[Vision2020] Ringo's legislative report

[Sue Hovey]

Well at one time this message was about Internet sales.  Seems to me we have 
taken a detour.

Sue
----- Original Message ----- 
From: "Kai Eiselein, editor" <editor at lataheagle.com>
To: "Sue Hovey" <suehovey at moscow.com>; "Paul Rumelhart" 
<godshatter at yahoo.com>; "Shirley Ringo" <ringoshirl at moscow.com>; 
<vision2020 at moscow.com>
Sent: Tuesday, January 22, 2008 10:39 AM
Subject: Re: [Vision2020] Ringo's legislative report


> Of course its easy, just put up checkpoints at every entrance into the 
> state, manned by revenue agents. They'll just search you, your vehicle and 
> luggage, figure out what you bought and hand you a tax bill.
> Once paid or the goods are forfeited, you can be on your merry way knowing 
> your government is looking out for you.
> ----- Original Message ----- 
> From: "Sue Hovey" <suehovey at moscow.com>
> To: "Paul Rumelhart" <godshatter at yahoo.com>; "Shirley Ringo" 
> <ringoshirl at moscow.com>; <vision2020 at moscow.com>
> Sent: Tuesday, January 22, 2008 12:10 PM
> Subject: Re: [Vision2020] Ringo's legislative report
>
>
>> Maybe not, but surely if we can envision a solution to global warming and
>> Iraq, this should be easy.
>>
>> Sue
>> ----- Original Message ----- 
>> From: "Paul Rumelhart" <godshatter at yahoo.com>
>> To: "Sue Hovey" <suehovey at moscow.com>; "Shirley Ringo"
>> <ringoshirl at moscow.com>; <vision2020 at moscow.com>
>> Sent: Tuesday, January 22, 2008 6:52 AM
>> Subject: Re: [Vision2020] Ringo's legislative report
>>
>>
>>> It just seems strange to me that I can buy a DVD from
>>> Japan while traveling out-of-state, and still have to
>>> count it on my State taxes.  I see the unfairness to
>>> brick-and-mortar stores, but I don't think they're
>>> likely to come up with a solution that works in all
>>> cases without being unfair to someone else.
>>>
>>> Paul
>>>
>>> --- Sue Hovey <suehovey at moscow.com> wrote:
>>>
>>>> Paul, I don't think very many people save those
>>>> slips and enter the
>>>> appropriate tax whether they use Turbo Tax or not.
>>>> It also appears to me
>>>> that there really must be a good solution to the
>>>> taxing of Internet sales
>>>> because some out of state  companies do, in fact,
>>>> include the state tax when
>>>> the item is ordered.  I don't know how they make
>>>> their remittance to the
>>>> state, but work on the assumption that they do.  It
>>>> just seems so unfair to
>>>> me not to tax Internet items as they are being sold
>>>> in direct competition
>>>> with local vendors. All taxation is somewhat messy,
>>>> and you make points I
>>>> had not considered, but I am optomistic there has to
>>>> be a good solution.
>>>>
>>>> Thanks, Shirley.  I too, think this is an issue, as
>>>> well as a
>>>> reconsideration of all those exemptions, which needs
>>>> to be examined.
>>>>
>>>> Sue H.
>>>> ----- Original Message ----- 
>>>> From: "Paul Rumelhart" <godshatter at yahoo.com>
>>>> To: "Shirley Ringo" <ringoshirl at moscow.com>;
>>>> <vision2020 at moscow.com>
>>>> Sent: Monday, January 21, 2008 8:15 AM
>>>> Subject: Re: [Vision2020] Ringo's legislative report
>>>>
>>>>
>>>> >A State sales tax is too parochial of a concept to
>>>> put
>>>> > on the Internet.  Do you compute taxes on the
>>>> State
>>>> > the brick-and-mortar store that is selling the
>>>> item is
>>>> > located?  Do you compute them based on which State
>>>> the
>>>> > corporation is incorporated in?  What if it's a
>>>> single
>>>> > person selling something on e-bay, and not a
>>>> > corporation?  What if the business exists as an
>>>> > Internet-only store?  In some cases, the business
>>>> not
>>>> > only won't have a home office, it won't even have
>>>> a
>>>> > physical server - just data that can be hosted
>>>> > anywhere.  Do you compute taxes based on the State
>>>> > that the servers are located in?  What if you have
>>>> > servers in different states?  Do you compute taxes
>>>> > based on where the transaction servers are
>>>> located?
>>>> > This is often a completely different State than
>>>> where
>>>> > the website server is located.  What if the web
>>>> server
>>>> > is in one State and the database it connects to is
>>>> in
>>>> > another?  Where do you draw the line?  Any given
>>>> > webpage could be directed either from the web
>>>> server
>>>> > or the database server (through the web server).
>>>> Do
>>>> > you compute taxes based on where the person buying
>>>> the
>>>> > item is located?  What if they are in an airport,
>>>> or
>>>> > an Internet cafe on a trip?  What if they are in a
>>>> > plane?
>>>> >
>>>> > This is why the concept has never gotten off of
>>>> the
>>>> > ground.  Once an answer is chosen, then everyone
>>>> will
>>>> > flock to State with the smallest sales tax, or
>>>> host
>>>> > their site overseas.  The Internet is a mobile
>>>> place.
>>>> >
>>>> > Maybe they could throw some sort of Federal use
>>>> tax on
>>>> > Internet sales that would be portioned out to the
>>>> > States somehow.  I don't know.  It's not an easy
>>>> > problem to solve.
>>>> >
>>>> > One good question might be: does the State deserve
>>>> the
>>>> > sales tax on the item sold?  What part do they
>>>> play in
>>>> > the transaction?  That answer will vary based upon
>>>> > what choice is made about how to tax things, I
>>>> guess.
>>>> > I can see some States getting no tax because no
>>>> one
>>>> > has a store there, or some States getting the tax
>>>> even
>>>> > though nothing other than a hosting company was in
>>>> > their State.
>>>> >
>>>> > Also, am I the only person that diligently saves
>>>> their
>>>> > packing slips and puts them down on their taxes
>>>> every
>>>> > year?  I use TurboTax online, and it always
>>>> prompts me
>>>> > for it.
>>>> >
>>>> > Paul
>>>> >
>>>> > --- Shirley Ringo <ringoshirl at moscow.com> wrote:
>>>> >
>>>> >>
>>>> >>
>>>> >> This week in the Legislature
>>>> >>
>>>> >> Representative Shirley Ringo
>>>> >>
>>>> >> January 18, 2008
>>>> >>
>>>> >>
>>>> >>
>>>> >> A major disappointing development out of the
>>>> Revenue
>>>> >> and Taxation committee this week involves their
>>>> >> refusal to consider legislation regarding the
>>>> >> Streamlined Sales Tax.  This is a multi-state
>>>> effort
>>>> >> to apply state sales tax to internet sales.
>>>> Passage
>>>> >> of this legislation would not commit us to
>>>> specific
>>>> >> action, but would give us a seat at the table for
>>>> >> discussion.
>>>> >>
>>>> >>
>>>> >>
>>>> >> As a result, we will continue the unfair practice
>>>> of
>>>> >> requiring Main Street business to apply the 6%
>>>> sales
>>>> >> tax, while their competitors who sell over the
>>>> >> internet are not required to do so.  Supposedly,
>>>> we
>>>> >> are to pay the state a "use tax" of 6% when we
>>>> are
>>>> >> not charged a sales tax.  This is rarely, if
>>>> ever,
>>>> >> done.
>>>> >>
>>>> >>
>>>> >>
>>>> >> Thus, out of state internet vendors get a 6%
>>>> >> discount; home town vendors get the shaft.
>>>> >>
>>>> >>
>>>> >>
>>>> >> I would like to discuss two additional issues
>>>> with
>>>> >> regard to taxes.  There are a number of
>>>> exemptions
>>>> >> and exceptions to the sales tax that have been on
>>>> >> the books for some time.  Each of them was added
>>>> for
>>>> >> a reason, but they stay on the books without
>>>> being
>>>> >> revisited.  A great deal of revenue is lost
>>>> through
>>>> >> these exemptions.  If some of that revenue were
>>>> >> recovered, it would be possible to reduce
>>>> taxation
>>>> >> in other areas and move toward greater fairness
>>>> in
>>>> >> the system.  I have suggested a systematic review
>>>> of
>>>> >> these exemptions - an investigation of which are
>>>> >> serving no purpose and should be dropped.  The
>>>> >> majority of members on the Revenue and Taxation
>>>> >> Committee continue to block such considerations.
>>>> >> They have done so again this year, by refusing to
>>>> >> consider the recommendations of a committee
>>>> studying
>>>> >> these issues.
>>>> >>
>>>> >>
>>>> >>
>>>> >> My colleagues and I will bring legislation this
>>>> >> session to move towards phasing out the sales tax
>>>> on
>>>> >> food.  We propose a plan to phase out the tax on
>>>> >> food at 1% per year.  This represents a
>>>> substantial
>>>> >> loss in tax revenue, so it must be approached
>>>> with
>>>> >> great care.  In the end, we must seek a system of
>>>> >> taxation that provides revenue for important
>>>> needs,
>>>> >> but is fair to Idaho citizens.
>>>> >>
>>>>
>>> === message truncated ===
>>>
>>
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> Kai Eiselein
> Editor, Latah Eagle