how the customer perceives it. As a frequent internet shopper, in my opinion, I offset the shipping vs no taxes. When I deal with a company that has a location in state and have to pay both, I dislike it--then I start looking local. I think it will have an impact because it is a "perceived" savings. Only time will tell.

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IMO, there is no difference.

Say you want to buy "Random Gadget" which retails for $100.00.

If you want to buy it locally (using my local tax rate for this example) at say, K-Mart. I am going to end up spending $2.00 (or more) in gas to get to the store, plus 6% sales tax ($6.00), not to mention the time it is going to take me to drive to the store, walk around the store looking for the item, and standing in the line. Say that takes you 30 minutes (at min. wage)... another $4.00. In that example, it would cost you $112.00 for that item.

Now if I wanted the same item, and went online to Amazon.com for example. I find the exact same item for $100.00. (Not figuring you might find it cheaper online than in a local store). I have to pay the new internet tax of 10% (example) or $10.00. Plus an additional $2.95 for shipping. It takes me just a minute or two to type in the item I want, which is basically no cost at all time wise.

So online using that example, I'd be spending $.95 more.

And yes, I realize that it's really $10.95 including the additional taxes. BUT, if I'm already spending that much on the time, what's a few more dollars.

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Oversoyed what you are not taking in to account is people in general do not think like that. All they see is they have to pay tax and shipping they do not look at the cost of gas to go to the store they do not see the time they spend in said store or the impulse buying they are doing in the store all they see is that if they shop locally all they have to pay is tax not shipping too.

I do not know how many times I have heard locally a customer say this

" I can get it cheaper on the internet"

Well you can as long as you do not take shipping in to it but once you add shipping it not cheaper. Darn it they are standing right there so it not costing them any extra to shop right now. I point that out to them and sometime I get sale sometimes I do not.

I do think an internet tax is needed but it should be at the point of sale the seller home state and it should be remitted to that seller home state under the home states guidelines for tax and it should be no more than what that state would normally collect from any business in their state. Here that would be 2.9% I do not think the city sales tax or the county sales tax should come in to play I also think the states should share that 2.9% with the counties and city in there state.

It not that hard to put a line in our tax forms for internet sales and the states whould know how much they need to share with the cities and counties of thier state.

Doing it that way would do a couple of things one everyone would be taxed fairly and the states would have to take notice and maybe help small internet business because that is where a lot of money is coming from. Right now the states have no reason to help or protect the internet businesses.

I do not think the Federal goverment should have any control of this money itself. The way they have proposed it will cost more to police than will ever be seen from it. The federal goverment is once again making things way to complicated when it could be easy.

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I live in Washington state and if I ship a package instate to another county with a different tax rate, I have to charge them their rate. I am able to have that done automatically with mal's ecommerce. I would be able to do that as well with each state if this passes. Although, I don't know how many places I have available on the ecommerce site for adding in each state tax and each tax within each state. That sounded clumsy.

At the end of the year, I have to separate income for each county within the state for the internet sales plus my farmers markets which are in different counties. It's a PITA and takes time, but it's doable.

I'm not happy about this at all, but if it must be done, then it must be done, like it or not. I won't stop doing business because of it.

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Well Put!

Oversoyed what you are not taking in to account is people in general do not think like that. All they see is they have to pay tax and shipping they do not look at the cost of gas to go to the store they do not see the time they spend in said store or the impulse buying they are doing in the store all they see is that if they shop locally all they have to pay is tax not shipping too.

I do not know how many times I have heard locally a customer say this

" I can get it cheaper on the internet"

Well you can as long as you do not take shipping in to it but once you add shipping it not cheaper. Darn it they are standing right there so it not costing them any extra to shop right now. I point that out to them and sometime I get sale sometimes I do not.

I do think an internet tax is needed but it should be at the point of sale the seller home state and it should be remitted to that seller home state under the home states guidelines for tax and it should be no more than what that state would normally collect from any business in their state. Here that would be 2.9% I do not think the city sales tax or the county sales tax should come in to play I also think the states should share that 2.9% with the counties and city in there state.

It not that hard to put a line in our tax forms for internet sales and the states whould know how much they need to share with the cities and counties of thier state.

Doing it that way would do a couple of things one everyone would be taxed fairly and the states would have to take notice and maybe help small internet business because that is where a lot of money is coming from. Right now the states have no reason to help or protect the internet businesses.

I do not think the Federal goverment should have any control of this money itself. The way they have proposed it will cost more to police than will ever be seen from it. The federal goverment is once again making things way to complicated when it could be easy.

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  • 2 weeks later...

I would be for a tax, if it wasn't wasted as every other nickle and dime tax is. We are already over taxed! So much money is wasted and the solution is always a tax increase or a new tax of some sort. I will contact my legislators and oppose this, as every other online seller should. We are the same in GA, you collect from the buyers home, not yours. This has been "THE" selling point online since inception and should be left alone. Like it's already been stated, this will be the biggest burden on the little guys!!!

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I am sending in my eye teeth right now. I am sure the older bunch understand that phrase. lol I know they will be asking for them soon. When we do craft shows we ring up tax. These people are from all over the states. I don't see any difference. We include our tax with the price on line. It is easier that way. So we are already paying tax on all sales. The sales tax people were out at Canton, Tx asking for sales tax IDs. If you didn't have it, they fined you heavily. They found many people that were behind on their taxes. I was lucky that weekend.

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I am sending in my eye teeth right now. I am sure the older bunch understand that phrase. lol I know they will be asking for them soon. When we do craft shows we ring up tax. These people are from all over the states. I don't see any difference. We include our tax with the price on line. It is easier that way. So we are already paying tax on all sales. The sales tax people were out at Canton, Tx asking for sales tax IDs. If you didn't have it, they fined you heavily. They found many people that were behind on their taxes. I was lucky that weekend.

Lucky you had your permit, or lucky they did not check on you? lol...

Just remember that by law (at least in Texas) if your prices include tax, you must state that in writing somewhere. I did not see it on your site.

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If you are really bored, you can read about the Streamlined Sales Tax Governing Board.

http://www.streamlinedsalestax.org/

Basically there were two supreme court cases (I think two) that spurred a move to try and put an end to this state-to-state-to-state-to-state difference in different sales tax laws and rules. A lot is similar state to state (i.e. most states tax the sale of tangible personal property like candles), but so much is vastly different (manufacturing rules, interstate telecommunications, etc.). While the supreme court agreed that existing differences proved too complicated for businesses without "physical prescences" in states in which they sell, they also said Congress has the authority to allow states to require remote sellers to collect tax. That is what is trying to take place now. To date just over 20 states have adopted streamline measures and I know many of the remaining states are moving to do so. It would be very helpful because not only would rules/laws be the same (what is taxable and what is not), but definitions would also be the same. For example, one state may call something "durable medical equipment" and another state may call it "orthopedic device." Anyway, not overly exciting to most, but if all states could come on board with the streamlining, it would make life much easier on those who sell across state lines if this comes to fruition.

The good news is that for those worried about keeping track of different state's laws, rules, rates, etc. and filing taxes with their offices, there are companies called certified service providers that you can enroll with which do the calculations for you. I think it is free for states that are a member of the streamlined sales tax...not 100% sure.

http://www.streamlinedsalestax.org/certified%20service%20provider.htm

I would think if this federal regulation comes to be, there would have to be something offered to all businesses. Of course, "I think the government should" is kind of laughable sometimes, huh?

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