Internet Sales in Hawaii to be taxed?

[macuu222]

Legislation has been introduced in the Hawaii Legislature to tax internet sales. Anyone buying stuff on-line would be charged the 4% Hawaii sales tax.

I personally think this will not work. It's just to hard to keep track of...especially if buying from outside the US.


http://www.starbulletin.com/news/2009030...sales.html

[Jon]

Yep, it will just make for more criminals...

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I do not believe that America is better than everybody else...
America "IS" everybody else.
HBAT

[Guest]

Eventually, taxes will be so high that it will shut down most trade . Taxes hurt the consumer, the seller, the manufacturer.

The black market will become robust.

Since all taxes are paid by the consumer in the end consumers will buy less. When consumers buy less, companies that make and sell products will sell less.

When companies sell less, they tend to employ less people.

When companies hire less people , less people are employed.
When less people are employed, less people have money to buy goods.

This is so simple.
When Taxes are lowered every one winds up with more wealth.
When everyone has more wealth they buy more stuff and more people are employed.
If the government keeps it's taxes low it actually raises more tax money to pay for roads, bridges, etc.

[Bob Orts]

Hawaii, like many other states are just trying to level the playing field. Hawaii is looking at the SSTP so that the issues raised why vendors should not have to collect sales tax are removed. The restriction is based on many reasons with 2 main issues. One being that it's a near impossible task to determine sales tax rates when there's no unformed structure as to what constitutes sales tax. Is it just the states portion, or county or city? By agreeing just to a standard state amount regardless of the actual address of delivery, it makes it easier for small vendors to comply. Second, there's no universal "what for". Some states collect sales tax on an item yet another state does not. Or one state collects one amount on certain foods but another amount on other non-food items. Without a universal method of determining what items are taxable, it again favors no collection.

However, all this may come to a screeching halt since the original basis that businesses can not be compelled to collect a state sales tax unless the vendor had nexus, has been turned upside down. Based on the Amazon and Overstock court ruling, that nexus is established if anyone received compensation for a sale. In other words, if you have a commissioned salesperson in a state, who receives direct compensation from an out of state vendor, you have nexus. That means if the State of Hawaii can determine that anyone in Hawaii is being paid a commission for selling an out of state vendor’s product direct to the consumer, sales tax must be collected for consumer shipments to Hawaii.

[gtill]

They need money from somewhere to keep themselves fully employed, it worked with cigarettes and I believe some states collect the full tax on everything bought online, I think the precident is there. Gambling, lotto, pakalolo, what's next?

[Bob Orts]

One of the funding sources that provide essential services in Puna is via tax return to the community. Less tax revenue, less service.

Everyone is calling for services, but those services cost money. I have absolutely no problem with Hawaii not collecting taxes from out of state internet business that ship to Hawaii. Likewise I have absolutely no problem with Hawaii raising property taxes to pay for services that are needed. If I want more police, I’ll pay more real estate taxes to fund it since it’s not free. If I want more fire protection, I’ll pay more income taxes to pay for it since it’s not free. If I want more public works improvements, I’ll pay higher sales taxes to pay for it since it’s not free.

[gtill]

Good idea, property taxes, Hawaii's are some of the nations lowest. A major percentage increase would bring some mansion owners who've skated for years with cheap taxes, plus speculators who sit on their lots at nearly no expense forever until the residents get things in line for them to make a killing. Start charging these speculators what the same property would cost in Calif. and the money would be coming in.
Even the top line (400,000$+) houses could probably double the tax and still be under any comparable mainland location.
Hitting the residents with excise taxes would hurt the small local resident. Hitting the property tax would increase the tax base to add speculators, and those who can easily afford it..

[Jon]

LOL... yep, tax them for all the services they don't get...

Remember, that no mater how you raise taxes, its the poor and low income that get hit the hardest, every time.


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I do not believe that America is better than everybody else...
America "IS" everybody else.
HBAT

[Fishboy]

quote:

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Originally posted by Bob Orts

...if the State of Hawaii can determine that anyone in Hawaii is being paid a commission for selling an out of state vendor’s product direct to the consumer, sales tax must be collected for consumer shipments to Hawaii.

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Bob,
This is very interesting and explains why some internet sales in Washington are taxed and some are not. Washington State has been collecting taxes on internet sales for about a year, but there hasn't been any rhyme or reason to some orders being taxed and some not. Thanks for the clarification.

Aloha pumehana,
Brian and Mary
Lynnwood, WA\Discovery Harbour

[allngood]

I sell online and have no Hawaii GE tax obligation for mainland and international orders. Sales are reported but exempt. Local orders are taxed with Oahu having 1/2 cent more. Expect this to change at some point.
Allen Goodson
http://www.seedshawaii.com
http://www.jobstearshawaii.com
http://www.plantshawaii.com