New UNCONSTITUTIONAL state sales taxes on the Internet.

The problem is this clause in Article 1 sec. 10 of the US Constitution.

No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Controul of the Congress.

The other side of the problem is that the states are starting to collect sales taxes on internet purchases now. Link to Ebay tax collection policy

And that would apparently violate this clause of the Constitution. So I would ask the question. If the state are not supposed to keep the revenue raised by taxes on imported goods then WHY ARE THEY COLLECTING IT?

And keeping the revenue raised by such taxes is a Federal Power?

Didn't anyone realize that the citizens of the US have the right to state tax free imported goods?

a reply to: ntech


There are already taxes on products shipped from out of state via other methods which has a long-standing precedent of being upheld by the Supreme Court:

Quill Corp. vs. North Dakota

On May 26th, 1992, United States Supreme Court held that a mail order house, may have the minimum contacts necessary in accordance with the due process clause of the constitution with the taxing state relative to imposition of tax, yet lack the substantial nexus, as required by the Commerce Clause, with the state to have such tax imposed. Therefore, mere lack of physical presence in a taxing state does not in and of itself bar the taxing state from asserting a tax against such company. Source

This merely puts companies like eBay and Amazon on the same footing.

a reply to: ntech

Sales tax is fun.
The only reason taxes haven't been collected on online/mailorder "I'm old enough to remember printed catalogs" by states is that they were arguing which state would get the tax. The state of origin or destination.
If a company has a retail store in the state of destination then they already collect sales tax.

I'm really surprised this hasn't already happened. Lots of money being left on the table.
Legality be damned..


On a side note.
I pay a gas bill here in Indiana.
The fee structure is incredible.

Meter fee.
Delivery fee.
Transportation and storage charge.. "It's in pipes being transported"
And lastly commodity charge.

Now the kicker..
I'm charged sales tax on the total bill.
Taxed on a delivery fee and a storage fee...

You will be bent over by the goverment but I wish they would at least gimme a kiss..

a reply to: AugustusMasonicus

After looking over the article I can't find that they referenced Article 1 sec. 10 in any way. And that's the odd thing. It's like a Mandela effect. It just dropped in there one day and no one noticed.

I will never understand why people vote for candidates who propose higher taxes or any additional tax, whether it be for fire departments, teachers, police, new toll roads. The money is never used responsibly. It's always wasted, thrown in a bottomless pit. Nothing to show for it but fraud and the need for additional taxes to compensate for the new waste. It's also NEVER enough. Always asking for more money with no attempt to get out of the red.

When I vote I look at one thing only; who is proposing less taxes. Rest of the issues are worthless. If taxes are lowered states start paying attention to tax revenue, budgeting and getting creative. Same thing people do with their own finances. Want additional money then let me choose where it goes. I will give to the causes I deem worthy instead of being forced to give to those I do not like PBS, Planned Parenthood, Home for unwed mothers...blah blah. All wasted tax dollars.

a reply to: Stupidsecrets


Because people are dumb enough to believe that the rich and corporations are going to be paying the tax instead of them.
They don't realize that those taxes just get passed along to the peons.

originally posted by: ntech
After looking over the article I can't find that they referenced Article 1 sec. 10 in any way. And that's the odd thing. It's like a Mandela effect. It just dropped in there one day and no one noticed.

Because that deals with importing and exporting out of the country, not between the States.

a reply to: AugustusMasonicus

Though I think the major problem here is that no one has considered the problem or brought it to a court of law. Also it wasn't until recently that the average consumer could purchase directly from out of the country merchants.

And I tried it. Ebay is collecting sales taxes on Items sold and shipped from China.

Clearly the state are in violation of this clause. I'm assuming that they are just not aware of it. I can't find any legal rulings that reference this clause.

Also I don't think they got the proper authorization from Congress to do it as well.

Double post

a reply to: AugustusMasonicus

Amazon has been collecting taxes for at least a year now.

And, as much as I hate to pay taxes, since my state has a sales tax, it is only fair to tax online purchases as well.

Their gonna make a killing off porn then.

a reply to: DontTreadOnMe

But what if it turns out that your state is charging taxes that it was never supposed to?

the internati0nalists want more money, all they care about is profit.
so of course, they will steal more taxes.

in nyc, they recently moved free parking from 7pm to 10pm on so many more streets. because they want the extra 3 hours of meters, but they REALLY want the extra 3 hours to steal money via tickets.

until the world wakes up to the internati0nalists, we will continue to be burdened by taxes and fake wars to keep them in power.

a reply to: ntech
If I live in a state with sales tax, and I buy something made/shipping another state.....how is it that I should not pay tax, simply because I choose to buy online...rather than at a brick and mortar store?

originally posted by: ntech
Though I think the major problem here is that no one has considered the problem or brought it to a court of law.

Because it doesn't apply the way you think it does.

originally posted by: DontTreadOnMe
Amazon has been collecting taxes for at least a year now.

And, as much as I hate to pay taxes, since my state has a sales tax, it is only fair to tax online purchases as well.

I would also prefer to pay no tax but you cannot give someone like Amazon an advantage that an in-state rival doesn't also receive.

Never mind. Soon enough the Mexicans will be paying for your tax bill.

The problem I see with sales tax is that it is supposed to be a retail business tax but sellers blatantly charge the tax to the customer, effectively making it a buyers tax. Everyone seems to except this practice without any consideration as to why a "sales" tax is their responsibility as the buyer to pay in addition to the retail product mark-up. The buyer isn't selling anything so why should they pay a sales tax? I believe that these sales taxes are something the buyer can write off at tax time (maybe not, don't really know), if so isn't it really a buyer's tax?.

From what I understand about a sales tax license is that you can purchase wholesale goods for resale without a sales tax. If you end up not selling the wholesale goods you can use it and pay a use tax or you could donate it or simply dump it and claim a tax loss.

A sales tax license is really cheap in Michigan. I had one for a few years. If you didn't use it and didn't claim zero sales on your taxes, they had a big fine for that. Otherwise how you keep your books is your business and if you paid them something it would make them happy and never raise a red flag.

ETA: I think that making an electronic or mail order type purchase from another state should be taxed in the state it is sold from, not taxed in the buyer's state, or both for that matter. I believe that when a buyer makes an order to a business in another state that the sale was actually made in the seller's state.

Illinois expects you to voluntarily pay sales tax on items purchased online from vendors that don't charge IL sales tax. There's a question/calculation on the IL-1040.

originally posted by: MichiganSwampBuck
The problem I see with sales tax is that it is supposed to be a retail business tax but sellers blatantly charge the tax to the customer, effectively making it a buyers tax. Everyone seems to except this practice without any consideration as to why a "sales" tax is their responsibility as the buyer to pay in addition to the retail product mark-up.

Because there are numerous state tax codes which require businesses to collect tax, not charge, which affords the respective state the ability to gather more revenue with less state personnel. You effectively make each business employee a revenue agent.