Can they tax?

[No2sc2]

I realize some places that provide a service, they will tax in the total cost, is that legal? Like haircut, shooting range and such.

I understand if a product is bought but for services? I don't think it's legal to tax...

 

[offbeat404]

big brother needs his cut at all times; no compromise.

 

[mtgldr]

I realize some places that provide a service, they will tax in the total cost, is that legal? Like haircut, shooting range and such.

I understand if a product is bought but for services? I don't think it's legal to tax...

I think about 4 -5 yrs ago businesses started taxing service, they didn't use to but.. refer to post #2

 

[rasputin8]

Really? You guys are getting taxed for range time? I don't ever recall having to pay tax on top of range fees.

 

[No2sc2]

Really? You guys are getting taxed for range time? I don't ever recall having to pay tax on top of range fees.

Some range don't, some do, that's why I was wondering.... I guess it's up to the business owner?

 

[jcountry]

Speaking of tax-

I have noticed that more and more online places are charging tax. I didn't think they could unless they had a place of business in this state. I would bet they are just keeping it.

 

[Cat Herder]

Speaking of tax-

I have noticed that more and more online places are charging tax. I didn't think they could unless they had a place of business in this state. I would bet they are just keeping it.

I don't think it is a matter of "could" as much as "have to." Given the huge revenue shortfalls in just about every state, the states have tried to plug every hole and get every dime they can. There was a big case in CA against Amazon, I believe, where the court found in CA's favor. It just about ran all of Amazon's Marketplace proprietors out of state, further exacerbating the revenue problems. The definition of a physical presence in the state was fairly broadly interpreted and that has influenced tax laws in other states. In Georgia, it is my understanding that sales taxes are owed on internet purchases but enforcement relies on voluntary compliance. No enforcement infrastructure is in place to monitor and compel compliance yet. I'm not an attorney just a news junkie! YMMV...

I also thought that the bill to tax services was not adopted during this last session of the General Assembly. It had been discussed, along with ending the reduced taxes on groceries, as parts of the tax code overhaul. A select committee was formed to study and then recommend changes for the General Assembly's action. Oddly enough, as it is an election year, there was not a lot of motivation to impose new taxes and close loopholes which would have to be explained to the voters back home. Even as they flattened the corporate and individual tax rates, meaning less income tax, the fact that taxes would be imposed on haircuts, dry cleaning, or attorneys and that we'd be paying 7-8% on all our groceries would be what the voters remembered most clearly. I can't speak to why some business are taxing a service and others are not. Maybe a small business owner, an attorney or an accountant will tell us all...Again, YMMV!

 

[Zastava]

YEA Ebay and Amazon are juggling the charge for tax thing. Even out of state.

 

[Hayata]

My understanding is that if a business has a location in your state, they are required to charge sales tax. If I buy something online from Costco, they charge GA sales tax. If I buy ammo from Oklahoma, no sales tax. Really not sure about services, though.

I understand there are moves afoot to tax all the out of state online purchases. I understand why, lots of stuff bought online and Uncle Sam doesn't see a dime. Of course, they are getting additional revenues from the likes of Fedex and UPS, but they are missing out on the sales tax.

 

[jcountry]

My understanding is that if a business has a location in your state, they are required to charge sales tax. If I buy something online from Costco, they charge GA sales tax. If I buy ammo from Oklahoma, no sales tax. Really not sure about services, though.

I understand there are moves afoot to tax all the out of state online purchases. I understand why, lots of stuff bought online and Uncle Sam doesn't see a dime. Of course, they are getting additional revenues from the likes of Fedex and UPS, but they are missing out on the sales tax.

I know politicians would love to see some kind of extra tax, but I have a hard time trying to figure out how they could justify it. If a seller has no physical location in your state, I don't know what entity they would be taxing. How can you tax something that doesn't exist in your state? How would the online merchant even pay it without filing taxes in all 50 states? It would be a mess.