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Excellent points and well said.
John: I would be interested in your story as well. You have a great perspective of what can work and what doesn’t work in eCommerce.
Glad you are on a new track now. Good luck!
Both on a fiction list for me. Loved the first Jack Reacher movie, never read the books.
Nancy: what book?
Hey, I’m all about fiction too! Don’t hold back!
All work and no play makes Jack a dull boy…
Nice!
I have heard a synopsis of this book. Veronica and I love the concept.
I should have the book to my reading list!
Mike: “receivables in the left pocket, payables in the right”.
If we are lucky… 😂
The other interesting part is…the states have to pass laws on this stuff. So South Dakota just said that people that were buying online and saving some money now have to pay higher taxes than before. Wonder how those votes would go if it was on a ballot? And what is the tax rate for online transactions vs what brick and mortar have to collect?
Could we see brick and mortar stores ask people for their ID and tax them based on their home state? So when people from Virginia visit Disney World, shouldn’t Disney World collect and remit taxes based on Virginia’s laws?
Netflix is in a battle now with Chicago and other locations…
I get the hole that the internet created regarding Nexus, but to cover that hole needs to be simple, or it will devolve quickly. Lawmakers need to really think this through before creating a big headache…
That is what we can hope for. Some type of exclusion.
Though what is “small” I hope is kept to $ of transactions. With the number of transactions we have, we could trigger in some states. And I would also have to see how to handle the trigger.
Do I collect this year and remit even if I miss the mark?
Or not collect and then eat the tax if I pass the mark?
How am I audited?
What reports are sent to states on transactions that occurred in that state?Gonna be an interesting rollout. Devil is in the details…
Mrsamsonite1: Agree. I think if it DOES get messy by the states/cities/counties, then there will be a service that goes up to do the accounting for us.
Just like anything else…there is money in a mess if you have the mop!
Mike: “And maybe the hidden silver lining is that many of the smaller sellers may not licenses or FEIN Tax numbers or their state numbers which will force many to just drop out on the online selling game. Then those of us who are legit or Incoporated, or LLC’s, Sole Props, will have less competition, less sellers placing extremely low prices and the rest of us will benefit somehow.”
Veronica and I discussed this a lot as well. If we get caught up in the snag on this, and the wall for new sellers (or current sellers that don’t want to deal with it) gets higher, those that survive with thrive.
This makes me want to make sure my SixBit is working to handle all platforms. And is Bonanza set up for requiring tax in all states? TrueGether? Poshmark?
Which is some potential air cover on this. Following Pareto’s Distribution, they will most likely hit the big guys first to get to the 80% of the revenue, and these big guys may need to ramp up some, but could much easier handle the extra.
If they eliminate the 80% of us that only make up 20% of the sales, they would be overwhelmed with applications, processing remittances, questions, etc.
So we could hope that they have a revenue level you have to cross before you have to worry about collection and remittance.
Joe: I agree. If they do go down to the city/county level, it would be a huge issue. As of now, it is only at the state level as it was only a state that sued and has won the case. Other states would have to pass laws like South Dakota did for them to come into this.
It could be a huge pandora’s box that they have opened, but the good news is, governments work slowly…
We can hope…but I never underestimate the power of human stupidity. Especially when governments are involved.
I spent years consulting to governments on finance and accounting. Doing things efficient and reasonable was never an option to them…
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