Sales Taxes Bill

[militariapress]

Can anyone tell me if Miva will be offering a module to handle state sales taxes if this bill gets approved?

Thanks!
Roann

[Rick Wilson]

Re: Sales Taxes Bill

If the bill passes it's only for stores doing north of $1 million annually in online sales, as that's about 20% of our base and there are currently 4 or 5 high quality solutions that handle this and integrate with Miva Merchant we won't initially be doing anything other than making those solutions available.

[Rick Wilson]

Re: Sales Taxes Bill

We will keep a close eye on it and see if we need to offer something directly as time goes on, if we did though it would be an add on service just like the current solutions as it would be impossible to offer that without charging for it.

[wajake41]

Re: Sales Taxes Bill

Might be a good way to up your margin:
Collect the +-8% sales tax from January 1 until you get gross sales of $ 999,950, then close that store for the rest of the year.
Take the +-8% "bonus" and spend the rest of the year in Hawaii, or open your alternative store under a new LLC and continue collecting your "bonus" for the year.

Larry

[Rick Wilson]

Re: Sales Taxes Bill

I suspect your good Uncle Sam would not like that one bit...

[wajake41]

Re: Sales Taxes Bill

What a crazy idea coming from our government! Do these people have a brain that works beyond soliciting money from the deep pockets of major retailers?
When do you start collecting sales tax? You have to start on January 1 just in case you exceed the 1 million gross. Do you rebate the tax if you are exempt because sales are < 1 million? Who gets that?
I don't think you want to wait until you hit the 1 million mark, all of a sudden you owe $80,000 in sales tax. Ouch!!
Larry

[Keitho]

Re: Sales Taxes Bill

Washington State has 4000+ overlapping taxing areas and we couldn't get our State Taxes done with out 3rd party help. We have been using AccurateTax but may be switching to Avalera since it also has a module for our accounting program (MS Dynamics GP). A fair portion of our orders come in at events or by phone (never touching Miva) and are keyed directly into the accounting program.

[Bruce - PhosphorMedia]

Re: Sales Taxes Bill

What a crazy idea coming from our government! Do these people have a brain that works beyond soliciting money from the deep pockets of major retailers?
When do you start collecting sales tax? You have to start on January 1 just in case you exceed the 1 million gross. Do you rebate the tax if you are exempt because sales are < 1 million? Who gets that?
I don't think you want to wait until you hit the 1 million mark, all of a sudden you owe $80,000 in sales tax. Ouch!!
Larry

Not that I'm a fan of Congress...but I'd be willing to bet that the motivation for this tax comes from businesses with an agenda. Sort of like how here in WA, a proposal (supported by Costco) passed which allowed all larger grocery stores to sell hard alcohol...sounded like a great idea...but now, we pay more for the items and there is less selection. (Unless you buy the "kirkland" brand varieties from Costco).

[Rick Wilson]

Re: Sales Taxes Bill

There's always an ulterior motive

[wcw]

Re: Sales Taxes Bill

Has anybody heard of how the issue Larry brings up is supposed to be handled? Do we collect the tax and if we don't sell a million, we just get to keep it.

[Rick Wilson]

Re: Sales Taxes Bill

If it works like "over-collection" normally works, then you're still required to submit and pay it.

[Keitho]

Re: Sales Taxes Bill

Here's a wonky explanation of why it's happening.

http://www.techpolicy.com/Blog/Featu...All-of-Yo.aspx

BTW, Washington State Sales Tax used to be based on the seller's location so we'd collect tax at our local rate. A few years back the State turned it around to be calculated based on destination. This was necessary to be ready to require out-of-state sellers to collect and remit Sales Tax. The tax rate for every bit of the state had to mapped. That's where the 4000 taxing areas come into play.

[kayakbabe]

Re: Sales Taxes Bill

Penalizing a successful store because they managed to grow a lot in one year..well, they do that already. If you pay estimated taxes per their rules, but you go over by a lot, cause you were really successful (say you got digged, or mentioned on mass media), you still have to pay penalties for that. I know.. California bit me in the butt and left fang marks and drew blood. It is downright insane. a growing business hires people, provides jobs.. but they smack you down for it, like a gopher in a carnival game.

I read part of that bill.. the states supposedly have to simplify their taxing jurisdictions and also provide a way for us online merchants to get the rate calculation.. which means... we'd have to connect to servers in state x... and they'll tell us their tax rate for city, state, zip... maybe county.... I don't exactly like that. I can see California saying Ms Merchant, you requested rates for 2 million dollars.. how come you aren't paying us any tax money... (when us merchants all know that loads of people drop out of the checkout funnel when they see tax rates and billing etc. So we make lots more requests for shipping rates than we actually ever ship) And, I am having nightmares about getting audited by 50 different states in the same year. arghhh.

The taxers will have to work out a standard too across the board for taxing or not taxing shipping... arghhh... they have to simplify if they want us to do it. It's absurd if they don't. I actually don't mind collecting it if they make it possible to do it. I just don't see the politicos successfully standardizing a way to do it anytime soon.

[wcw]

Re: Sales Taxes Bill

They need to go to a VAT, with a percentage divided between state and federal. Then abolish the income tax, or drastically lower it.

[lesliekirk]

Re: Sales Taxes Bill

I'd be willing to bet that the motivation for this tax comes from businesses with an agenda.

Local news mentions how people come into brick & mortal stores to get a hands on look, then order online. The report says it's "hurting" local businesses.