Sales Tax for Online Purchases?

[Speedy!]

I realize some places that have a physical presence in a state must charge sales tax. However, I went to get some stuff and noticed every site is now charging sales tax for online orders even if they don't have a physical presence in my state.

Something change? We're at like 10% sales tax here.

 

[MikeD1]

Yes, changed a while ago. States banded together & forced many 'on-line' stores to become tax collecting agents for them.
Big places like Amazon were the initial targets, but it has trickled down to smaller places. Even Gunbuyer caved and has begun collecting sales tax.

 

[jonx96]

I’m meeting this week with a tax person this week. I was always under the impression if I didn’t have a store from I didn’t have to
I know when I drop ship from fic since they are in Florida they have to charge me tax if the customer is in Florida but only Florida.

 

[Speedy!]

I first noticed when shopping at HHPs site.

 

[drag racer]

most now, but not all, online mail order will charge tax. Every now and then I will buy something and be surprised they charge no tax. I recall hearing about some threshold, like $100k (?) in sales to a given state/yr - no sales tax. Not sure if that is/was true.

 

[jonx96]

I know lethal performance does not charge sales tax I have bought somethings from them recently.

 

[BULL]

Colorado wants you to tell them how much you bought online that you DIDN'T pay tax on and then submit that as part of your state taxes...

 

[drag racer]

....right lol

 

[MikeD1]

Colorado wants you to tell them how much you bought online that you DIDN'T pay tax on and them submit that as part of your state taxes...

FL has that rule too - they label it 'use tax'. They tax auto lease payments using the same rule

most now, but not all, online mail order will charge tax. Every now and then I will buy something and be surprised they charge no tax. I recall hearing about some threshold, like $100k (?) in sales to a given state/yr - no sales tax. Not sure if that is/was true.

It does seem unfair to make small places charge tax, while some states are simple (one or 2 rates for the entire state), many have county 'bumps' to contend with + Louisiana has a matrix of parrish taxes to deal with. Not sure how a mom & pop operation could possible get that right (plus having to remit the $$ collected on the correct date, using the correct forms) !! You would need to subscribe to some sort of accounting system, which would be expensive !

 

[jonx96]

https://www.michigan.gov/taxes/busi...es-and-use-tax-information-for-remote-sellers
I do see this talking about if over $100k. I never plan to get to that point. If I did I would end up having 5 LLCs. Each LLC will be selling something different.
I spent a lot of time on bookkeeping stuff this weekend and decided I needed to pay an hour to someone just for tips and things to expect.
Needless to say I'm using quickbooks to help track expenses.
One thing I wish I did was transferred 10k from my personal account to my business account. It has been more of a pain keeping track of things from my personal account and some from the business account.

 

[MikeD1]

It sucks for small businesses. I've had to deal with it twice now in FL. 1st time was the commercial tint business, things were slow in the beginning and as I wound it down & in FL you have to file on time even if you had zero sales. I would forget in those months and get fined by the state goons

Still dealing with it today for the rescue. Even tho my company is tax exempt, I still have to charge tax on sales of things we use to raise $$
We used to sell trinkets like wrist bands, calendars etc. at events and thru local merchants to raise $$. The state somehow tracked us down (I assume someone ratted on us since we are so small) and made me register & start taxing those items. That's messy @ events (you want even $ amounts) and with other selling for you, so we ended up having to impute the 6%. So we ate the tax on our fundraiser 'sales' & lowered our take.

Thing is, we no longer sell anything & haven't in 6 years, but the bastards still make me file quarterly to continuously report zero sales

 

[vortecd]

Sucks when ebay started doing it years ago. I rarely buy higher price items on there anymore. When shopping online now I look to see if they charge sales tax and shipping.

 

[Speedy!]

@jonx96 lethal performance will charge me sales tax, just confirmed

 

[1971demon]

Colorado wants you to tell them how much you bought online that you DIDN'T pay tax on and them submit that as part of your state taxes...

do they want me to go back more than 10 years...???

 

[Taxinator]

I realize some places that have a physical presence in a state must charge sales tax. However, I went to get some stuff and noticed every site is now charging sales tax for online orders even if they don't have a physical presence in my state.

Something change? We're at like 10% sales tax here.

It’s called economic Nexus, which is relatively new and currently the wild west in terms of each state’s adoption…coming out of the Supreme Court Wayfair decision. Basically, each state gets to decide what level of business activity or sales (online) triggers economic nexus and the collection of sales tax. Some states are high and others low…very chaotic.

 

[Paladin06]

@jonx96 lethal performance will charge me sales tax, just confirmed

Yep, me too.

 

[Paladin06]

I know lethal performance does not charge sales tax I have bought somethings from them recently.

Lethal Performance.
Subtotal

$399.99
Shipping & Handling
$0.00
Tax
$38.00
Grand Total
$437.99​

 

[vortecd]

I put a wheel in my cart and went through checkout, no tax

 

[Stormtrooper1320]

I put a wheel in my cart and went through checkout, no tax

Teachers pet.

 

[Speedy!]

Must have to do with the state you live in I guess. Sounds like I'm gonna be paying sales tax now.