out of state tax ?

[hmardown]

Yeah I don’t see New York on that list either?


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[bob m]

FAQs related to registration requirement for businesses with no physical presence in NYS
Why is this law being enforced now?

This provision has been in the New York State Tax Law for decades. However, it could not be enforced due to the United States Supreme Court’s ruling in Quill Corp. v. North Dakota [504 U.S. 298 (1992)]. This ruling generally provided that a business must have some physical presence in a state for that state to require the business to collect its sales tax. The decision in South Dakota v. Wayfair [138 S. Ct. 2080 (2018)], eliminated this physical presence test, so this longstanding provision in the Tax Law automatically became operative and enforceable.

What is the effective date of this law?

The law became effective on June 21, 2018, the date of the United States Supreme Court decision in Wayfair.

Will this result in a tax increase on New Yorkers?

No. Sales or use tax is owed by a New York purchaser on a taxable sale or purchase even if a business doesn’t collect it at the time of sale. This law increases the number of businesses that need to start collecting New York State sales tax, but doesn’t impose a new tax liability. See Tax Bulletin Use Tax for Individuals (including Estates and Trusts) (TB-ST-913).

What are the specific provisions in this law?

A business with no physical presence in New York who regularly or systematically solicits business in New York State by any means and makes taxable sales of tangible personal property to persons in the state is required to register as a sales tax vendor. As a vendor, you must collect and remit sales tax as applicable on your New York State sales.

Above is correct. That Supreme Court decision puts the onus on collecting sales tax on the online vendors shipping to the states that require it. Until that decision vendors needed to collect sales tax in only the states that had a physical presence in (called a business nexus) and customers buying anything online - except item that were exempt from sales tax were required to pay those sales taxes on the tax form under sales and use tax. That was pretty much ignored by most everybody though.

Towns, cities and states claimed they were losing sales tax revenues (and they are correct) from out of state vendors not charging, collecting and remitting sales tax back to the states and counties and brick and mortars were claiming that they are at a loss because they must charge sales tax while online vendors were not obliged to do so. I know all this because up until some months ago I was an online vendor (Festool tools).

Whether you think it's right or wrong, fair or not, it's the way things are and in time this will probably become the law in all of the states that have a sales tax. I can say for sure that for companies now having to deal with this sales tax issue it is extremely complicated and time consuming, since each state and county has different tax percentages, different sales threshold before sales tax is to be collected as well as different filing dates. Vendors ignoring this new law may find themselves being audited by the states and having to pony up for all the sales tax monies not collected by the end user (customer). That would be a very rude and costly awakening to say the least.

 

[nakranij]

Just order from another country and wait longer for the products to arrive.

 

[Mike PhillipsMike Phillips is verified member.]

Thanks for sharing all the info you posted Bob.

Whether you think it's right or wrong, fair or not, it's the way things are and in time this will probably become the law in all of the states that have a sales tax.

My guess is you are correct.

I can say for sure that for companies now having to deal with this sales tax issue it is extremely complicated and time consuming, since each state and county has different tax percentages, different sales threshold before sales tax is to be collected as well as different filing dates.

Dead on correct here Bob.

I don't deal with this aspect of the Autogeek business but I know the people that do and it is a HUGE hassle and requires a lot of time. Everyone here liked it the way it was. No on here wanted to be in the business of tax collector to meet federal laws.

Vendors ignoring this new law may find themselves being audited by the states and having to pony up for all the sales tax monies not collected by the end user (customer).

That would be a very rude and costly awakening to say the least.

Yep.

 

[bob m]

Thanks for sharing all the info you posted Bob.






My guess is you are correct.





Dead on correct here Bob.

I don't deal with this aspect of the Autogeek business but I know the people that do and it is a HUGE hassle and requires a lot of time. Everyone here liked it the way it was. No on here wanted to be in the business of tax collector to meet federal laws.





Yep.

Welcome, Mike. I wish I had better news to share.

 

[PaulMys]

Good Ol' New York. We just drove up to Connecticut and back today for work. With two crossings of the Throggs Neck bridge, and a two-for on the NY State thru-way, NY got over 50 dollars.

God forbid they also don't get their 8.625% off my bottle of HD Speed.....:rant:

 

[SWETM]

Is it possible in the future you get a sales tax that are the same in every state?
Can only imagine the hassle the vendors has to sort all this out. In Sweden we have a sales tax of 25% on most products and services and some exceptsions 12% and 6% and a very few has no sales tax. It has it's own departement that take care of this.

Is it a big difference between the states on how much the sales tax is?

 

[Finick]

Is it possible in the future you get a sales tax that are the same in every state?
Can only imagine the hassle the vendors has to sort all this out. In Sweden we have a sales tax of 25% on most products and services and some exceptsions 12% and 6% and a very few has no sales tax. It has it's own departement that take care of this.

Is it a big difference between the states on how much the sales tax is?

Fat chance everyone here would ever agree on something like that, lol. We can’t agree on much simpler things around these parts, let alone getting every state to just agree to x % sales tax. We’d certainly never agree to 25% sales tax. I think a politician suggesting that around these parts would spark another civil war or something.

Sales tax in MD is 6%, just for reference. With Paul above paying 8.625 or whatever it was that can give you an idea, I guess.

Tl;dr nothing makes sense in the US


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[ClearVue18]

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[PaulMys]

Fat chance everyone here would ever agree on something like that, lol. We can’t agree on much simpler things around these parts, let alone getting every state to just agree to x % sales tax. We’d certainly never agree to 25% sales tax. I think a politician suggesting that around these parts would spark another civil war or something.

Sales tax in MD is 6%, just for reference. With Paul above paying 8.625 or whatever it was that can give you an idea, I guess.

Tl;dr nothing makes sense in the US


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Oh hell no..... Sweden is just Sweden. The US is pretty much 50 individual little "countries" under one flag.

Some are welfare states (NY). This means that they heavily tax and toll EVERYTHING. Also, every other commercial is for the NY lottery system. This is to get the hopeless gamblers to support the deadbeats, and line the pockets of politicians. (Oh, and maybe you'll get a benefit or two as a working person....which you actually pay for with your high taxes, tolls, and lottery tickets bought...)

OH! I'm sorry. Did I say that out loud? That being said, NY has high wages and high property values.

Other states tax way less, but you might not earn as high of a wage, or get the municipalities (paved roads vs. dirt) etc.

 

[Finick]

Also, every other commercial is for the NY lottery system.

Well of course, have to distract the people that are struggling with the carrot on the stick. We’re all just temporarily poor, after all.

P.s. u sassy, Paul


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[Pyroman]

California has you all beat! The democrats tax you for everything you can think of.they are trying to tax the smoke from the forest fires we get if it crosses a county line...


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[Finick]

they are trying to tax the smoke from the forest fires we get if it crosses a county line...


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“that fire better not step foot in MY county or I’ll fight it myself”


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[PaulMys]

California has you all beat! The democrats tax you for everything you can think of.they are trying to tax the smoke from the forest fires we get if it crosses a county line...


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Yeah, California is God-awful as well.

But, we DO have a state who's motto is "Live Free or DIE!"