Get Ready to Pay Online Sales Tax - Republican Governors Need Revenues

[Nicholas Pyle]

A price break for online shoppers may be ending soon, with growing support for sales taxes on purchases made on the internet. This means many online shoppers would pay at least 5 percent more than they do today. Republicans in Congress have joined Democrats to support a bill that would give states authority to force Amazon, eBay, and other online companies to collect sales taxes. Now, says today's The Wall Street Journal, Republican governors “eager for new revenue to ease budget strains, are dropping their longtime opposition to imposing sales taxes on online purchases.”  The Journal calls it “a significant political shift” that could lead to a change in federal law. Brick-and-mortar retailers have long argued that they face an unfair price disadvantage. But the change amounts to a tax hike for many consumers.

This message confirms what many in Washington are saying.  Governor Christie (R-NJ) is the new champion for internet sales tax having just a cut a deal with Amazon to collect NJ sales tax and build a distribution center in the state.

The question remains who's to know what's purchase where and how burdensome will it be for online retailers to collect and pay the states what is due.  Sales tax free states, New Hampshire and Delaware for example will gain nothing from the proposal.  Time to short Amazon perhaps?

[Dennis Post]

I wonder how they are going to justify collecting sales tax on used items sold on ebay?

A sales tax had been previously paid on that item when it was new, right?...so now the states want to double the tax?....

If I bought a roll of coins and paid a sales tax on them...should I still be obligated to collect sales tax if I sold individual coins from that roll?....One may not be able to even realize a profit in that case...as people would only pay what the coin is worth...

I still feel that this is really going to hurt the small time sellers on the web...

Plus I think this is just another way for our elected officials to further mess with the people...it is as if they constantly are thinking of ways to separate us from our earnings and somehow restrict our spending and control our standard of living..

Well, that's my 7.25% of two cents worth

Dennis Post

Sidingguy

--

Dennis Post

"Sidingguy"

[Philip Diehl]

Any chance we can get gold and silver coins into an exemption for investment products?

Cheers,

Philip

Sent from my iPhone

[Donald Ketterling]

This federal legislation allows individual states to collect sales tax from interstate internet commerce.  Would not the laws which are in place in various states that now exempt sales of coins and precious metals still apply?   This would then give dealers in currently exempted states an “unfair” internet advantage over those other states with no exemption.  The logical end-game here would likely go two ways:  either exemptions would be repealed (ouch!) or dealers in other states would lobby their state governments to exempt coins and precious metals.   Given the current fiscal climate, the former would seem to have the inside track.   Thoughts? 

 

Don Ketterling

 

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[jjjbl...@aol.com]

The proposal now uses the state laws as the key to collection categories.
However, federal lawmakers have little experience in some state examptions of sales tax on certain"services" which are in fact sales of the service and not a use tax.
This proposal needs committee review and comprehension.
The odds of a federal exemption and very small for any specific subject matter.
But if the issues goes through a committee process, the odds improve for 401k approved items etc.

Jimmy

Sent from my Verizon Wireless BlackBerry

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From: "Donald Ketterling" <dkett...@roadrunner.com>

Sender: coincollec...@googlegroups.com

Date: Mon, 16 Jul 2012 10:52:28 -0700

To: <coincollec...@googlegroups.com>

ReplyTo: coincollec...@googlegroups.com

Subject: RE: Get Ready to Pay Online Sales Tax - Republican Governors Need Revenues

[Gary Adkins]

Jimmy, thanks for the analysis, sounds like we will probably eventually be collecting sales taxes nationally.  On another angle, is there any chance this could be challenged in the state or federal courts as unconstitutional since we are required to collect tax on money and precious metals (forms of money)??

Gary Adkins

 

 

 

 

Gary Adkins

7400 Metro Blvd., Suite 424

Minneapolis, MN  55439-2374

 

Toll Free - 877-264-6383  Main - 952-835-2244  Fax - 952-835-2266  www.coinbuys.com

 

Information contained in this e-mail transmission may be privileged and/or confidential. In any instance, the contents herein are intended only for the named recipient(s). If you are not the intended recipient(s) and have not been granted permission by that individual to access this e-mail, please do not discuss, reproduce or distribute any portion of the information included in or otherwise attached to this transmission. If you have received this e-mail in error, please immediately notify the sender vie e-mail. Thank you for your cooperation. Copyright 2007 Gary Adkins Associates, Inc.

[jjjbl...@aol.com]

The nexus issues will be seriously argued and I did not go into that.

Jimmy

Sent from my Verizon Wireless BlackBerry

---

From: Gary Adkins <Ga...@CoinBuys.com>

Sender: coincollec...@googlegroups.com

Date: Mon, 16 Jul 2012 14:59:40 -0500

To: coincollec...@googlegroups.com<coincollec...@googlegroups.com>

[Philip Diehl]

Since virtually all the states need revenue and have supported lifting the ban on taxation of Internet sales, we should expect states that have such exemptions to move quickly to repeal them. Of course, they'll have the strong support of the brick and mortar companies and their allies such as the Chamber of Commerce. 

Sent from my iPhone

On Jul 16, 2012, at 12:52 PM, Donald Ketterling <dkett...@roadrunner.com> wrote:

This federal legislation allows individual states to collect sales tax from interstate internet commerce.  Would not the laws which are in place in various states that now exempt sales of coins and precious metals still apply?   This would then give dealers in currently exempted states an “unfair” internet advantage over those other states with no exemption.  The logical end-game here would likely go two ways:  either exemptions would be repealed (ouch!) or dealers in other states would lobby their state governments to exempt coins and precious metals.   Given the current fiscal climate, the former would seem to have the inside track.   Thoughts? 

 

Don Ketterling <image002.jpg>

[Philip Diehl]

Jimmy,

What are the prospects for House and Senate  committee hearings on the bill?

Philip

Sent from my iPhone

On Jul 16, 2012, at 2:13 PM, <jjjbl...@aol.com> wrote:

The proposal now uses the state laws as the key to collection categories.
However, federal lawmakers have little experience in some state examptions of sales tax on certain"services" which are in fact sales of the service and not a use tax.
This proposal needs committee review and comprehension.
The odds of a federal exemption and very small for any specific subject matter.
But if the issues goes through a committee process, the odds improve for 401k approved items etc.

Jimmy

Sent from my Verizon Wireless BlackBerry

---

From: "Donald Ketterling" <dkett...@roadrunner.com>

Sender: coincollec...@googlegroups.com

Date: Mon, 16 Jul 2012 10:52:28 -0700

To: <coincollec...@googlegroups.com>

ReplyTo: coincollec...@googlegroups.com

Subject: RE: Get Ready to Pay Online Sales Tax - Republican Governors Need Revenues

This federal legislation allows individual states to collect sales tax from interstate internet commerce.  Would not the laws which are in place in various states that now exempt sales of coins and precious metals still apply?   This would then give dealers in currently exempted states an “unfair” internet advantage over those other states with no exemption.  The logical end-game here would likely go two ways:  either exemptions would be repealed (ouch!) or dealers in other states would lobby their state governments to exempt coins and precious metals.   Given the current fiscal climate, the former would seem to have the inside track.   Thoughts? 

 

Don Ketterling <image002.jpg>

[Philip Diehl]

Gary, 

Are sales taxes collected on coins and currency sold by brick and mortar dealers?

Philip

Sent from my iPhone

On Jul 16, 2012, at 2:59 PM, Gary Adkins <Ga...@CoinBuys.com> wrote:

Jimmy, thanks for the analysis, sounds like we will probably eventually be collecting sales taxes nationally.  On another angle, is there any chance this could be challenged in the state or federal courts as unconstitutional since we are required to collect tax on money and precious metals (forms of money)??

Gary Adkins

 

 

 

 

Gary Adkins

<image002.jpg>7400 Metro Blvd., Suite 424

Minneapolis, MN  55439-2374

 

Toll Free - 877-264-6383  Main - 952-835-2244  Fax - 952-835-2266  www.coinbuys.com

 

Information contained in this e-mail transmission may be privileged and/or confidential. In any instance, the contents herein are intended only for the named recipient(s). If you are not the intended recipient(s) and have not been granted permission by that individual to access this e-mail, please do not discuss, reproduce or distribute any portion of the information included in or otherwise attached to this transmission. If you have received this e-mail in error, please immediately notify the sender vie e-mail. Thank you for your cooperation. Copyright 2007 Gary Adkins Associates, Inc.

 

From: coincollec...@googlegroups.com [mailto:coincollec...@googlegroups.com] On Behalf Of jjjbl...@aol.com
Sent: Monday, July 16, 2012 2:14 PM
To: coincollec...@googlegroups.com
Subject: Re: Get Ready to Pay Online Sales Tax - Republican Governors Need Revenues

 

The proposal now uses the state laws as the key to collection categories.
However, federal lawmakers have little experience in some state examptions of sales tax on certain"services" which are in fact sales of the service and not a use tax.
This proposal needs committee review and comprehension.
The odds of a federal exemption and very small for any specific subject matter.
But if the issues goes through a committee process, the odds improve for 401k approved items etc.

Jimmy

Sent from my Verizon Wireless BlackBerry

---

From: "Donald Ketterling" <dkett...@roadrunner.com>

Sender: coincollec...@googlegroups.com

Date: Mon, 16 Jul 2012 10:52:28 -0700

To: <coincollec...@googlegroups.com>

ReplyTo: coincollec...@googlegroups.com

Subject: RE: Get Ready to Pay Online Sales Tax - Republican Governors Need Revenues

 

This federal legislation allows individual states to collect sales tax from interstate internet commerce.  Would not the laws which are in place in various states that now exempt sales of coins and precious metals still apply?   This would then give dealers in currently exempted states an “unfair” internet advantage over those other states with no exemption.  The logical end-game here would likely go two ways:  either exemptions would be repealed (ouch!) or dealers in other states would lobby their state governments to exempt coins and precious metals.   Given the current fiscal climate, the former would seem to have the inside track.   Thoughts? 

 

Don Ketterling <image004.jpg>

[Julian M. Leidman]

Sales tax is collected by B/M stores as the law provides.  In MD, we have to collect the tax on numismatic sales less than $1000.

Best

Julian

[Philip Diehl]

Thanks, Julian. 

If its constitutional to tax coins sold by B&M dealers, it's constitutional to tax coins sold by online dealers. I think our best shot for an exemption is to include coins under an exemption for the sale of investments. 

Philip 

Sent from my iPhone

[jjjbl...@aol.com]

There have been some hearings earlier but not with the same atmosphere as existing now.

I will have to take another schedule look next week and see what has been set if anything.

Jimmy

Sent from my Verizon Wireless BlackBerry

---

From: Philip Diehl <diehl....@gmail.com>

Sender: coincollec...@googlegroups.com

Date: Mon, 16 Jul 2012 22:26:27 -0500

To: <coincollec...@googlegroups.com><coincollec...@googlegroups.com>

ReplyTo: coincollec...@googlegroups.com

Cc: <coincollec...@googlegroups.com><coincollec...@googlegroups.com>

[Nicholas Pyle]

The english exempt transactions involving money - coins, numismatics and bullion from VAT tax etc.  Nick