Internet Sales Tax Decision is...

[ignaciojn]

How is this "pipe tobacco discussion"? :crazy:

Unless you count the sour and bitter taste.

 

[seacaptain]

Hopefully there won't be any attempt to collect retroactively, but if there is, it won't affect me.

No one is going to care what Joe Schmoe bought on ebay in 2007 and it would take a whole new court case for States to force retailers in other States to turn over customer data, i.e. past sales. Even if they did, I'm not sure States have a legal standing to collect taxes retroactively from this Supreme Court decision.
I think the States are going to be happy with the windfall they're about to get and leave it at that. I'm sure we'll be seeing plenty of new government contracts going to politician's friends and family in the next few years to keep the politicians fat and happy for awhile.

 

[seacaptain]

How is this "pipe tobacco discussion"? [:crazy:]

Do a search, there are plenty of threads discussing online tobacco companies collecting sales tax for out of state purchases.

 

[prairiedruid]

From the states' view this is collecting taxes that they were entitled to; people weren't reporting to the state what they owed. It's a numbers game, it's easier for states to police thousands of businesses than millions of individuals to collect the tax money they are due.

 

[sablebrush52]

I AM surprised that most of the conservatives decided States can regulate businesses in other States, and just as surprised most of the liberals didn't jump on board with it, especially since the money collected represents an expansion of government in all those States.

No surprise there either. Pretty much what I expected.

No one is going to care what Joe Schmoe bought on ebay in 2007 and it would take a whole new court case for States to force retailers in other States to turn over customer data, i.e. past sales. Even if they did, I'm not sure States have a legal standing to collect taxes retroactively from this Supreme Court decision.
I think the States are going to be happy with the windfall they're about to get and leave it at that. I'm sure we'll be seeing plenty of new government contracts going to politician's friends and family in the next few years to keep the politicians fat and happy for awhile.

You're more than likely correct. But I've seen a whole lot of things that people said would never happen, happen.

 

[greeneyes]

Some were already onboard before enforcement. There's that 85% difference between the "online price" and the price on your credit card that catches some people off guard. Had it happen twice these past few months.

 

[ignaciojn]

there are plenty of threads discussing online tobacco companies collecting sales tax for out of state purchases

I understand. But the description of this sub-forum says "all kinds of talk and questions about pipe tobacco without a formal review".
This should be under General Discussion, or maybe Tobacco Legislation.

 

[seacaptain]

I understand. But the description of this sub-forum says "all kinds of talk and questions about pipe tobacco without a formal review".
This should be under General Discussion, or maybe Tobacco Legislation.

I never pay much attention to what sub-forum threads are in, but that being the case, I agree with you.

 

[seacaptain]

From the states' view this is collecting taxes that they were entitled to; people weren't reporting to the state what they owed.

And there is the crux of the issue as far as I'm concerned. If state residents aren't following state law, then the beef the state has is against the individual not following the law, NOT some out of state company.
But, it isn't worth their time to go after $5 each from a million people, so like class action lawyers, they shake down the deep pockets to get "their" money.
Lucky for them, the states found a complicit group of judges to shake down companies that have NOTHING to do with individuals in another state failing to comply with their state's laws.

 

[aldecaker]

Jesse, you had the correct phrase the first time with "idiotological grounds".

 

[mso489]

Nothing good about this decision for me, but it might send customers back to my local independent pipe shop since the $20 tin (or more, for inflation) will be the same online as in person.

 

[olkofri]

What about international sales? Will this affect non-US residents buying from US online tobacconists?

 

[woodsroad]

No one is going to care what Joe Schmoe bought on ebay in 2007

I beg to differ.
Tax collection at the nuts and bolts level isn't ideological, it's bureaucratic. When a state tax official can present a plan to add an additional $XX,000,000 to the revenue stream, there aren't many legislators who will oppose it. And I doubt that a move to collect any tax retroactively would require action on the part of the legislature, anyways. The only mitigating factor is the cost of collecting that tax revenue. It probably needs to be a positive return, but whether that's a positive return on a case-by-case basis or overall, well that depends on the derp level.
As for going after out of state retailers for past years sales data: My guess is that the states will attempt it.

 

[sablebrush52]

What about international sales? Will this affect non-US residents buying from US online tobacconists?

No. Nothing to do with sales to purchases of this type.

 

[woodsroad]

What about international sales? Will this affect non-US residents buying from US online tobacconists?

No.
The US can force non-residents to pay sales tax when purchases are made from outside the country.
Yet.
That will be in the next US-EU trade agreement!

 

[jaytex1969]

This is NOT going to put B&M on equal footing with online retailers.
The $16 tin at the B&M that goes for $11 online, with (TX) tax of $0.91 is still going to be cheaper than local purchase for many.
Maybe the states with oppressive/punitive tobacco taxes might be more even but P&C, etc. still likely will undercut the local presence on the bottom line, just by economy of scale.
So, support the B&M occasionally despite the cost and take advantage of the online opportunities as well. Soon you will be hunted down by laser guided morality missiles like the filthy, godless vermin you are... ::
Enjoy your day!

 

[sablebrush52]

As for going after out of state retailers for past years sales data: My guess is that the states will attempt it.

I've always assume that anything one does online can be tracked and accessed, certainly at the surface. Privacy doesn't exist online. So that possibility is real enough. And if there's a revenue gain, there's motive. We'll see.

 

[seacaptain]

The $16 tin at the B&M that goes for $11 online, with (TX) tax of $0.91 is still going to be cheaper than local purchase for many.

Bingo. The states couldn't care less about whether or not this is "fair" to their B&M retailers, they just want the sales tax money. They don't care where it comes from.

 

[briarbuck]

This looks more like it's for the bigger players. You must have something like >100 transactions in the State to get caught in their web. The SC was clear that this is not a free for all for States to come in and collect on everything sold on the internet.

 

[oldgeezersmoker]

Until Congress acts to provide some semblance of uniform rules, the costs of compliance will be substantial. Hard to see how the smaller etailers can cope with that. I do not expect that, say a year from now, we have as many choices of where to shop for tobacco and pipes on line. Nor. will we have as many site sponsors.