[Vision2020] Ringo's legislative report

[Paul Rumelhart]

Maybe the State should take a cut of the shipping charges for every item shipped to someone in that State.  Of course, the shipping charges will go up to compensate.

Paul

Sue Hovey <suehovey at moscow.com> wrote: 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" 
To: "Sue Hovey" ; "Shirley Ringo" 
; 
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  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" 
>> To: "Shirley Ringo" ;
>> 
>> 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  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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