Two articles for you.
Why The Supreme Court’s Ruling About Online Taxes Is Sensible And Fair
---and---
Why Wayfair Isn’t Fair
Interesting point / counterpoint reply!
:-)
I tend to land on the side of limiting Federal power when issues like this arise. To expand on your e-retailer statement; if Amazon (or any other large online seller) decided not to ship to New Jersey, the people of the state would hopefully harass the hell out of their legislators to come up with a solution. While that probably wouldn't happen it's the best way to address the case. It would be even worse if each NJ municipality addressed it individually so the state could act on behalf of its voters.
Then again, to expand on your counterpoint; the state might just decide it could indeed be helpful to brick and mortar stores and let Amazon go. I imagine results would be noticeable quickly enough (either way) and the voters would decide whether changes are necessary.
Interesting point / counterpoint reply!
:-)
I tend to land on the side of limiting Federal power when issues like this arise. To expand on your e-retailer statement; if Amazon (or any other large online seller) decided not to ship to New Jersey, the people of the state would hopefully harass the hell out of their legislators to come up with a solution. While that probably wouldn't happen it's the best way to address the case. It would be even worse if each NJ municipality addressed it individually so the state could act on behalf of its voters.
Then again, to expand on your counterpoint; the state might just decide it could indeed be helpful to brick and mortar stores and let Amazon go. I imagine results would be noticeable quickly enough (either way) and the voters would decide whether changes are necessary.
Well, I think that is the issue - Amazon currently already is charging sales tax in most (if not all?) states already, I believe. Or maybe they simply have a presence in my state, and so are forced to based on Quill requirements.
I think it will be the small players - those who only have a Web presence that will be hurt. Those small timers who become an Amazon or eBay or Etsy retailer get exposure, and the tax administration of Amazon, etc. but they also get to give up a large percentage of the revenue for the "honor" of doing so.
If states do pull this, it will be a huge boon for the giant players, and a hindrance for small players - what's easier? Managing 50 state tax laws, thousands of municipal areas? You won't be doing that on Quickbooks, so now your into some "real" accounting system - NetSuite, AX, etc. that is going to cost you a ton to implement. Plus, you'll need some tax management software, compliance, etc. like Blackline or Avalara. And you will need a tax compliance officer at your company or at least a new staff accountant to just manage this, which also means your audit costs just doubled, because now you have to bring in PWC or EY, or RSM or whatever other Acronym accounting firm you find, because the cost of non-compliance is bankruptcy.
Nah, rather just sign up to be an Amazon side merchantr, or sell direct to Amazon.
It seems, even when we get an opening to reduce the entry to business in this country, something will always pop up to stop that trend.
Well, I think that is the issue - Amazon currently already is charging sales tax in most (if not all?) states already, I believe. Or maybe they simply have a presence in my state, and so are forced to based on *Quill* requirements.
I think it will be the small players - those who only have a Web presence that will be hurt. Those small timers who become an Amazon or eBay or Etsy retailer get exposure, and the tax administration of Amazon, etc. but they also get to give up a large percentage of the revenue for the "honor" of doing so.
If states do pull this, it will be a huge boon for the giant players, and a hindrance for small players - what's easier? Managing 50 state tax laws, thousands of municipal areas? You won't be doing that on Quickbooks, so now your into some "real" accounting system - NetSuite, AX, etc. that is going to cost you a ton to implement. Plus, you'll need some tax management software, compliance, etc. like Blackline or Avalara. And you will need a tax compliance officer at your company or at least a new staff accountant to just manage this, which also means your audit costs just doubled, because now you have to bring in PWC or EY, or RSM or whatever other Acronym accounting firm you find, because the cost of non-compliance is bankruptcy.
Nah, rather just sign up to be an Amazon side merchantr, or sell direct to Amazon.
It seems, even when we get an opening to reduce the entry to business in this country, something will always pop up to stop that trend.
I used Amazon as an example and I can see how it isn't the best one I could have used. You're right in that it's the smaller online shops that will suffer. Isn't that always the case? The little guy gets the shaft because he can't compete?
I remember when Blockbuster Video (remember them?) stated that it wasn't their fault that small video stores couldn't compete. I kind of enjoyed it when they started closing because they couldn't compete with streaming video and expanded cable offerings. Yes, I felt bad about employees losing their jobs but that's another side effect of change. (My grandfather used to deliver ice in NYC.)
I used Amazon as an example and I can see how it isn't the best one I could have used. You're right in that it's the smaller online shops that will suffer. Isn't that always the case? The little guy gets the shaft because he can't compete?
I remember when Blockbuster Video (remember them?) stated that it wasn't their fault that small video stores couldn't compete. I kind of enjoyed it when they started closing because they couldn't compete with streaming video and expanded cable offerings. Yes, I felt bad about employees losing their jobs but that's another side effect of change. (My grandfather used to deliver ice in NYC.)
Or maybe they simply have a presence in my state, and so are forced to based on Quill requirements.
In some states, simply having a server in that state counts as having a presence even though there isn't a physical location owned by the company in that state.
> Or maybe they simply have a presence in my state, and so are forced to based on Quill requirements.
In some states, simply having a server in that state counts as having a presence even though there isn't a physical location owned by the company in that state.
At this point, if a state becomes a bit draconic in its enforcement of their TBD sales tax collection laws, there is no requirement for an e-retailer to ship to that state. For example, let's say New jersey determines to charge every transaction, and any unremitted penny comes with a hefty $500.00 fine per occurrence or something, imagine if, like wine purchases into some states, you key in your address at checkout, and are told, "Sorry, we do not ship to NJ." Sorry, you can't buy that book, that clothing item, that mattress in a box, that floral arrangement for a funeral.
On the other hand, this type of overbearing enforcement might bring back to life some form of MainStreet boutique stores, or slightly boost some brick and mortar, but I think that is a canard and a bit of wishful thinking. If anything, it will boost businesses that will act as an out of state mailbox in neighboring states.