4 ms·

Why isn't CT going after NewEgg for failing to incoporate sales tax into their checkout process? No one expects to be personally responsible for sales tax, cons

Why isn't CT going after NewEgg for failing to incoporate sales tax into their checkout process? No one expects to be personally responsible for sales tax, considering all of the transactions they're used to have the seller incorporating sales tax into the price paid. Pushing that burden to the consumer and surprising them with a demand for unpaid taxes they didn't know existed is unethical.

giarc 9y ago
RTA >The issue of imposing sales tax on out-of-state purchases ultimately may be settled by the Supreme Court. >In a 1992 case dealing with a mail-order office supply company, the court ruled that states could not require companies that did not have a physical presence in their state to collect sales tax. It goes on to say that South Dakota has passed a law saying out of state retailers need to collect state sales tax, but that the supreme court has agreed to hear a challenge to the case.
- Sir_Cmpwn 9y ago
  Right. What I'm arguing is that if they can't make the sellers collect sales tax, then they can't collect sales tax at all. Expecting consumers to keep track of sales tax themselves for every little purchase (often hundreds per year!) is nuts.
BoorishBears 9y ago
Who said no one expects to be held accountable for use tax? There’s a field right there on your tax forms for it, it’s very clearly explained: http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 I wonder how many people are going to be caught pants down if they go after more companies...
throwaway2016a 9y ago
NewEgg doesn't have to unless it has nexus (a physical location) in the state. If it does not have nexus it is up to the consumer to pay their own taxes. It has been this way since the mail order days.
TheAdamist 9y ago
If newegg doesn't have any operations in CT, they can't force them to collect & pay. (warehouses, offices, etc. a "nexus"). There is a supreme court case currently to try and eliminate this requirement (stemming from a previous mail order court case). Current case: https://taxfoundation.org/supreme-court-south-dakota-wayfair-online-sales-tax/ https://taxfoundation.org/supreme-court-south-dakota-wayfair...

giarc 9y ago

RTA >The issue of imposing sales tax on out-of-state purchases ultimately may be settled by the Supreme Court. >In a 1992 case dealing with a mail-order office supply company, the court ruled that states could not require companies that did not have a physical presence in their state to collect sales tax. It goes on to say that South Dakota has passed a law saying out of state retailers need to collect state sales tax, but that the supreme court has agreed to hear a challenge to the case.

Sir_Cmpwn 9y ago
Right. What I'm arguing is that if they can't make the sellers collect sales tax, then they can't collect sales tax at all. Expecting consumers to keep track of sales tax themselves for every little purchase (often hundreds per year!) is nuts.

BoorishBears 9y ago

Who said no one expects to be held accountable for use tax? There’s a field right there on your tax forms for it, it’s very clearly explained: http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 http://www.ct.gov/drs/cwp/view.asp?A=1510&Q=270228 I wonder how many people are going to be caught pants down if they go after more companies...

throwaway2016a 9y ago

NewEgg doesn't have to unless it has nexus (a physical location) in the state. If it does not have nexus it is up to the consumer to pay their own taxes. It has been this way since the mail order days.

TheAdamist 9y ago

If newegg doesn't have any operations in CT, they can't force them to collect & pay. (warehouses, offices, etc. a "nexus"). There is a supreme court case currently to try and eliminate this requirement (stemming from a previous mail order court case). Current case: https://taxfoundation.org/supreme-court-south-dakota-wayfair-online-sales-tax/ https://taxfoundation.org/supreme-court-south-dakota-wayfair...