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Old 05-06-2013, 10:34 AM  
sarettah
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Join Date: Oct 2002
Posts: 14,102
Quote:
Originally Posted by kane View Post
How so?

You set up your software so that it charges customers the correct amount of sales tax for the state they live in. The software then keeps track of how much sales tax you brought in from each state and you cut the check to each state.

Sure, it more of a pain in the ass than if it weren't there and I am not a pro-tax advocate, but I don't know that this is going to be a costly and time consuming thing. Most of it will be automated.
It is potentially a tad more complex then that unfortunately. In Missouri alone there are 2168 different sales tax amounts depending on the county and city that the sale takes place in. http://dor.mo.gov/business/sales/rates/2013/. Those rates change at various times throughout the year depending on local legislation.

So, what rate will we be responsible for charging who? Willl it strictly be state sales tax or will we be having to deal with localities?

Instead of the states trying to shift the burden of tax collection on to us they should instead enforce their existing use tax laws that make the consumer responsible for paying taxes on items purchased outside of their locality. But they have found it impossible to do that and that is why they want to shift it on to us.

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