Since Parallax is already in CA and has a physical presence there then I would expect they may already be collecting for sales within CA. It may not make a difference to them. When other states follow suit (which they probably will) then that will be a lot more work.
But the Chinese sellers on ebay selling direct to folks in CA will probably still be exempt.....
Parallax does not sell through Amazon.com, and has always collected sales tax from California residents. Here is an excerpt from our Policies and Order Information page:
Unless you have a reseller's permit or tax exemption certificate on file with us, all orders shipped to California will be charged 8.25% sales tax; all orders shipped to Indiana will be charged 7.00% sales tax, and all orders shipped to Washington will be charged 6.00% sales tax. Submission of a certificate is not retroactive; therefore, you will be charged tax even if you later submit a certificate.
And I shall keep my political commentary to myself.
Cheers, Jen J.
Does Parallax have an affiliate program? That's really the crux of the new law. It extends the definition of what makes a "physical presence" to include third-party affiliates.
The law isn't a law yet. It has to get past the state senate, but smart money is on its passing. Unlike a similar law that came up in 2009, which Arnie vetoed, Brown may not do the same.
While we're on the subject, it would be GREAT if Parallax had an affiliate program. The cost of administering it is greatly reduced if they go through Commission Junction, Linkshare, or their ilk.
I pity any business that has to ship to my state (Washington) and do the sales tax thing. The base rate of 6.5% is just the beginning of grief. Additional local taxes collected by the state can raise the rate by as much as another 3%. And they have to be collected from the customer, based on shipment destination, not source. To make things even worse, one zip code may encompass two or more different sales tax rates, so you can't sort on zip code but have to know the customer's municipality or other (transportation authority, public utility, etc.) taxing district. It's been a boon to the municipalities whose residents do a lot of online shopping, but it's got to be a nightmare for the vendors.
This applies to WA-based businesses, but so far WA hasn't yet enacted their version of the Amazon Tax, which could affect online retailers outside the state from having to collect tax even though the only "physical presence" is a third-party Internet Warrior marketeer working out of his or her den.
Since Washington state has no state income tax, destination-based sales tax is a pretty good tradeoff. As a business or individual I'd be far happier paying sales tax based on where I'm consuming the goods than give up several more $K each year in additional income taxes.
I think most, if not all, state tax returns have a field for "use tax." You're supposed to pay your state the tax you didn't pay elsewhere.
South Carolina is one of those "use tax" states. If it's shipped to me from out of state and seller doesn't collect SC sales tax then I am responsible for paying. South Carolina is not a wealthy state and with the down economy the State has been auditing businesses for Use tax liability. Last year they looked through every single invoice at my company going back 3 years! OUCH.
I agree wholeheartedly that, as a consumer, I much prefer a sales tax to an income tax, if only for the savings in paperwork. As a Washington-based business, the sales tax would be a nuisance if I did mail-order retail (which I don't, customarily). But the state B&O tax on gross sales (not net profit) can take a nasty bite -- especially for businesses with low margins.
Martin Hodge
Posts: 1,246
Comments
Hiss, bad link... page not found.
But here's another: http://www.businessweek.com/news/2011-06-01/california-bill-directs-online-retailers-to-collect-sales-tax.html
But the Chinese sellers on ebay selling direct to folks in CA will probably still be exempt.....
Parallax does not sell through Amazon.com, and has always collected sales tax from California residents. Here is an excerpt from our Policies and Order Information page:
Unless you have a reseller's permit or tax exemption certificate on file with us, all orders shipped to California will be charged 8.25% sales tax; all orders shipped to Indiana will be charged 7.00% sales tax, and all orders shipped to Washington will be charged 6.00% sales tax. Submission of a certificate is not retroactive; therefore, you will be charged tax even if you later submit a certificate.
And I shall keep my political commentary to myself.
Cheers, Jen J.
The law isn't a law yet. It has to get past the state senate, but smart money is on its passing. Unlike a similar law that came up in 2009, which Arnie vetoed, Brown may not do the same.
While we're on the subject, it would be GREAT if Parallax had an affiliate program. The cost of administering it is greatly reduced if they go through Commission Junction, Linkshare, or their ilk.
-Phil
Since Washington state has no state income tax, destination-based sales tax is a pretty good tradeoff. As a business or individual I'd be far happier paying sales tax based on where I'm consuming the goods than give up several more $K each year in additional income taxes.
-- Gordon
I agree wholeheartedly that, as a consumer, I much prefer a sales tax to an income tax, if only for the savings in paperwork. As a Washington-based business, the sales tax would be a nuisance if I did mail-order retail (which I don't, customarily). But the state B&O tax on gross sales (not net profit) can take a nasty bite -- especially for businesses with low margins.
-Phil
-- Gordon