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View Diary: Internet tax designed to screw small business & consumers (108 comments)

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  •  It's not 50 pieces of software (8+ / 0-)

    It's a database. Your software sends a zip code (or maybe a city name or a county name or whatever) to a database and it returns a number. You should charge 5.6%. So you add that to the sale.

    If you're selling something for $100, you add $5.60 (or whatever). Your credit card processing company will probably give you the software for free. And they'll automatically send the payment to the state. Easy peasy.

    And if your sales are less than one million, you're exempt. You don't have to collect the taxes. I assume the processing company will refund the money to the buyer. I don't know.

    "Stupid just can't keep its mouth shut." -- SweetAuntFanny's grandmother.

    by Dbug on Tue Apr 30, 2013 at 11:31:36 PM PDT

    [ Parent ]

    •  And this software magically (0+ / 0-)

      integrates with all of the POS or accounting software in use by the millions of businesses this law affects?

      WOW! I can't wait!

      “It takes no compromise to give people their takes no money to respect the individual. It takes no political deal to give people freedom. It takes no survey to remove repression.” ― Harvey Milk

      by lucid on Tue Apr 30, 2013 at 11:47:25 PM PDT

      [ Parent ]

      •  Yes. (4+ / 0-)

        It has nothing to do with POS (point of sale) -- that's the cash register software. This is internet sales. There's no cash register.

        Accounting software? If you're accepting credit cards, your credit card processing company will know what tax there is and they'll add it and pay the state. What's the problem?

        "Stupid just can't keep its mouth shut." -- SweetAuntFanny's grandmother.

        by Dbug on Wed May 01, 2013 at 12:51:14 AM PDT

        [ Parent ]

        •  Wrong... (0+ / 0-)

          Credit card processors don't calculate or collect tax as a rule. For example, in PayPal you have to set up a tax rate for each state you want to collect tax for, but it's up to you to separate all those sales and pay the appropriate tax to each of those states, and it does not account for various local or county tax rates.

      •  In my experience as a software developer (7+ / 0-)

        I have worked on the web sites for a number of large retailers.  They don't have armies of accountants trying to track sales tax rates in every state and locality. They subscribe to services that have people that specialize in this sort of thing.  Some of these services, like TaxCloud, are free to the retailer.  How does the service make money? The states pay a commission to the service for collecting the sales tax, which means the online retailer doesn't have to deal with all those states.  Yeah, this is an extra step for the merchant but it never struck me as onerous. has a list of some of the companies that provide sales tax software and services.

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