Politician Archive
Thread: Taxes on item sold *to* merchant vendor
Waste93 wrote:How is this a double taxation? The tax kicks in when something is sold. The person leaving the items on the vendor for you is selling them to you. You get taxed, the seller does not. Hence there is only one tax. It would only be double tax if both the seller and the purchaser were taxed.
Businesses in the US do pay taxes when purchasing items from their suppliers. Restaurants pay taxes on the supplies they purchase. There are excemptions though for some businesses. Also remember sales taxes (in the US) are all state, county, town only. So if a business is purchasing items across state lines, and neither the supplier nor the purchaser have offices in the same state, they are exempt from the local tax. Has to do with taxing interstate commerce. Which is why you can frequently purchase items of the internet without paying a sales tax. You just have to live in another state.
I used to own a small business...show my Tax ID...pay no sales tax on items that would be RESOLD...or items used in the construction of something that was to be RESOLD. Business' in the US do not have to pay tax on goods that they will be charging a tax on.
Also, Internet goods are not taxed thanks completely to the internet tax moratorium temporarily passed through Congress. They recently FAILED to make it a permenant law so there is a very good chance you will begin to see states charging for everything you buy on the internet...pay a tax in the state you bought it in...pay a tax to the state you live in (state laws differ but in Maine, where I live, you currently have to declare goods bought out of state and pay taxes on them anyway not that anyone does). But Internet purchases aren't where this tax will be a problem...imagine sending an email with some pictures of your kids to your parents across country. Imagine, every state that one of the packets travels through charges 1/10 of one cent for every packet that travels through their state...how much money would you be paying in email taxes every year? I would be paying more than my ISP bill!
ArchitectHaven wrote:
I used to own a small business...show my Tax ID...pay no sales tax on items that would be RESOLD...or items used in the construction of something that was to be RESOLD. Business' in the US do not have to pay tax on goods that they will be charging a tax on.
Also, Internet goods are not taxed thanks completely to the internet tax moratorium temporarily passed through Congress. They recently FAILED to make it a permenant law so there is a very good chance you will begin to see states charging for everything you buy on the internet...pay a tax in the state you bought it in...pay a tax to the state you live in (state laws differ but in Maine, where I live, you currently have to declare goods bought out of state and pay taxes on them anyway not that anyone does). But Internet purchases aren't where this tax will be a problem...imagine sending an email with some pictures of your kids to your parents across country. Imagine, every state that one of the packets travels through charges 1/10 of one cent for every packet that travels through their state...how much money would you be paying in email taxes every year? I would be paying more than my ISP bill!
I'm not to worried about the Internet tax law. Once a state taxes it it will end up in court. If the court follows long established Supreme Court decisions it won't be able to tax. Only the US Government can tax interstate commerce. Which is why your Maine law will be next to impossible to enforce. Of course the courts would have to follow existing rulings and not make it up as they seem to like to do.
I think the states are going to try to get around this by taxing the ISP's. But if they try to tax it based on traffic they run into the same problem.The ISP lines are like a highway. As far as I know a state can not stop every semi hauling good thru their state and tax it based on the contents. Comes back to the interstate commerce thing again. I see the internet the same way.
Anavlis
Kewee_Radiant wrote:
I don't mind the vendor tax. 1% Sales tax is still cheaper than the 5% to /tip. As a bonus, that 1% goes to help a city, which in turns helps the whole galaxy.
Anavlis
That is a good point - that money at least is not going off into the middle of nowhere, it is going into the city coffers. If you are truly talking about millions of credits here - you need to talk with your mayor because they are going to need to adjust their taxes.
vote your mayor out and lower the taxes, or....
move a house on the outside of town and setup a vender there. WHERE THERE IS NO TAX.
um.. I am the mayor or will be on Thursday. But I won't be at direct liberty to impose a new lower tax. The real issue is not the sales tax rate. It's that items purchased from offers to vendors are for resale or will be used to make finished products to be sold.
The main purpose, as most people understood it, was that sales tax was intended to be paid by consumer, the final purchaser. An inadvertant, or possibly intentional, side affect is that offers to vendors are being taxed as well. Yes, there are ways around it. All of them aren't optimum. I don't bank tip payments because CSR's will explicity tell you not to do so if the money just disappears. This takes away a great deal of the already minimal functionality and usefullness of a vendor. Plus, it makes you double check the math to be sure the item being offered is being offered for the agreed upon price and then the tax applied on top of that making the life of a merchant even more tedious.
I'd still say I have it easy, but those weaponsmiths and other crafters who regularly receive large quanitities of items offered are going to have a nightmare keeping track. It is a horrid system.
I'm fine with the taxes on items sold from my merchant vendor to customers, but when I have deliveries made via 'offering' an item to my vendor, that is also taxed, but I pay that tax. This is not good. Many crafters regularly have deliveries made from their vendors and now we are essentially being double taxed. Vendors are much less convenient and you will find people not letting items be offered to vendor and instead meeting the person.
Can we see about the tax on items offered to vendor being removed? It isn't good for merchants in the least who count on resource deliveries to make their products.
I'm not quite sure what state some of you people live in, but if you're paying sales tax on items you are re-selling, you're getting taxed twice and you don't have to be.
You do need to sign up for a sales tax ID, though, to get that tax-exempt status.
Oh, and you're SUPPOSED to pay sales tax on items you buy from out of state,it's on most state income tax forms (if your state has one of those, I know some don't), and I'm sure it exists in other forms as well.
Regardless, if I say I'm going to buy something from someone and it's being offerredon my vendor, I shouldn't be taxed on it. That's just silly.
Waste93 wrote:How is this a double taxation? The tax kicks in when something is sold. The person leaving the items on the vendor for you is selling them to you. You get taxed, the seller does not. Hence there is only one tax. It would only be double tax if both the seller and the purchaser were taxed.
Businesses in the US do pay taxes when purchasing items from their suppliers.
Perhaps in your state, but my business purchases on anything purchased for re-sale have always been tax-exempt. The supplier has my tax ID on file, and submits that in lieu of the sales tax I would have paid as a final consumer of the goods. State and local municipalities are responsible for setting these taxes, not the federal government, so YMMV depending on where you live.
All i can say Is GREEDY!
the taxes go to your city and mayor has access to them so give the money back!!!
IMHO your already making more money on from taxes when you sell. so say your normal small house is 10k at 5% house is really 10500 you make an extra 500. I challenge any crafter to prove that they charge for the final item the total cost of components im shure it costs 50k in resources to make composite chest 
.
So what your really saying is you want to make more money!!! lower your prices or lower your taxes. I personally would avaind vendors with high taxes from an economic point of view, so charge 5-10-15% ill just find a cheaper place
I also hear shuttleport prices will be same for all too, citizens and non citizens alike.
If you have alot of crafters I would have a cheap shuttleport and low taxes to draw more business as you know word of mouth goes along way in this game.
This IS double taxation. The item gets taxed ONCE when it gets sold to the merchant, and ONCE when it gets resold to the consumer, whether it be directly or after being used to craft a product. Where I come from, 1+1 still equals 2. Sure, the merchant pays for it the first time, but he's going to pass that cost on to the consumer, so either the consumer pays an even higher price to merchants who use their vendors the way they were meant to, or the merchant takes the hit himself. Now, I am a mayor, not a merchant, and I know we're going to need all the tax money we can get, but this won't help at all, it will just be an inconvenience for merchants, since they won't be able to use their vendors to buy stuff anymore if they wish to compete. This will severely slow down the economy, and makes absolutely no sense. Please reexamine this double tax, GreenMarine.
Perhaps in your state, but my business purchases on anything purchased for re-sale have always been tax-exempt. The supplier has my tax ID on file, and submits that in lieu of the sales tax I would have paid as a final consumer of the goods. State and local municipalities are responsible for setting these taxes, not the federal government, so YMMV depending on where you live.
Technicaly you ARE the final Consumer. If you buy 50k ore to make a house, you are consuming the ore. It's like buying a pound of flower to bake a cake to sell at the market. You are the consumer of the flower...even if the bi-product is the cake and will be sold.
Now if you were buying HOUSE DEEDS to resell, that is a different story whereas you are NOT the final consumer of the goods, you are simply reselling the products.
But regardless...1% is only 10,000 on 1 Million Credits. And if it keeps the shuttle running so more ppl come buy my stuff...I'll pay it ALL DAY LONG!