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> Each state that wants “remote sellers” to collect sales tax must establish a single entity to manage tax collection and audits for the entire state. Sellers w
by joshuahedlund 14y ago
> Each state that wants “remote sellers” to collect sales tax must establish a single entity to manage tax collection and audits for the entire state. Sellers won’t have to deal with all 5,900+ separate taxing municipalities in the country, just 50.
Even in a best case scenario it seems like this is going to involve live access to state "software"/API to keep up-to-date with ever changing municipal tax rates, "tax free weekends", and all kinds of other things that usually only affect physically local businesses.
So states are going to be responsible for keeping their databases up to date and maintaining access to them? What happens when State X forgets to update that County Y had a tax free weekend for Z items? What happens when the server goes down and no one can calculate rates? What happens when it's just really slow and you have to give customers slow page loads in the checkout process?
Even with states and certified providers as middlemen, I'm not looking forward to the implementation of this...
Edit: Thanks, dan, so maybe we'll be able to cache some rates. Though we still may need reliable & quick access to state servers to figure out which rate belongs to each 9 digit address... Hopefully the states can be about as reliable as FedEx/UPS rate querying services, though the odds are at least one state will have some ugly blackouts at some point...
- danielweber 14y agoIt can be heinous. In theory I love sales taxes, but I have friends who simply could not get their home state to give them a yes/no question on whether an item was taxable.
- dangrossman 14y agoStates have to provide sellers and software providers with 90 days notice of any changes to their tax rate, then update both their database and their software for computing taxes. This, coupled with the state-wide sales and use tax harmonization requirements (for remote sellers), only local businesses will have to worry about things like "tax free weekends" and short-notice changes. It's still going to be a mess.