4 ms·

Look at this as a SaaS opportunity. Create a clearinghouse to manage all of the "software". Fairly simple API, you give me the State of the person, perhaps ZIP

Look at this as a SaaS opportunity. Create a clearinghouse to manage all of the "software". Fairly simple API, you give me the State of the person, perhaps ZIP to find County level taxes and out comes a {"state":".08", "cityX":".01"}. Leave it to the client to handle exact cost calculation. As for the states that don't have sales tax, they can pay the clearing to provide a {"state":"0"} for all requests.

legitsource 14y ago
In my area, there are state, county, and city sale taxes. You would need a full address and a database of addresses within city limits in order to determine the proper sales tax.
- dcgibbons 14y ago
  There are many rural areas in the US where the physical address is not in the USPS database and as such "does not exist" (the USPS only has PO Boxes). That makes using any address neigh impossible for accurate tax calculations.
  - jonpeda 14y ago
    Are there multiple sales tax regimes operating within the span of one PO Box? Doubtful than anyone on either side will worry about that case
lavezza 14y ago
A little more difficult than that. I grew up in Pennsylvania. My zip code was for the town next to the township I lived in. There were taxes for stores in the town that weren't levied on the township (two different local gov'ts). Also, PA doesn't tax clothing while Maryland a few miles away does. So every item you sell would have to be categorized in some way (and maybe differently in different areas). So, every delivery address would have to be accurately mapped to multiple, overlapping taxing authorities (state, county, local, school district, etc.) and every item you sell would have to be mapped to multiple tax categories (clothes and shoes not taxed in A, clothes (but not shoes) taxed in B, shoes (but not work boots) taxed in C, etc.)
- DoubleMalt 14y ago
  That kafkaesk mess just makes the business case more compelling.
- pc86 14y ago
  To get the most precise taxation possible you would need to get the customer's address and calculate their zip+4. This is ignoring the fact that exemptions would be a nightmare. The only thing I could think of that would be worse than needing to manage that massive API would be if I was a business owner who had to access multiple APIs for DC plus all the states with sales tax.
  - pnathan 14y ago
    > The only thing I could think of that would be worse than needing to manage that massive API would be if I was a business owner who had to access multiple APIs for DC plus all the states with sales tax. So you're saying that putting together that SAAS would be a slog and its very existence would be a moat to other people who don't want to slog through. I.e., a great biz opportunity. :)
    - pc86 14y ago
      You're probably right on that one. There is a comment elsewhere in this thread that mentions a SaaS company that handles sales tax automation and reporting, so clearly there is some money to be made.
- mpyne 14y ago
  It seems to me that this is something that a state law permitting Internet sales tax could (and would have to) work around. E.g. charge a 0.5% lower "Internet sales tax" but have it apply to absolutely everything for ease of bookkeeping.
- virmundi 14y ago
  So in general it's more complex than I opined in the three minutes it took to post, but it doesn't seem to be impossible. If anything it's complexity merits a service. This would require a few people and sme coordination, but should be doable. Who's with me? New start up.
duck 14y ago
I don't know how common it is, but I do some some areas have a maximum on sales tax. The Kenai Peninsula Borough in AK had one when I lived there. I can't remember the details, but I know with the truck I bought the tax bill was $35 as that was the cap.
deleted 14y ago
[deleted]
_delirium 14y ago
I'm not sure if any of them have nice JSON interfaces yet, but there are certainly 3rd-party services where you can query geographically detailed information on sales taxes, down to exactly which SKUs are taxed at which rates (e.g. what qualifies for a "grocery" exemption). Example: http://tax.cchgroup.com/sales-tax-data/default.htm?cookie_test=1 http://tax.cchgroup.com/sales-tax-data/default.htm?cookie_te...

legitsource 14y ago

In my area, there are state, county, and city sale taxes. You would need a full address and a database of addresses within city limits in order to determine the proper sales tax.

dcgibbons 14y ago
There are many rural areas in the US where the physical address is not in the USPS database and as such "does not exist" (the USPS only has PO Boxes). That makes using any address neigh impossible for accurate tax calculations.
- jonpeda 14y ago
  Are there multiple sales tax regimes operating within the span of one PO Box? Doubtful than anyone on either side will worry about that case

lavezza 14y ago

A little more difficult than that. I grew up in Pennsylvania. My zip code was for the town next to the township I lived in. There were taxes for stores in the town that weren't levied on the township (two different local gov'ts). Also, PA doesn't tax clothing while Maryland a few miles away does. So every item you sell would have to be categorized in some way (and maybe differently in different areas). So, every delivery address would have to be accurately mapped to multiple, overlapping taxing authorities (state, county, local, school district, etc.) and every item you sell would have to be mapped to multiple tax categories (clothes and shoes not taxed in A, clothes (but not shoes) taxed in B, shoes (but not work boots) taxed in C, etc.)

DoubleMalt 14y ago
That kafkaesk mess just makes the business case more compelling.
pc86 14y ago
To get the most precise taxation possible you would need to get the customer's address and calculate their zip+4. This is ignoring the fact that exemptions would be a nightmare. The only thing I could think of that would be worse than needing to manage that massive API would be if I was a business owner who had to access multiple APIs for DC plus all the states with sales tax.
- pnathan 14y ago
  > The only thing I could think of that would be worse than needing to manage that massive API would be if I was a business owner who had to access multiple APIs for DC plus all the states with sales tax. So you're saying that putting together that SAAS would be a slog and its very existence would be a moat to other people who don't want to slog through. I.e., a great biz opportunity. :)
  - pc86 14y ago
    You're probably right on that one. There is a comment elsewhere in this thread that mentions a SaaS company that handles sales tax automation and reporting, so clearly there is some money to be made.
mpyne 14y ago
It seems to me that this is something that a state law permitting Internet sales tax could (and would have to) work around. E.g. charge a 0.5% lower "Internet sales tax" but have it apply to absolutely everything for ease of bookkeeping.
virmundi 14y ago
So in general it's more complex than I opined in the three minutes it took to post, but it doesn't seem to be impossible. If anything it's complexity merits a service. This would require a few people and sme coordination, but should be doable. Who's with me? New start up.

duck 14y ago

I don't know how common it is, but I do some some areas have a maximum on sales tax. The Kenai Peninsula Borough in AK had one when I lived there. I can't remember the details, but I know with the truck I bought the tax bill was $35 as that was the cap.

deleted 14y ago

[deleted]

_delirium 14y ago

I'm not sure if any of them have nice JSON interfaces yet, but there are certainly 3rd-party services where you can query geographically detailed information on sales taxes, down to exactly which SKUs are taxed at which rates (e.g. what qualifies for a "grocery" exemption). Example: http://tax.cchgroup.com/sales-tax-data/default.htm?cookie_test=1 http://tax.cchgroup.com/sales-tax-data/default.htm?cookie_te...