I admit it. We don’t’ really operate in South Dakota. (I even hated dealing with that state when I was the CFO of a wine distribution company.) Or New Mexico or West Virginia (although we do have clients in those states.)
Continue reading Beware the Tax Man?
I’ve been warning you that states are desperate for cash. And, they got the go ahead from the Supreme Court to tax sales from out-of-state vendors. Some states want to collect tax from the first sale, others have more reasonable thresholds ($ 100K, 200 transactions). Which means we have to be vigilant about tracking our sales; more importantly, if we think we may come close to the threshold during a given year, then we better start collecting those taxes now- or be out the cash we have to shell out later.
Continue reading If it moves, tax it?
Well, it was bound to happen. We already know that cities and states have been imposing ridiculously high taxes on hotel rooms and restaurant meals. Why? Because hotels are generally booked (and paid) by tourists from out of state (or country). What a great way to sock it to visitors. To keep the residential taxes low.
Continue reading Tax everything that moves?
If you think it’s just the federal government that is scrambling for revenue to cut their deficits, you are badly mistaken, Almost every single state is desperate to increase the tax coffers to balance budgets and/or deal with immediate needs- including transportation needs. And, one source they are desperate to tax is internet sales. Some $ 23 billion a year escapes state coffers (National Conference of State Legislature estimates) because of the 1992 Supreme Court ruling that currently obtains.
Continue reading Have Sales- Will Tax
Note: The expressions in this post may offend some folks’ senses- but all of our sensibilities.
Continue reading Really? Tax-Exempt?
So, is this a fairness issue- or one designed to augment the coffers of the states? Many local vendors complain that their markets are jeopardized because they must charge sales tax, while the same products delivered from Amazon are tax-free. Many states see the revenue potential from taxing Amazon (and other internet company) sales in their domains and salivate with glee.
Continue reading A level playing field? Or scorched earth?
