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From BJ Freeman <bjf...@free-man.net>
Subject Re: News: Democrats push for new Internet sales taxes
Date Fri, 09 Jul 2010 05:57:56 GMT
you may want to read
http://www.tax.utah.gov/sst/
it supports the desination tax like other states as of 2009.




Matt Warnock sent the following on 7/8/2010 12:48 PM:
> Currently brick-and-mortar sales taxes are collected where the STORE is.
> Thus a store in Salt Lake City may have an extra local transit tax that
> a store in an adjacent suburb does not.  But there is typically only one
> tax rate (the local one) collected, though that rate may vary for
> different types of goods, too (food vs. non-food are taxes differently
> in many states).
>
> Catalogs have had to collect multiple taxes in the past, but only for
> states in which they "do business" (which is more than just "have
> customers"), and it can be a nightmare, even if you know EXACTLY where
> you are shipping (which may be different than where the customer placed
> the order, or pays for it).  It tends to lead to turf wars between
> jurisdictions (if my warehouse is in Salt Lake, but my office is not, do
> I collect the transit tax or not?), and encourages "portable" businesses
> to move to sales tax havens like Nevada.  Congress has never really
> addressed this problem adequately for catalog companies.
>
> You seem to assume that internet retailers would collect taxes where the
> USER is.  That is a considerable jump in complexity for current
> practice, and many internet retailers selling digital goods (like
> ebooks) may have no idea where the user is.  All they have is a
> username, password, and a credit card number.  This is a complexity that
> arose with the internet, does not exist with brick and mortar stores,
> and has never been solved.  If I buy from an IP address in a Chicago
> hotel, using a Sacramento shipping address (perhaps my kid at college)
> and pay for it with a credit card with a Salt Lake billing address,
> which tax(es) do you collect?
>
> Congress granted the Internet an exception to avoid turf wars between
> all the various entities. Granted, it won't last, but I doubt that the
> solution of taxing based on USER location is either feasible, or as you
> say, inevitable.  There needs to be a global (or at least national)
> solution, and until it appears, the "need" is pretty speculative.
>
> I think OFBiz is flexible enough to create and use compliant tax rules
> for any kind of tax structure that might be settled on.  Some are more
> complicated than others.  If Congress does it, at least it will be
> consistent for the whole country.  Some schemes may require
> outside-the-box thinking and programming.  Just my opinion, though.

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