...Online sales tax is a current hot button topic. Our government is debating if there should be a sales tax on internet purchases currently. Every person has their own opinion about whether there should be an online sales tax. This doesn’t just effect the person or company doing the selling but also the consumer. There shouldn’t be a sales tax on person to person online purchases due to several factors including a sales tax has already been paid, it will dissuade people from selling their used items they no longer want, and every state has a different sales tax amount. It doesn’t matter whom you are, a sales tax is added to the items when they are purchased. So a sales tax has already been applied. How many times is a sales tax supposed to be applied? And to what extent is everyone supposed to apply a sales tax? Are we really supposed to add a sales tax to items we sell at a yard sale or at a flea market? I think not. So why should someone add a sales tax to their used items they are selling from eBay, Amazon or Craigslist? They shouldn’t have to. There is no need to apply a sales tax for a second or third time on these used items. A person wanting to sell their used items will be less likely to list them if they have to apply a sales tax. Obviously the person selling their used items is not going to become a millionaire so any profit that is brought in from the sale of used items should be kept as just that, profit. If they have to start applying a sales tax to...
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... | | 1 |LO 1, 2, 5 |Effect of state and local taxes on decision making | |Unchanged |1 | | 2 |LO 1 |Proportional and progressive rates contrasted | |Unchanged |2 | | 3 |LO 2 |Ad valorem tax on realty: conversion from tax-exempt to | |Unchanged |3 | | | |residential status | | | | | 4 |LO 1, 6 |Adam Smith and canon of convenience | |Unchanged |4 | | 5 |LO 2 |Use taxes | |Unchanged |5 | | 6 |LO 2 |Excise and general sales taxes compared | |Unchanged |6 | | 7 |LO 2 |Federal gift tax and use of annual exclusions | |Unchanged |7 |...
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...Online sales taxation has been a controversial issue in the U.S. especially with regard to interstate commerce. In most cases, most U.S. states are looking for any means to raise revenues to fund their operations; as such, taxes on internet sales is not excepted as a source of income for the government. Nevertheless, in the past few years, the U.S. Supreme court has dealt with several cases challenging the legality and the constitutionality of attempts by several U.S. states to demand taxes on goods purchased online and shipped to residence from various states. For instance, in Bellas Hess v. Illinois and Quill Corp. v. North Dakota where the court withheld that the state could not demand an online sales firm to collect sales tax on its behalf if the latter does not have any physical representation in the former (FindLaw, 2013 & CBO, 2013). On 16 April 2013, S. 743, Marketplace Fairness Act of 2013 was introduced in the senate and passed on to 7 May 2013. Apparently, Marketplace Fairness Act of 2013 was meant to restore U.S. states’ integrity to demand online sales firms to remit sales taxes on more than $1million of revenues made by selling goods to people residing in their territories (www.gpo.gov). Even though some of these laws (both common and legislative) are meant to reduce hurdles on states’ attempts to impose taxes on internet sales that occur within their territories, there are still other legal and practical challenges that will keep on cropping up, hence necessitating...
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...Internet Taxation Solutions for Amazon, Inc. Guy D. Hugaert October 9, 2011 IS 535 Professor Amita Suhrid-Cherewick Internet Taxation and Legislation One of the hottest political issues regarding taxation is how to tax revenue generated on the internet. Before the internet, stores were required to collect the appropriate sales tax rate in the state where the store was located. The store then forwarded the collected tax to the state tax collector. This system was working fine and was quite simple until the invention of the internet. The system has not changed for the traditional ‘brick and mortar’ store but things are much different for the ‘online’ store. This is where it gets interesting, how do we ensure that the sales taxes are paid or who is responsible for collecting the tax and what rate is paid and what state gets the taxes? For example, where should any sales tax is paid for candy ordered via the Internet from an Ohio vendor by a California resident while traveling in Georgia that is sent to a relative in Michigan (Nellen, 1999)? When the internet went commercial in 1995 it was free of regulation and taxes from the US government at all levels until 1996 when several US states saw the Internet as a great source of revenue for their states. Ten states (Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington & Wisconsin) started charging ISP’s an Internet access tax. This lead to the authoring of the...
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...most teenagers. The popularity of the Internet particularly Facebook, Instagram and other social networking sites attracted many retailers to invest their businesses online without having to pay taxes like any other retailers do. By this, e-commerce continues to grow with the advancement in technology as it overshadows the traditional way of running a business by the insignificant purpose of the physical interaction between the buyer and the seller. E-commerce in itself is classified into three types: business-to-consumer in which online stores sell products to final consumers; consumer-to-consumer just in the case of eBay and Amazon and; business-to-business which involves job recruiting, online advertising, credit, sales, and the like (U, 2002, p.6). With the emergence of e-commerce, brick and mortar stores are slowly starting to degrade, thus alarming the government on the collection of lesser tax since the law regarding electronic commerce taxation is still being debated. This income generating phenomenon has been an attractive target to the government to cope with its huge loss on tax collection. So why pay tax? Richard Carlson (2002) once said, “At tax time, it helps to remember that if your tax obligation has increased from the previous year, it’s usually because you’re enjoying more income. That’s a situation to which most of us aspire. Higher taxes are a price that we pay for greater success.” For this reason, the imposition of tax to online sellers in social networking...
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...I've seen some early versions. Think World of Warcraft meets Farmville. As you can imagine, this is an interesting place to be the "tax guy". Steve Hagy, our CEO, has spent the last several months re-evaluating our business model. He wants to get out of the business of shipping disks. His vision is to move the delivery of our gaming software to an internet platform. There’s been a lot of discussion around how best to make this happen. The IT guys have laid out a good argument for delivery via a “cloud” solution. The Operations team believes we would have more control if we kept things “in-house”. The Product Development and Marketing folks want everything yesterday. The leadership team is looking to me to provide insights on the tax issues involved. We have a meeting in a couple of weeks and would like to hear your insights and advice. Here are the “hot button” issues as I see them: • We have a good understanding of the income and indirect tax issues surrounding the retail sale of tangible personal property as that is how we have delivered our games in the past. Are there any tax issues, both from a federal and state perspective, we need to consider as we move to an internet delivery model? Will it still be considered the sale of tangible property or would it be considered a service? Can you give us a feel for any trends you are seeing on the tax side of things for other similar products? What do you think we can...
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...| The Internet Sales Tax | Sales Tax Headaches | | [Type the author name] | Park University | MG 260 | Internet Sales Tax I. Lure of the No Tax Sale A. Supreme Court Ruling a. Quill v. North Dakota B. Sales and Use Tax 1. Declining Revenue a. Internet Sales b. Purchasing shift taxable goods v. services 2. Congress Failure to Act a. Three serious impacts b. States React independently II. States Actions A. Click through Nexus Laws 1. Illinois Example a. $153- $170 Million lost revenue per year (1) Main Street Fairness Act (2) Amazon & Overstock Pull Affiliates (3) Affiliates Flee Illinois 2. Illinois Court Ruling a. Law fails Muster III. States Band Together A. Streamlined Sales Tax Project a. Streamlined Sales and Use Tax Agreement 1. 44 States and DC 2. Impact large online and catalogue retailers IV. Congress Proposes Legislation A. Main Street Fairness Act B. Market Place Fairness Act C. Market Place Equity Act V. Closing A. Legislation or Review by the Supreme Court The lure of the no tax sale “The internet has emerged as an extremely important channel of commerce in our nation for this reason; we must be vigilant in keeping this medium as unencumbered from regulations and taxes...
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...Mazerov argues that it’s only fair to have taxes on internet sales as online shoppers gain too much an unfair advantage over the retailers. Mazerov opines that the supreme court decision that prevented states from collecting taxes from internet sales made by retailers who have no place of business in those specific states. The effect of taxation on online sales is that shoppers will have to pay taxes to the state as one would in a local retail store. It is the absence of taxes on internet sales that attracts so much notoriety and clientele and some people have argued that introduction of internet sales taxes would greatly reduce the merchandise that is moved online. On the same note, the government by taxing, which may cause downward fall of sales online would eventually reduce the estimated taxes to be collected. The argument that retailers would not benefit is however flawed, as it is the buyers who pay the taxes and not the sellers. Also the retailers have a lot to benefit from the state in services such as police protection, firefighting, healthcare and education. The decision made by the Supreme Court requires the congress to give the States power to tax internet businesses in their jurisdictions. But why tax sales in the internet? Some of the arguments posed are that, firstly, Mazerov argues that a lot of important taxes are lost, which money could be channeled to improving the economy, hospitals, education and infrastructure amongst other things. About $10 billion is lost...
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...The Financial Business Plan of an Ideal Company Dianna Schrock Instructor: Jeff Bloom AIU Applied Business Mathematics December 13, 2015 1. Banking and loan arrangements Since this is a small business start-up with little financial requirement, we would opt to go for a microloan program since this will be easier to acquire and does not require too much collateral and will just require personal guarantee of the three of us, as the business owners. This will enable us acquire basic facilities for starting such as Machinery, furniture and fixtures, and working capital. Microloans will also facilitate flexibility on repayments as we plan to start repaying the loan after two years, monthly for approximately three years, since we expect the business to start generating profits within the first two years of operation. We would prefer to go for the Small Business Administration Loans since this will require us to pay within six years. To ensure accuracy and sufficiency of funds, we shall first establish all the assets that will need to be acquired before the start-up, obtain the average cost listing from possible vendors and compute the total cost requirements for these assets. We shall also calculate the total overheads that shall be incurred for the period that the Business will not be expected to generate profits and sum them up. The totals of these will hint us on the total cost requirement, which has already been estimated at $50,000; the amount that we shall...
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...Tax Revenues and E-Commerce Table of Contents: i. Introduction ii. E-Commerce iii. Internet Tax Freedom Act (ITFA) iv. Amazon and “Amazon Tax” v. State Budgetary Gaps vi. Conclusion vii. Appendix a. Colorado House Bill 10-1193 b. State Budget Gaps and Uncollected Tax Revenues c. Regression Analysis i. Graph 1.1 ii. Graph 1.2 iii. Graph 1.3 viii. References Introduction It was May of 1984 in Gateshead, England when Tesco recorded the first ever-online shopping transaction from a home . Tesco is the second largest retailer in the world after Wal-Mart, based on profits . This single transaction would pave the way towards a society that relies on the virtual store as opposed to a traditional brick and mortar setting. The convenience and accessibility that the virtual market provides has consequently provided inconveniences in other areas. State and federal governments have been steadily suffering from budget short falls. E-Commerce has diverted business from the mom and pop stores to companies such as Amazon.com and Overstock.com. Small businesses have closed and the land that they once occupied now sits vacant, with no one paying the respective land and sales taxes that the business once generated. The closing of smaller, local retailers has, in retrospect, paved the way for the expansion of e-commerce and the exponential growth that has been realized over the last decade. Current legislation and lack of regulation have limited the potential for federal...
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...With almost $350 billion in total annual online spending, U.S. customers make up the second largest e-commerce market in the world (Census). The magnitude and expected growth of the e-commerce market could provide significant tax receipts to local, state, and federal governments. Currently, sales tax makes up approximately 25 percent of the government’s gross tax receipts. But the large and growing volume of online sales is bringing attention to the outdated policies surrounding the collection of sales and use tax on such transactions. Before the internet established its presence in the average American’s home, cross-state purchases were more scarce--occurring only on the occasional vacation or through catalog phone orders. The rapid advancement...
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...Scenario Your company has recently decided to expand into online sales. The company wishes to continue to sell its products in the retail stores located throughout the United States but they also wish to establish a presence on the Internet. Research the online marketing opportunities available for retail sales and provide a report to your manager which includes the advantages and disadvantages of marketing online, the potential impact of online sales to the company, and the requirements for a successful online marketing campaign. Main Ideas Advantages and disadvantages of online marketing Halligan, B. ( 2011). Inbound marketing. Retrieved from http://www.slideshare.net/HubSpot/101-awesome-marketing-quotes Fowler, G. (2009). Amazon cuts ties to affiliates in Hawaii. The Wall Street Journal. Retrieved from http://online.wsj.com/article/SB124638801268074915.html Lau, K. (2010). The advantages and disadvantages of online marketing. Retrieved from http://kevinklau.com/the-advantages-and-disadvantages-of-online-marketing/ The potential impact of online sales Cerf, V. (1995). Computer networking: Global infrastructure for the 21st century. Retrieved from http://homes.cs.washington.edu/~lazowska/cra/networks.html Barr, A. (2013). EBay holiday quarter sales jump: 2013 forecast cautious. Reuters. Retrieved from http://news.yahoo.com/ebays-fourth-quarter-revenue-rose-18-percent-212124057--sector.html Macaluso, N. (2001). Analysts cool to Amazon q4 projections...
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...ISSUES IN E-COMMERCE Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that includes the transmit of information across the Internet. Electronic commerce has expanded quickly over the past years and is anticipated to continue at this rate, or even step-up. The innovatory development of network technologies began electronic commerce as a global trend. E – Commerce utilizes electronic systems for not only buying and selling of the goods and services but also in marketing, supply management, fund transfer. Today most of the businesses rely on electronic systems at least at some points. World Wide Web, the resultant of Internetworking is the main contributor where telephone, mobile phone, fax also serve the purpose. Even though e-commerce technologies provide great benefits, any kind of online transaction give potential for immense misuse of these technologies. Several organizations become the target of e-commerce related crimes ranging from virus assault to business frauds, including e-mail theft, stealing sensitive data of person and credit card information. U.S government’s new internet fraud center does a survey that gathers and studies consumer complaints. Online auctions make nearly 50% of the complaints obtained by the center. Other major types of complaints are security and commodities complaints 16.7%, credit card complaints 4.8%, identity thefts generate 2.9% of the complaints, loss of business chances 2.5% and professional...
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...scenario selected is #6 regarding a business that is looking at growing by starting online sales. (B) Online Sales: Advantages and disadvantages: George Scifo (2010) 10 Advantages of Online Advertising. Retrieved from: www.georgescifo.com/2010/05/10-advantages-of-online-advertising Amy Martinez (2012) Amazon to begin collecting sales tax in Texas. Retrieved from: http://seattletimes.com/html/businesstechnology/2018564432_amazon30.html Online Sales: Possible impact: Bill Siwicki (2012) Sales from mobile devices double in December. Retrieved from: http://www.internetretailer.com/2012/01/10/sales-mobile-devices-double-december Clark Fredrickson (2012) Apparel Drives US Retail Ecommerce Sales Growth. Retrieved from: http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-sales-growth/ Phil Wahba (2011) EBay forecast pleases as PayPal, auctions gain users. Retrieved from: http://www.reuters.com/article/2011/04/27/us-ebay-idUSTRE73Q7Z920110427 Don Davis (2012) Amazon’s North American sales rise 36% in Q2. Retrieved from: http://www.internetretailer.com/2012/07/26/amazons-north-american-sales-rise-36-q2 Online Sales: Different requirements for online marketing Rebecca Gill (2011) Successful Internet Marketing Begin With Goals. Retrieved from: http://www.web-savvy-marketing.com/2011/01/successful-internet-marketing- campaigns-begin-with-goals/ Biana Babinsky (2009) Make Marketing Easier – Define...
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...various ways to create awareness and how to become a reseller. Additionally it consists of Laws and conditions for an online business, spamming, electronic signatures and online sales tax. Online Business At the very start, internet revolution was known as a world wide web that would change everything. In 1990s, the concept of "online business" was created, this business is known by various names such as dot-coms, e-biz etc. which made easier to start a business on internet and inexpensive as well. Whether it's a big or a small, local or international it can reach infront of the world very easily. Thousands of ventures have been made on internet for online business on the basis of brick and mortar. Online business is not different from any other venture. Same rules and principles are applied. First thing to start up a business is to create a business plan and think of how to make money. Some of the options which should be applied for an online business includes, sell products, sell advertising, sell information, sell services and to become a reseller. All of these options are complied together. For any virtual business an individual should always look for products with high margins, high demand and less competition either for physical or digital manner. However, many services are sold on internet such as web hosting, domain name registration, software applications and comparison of different products and services. Selling information is another basic option in an online business...
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