New Sales Tax Rules

[Tin Can]

Well written Thom Hogan. Thank you.

I still don’t want my own bizzyness.

[MikeH]

Oren:

That's an excellent article. The complexities of the Sales Tax laws can be daunting. Justice Roberts New Jersey Yarn law is a classic. In California, for example, knowing a customer's city will get you the correct rate, probably 9,999 times out of 10,000. But... and these are the ones I know about through personal experience, there are addresses in Beverly Hills that are legally in the city of LA, addresses in Pasadena that are not legally part of Pasadena, and addresses in either Clovis (?) or Fresno that belong in the other city. Sometimes, this affects the tax rate, sometimes it doesn't.

It baffles me as to how New Jersey, with its "yarn" law, is part of the aforementioned "Streamlined" project, because their intent was to eliminate these weird differences.

[MikeH]

Do you start collecting on the first sale of the year? If so, what happens to that money if you don't go over the $100,000 or 200 sales? Do you have to return it to the customer or forward it anyway to the state? On the other hand, if you start collecting when the sales go over $100,000 (SD) or 200 sales, one has to assume no collection would have been required on the original sales. Or what?

Alan:

Does this post above:

http://www.largeformatphotography.in...=1#post1450283

answer your question?

[MikeH]

Not to hijack my own thread...

Leigh, if you are still reading this... did you get my PM several weeks ago re: the Riteways with dials?

[Willie]

Do you start collecting on the first sale of the year? If so, what happens to that money if you don't go over the $100,000 or 200 sales? Do you have to return it to the customer or forward it anyway to the state? On the other hand, if you start collecting when the sales go over $100,000 (SD) or 200 sales, one has to assume no collection would have been required on the original sales. Or what?

Is it $100,000 or 200 sales Per State, or in total?

If Per State you might find it easy to put a tracking program in place so if you are getting near the end of Tax reporting year you limit or stop sales to that State. If you regularly go over to a particular State you keep on selling and pay the taxes. If not - why push it?

[faberryman]

If not - why push it?

More sales, more profit. If you are doing well, collect and remit sales tax.

[consummate_fritterer]

More sales, more profit. If you are doing well, collect and remit sales tax.

Not if your profit margins are low, after eBay and PayPal take their cuts. It may be better to take a break from selling.

[MikeH]

Is it $100,000 or 200 sales Per State, or in total?

I'm fairly certain it's $100k / 200 shipments per state. You don't start collecting until you hit the threshold. Then, you're probably stuck for a while. This is one of the things that Justice Roberts was talking against... most likely, each state will have its own rules. Maybe, just maybe, the 24 states in the "Streamlined project" will have the same rules. All bets are off though, right now.

[MikeH]

Not if your profit margins are low, after eBay and PayPal take their cuts.

Remember, this tax gets added to the purchase price. It does, from an economic theory, make things more difficult depending on where your prices are compared to the competition. But, I'd much rather deal with Jeff @ Badger Graphics, who, IMHO, is probably far more interested in 4x5 film than anyone @ B&H, although, don't get me wrong... I respect B&H.

[Bob Salomon]

I'm fairly certain it's $100k / 200 shipments per state. You don't start collecting until you hit the threshold. Then, you're probably stuck for a while. This is one of the things that Justice Roberts was talking against... most likely, each state will have its own rules. Maybe, just maybe, the 24 states in the "Streamlined project" will have the same rules. All bets are off though, right now.

Why not just qualify it by the previous year’s sales rather the confusing things?