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Ina Steiner on EmailIna Steiner on LinkedinIna Steiner on Twitter
Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

5 thoughts on “Congress Told that States Are Targeting Small Businesses”

  1. Seems to me (as one based outside your country) that these greedy and rapacious tax entities are constantly finding new and novel ways to rip off the little guy. This has happened to me on several of the platforms where I sell, which is why I now encourage my customers to buy from me direct with no sales tax deductions.

  2. I agree with oberon1.
    I collect pay quarterly the sales tax for sales I make within my own state.
    I have no control over sales taxes collected by Etsy.
    I don’t sell enough product in any state that would exceed the amount needed to require sales taxes to be collected. Etsy collects these taxes anyway.
    No sales tax data appears on any Etsy report. The “Tax” column remains empty. Etsy’s response: “We don’t want to confuse the sellers.”
    No proof from Etsy that “x” amount of sales tax was collected and paid directly to those states.
    No proof that my 1099k includes sales taxes that were no passed on to me.
    No guarantee that down the road Etsy won’t begin charging me a fee for forwarding those sales taxes, when they hold those funds until they must pay the states, usually quarterly, and therefore are able to collect interest on those funds.

    I would be happy to report this, with proof, to any congressional committee. I do have invoice copes from Etsy that list the taxes that were collected. I manually go through them & itemize these taxes. But I do not have proof that Etsy paid those taxes. They are not required to provide this.

  3. I keep saying they’ve got it all backwards. Let states collect sales tax on all purchases made with businesses in their own state. If it weren’t for the business’s existence, the transaction wouldn’t have taken place and, therefore, it should be the business owner’s state that collects.

    It would benefit the states just as well, but in a much simpler and fairer manner that allows each state to remain in control over its own sales tax. By allowing merchants to continue collecting for and remitting to one state, there wouldn’t be a need for expensive third-party solutions because merchants wouldn’t be much, if anymore burdened by the new requirements.

    It would also completely do away with any confusion over what is and isn’t taxable for each state or any other varying sales tax laws. Of course, since they will be collecting on a lot more purchases, they should account for the excess by adjusting the filing requirements (ie, upping the number/amount of sales).

    Why do they always have to make things so difficult?

    1. Forgot to mention that a Use tax should be deemed unconstitutional and completely unnecessary if they would just get their heads out of the sand and actually put them together. If each state is collecting from all eligible purchases made within their state (whether directly or indirectly), then where would the need be for a use tax in any state because the customer is paying the tax?

      Furthermore, if a merchant (collecting only for their own state) isn’t required to collect sales tax within their own state, then their customer shouldn’t have to pay a tax to any state. As it is now, I’m not required to collect for any state, yet, my customers are being charged sales tax on certain sites. What’s worse is that it’s being counted as my own income when it’s not and I have no way to prove where that extra money went because I didn’t have anything at all to do with the sales tax process being applied to my own business.

      Seriously? Come on, folks…get with the program!

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