From the Heartland Institute:
"Overstock.com has become the second online retailer to mount a legal challenge against a New York law that effectively defines them as state-based merchants, forcing them to collect sales tax on purchases made by consumers who reside in the Empire State.
A new statute passed by the New York legislature April 9 attempts to circumvent a 16-year-old U.S. Supreme Court ruling that prohibits a state from collecting sales tax from any merchant that does not have a "nexus," or physical location, within the state."
Read the full article:
http://www.heartland.org/Article.cfm?artId=23521
Gravette Faces Revenue Shortfall
Officials Say New Tax Collection Method Has Caused Problem
"The city of Gravette has had to make cutbacks in recent months to make up for inaccurate predictions of 2008 finances.
Police no longer patrol. Instead, they park and turn their engines off until they are dispatched.
Any city employee who quits cannot be replaced.
Mayor Bill Howard has to approve all spending, even if it was budgeted.
"If it isn't needed right now, we don't get it," he said.
Still, Howard said the city will probably spend about $30,000 more than it brings in this year. That money will come out of the city's reserve fund."
Read the full article:
http://www.nwaonline.net/articles/2008/07/12/news/071208rzgravettefinances.txt
"The city of Gravette has had to make cutbacks in recent months to make up for inaccurate predictions of 2008 finances.
Police no longer patrol. Instead, they park and turn their engines off until they are dispatched.
Any city employee who quits cannot be replaced.
Mayor Bill Howard has to approve all spending, even if it was budgeted.
"If it isn't needed right now, we don't get it," he said.
Still, Howard said the city will probably spend about $30,000 more than it brings in this year. That money will come out of the city's reserve fund."
Read the full article:
http://www.nwaonline.net/articles/2008/07/12/news/071208rzgravettefinances.txt
Destination-based sales tax complicated for businesses
"Collecting sales tax became some 350 times more complex last week for many of the state's retailers.
Washington's new "destination-based" sales tax system replaced its existing "origin-based" system July 1."
Read the full article:
http://wenatcheeworld.com/apps/pbcs.dll/article?AID=/20080707/BIZ/756671147/1001
Washington's new "destination-based" sales tax system replaced its existing "origin-based" system July 1."
Read the full article:
http://wenatcheeworld.com/apps/pbcs.dll/article?AID=/20080707/BIZ/756671147/1001
New sales tax law is trouble, in a nutshell
From the Columbian, serving Clark County, Washington:
"A new state law aimed at simplifying tax collections is causing unintended headaches for small Washington businesses that sell online.
Carolyn and Ray Young, owners of Ridgefield-based Allen Creek Farm, have spent hours trying to comply with the law, which requires them to charge a different sales tax rate depending on which of Washington’s 357 taxing districts they ship to. State computer systems that are supposed to make things easier are riddled with mistakes, Carolyn Young said. The system puts the business at a disadvantage when competing with sellers in other states. And for all the Youngs’ efforts to follow the rules, they expect to owe less than $25 on their sales."
Read the full article:
http://www.columbian.com/business/businessNews/2008/07/07222008_New-sales-tax-law-is-trouble-in-a-nutshell.cfm
"A new state law aimed at simplifying tax collections is causing unintended headaches for small Washington businesses that sell online.
Carolyn and Ray Young, owners of Ridgefield-based Allen Creek Farm, have spent hours trying to comply with the law, which requires them to charge a different sales tax rate depending on which of Washington’s 357 taxing districts they ship to. State computer systems that are supposed to make things easier are riddled with mistakes, Carolyn Young said. The system puts the business at a disadvantage when competing with sellers in other states. And for all the Youngs’ efforts to follow the rules, they expect to owe less than $25 on their sales."
Read the full article:
http://www.columbian.com/business/businessNews/2008/07/07222008_New-sales-tax-law-is-trouble-in-a-nutshell.cfm
NY Exploring Taxing Internet Sales
Governor Eliot L. Spitzer of New York is considering requiring companies that have $10,000 or more in New York sales to collect Internet taxes. Apparently, New Yorkers are not filing and paying their required state retail taxes on the Internet purchases. Governor Spitzer wants to shift that paperwork burden to businesses.
http://www.buffalonews.com/149/story/279666.html
http://www.buffalonews.com/149/story/279666.html
Most States Still Not Compliant
Practical Ecommerce has very good article summarizing the current state of compliance with the Streamlined Sales Tax act. Most states are still not compliant.
Read the entire article.
Read the entire article.
Wisconsin State Revenue Secretary Pushing For Streamlined Sales Tax
The Milwaukee Journal Sentinel is reporting that state Revenue Secretary Roger Ervin is pushing Wisconsin legislators to pass the Streamlined Sales Tax.
Many small businesses would be curious as to how Mr Ervin deduces that the Streamlined Sales tax would reduce the cost of compliance for businesses. That seems not to have occured in any state which has adopted the Streamlined Sales Tax initiative. Most business find that rather than collecting state, county and city sales taxes that they are now responsible for collecting and reporting taxes for hundreds of taxing authorities. Modifications to software alone can easily cost businesses thousands of dollars.
Read the entire article.
"But Ervin said the Streamlined Sales Tax would "reduce the cost of compliance for businesses and level the playing field for in-state businesses that are required to collect sales taxes."
Many small businesses would be curious as to how Mr Ervin deduces that the Streamlined Sales tax would reduce the cost of compliance for businesses. That seems not to have occured in any state which has adopted the Streamlined Sales Tax initiative. Most business find that rather than collecting state, county and city sales taxes that they are now responsible for collecting and reporting taxes for hundreds of taxing authorities. Modifications to software alone can easily cost businesses thousands of dollars.
Read the entire article.
Indiana Senate Bill 0233 Introduced - Streamlined Sales Tax Conformity
IndyStar.com reports that:
While focused mostly on adding digital products to taxable sales, many e-tailers are concerned that the new taxes will increase prices enough to trigger increased pirating and lose of sales.
Read the entire article.
Indiana Senate Bill 233
"Senate Bill 233, sponsored by Sen. Luke Kenley, passed the Senate this week and is headed to the House."
While focused mostly on adding digital products to taxable sales, many e-tailers are concerned that the new taxes will increase prices enough to trigger increased pirating and lose of sales.
Read the entire article.
Indiana Senate Bill 233
Vermont Town Loses $800,000 Due to Simplified Sales Tax
An article in the Times Argus Online announces how the state of Vermont gained $750,000 in new state sales tax, but the local town of Manchester lost $800,000. One could argue there's a $50,000 loss between monies gained and monies lost.
One of the drawbacks of joing the Streamlined Sales Tax initiative is the loss of the ability to tax certain items at different tax rates and to impose caps.
Bottom line: Streamlined Sales Tax is a no lose proposition for states, not so for local governments and programs that depend on local sales taxes.
Read the entire article.
"Although the state has seen an increase in revenue from being part of the agreement, it has taken its toll on at least one municipality. The town of Manchester, which collects a 1 percent local option tax on retail sales, is expected to close out its current fiscal year with a reduction of about $800,000 from last year's local option tax revenue"
One of the drawbacks of joing the Streamlined Sales Tax initiative is the loss of the ability to tax certain items at different tax rates and to impose caps.
Bottom line: Streamlined Sales Tax is a no lose proposition for states, not so for local governments and programs that depend on local sales taxes.
Read the entire article.
Streamlined Sales Tax Impacting Tennessee Horse Owners And Farmers
"The 9.75% state sales tax addition is not a new tax, but it is a part of the Streamlined Sales Tax Project passed in 2003. It will, however, be felt the hardest among recreational owners: those who own horses or other livestock as pets--not as sources of revenue.
Farmers selling hay could also struggle under the new guidelines."
Read the entire article.
Farmers selling hay could also struggle under the new guidelines."
Read the entire article.
Hawaii Considering Streamlined Sales Tax
A small easily overlooked paragraph in a much longer article mentions that Hawaii is considering adopting the Streamlined Sales Tax.
Small businesses in Hawaii should make their opinions known now.
Full article here.
"Senators are also bringing streamlined sales tax back to the table in SB 2829, which would amend the state tax law to eventually allow the state to collect tax on Internet purchases, a particular issue for local vendors who have to compete with out-of-state vendors who can avoid the 4 percent sales tax."
Small businesses in Hawaii should make their opinions known now.
Full article here.
Vermont Towns' Revenue Drops After Streamlined Sales Tax Agreement Signed
Two Vermont towns have experienced revenue drops after the Vermont legislature signed onto the national Streamlined Sales Tax Agreement.
To cover the shortfall, one of the towns adopted a meals-and-alcohol local option tax.
Read the entire article.
"In the first half of 2007, Manchester's local option tax revenue decreased by 22 percent, from $254,000 in 2006 to $196,000 in 2007. After one of its most successful quarters at the end of 2006, the town experienced one of its worst quarters at the beginning of 2007. Sales tax revenues for the town were $248,000 in the first quarter of 2006 and $157,000 in the first quarter of 2007."
To cover the shortfall, one of the towns adopted a meals-and-alcohol local option tax.
Read the entire article.
Arkansas JPs Oppose Tax Cap Removal
Amazingly, not all local governments support receiving more sales taxes.
More amazingly, these Arkansas justices of the peace plan to rebate some of the taxes back to their citizens.
Read the entire article.
"The Sebastian County Quorum Court was united in opposition Tuesday to the state removing a $25 cap on the county’s 1 percent sales tax. The 13 justices of the peace voted for a resolution stating their opposition to the state enacting legislation removing the tax cap."
More amazingly, these Arkansas justices of the peace plan to rebate some of the taxes back to their citizens.
"Because the funds raised by the cap removal would be returned to local governments on a per capita basis, Looper proposed setting up the same rebate system for county residents that the state government has set up for businesses."
Read the entire article.
Streamlined Sales Tax Project Governing Board Adopts Origin Sourcing Option
The new Origin Sourcing Option may offer some relief to small businesses in states that have not yet filly implemented SSUTA. It is still unknown if states that have already adopted SSUTA can roll-back their laws from destination based taxes to origin source taxes. Rolling back would provide relief to small businesses in Arkansas, California, Florida, Oklahoma, and New York.
Read the entire article.
"The Streamlined Sales Tax Project ("SSTP") Governing Board voted unanimously on December 12, 2007, to amend the Streamlined Sales and Use Tax Agreement (the "Agreement") to allow member states to elect an origin sourcing rule to source intrastate sales (i.e., sales occurring entirely within a state). The Agreement previously required its member states and their local tax jurisdictions to source transactions on a destination basis for both inter- and intrastate sales.
Pressure from both non-SSTP states (e.g., Texas, Virginia, Missouri, and Illinois) and SSTP states (e.g., Ohio, Tennessee and Utah), coupled with pressure by representatives of local tax jurisdictions, resulted in a unanimous Governing Board vote for a dramatic change to the Agreement’s long-standing destination sourcing rule. The amendment permits states to elect to retain (or adopt) origin sourcing for sourcing of intrastate sales under a uniform methodology."
Read the entire article.
Zen Cart Streamlined Sales Tax Discussions
Streamlined Sales Tax has been discussed in the Zen Cart forums. Here's a list of known discussions regarding SSUTA and collecting local sales taxes based on delivery destination.
Local Sales Tax Mod (with admin!) for testing
New York Sales Tax
Sales tax rate determined by zip code?
If any visitors know of any other SSUTA related posts in the Zen Cart forums, please comment.
Local Sales Tax Mod (with admin!) for testing
New York Sales Tax
Sales tax rate determined by zip code?
If any visitors know of any other SSUTA related posts in the Zen Cart forums, please comment.
Zen Cart and Streamlined Sales Tax
Zen Cart, one of the most popular ecommerce shopping carts, is fairly simple to modify to collect local county and city sales taxes. A Local Sales Tax module exists and is easy to install.
The best Zen Cart solutions seem to use the City field to look up the local city sales tax, if any. Most solutions use the five-digit zip code to look up the local county sales tax. Zen Cart will then display and collect state, county, and city taxes. If you were using the state zone alone for collecting sales tax, you will likely need to edit the state tax rate again. Most Zen Cart users set the state zone to include the state, county, and city tax for their bricks and mortar address.
Tax rate data for Zen Cart exists in SQL format for the following states:
Arkansas
Florida
New York
After installing the Local Sales Tax module and creatng the new required MySQL table, open the state SQL file in Notepad or WordPad and copy the block of "Insert into" text into the SQL tab in PHPmyadmin and click the "GO" button.
In addition to collecting local taxes under the SSUTA, shopkeepers also have to report out the collected taxes to their state's finance agency. A Zen Cart Sales Tax Summary Report module exists which does basic reporting of sales tax collected.
The best Zen Cart solutions seem to use the City field to look up the local city sales tax, if any. Most solutions use the five-digit zip code to look up the local county sales tax. Zen Cart will then display and collect state, county, and city taxes. If you were using the state zone alone for collecting sales tax, you will likely need to edit the state tax rate again. Most Zen Cart users set the state zone to include the state, county, and city tax for their bricks and mortar address.
Tax rate data for Zen Cart exists in SQL format for the following states:
Arkansas
Florida
New York
After installing the Local Sales Tax module and creatng the new required MySQL table, open the state SQL file in Notepad or WordPad and copy the block of "Insert into" text into the SQL tab in PHPmyadmin and click the "GO" button.
In addition to collecting local taxes under the SSUTA, shopkeepers also have to report out the collected taxes to their state's finance agency. A Zen Cart Sales Tax Summary Report module exists which does basic reporting of sales tax collected.
Arkansas Legislator Fights Streamlined Sales Tax
The Texarkana Gazette is reporting that Arkansas state Representative Steve Harrelson is fighting the Streamlined Sales Tax. Arkansas' implementation of SSUTA eliminated a sales tax exemption on sales food, food ingredients and over-the-counter medications within Texarkana, Arkansas. Harrelson plans to use state sales tax collection reports to convince fellow state legislators to remove Arkansas from the Streamlined Sales Tax act.
"Armed with the revenue report, Harrelson hopes to convince fellow legislators that the income is not worth the impact on consumers and retailers."
It will be interesting to see the loss of sales within Texarkana, Arkansas to competing business in nearby Texarkana, Texas. Many Arkansas are expected to shift their pruchases across state lines due to the newly imposed taxes which are higher than in adjoining Texas communities.
Read the entire article.
"Armed with the revenue report, Harrelson hopes to convince fellow legislators that the income is not worth the impact on consumers and retailers."
It will be interesting to see the loss of sales within Texarkana, Arkansas to competing business in nearby Texarkana, Texas. Many Arkansas are expected to shift their pruchases across state lines due to the newly imposed taxes which are higher than in adjoining Texas communities.
Read the entire article.
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