Florida Lawmakers Push to Tax Online Purchases
Florida could soon join the line of other states trying to get online retailers to collect the state’s sales tax.
http://www.wctv.tv/home/headlines/Florida-Lawmakers-Push-to-Tax-Online-Purchases-189878511.html
Everyone wants sumpin fer nothin.
Under current law, states can only collect sales taxes from retailers that have a physical presence. People who order items online from another state are supposed to declare the purchases on their tax forms.
Many experts see shoppers as having the most to lose. Tax-free online shopping has an obvious appeal: lower prices.
Supporters of online sale tax legislation say the additional revenue could help states pay for vital services or cut other taxes. Critics of online sales tax legislation say it would be complicated to implement and would stifle online commerce.
Bills which died in the 112th Congress included exemptions for small businesses making less than
$ 500,000. Three online sales tax bills were considered in the previous Congressional session: the Marketplace Fairness Act in the Senate, the Marketplace Equity Act in the House of the Representatives, and the Main Street Fairness Act in both the Senate and the House.
Businesses with a physical presence pay local taxes and support local charities and organizations. They hire people who live in the community. Issues include establishing a level playing field. The discussion points to the need for tax reform.
The issue today is that the online businesses do not collect sales taxes on items shipped to Florida; the customer is liable to pay states taxes for purchases when merchants don’t collect them. This may mean that customers can be audited and charged plenalties for failing to pay sales taxes.
@George:
You wrote:
“I purchase thousands of dollars from several states as we do not manufacture these products here in Florida, I am not taxed on these purchases, were I taxed from out of states purchases, I would need to pass these extra costs to my customers…”
No, that’s not true. Items purchased for re-sell are not subject to sales tax. So, first of all, you will not have to pay sales taxes on items that you are purchasing for re-sell. Therefore, there will be no reason to “pass these extra costs to customers…”
Second, you will not be required to collect sales taxes for out of state sales, except for sales to residents of states that require you to do so. (You already collect sales taxes on internet sales for customers in Florida.) You also already collect sales taxes on sales to residents of Texas and California. (Or, you should be.)
Currently, residents of Florida can purchase items from your competitors in other states and avoid paying that sales tax to Florida that you must collect. That’s unfair to you. This rule requires that companies OUTSIDE of Florida are required to collect those same sales taxes, and send them to the State of Florida.
What the heck are you complaining about?? Your business is in a win-win situation here. There is no downside to you.
@ Jim Catron.
I am a tiny little bitty business located here in Madison, I have sold products all over the United States including several countries worldwide. Those monies I receive from these sales are not taxed in Florida, however the monies I receive from these sales are spent here in Madison and then collect the appropriate taxes due in the State of Florida.
I purchase thousands of dollars from several states as we do not manufacture these products here in Florida, I am not taxed on these purchases, were I taxed from out of states purchases, I would need to pass these extra costs to my customers costing my customers several more dollars for their purchases. Then sir, what would Governments do with ALL that extra money? I am not a BOX store however I certainly am against any more taxes for any reason thank you.
Prediction: tax on online purchases will die in committee again. The “big box” companies have closed local stores and no longer mail catalogs. The few stores that remain are in larger communities and located in malls. Their political clout is exceeded only by the interest of people to shop at “Wallmart” rather than a local business — which often provides better service after hours.
We can “level the playing field” by taxing online purchases. However, none of us wants to pay the “new” taxes which would be levied.
This is the way it works; I’m a small businessman in Madison County. I sell my products in Madison; I then charge an additional 7.5% in Taxes. I take the same product to St. Johns County and several other counties here in Florida; I then charge a mere 6% sales tax. However, if I sell the same product out of State, that person pays no State taxes, as he/she doesn’t live in this State.
The same happens if one purchases a product from out of State here in Madison, thus saving you, the purchaser, several dollars per sales. However this only happens if you’re purchasing on line “Internet”. Should you drive out of State and make a purchase, you must then pay the same tax as though you lived in that State, and then depending in which County you purchase in, is the amount of tax you pay.
This confusion pertains only because Governments have no idea how to run things, think for a moment, “Government can’t mail a letter without losing monies” yet, UPS and FedEx can?
We in Madison pay the extra 1.5% tax because we are paying for the re-modeled jail and the New Hospital that just happens to be broke again. The Jail would have been paid for shortly however some of our Commissioners and Clerk of Court under the guise of well, who knows? Decided to take some of the funds from the Jail payment, and give it to the Hospital, in order to help pay for those who don’t have to pay. Now, you know how that works? With Governments, It’s all about more Money.
George
Leave it to a liberal to explain how the taxes you are currently not paying but will be paying soon, are not new taxes. Then they tell you it is unfair to local businesses. Liberals always want things to be more fair. Somewhere along the way they failed or aren’t living up to others expectations, so in an effort to make things more fair, collect more taxes. The only holes that need plugging are their filthy mouths. Better go ahead and plug your pockets because you better believe these demo-rats will take every penny you have all in the name of the “middle class”, if there is such a monster.
@Keith, Common Sense, and Thomas Paine (…if he’s listening..)
These sales taxes are taxes that are already on the books. People are avoiding them by making purchases online. That is unfair to local businesses, who are required to collect sales tax. It just plugs a hole, that’s all.
It’s not a new tax.
I believe we are paying to many taxes now. Our government needs to find more ways to put money into the peoples pocket so we can afford these taxes they want to impose on us.
That’s great! Let’s strangle commerce and continue to spend ourselves into oblivion. Economy, what’s that? “The gubmint sends me MY money through the atm every month.” Brilliant, just brilliant.
Excellent idea!! More taxes from those that provide and give to those who take. Pay your fair share.
Good idea.