Just when you think that gub'mint couldn't possibly get any deeper into your pocket than they already are -- they leap up and bite you in the butt again! I'm always leery of any gub'mint legislation or act that includes "children", "omnibus", and "aid". Now I have to add the word "Streamlined" to this list.
Seems like when we was shopping out of catalogs from out of state, wasn't no big deal. But know folks are shopping on the Internet in much larger volume and local and state gub'mints want their share of the sales tax money they're missing. Here is a pretty good summary!
Streamlined Sales Tax
The Streamlined Sales Tax (SST) program is a cooperative arrangement among state governments in the United States for the collection and payment of retail sales taxes when the seller and the purchaser are located in different tax jurisdictions.
Until recently, sales tax did not apply to retail purchases made by a buyer located in a different state than the seller. The main reason was difficulty enforcing and collecting sales taxes among multiple jurisdictions. This was not considered a serious problem until the proliferation of Internet-based sales during the 1990s.
As increasing numbers of buyers made remote purchases using e-commerce in states other than their state of residency, state governments experienced revenue losses because such purchases were not taxed. While the use of toll-free telephone numbers and direct mail has always caused some loss of tax revenue for states, the e-commerce boom motivated state governments to work together to find a way to recover lost tax revenue. The multi-state agreement, drafted by representatives from 44 states and the District of Columbia, was named the Streamlined Sales and Use Tax (SSUT).
In October 2005, SSUT officially went into effect. As of December 2006, there are thirteen states in compliance, collecting tax revenue through the program. They are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota and West Virginia. Seven more states are expected to fully participate in the program by 2008.
Streamlined Sales Tax
The Streamlined Sales Tax (SST) program is a cooperative arrangement among state governments in the United States for the collection and payment of retail sales taxes when the seller and the purchaser are located in different tax jurisdictions.
Until recently, sales tax did not apply to retail purchases made by a buyer located in a different state than the seller. The main reason was difficulty enforcing and collecting sales taxes among multiple jurisdictions. This was not considered a serious problem until the proliferation of Internet-based sales during the 1990s.
As increasing numbers of buyers made remote purchases using e-commerce in states other than their state of residency, state governments experienced revenue losses because such purchases were not taxed. While the use of toll-free telephone numbers and direct mail has always caused some loss of tax revenue for states, the e-commerce boom motivated state governments to work together to find a way to recover lost tax revenue. The multi-state agreement, drafted by representatives from 44 states and the District of Columbia, was named the Streamlined Sales and Use Tax (SSUT).
In October 2005, SSUT officially went into effect. As of December 2006, there are thirteen states in compliance, collecting tax revenue through the program. They are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota and West Virginia. Seven more states are expected to fully participate in the program by 2008.
Now it seems to this ole' boy that if I buy a new pair of boots from an out of state boot maker, that my home state ain't done a damn thing to help him, help me, or be otherwise involved in the transaction. Why the hell should I be forced to pay a sales tax to my county and state (or anybody else's) for a transaction far beyond their arms length! Take it from Pecozbill, these states are gonna get the feds involved in this soon and then it will be the law of the land!
Lock up your daughters and billfolds, barricade the doors, and keep your eyes peeled for these pocket picking peckerwoods! You can bet the Lear Jet Liberals who buy out of state ain't gonna be paying any home town taxes!!!
Get involved folks.... its your money!
2 comments:
This is not a new tax; it is just changing who is responsible for collecting it. I can't say for sure about your state, but my home state of California requires that I pay use tax (not sales tax) for something I purchase from an out-of-state retailer that does not charge me sales tax. The problem is, almost no one knows that, reports it, or pays it. With the explosive growth of Internet retailing, what used to be sales tax collected when Californians purchased goods from a local store is now completely lost because they don't report or pay the use tax. The SST initiative just makes the collection process more efficient. So just be thankful you've gotten away with it for as long as you have.
Well, to be honest, this IS an area where Congress has a legitimate point in getting involved. It's in the Constitution: fiscal relationships between the states and interstate commerce can and should be regulated by those fearless "friends of the people" who know so much better than we do what is good for us.
But in this case, they've got a point...and it's not the one that tapers up from their shoulders for a change.
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