any knowledge on sales tax collections for companies that have 1-10million in sales to all states

[John@Outfront]

I understand that companies in the past had no sales tax for inter-state sales from state to state but that has changed

it appears there is requirements for companies to now collect sales taxes for all sales to all states? and there are not 1200 tax rates but 12,000 different tax rates based on what state, county and even cities you may be in.  it would be like a full time job, some states fiscal year is different, now you would need to have resale certs for all states to your business to business sales, etc  then the taxes need to be sent to each state by their deadlines

any info would be great.  how about when is compliance necessary, can it go retro or how does one get started.  i have seen a few webinars and its daunting to think about

 

[Lord of the Dunes]

I would think it would take a software package with annual or semi-annual updates to keep track of all of the tax rates county by county nationwide.

It's sad to see how times have changed. Back when I took my business classes, the collection of sales tax on inter-state sales was considered to be in violation of the Constitution and only the federal gov't had the right to collect taxes across state borders. Then CA and NY started pushing for it (greedy liberal controlled states) and at first Amazon fought back, for the reasons above. But when CA threatened to bury them in legal fees and offered a property tax break for new warehouses, etc, Amazon buckled under and chose financial expediency over principle.

 

[honEXduner]

I would think it would take a software package with annual or semi-annual updates to keep track of all of the tax rates county by county nationwide.

It's sad to see how times have changed. Back when I took my business classes, the collection of sales tax on inter-state sales was considered to be in violation of the Constitution and only the federal gov't had the right to collect taxes across state borders. Then CA and NY started pushing for it (greedy liberal controlled states) and at first Amazon fought back, for the reasons above. But when CA threatened to bury them in legal fees and offered a property tax break for new warehouses, etc, Amazon buckled under and chose financial expediency over principle.

Wasn't Wayfair involved too? or was that just the case that established the case law?

 

[Lord of the Dunes]

Wasn't Wayfair involved too? or was that just the case that established the case law?

I wasn't aware of Wayfair involved in any tax disputes, which just shows how little I know. I do remember some news reports about Amazon's initial rebuttals to CA's franchise tax board and their arguments were exactly in line with mine in terms of Constitutionality, nexus and suppression of interstate commerce. Unfortunately, it eventually boiled down to money instead of principles. 

 

[honEXduner]

I wasn't aware of Wayfair involved in any tax disputes, which just shows how little I know. I do remember some news reports about Amazon's initial rebuttals to CA's franchise tax board and their arguments were exactly in line with mine in terms of Constitutionality, nexus and suppression of interstate commerce. Unfortunately, it eventually boiled down to money instead of principles. 

Didn't read through the whole article but did find this https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc. 

Sorry for the derail John -- some searching found there are more than a few automated web services to handle this for you automatically if your scope is an online store.  May be the simplest way to manage the many jurisdictions out there, but may not help for more traditional over the counter type sales to those out of state. 

 

[Rockwood]

I’m sure some lobbyists for online purchasing software made out like bandits on this.