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  1. #1
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Streamlined Sales Tax Project (SSTP)
    Congressional sources say that introduction of federal legislation to implement the “Streamlined Sales Tax Project” (SSTP) could happen as early as this week. This comes in response to ongoing deliberation surrounding the issue of tax policy toward the Internet and the SSTP, a campaign that would allow states to collect sales taxes on transactions made by residents beyond their borders. States need Congress’s blessing for SSTP because of previous court rulings that governments cannot force firms within their jurisdiction to collect taxes on sales made to out-of-state customers. Source
    Related - http://www.businessinsider.com/nows-...les-tax-2009-6

    More info on Streamlined Sales Tax Project” (SSTP):

    The effort that became the Streamlined Sales Tax Governing Board began in March 2000. The goal of this effort is to find solutions for the complexity in state sales tax systems that resulted in the U.S. Supreme Court holding (Bellas Hess v. Illionis and Quill Corp. v. North Dakota) that a state may not require a seller that does not have a physical presence in the state to collect tax on sales into the state. The Court ruled that the existing system was too complicated to impose on a business that did not have a physical presence in the state. The Court said Congress has the authority to allow states to require remote sellers to collect tax. Source
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  2. #2
    ABW Ambassador sjangro's Avatar
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    While anything that brings federal tax to the internet feels like bad news, this is probably great news on the "advertising tax" front.

    If the federal government enables states to require remote merchants to collect sales/use tax from their residents, it takes affiliates out of the equation and the spotlight in legislation like what passed in NY last year and has been in the works this year in several other states.

    Instead, states will move toward adopting the SSTP, which makes it easier for merchants to collect taxes by setting up simplified tax rules and procedures. (The current state rules are incredibly complex.)

    In short, merchants will not be able to avoid the tax collection by dumping affiliates.

  3. #3
    Moderator bibby's Avatar
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    Quote Originally Posted by sjangro
    While anything that brings federal tax to the internet feels like bad news, this is probably great news on the "advertising tax" front.

    If the federal government enables states to require remote merchants to collect sales/use tax from their residents, it takes affiliates out of the equation and the spotlight in legislation like what passed in NY last year and has been in the works this year in several other states.

    Instead, states will move toward adopting the SSTP, which makes it easier for merchants to collect taxes by setting up simplified tax rules and procedures. (The current state rules are incredibly complex.)

    In short, merchants will not be able to avoid the tax collection by dumping affiliates.
    I agree.

  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    Congressional sources say that introduction of federal legislation to implement the “Streamlined Sales Tax Project” (SSTP) could happen as early as this week
    Does anyone have a link to information on pending legislation?

    In short, merchants will not be able to avoid the tax collection by dumping affiliates.
    If this passes on a federal level and merchants start collecting state sales tax then would New York just drop their current law or would it have to be challenged in federal court?

    Along with everyone else I am not for taxation of online purchases but if it has to happen am in favor of a single rate federal tax like 5%. This makes online purchase still attractive and passes needed tax revenue back to the states. Would be in favor of a 2%/3% split between the feds and the states.

    Mellanie, would be interested in your opinion on if this is a reality and if it would junk the state laws??

  5. #5
    Affiliate Manager Bradley.Senkovich's Avatar
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    this can only end in tears... you know this right?

    I only say that if a federal tax is issued different states will have different gripes.

    I.E. did you know in Vermont that all clothing is free of any tax? the reason being is that it is so damn cold up there that clothing is required! unlike Florida where we try to get away with wearing as little as possible because of a 8% sales tax on overpriced clothes.

    It might stem off into what items get taxed when and how high.

    A majority of food items are not taxed in Florida. But Iowa has taxes on Bananas.

    I reiterate... this is going to end in tears...

  6. #6
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Bradley,

    I think your taking this thread out of context as to how this affects our business, not the price of bananas. I suggest you re-read to see how it affects our online businesses.

    The goal of this effort is to find solutions for the complexity in state sales tax systems that resulted in the U.S. Supreme Court holding (Bellas Hess v. Illionis and Quill Corp. v. North Dakota) that a state may not require a seller that does not have a physical presence in the state to collect tax on sales into the state.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  7. #7
    Affiliate Manager Bradley.Senkovich's Avatar
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    I apologize,

    I was trying build on the thought that chuck had. A straight tax. where fed and state split the tax. but I failed to convey that. and how some states do not collect taxes from certain items. would those states take money that was attained from taxes through a mean that they do not normally tax someone from?

    I think i am looking at the wrong end of the horse. As for it affecting me professionally. I think a straight tax would be much more comfortable for me to deal with rather then explain to those who live in the same state as the business I work for why they pay sales tax.

    While the legal issues are certainly tricky -- particularly as it pertains to inter-state transactions -- the NTU is wrong on this one. It's time to start bringing the internet into tax parity with traditional forms of commerce.
    I fully agree with this statement. There are complexities that exceed the click domain. what about those stores that are brick and click? Everyone is on edge about this topic. I think it can only benefit us as a country. Transversely, It may affect us as Merchants. There are people who buy from us just because they get to avoid those sales taxes. crazy huh?

  8. #8
    OPM and Moderator Chuck Hamrick's Avatar
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    So has there been any movement on this?

    Indeed, the National Taxpayers Union, a libertarian anti-tax group says big tax hikes are definitely on the way.

    Says the NTU:

    Congressional sources say that introduction of federal legislation to implement the “Streamlined Sales Tax Project” (SSTP) could happen as early as this week.
    Or is this just a farce. I think Mark Welch's post shows that this is an overly complex issue and that states are not about to give up control: http://forum.abestweb.com/showthread.php?t=120421

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