Vendors new internet sales tax
 

now that the government seems to want to tax us more, and change the way we do business, im wondering how will this have an impact on how you do business, or whom you do business with?

It's not going to change who I buy parts from. If I buy something in a store, I'm paying sales tax. Now it's also going to apply to internet purchases. Oh well. I'll just bitch about it and order it anyway.

You still will have to pay shipping, so all the government's "leveling the playing field" crap is just more interventionist ********. They are picking winners and losers (again) and stomping on a great part of our economy. Most taxes are unconstitutional already and the fed has no business... Oops sorry. Ranting again.

Yea, I don't buy on line because I save money on sales tax. I buy on line because the local stores don't have any of the sh$t I want.

At most it will cause companies to look at new ways to cut some cost.
Honestly, certain internet companies need to rethink how they do business. I can buy almost anything for computers, electronics, etc cheaper online, get it in 2-3 days and get free shipping. Now how is it that I cannot do that with many aftermarket companies for my car?

And don't mention size or weight because I have had TV's and large desktops with multiple monitors shipped for free in under 3 days.

Internet vendors usually can make better deals and/or toss in free shipping. Plus, no one seems to stock 370 parts locally. The sales tax isn't really an issue other than being annoying. Good internet vendors will adjust their prices accordingly.

95% of my customers are mail order with my powdercoating. I don't think it will affect their decision to use me, but its going to be a nucking fightmare to figure out how to pay sales tax to all of the states. I use paypal for my credit card processing as well as regular paypal payments, so I'm hoping they will offer an integrated solution. Its a pain enough having to file georgia sales tax.

It's all about scale.

if the tax was a flat rate across a state it wouldnt be so bad, but i heard on the news this morning there is some 9200 different tax rates per county out there, that you will have to correctly bill your customer and report.

Damn, my most expensive purchases are usually online. To think i dropped 5k on car mods recently and that i'd have to come up with another 500 for nothing is pretty angering

Sweet Jesus. It's a jobs bill for CPAs.

I agree, but some aftermarket car companies operate at these economic scales and are definitely adding revenue via the shipping cost. Now I can understand if UPS/Fedex/DHL charges them X price to ship an item and that cost is translated directly to the customer but many times I see a 5-10lb package costing 20 bucks to ship, no way that is the real cost even throwing in labor of printing a shipping label and such.

if they don't get a discount, that's about right.

A 10lb (billable) box costs $17.36 to get from DC to NY. More if you are going farther. More if you want them to pick it up (and if you don't you have to factor in the cost of the drop-off). And more if the box bills for more than it weights.

Add in the cost of packaging/labor/etc and it's about right for most car parts dealers.

We've been spoiled by companies like Amazon, who pay almost nothing for shipping. From what I understand, UPS discounts their shipping rates by upwards of 80%--and FedEx discounts them even more.

My cigars are going to be much more expensive... :mad:

Screw that. I can be a junior captain at the airline instead of a senior first officer and make 95% of what I make with the two jobs. It might be time to retire from powdercoating if its going to be that much of a hassle.

Even if this does pass, it will be probably 6 months to a year before they can even think of enforcing it. Add on top of that someone will sue which will delay it even longer.
I estimate a minimum of 2 years before this could even begin, add on top of that the IRS will want to meddle with this and we all know that will screw it even more.

Can you hold off on that for a few months? I was planning on sending you my calipers when it's time to deal with my brakes.

doesnt change anything for me because i pay use tax every year. been doing that for several years now because i buy tens of thousands every year from out of state (not just car stuff, house stuff too).

if local shops have the parts i want, in-stock immediately available, then they have no issue winning my business, but 99% of the time none of them do. they end up ordering it from their distributor which make no benefit to me vs buying from an online store at a lower competitive price.

i pay the basic sales tax if i buy online which is much lower than the local sales tax the shops are located. so it's still a win/win for me.

My reply to our government!

I think we're OK Mike ;)

Marketplace Fairness Act Questions and Answers

Question: Will small businesses be protected from these new requirements?

Yes.

Online sellers with less than $1,000,000 in remote sales annually will be exempt from collection requirements. Remote sales are sales to customers in states where the seller does not already have a physical presence.

Basically, this amounts to the government wanting a piece of major online retailers like amazon and best buy.

You pay tax on that? God bless your soul Mike

I'm well in the 6 figures in revenue, have to keep it on the up and up. I do write off my car and track expenses as advertising though.

Lol, good

Any business I own will operate at a loss, unless I hit 500k net. And by that time, 500k net will mean 1M, lol

For two years. Gotta show a profit in the third, unless you want it to be declared a hobby and have your business deductions disallowed for the previous years. ;)

Change the name of the corporation every 2 years, bam done. You forgot I'm the bastard Iranian, lol

As long as you're getting a new tax ID every two years you might be ok.

Once I upgrade to Captain at the airline in a year or two, I plan on scaling back about 80-90% and only doing business for the shops that I currently do work for, and operating at a loss for a few years. Been doing two full time jobs for 7 years now, and its getting old.

So you'll be powdercoating full time now !!! :icon17:


And i wonder if they're gonna tax mail order brides too.... hmmm...
<discuss>