State

Drunken Sailor Politician Spenders Vs Consumers

cga.ct.gov

Here we go again. Politicians who can’t control their spending habits are on the warpath again trying to collect sales tax on online purchases out of state.

Do you have a ‘physical nexus’? Read Full
The confusion boils down to who does the collecting and when. As with everything involving tax legislation, there are exceptions and other complications from state to state. For example, if you live in Delaware, Montana, New Hampshire or Oregon, which have no sales taxes, none of this applies.

Under a 1992 Supreme Court ruling, businesses are responsible for collecting sales taxes on every sale they make in a state where they have a “physical nexus.” In other words, if the business has a store, an office or even a single sales rep in your state, it’s supposed to tack the state’s sales tax onto your bill.

Online retailers like Amazon.com typically don’t add the tax, except in the states where they’re based or where they have physical facilities like warehouses or distribution centers. Amazon, for example, collects sales taxes only in Washington (its home state), Kansas, Kentucky, North Dakota and New York.

The tax is still supposed to be paid, however. And if the seller’s not responsible, then you, the buyer, are. In general, you’re supposed to voluntarily file your own report and pay the standard tax on your out-of-state online purchases. (The appropriate forms are available on state tax agency websites, revenue officials are happy to remind you.)

The reason consumers go out of state to buy is because they can get products cheaper in other states than they can in their own. In the business world it’s called competition. Competition benefits the consumers first and the state coffers second, because the more purchases consumers make in state, the more revenue stays here. But the politicians don’t seem to grasp why consumers are shopping for goods and services out of state. That’s the problem! Instead of going after the people who are looking to save a buck, why don’t they address the reason why they are resorting to out of state purchases? No, they feel it’s more productive to go after the VOTERS! and seek the revenue to make up for the shortcommings and irresponsibilities of the politicians who can’t control spending. Hey Hartford, doesn’t it make sense to keep the buying climate attractive enough not only to keep the residents here buying, but attracting out of staters to do likewise?

9 Comments

  • Dolce says:

    Did you ever notice that when the state has a sales tax “holiday” it spurs extra sales? Duhhhh! Get a clue, when people see a bargain they go for it. The very fact that the state implements a sales tax holiday is to increase sales. Well what does that tell you Hartford?

  • Dolce says:

    I’ll be capitalist any day over a socialist!

  • aqualung says:

    Man, larry you have a warped sense of the world.

  • larrylib says:

    Oh great quoting Ronald Reagan, the guy who didn’t give a rats ass about the homeless. The man who gave massive tax breaks to the rich at the expense of people suffering with hunger and unemployment. Typical capitalist.

  • Dolce says:

    Oh c’mon larry. Ronald Reagan stated it the best. Help the needy, not the greedy. Yeah sorry to inform you but the world is full of leeches. No not all that are in need are leeches but a lot are and at a huge expense to the rest of us. You seem to think that it doesn’t matter if the programs in place are abused as long as they are there. Typical socialist.

  • larrylib says:

    Well creating jobs is ok as long as it doesn’t come at the expense of those that are the most in need of assistance. The problem I have with people like you is that you seem to think the world is full of leeches so you don’t want money to be spent on anybody who is in need. You know someday somebody you know or even yourself will find themselves in need of government assistance. Are you going to turn it down???? I don’t think so.

  • Dolce says:

    larrylib, none of those pie in the sky things are going to happen if Harftord gets all that uncollected revenue, that money will go to new “social” programs. Social programs that will bog us down for years to come. How about creating jobs and curbing spending? Or is that against your liberal mindset?

  • Felicity says:

    Just one more way to suck money out of us.

  • larrylib says:

    Oh yeah, all that uncollected money that could be going to the poor, pay down our deficit, and pay for programs for the underprivileged is the work of greedy politicians! Not!! The state is losing millions if not billions in uncollected sales tax and you’re telling me that is ok? Those going out of state are nothing but tax cheaters and deserve to be caught. The use tax is law in Ct and every person is liable for that. If you don’t agree then change the law!

Leave a Comment

You must be logged in to post a comment.


Powered by WordPress | Theme by Black Cat Studio