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California sales-tax-exempt limit went up this year
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<p>[QUOTE="calcol, post: 24697152, member: 77639"]South Dakota vs Wayfair, 2018, is the relevant Supreme Court decision. If you’re a U.S. citizen buying from a dealer in the U.S. and the sale is across state lines, the dealer is supposed to collect sales tax appropriate to your state of residence (not the dealer’s state of residence) and forward the funds to the tax authority in your state of residence. If the sale occurs within a state, that state’s laws apply, and any tax collected is forwarded to that state’s tax authority.</p><p><br /></p><p>I remember talking to Ian Russell, co-owner of Great Collections, about the Wayfair decision when it was pending. He estimated it would cost GC at least $75k per year in administrative costs to comply.</p><p><br /></p><p>If we’re going to have sales tax, the Wayfair decision was a good one because it levels the field for in-state and out-of-state sales. However, the administrative costs to business could be lessened by having a national sales tax clearing authority (funded by the taxes collected!). That way a business doing out-of-state sales would need to deal with only one out-of-state tax entity instead of dozens.</p><p><br /></p><p>Cal[/QUOTE]</p><p><br /></p>
[QUOTE="calcol, post: 24697152, member: 77639"]South Dakota vs Wayfair, 2018, is the relevant Supreme Court decision. If you’re a U.S. citizen buying from a dealer in the U.S. and the sale is across state lines, the dealer is supposed to collect sales tax appropriate to your state of residence (not the dealer’s state of residence) and forward the funds to the tax authority in your state of residence. If the sale occurs within a state, that state’s laws apply, and any tax collected is forwarded to that state’s tax authority. I remember talking to Ian Russell, co-owner of Great Collections, about the Wayfair decision when it was pending. He estimated it would cost GC at least $75k per year in administrative costs to comply. If we’re going to have sales tax, the Wayfair decision was a good one because it levels the field for in-state and out-of-state sales. However, the administrative costs to business could be lessened by having a national sales tax clearing authority (funded by the taxes collected!). That way a business doing out-of-state sales would need to deal with only one out-of-state tax entity instead of dozens. Cal[/QUOTE]
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California sales-tax-exempt limit went up this year
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