Online taxes??

I just heard on a news report that they (whomever they are) ready to pass a law that ALL online sales must pay sales tax. I'm wondering what kind of affect this will have on so many of us that shop online? I will probably still buy just not as much.

 

I hope that this news does not turn into a political thing. I posted it more as a warning to what may be coming. I'll leave it to the Mods to let it roll or remove it. Sorry, intent was not to " stir the pot" so to speak.
Lucky you Planofman, no taxes! Hammertime, I hear what you're saying. I don't know if online vendors will try and reduce shipping or waive it for large orders to try and offset the taxes. I guess time will tell.

 

I deleted my post. I did not mean for it to be seen as politically linked. I apoligize, for using the words with P in
But there was a great story bout the topic when it was called mail order business and very In depth without any sides taken just facts.

 

I'd rater what I said be gone than me be putting the match out there. I would be the starter and thats the bottom line for me. I did drop the P word without thinking out. I need to get used to not saying that word anyways!
Net shopping is faster! Gets me n trouble a lot though .....

 

Each State will impose their sales tax, the exact same thing happens right now if you order online from your homestate, anyone that didn't see this coming is naive, it has been a Tax loophole for years...

 

Does anyone know if this will effect people purchasing in other countries?
I won't have to pay taxes being in Canada if I buy from said states in the US that adopt this bill will I?

 

It is due to the fact that it goes into interstate commerce and that falls under the Federal control via the constitution. States can only charge taxes for purchases within their state for sales taxes whether virtual or brick and mortar. All interstate taxation would fall to the Federal government and they have the power to levy a tax over an above for any item having any connection to interstate activity. That includes sales within a state (example your telecommunication taxes, gasoline taxes, etc.) because the infrastructure to provide products is nationwide via shipping routes.

 

And like how us Canadians pay GST (Some provinces HST as well) from our own retailers, but international customers don't have to. Ahhh, taxes. WOO! I can't complain they pay my salary LOL.

 

If you live in Virginia and use products you must have use taxes collected, Virginia also apply a use tax which is different than a sales tax for anyone using items purchased. The use tax has to do with the user in the state and not the seller.

Virginia's use tax also applies at the same rate for out of state purchases (food 2.5%, non-food 5%) exceeding $100 per year "from mail order catalogs". Various exemptions include prescription and non-prescription medicine, gasoline, and postage stamps, or the labor portion of vehicle repair. "Cost price" does not include separately stated "shipping" charges but it does include a separate "handling" charge or "shipping and handling" charges if listed as a combined item on the sales invoice.

http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#Virginia

Here is the state law on it.

http://www.tax.virginia.gov/site.cfm?alias=SalesUseTax

New Mexico has something similar which I am having to deal with for a different reason.

These things get very complicated based on a number of issues for each state and state law versus the federal law.

 

Some people see a tax as a sales tax on their internet receipts when really it is a use tax.

The use tax is a method to circumvent the Interstate commerce clause. That is the constitutional clause that binds what can and cannot be called sales tax.

 

If you think that is bad, NM gross receipt taxes are even worse. At work, I will have to deal with them and they are county by county and affect things that are not inside of NM but that create commerce in NM. Trust me, you don't want to thing about that subject.