View Full Version : Online Sales Tax Proposal



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Prunesmoothie
11-11-2016, 03:34 PM
Anyone know what happened to this proposal that would have added sales tax to any online purchase?

stick47
11-11-2016, 05:29 PM
I've hit some Ebay items (cosmetics for the Wife mostly) that had tax added when I clicked to buy. They were national brands from an individual Ebay seller not from a store. I didn't complete those purchases due to the tax but interestingly on another occasion when I tried to by cosmetics the purchase was refunded a couple of days later with the excuse that the seller couldn't do business in this state. Tax issue? IDK.

jerrywall
11-11-2016, 05:38 PM
It passed. Online retailers selling to Oklahoma residents must either collect and remit sales tax or provide a report to consumers on how much tax they owe the state. It's actually been the law since about forever to remit use taxes to the state as a consumer for catalog, phone, or online purchases but the majority of Oklahomans have ignored that law. I actually know someone who got penalized a few year backs during an audit because they saw online purchases on his bank statement but reported zero to the state on his return. I'm not sure they'd ever prosecute someone for tax fraud over it but if they can prove you owe them they will collect.

king183
11-12-2016, 12:09 PM
It passed. Online retailers selling to Oklahoma residents must either collect and remit sales tax or provide a report to consumers on how much tax they owe the state. It's actually been the law since about forever to remit use taxes to the state as a consumer for catalog, phone, or online purchases but the majority of Oklahomans have ignored that law. I actually know someone who got penalized a few year backs during an audit because they saw online purchases on his bank statement but reported zero to the state on his return. I'm not sure they'd ever prosecute someone for tax fraud over it but if they can prove you owe them they will collect.

Quick correction, Jerry: The only thing required by the new law is that retailers provide a report to consumers of the amount of sales tax they may owe. In practice, this will likely be slightly better than useless because the retailers do not have to report that same information to the Tax Commission. Still, as Jerry said, people are supposed to pay those taxes when they file their income taxes. Very few people actually do that, but this new reporting requirement is intended to encourage compliance.

The retailers, however, still do not have to collect and remit sales taxes unless they have a physical presence in the state.

Martin
11-12-2016, 03:28 PM
citizens need to pay the sales tax (or use tax) that they owe, not debating that... but i don't see how this accomplishes anything. how can oklahoma regulate businesses that have no in-state physical presence? i don't have my ged in law but i'd think that would run foul of the commerce clause.

jerrywall
11-12-2016, 04:36 PM
Eh, several states have done it for years. The big online retailers are cooperating. Small ones may not but if even some of them large ones do that's revenue the state is due.

Martin
11-12-2016, 04:45 PM
yeah, i think 'cooperating' is the key word. i don't think there's any way this could actually be enforced on an out of state business.

jerrywall
11-12-2016, 04:49 PM
Agreed. Although if Amazon opens any of their shops in Oklahoma it gets easier. Thinkgeek already has that issue.

mkjeeves
11-12-2016, 05:01 PM
It was the subject of a couple of supreme court decisions. States lost, and it's not required of the retailer unless they have a presence in the state.

https://en.wikipedia.org/wiki/National_Bellas_Hess_v._Illinois

and

https://en.wikipedia.org/wiki/Quill_Corp._v._North_Dakota

chuck5815
11-28-2016, 09:53 AM
From what I understand, Congress is attempting to address the collection of sales taxes from out-of-state retailers via the Marketplace Fairness Act. I'm not really sure a Republican Congress would pass the measure, although I'm certain that commercial real estate guys like Trump are all about it. It would mean a great deal for local retailers everywhere. Even if it passes, though, I'd guess that smaller online retailers and private individuals would be far less likely to comply than the Amazons of the world.

http://marketplacefairness.org/

Celebrator
11-28-2016, 11:23 AM
So will retailers email us a report of the taxes we owe to the state sometime in January, or something?

emtefury
11-28-2016, 12:22 PM
So will retailers email us a report of the taxes we owe to the state sometime in January, or something?

No. It is for you to keep track of.

TU 'cane
11-28-2016, 02:55 PM
If you click through a few spots on your account, you can be directed to a page that shows Amazon's official policies and states that THEY have to provide a sales tax for. Last I checked (a couple months ago), Amazon had OK listed under the "doesn't collect sales tax" category, or something similar.

A lot of people I know shop Amazon to avoid the sales taxes. And of those people only one knew about technically having to follow up on our taxes ourselves. The majority aren't aware and I think the state needs to be a little more clear and work with Amazon more to let everyone know what the possible ramifications are.

It's not fair to knock some people and not the majority of others especially when things aren't 100% clear and easy to confirm (just look at the responses here).

jerrywall
11-28-2016, 03:33 PM
There is a notice on your amazon invoice that comes in the box, about use tax and Oklahoma. This is due to a 2010 bill (HB 2359). The new bill that went into effect on Nov 1 is a bit more aggressive about notifying purchasers, and requires online retailers who are not required to collect sales/use taxes in Oklahoma "annually send a letter to each in-state customer stating (1) the total purchase price of all purchases made during the year on which sales tax was not collected, and (2) that the purchaser may owe use tax on those purchases." They still won't report the sales information to the state, so a person's compliance is up to them. It's also difficult to enforce that Amazon and other retailers will follow the rule. However, based on past behavior I expect Amazon will, and that'll cover a big chunk of untaxed online sales in Oklahoma.

baralheia
11-28-2016, 04:46 PM
For what it's worth, I purchase a fair amount of stuff on Amazon, and 9 times out of 10 there is no invoice in the package when I open it. I can easily find the invoice online, but there is no such notice on the digital invoice. But it will be nice to be able to have a better idea of the proper amount of use tax I really should be paying, as I normally just use the estimate that TurboTax gives me.

TU 'cane
11-28-2016, 08:59 PM
Funny, this popped up today.
Start keeping track now, don't worry about the past according to this source:

http://m.newson6.com/Story.aspx?story=33810695&catId=112042

riflesforwatie
11-29-2016, 09:02 AM
If I remember correctly, in past years use tax was collected by either a) the use tax table in the Oklahoma Individual Income Tax booklet (which is your federal AGI multiplied by 0.00056) -or- b) worksheets for people who kept track of all or part of their non-sales taxed online purchases throughout the year. Does this new law change that procedure, or simply make it easier for people to fall under option b) via better reporting of estimated taxes owed on past online purchases?

onthestrip
11-29-2016, 09:32 AM
Or tea party types and hard core conservatives in DC could just pass the Marketplace Fairness Act that has been in limbo for many years now. It does have some bi-partisan support but again, starve the beast legislators are stonewalling it. In the meantime, states are losing revenues, local real estate and bricks and mortar retailers are suffering while Amazon makes even more money.

TU 'cane
11-29-2016, 10:28 AM
^^ I modified my post earlier to try and take out my political opinions, but since someone else did, I'll go back.

Again, at the end of the day the state should work with Amazon as some others have done and have them send statements to us and/or apply the tax at the time of sale and Amazon can send the state a check. Either of those methods is what's done today and is most convenient for everyone (then again, this is just more crap for us common peasants to keep up with and then be penalized for our own "ignorance").

Amazon is a way for people to avoid sales taxes in this state. Call them villains, whatever you want but that is the force of free markets. Perhaps instead always taking the default road of "evil company, evil people avoiding taxes - PAY YOUR FAIR SHARE!" as is often done, maybe we should step back and leave things as is. This really only became a hot topic due to last years budget crisis with the downturn in oil... we wouldn't be having this conversation, and I'm sure many proud liberal Dems would still be skipping out on paying Amazon sales tax like the rest of us if not for the half hearted and ridiculous attempt to yet again try and TAX EVERYTHING by the state.

Just my take.

baralheia
11-30-2016, 10:40 AM
FWIW: "Proud liberal Dem" type person here (okay, not completely, but close enough). I shop on Amazon a lot, and pay my use taxes (and have done so for years, before this recent conversation). While it would make things more expensive for me, I'd be fully in support of the state asking large Internet retailers like Amazon to collect and remit taxes on my behalf or at least sending me statements so I can better calculate my use taxes.

onthestrip
11-30-2016, 12:12 PM
Amazon is a way for people to avoid sales taxes in this state. Call them villains, whatever you want but that is the force of free markets. Perhaps instead always taking the default road of "evil company, evil people avoiding taxes - PAY YOUR FAIR SHARE!" as is often done, maybe we should step back and leave things as is. This really only became a hot topic due to last years budget crisis with the downturn in oil... we wouldn't be having this conversation, and I'm sure many proud liberal Dems would still be skipping out on paying Amazon sales tax like the rest of us if not for the half hearted and ridiculous attempt to yet again try and TAX EVERYTHING by the state.

Just my take.

I dont call people villains for shopping with Amazon. Just like I dont fault high earners for using every lawful tax benefit they can find. At the same time, I dont fault Amazon for doing what they lawfully can do. I fault the state and mostly federal lawmakers for continuing to not level the playing field for retailers. Its hurting small businesses, local and state revenues, and retail real estate.

Also, this has been a hot topic long before last year. The Marketplace Fairness Act has been lingering in Congress for several years. It may have got more scrutiny at the state level last year because our state doesnt know how to manage our finances but that doesnt matter. It should have been addressed sooner just based on fairness and common sense, but if it takes financial mismanagement at the state level to do something about collecting sales taxes, then good.

riflesforwatie
11-30-2016, 12:57 PM
I always pay use tax, but I just use the state-provided table that derives the tax amount from one's AGI. I don't know if it ends up being more or less money than it would be to pay sales tax throughout the year on all online purchases from out-of-state entities, but it sure is easier than collecting and summing up invoices, receipts, and such from a bunch of different sources.

Celebrator
11-30-2016, 01:12 PM
Republican type person here and I'd be in full support of the same. I think most people would be willing to pay it, just make it easy for us to see what we owe at the end of the year.

stile99
11-30-2016, 01:50 PM
You know, I am really getting tired of the claim that people shop Amazon just to dodge taxes. I just so happen to have an item in mind that I'm getting ready to buy, let's compare, shall we?

I need a new UPS and I tend to like CyberPower. So let's look at model EC750G at both Amazon and Best Buy. I've bought this one in the past and have been quite pleased with it.

Amazon has it for $62.93 (https://www.amazon.com/CyberPower-EC750G-Ecologic-450-Watts-Efficient/dp/B00DBAA33K/ref=sr_1_1?ie=UTF8&qid=1480537893&sr=8-1&keywords=ec750g)

Best Buy wants $74.99 and claims that is a sale price (http://www.bestbuy.com/site/cyberpower-ecologic-ec750g-750va-425w-energy-efficient-desktop-eco-ups-black/3986021.p?skuId=3986021)

So it's over $35, shipping will be free on Amazon, no need for Prime. I do not have the option to go to a local store and pick it up with Best Buy, the options are ship to me (also free) or ship to the store (why the hell would I if you will ship it directly to me?). So let's bump the price up to $70 at Amazon, this would more than cover the tax. I'm still saving some good money. $70 post tax or $75 pre tax, and either way the mailman is going to bring it to me. Because again, I can't just go pick it up at the store right now, it has to be shipped there (with an estimated pick up December 10th, or ship to me with an estimated arrival by December 9th).

While we're at it, let's get some canned air.

Amazon $14.57 (https://www.amazon.com/Endust-Aerosol-Duster-2-Pack-END246050/dp/B00FGBI2XK/ref=sr_1_6?ie=UTF8&qid=1480538446&sr=8-6&keywords=canned+air)

Best Buy $17.99 (http://www.bestbuy.com/site/endust-for-electronics-10-oz-duster-with-bitterant-2-pack/5611307.p?skuId=5611307) Oh wait, that isn't a fair comparison is it? Amazon's says it in the non-flammable kind. We really should compare apples to apples, shouldn't we? Besy Buy $29.99 (http://www.bestbuy.com/site/endust-for-electronics-10-oz-non-flammable-duster-with-bitterant-2-pack/5611312.p?skuId=5611312)

Again, I can't go into the store and pick this up.

Yup. Only reason to shop Amazon is to dodge taxes.

"Just my take."

TU 'cane
11-30-2016, 02:22 PM
I forgot I had stile99 on ignore, and for good reason. Only responding because I saw the post while logged out.
Please knock it off with your snarky crap stile and your cheap quotes at the end mocking.

Anyway,

I tried to use generalizations in my post because I understand some people have been paying their Amazon sales tax (and good for you). But many do not and I have spoken with people who have specifically told me they use Amazon to avoid it. Furthermore I have Democrat family members who also use Amazon and told me they haven't paid the taxes, hence some of my general statements above. That's all I was meaning (not looking for an argument like some).

Most of our posts suggest that at minimum most of us do want an easier way of reporting and wish it could be applied more conveniently.

jerrywall
11-30-2016, 02:23 PM
"Yup. Only reason to shop Amazon is to dodge taxes."

Who's made that claim?

stile99
11-30-2016, 02:44 PM
My post was not targeted at you Jerry. My apologies if you felt otherwise.

EDIT: Jerry, I owe you even more apologies, I thought TU 'cane's last post was from you. Brain fart on my part.

TU 'cane: Please put me back on ignore. We'll both be ever so much happier.

stile99
11-30-2016, 02:45 PM
"Yup. Only reason to shop Amazon is to dodge taxes."

Who's made that claim?

Post #13. TU 'cane. Again, my apologies if you felt I was suggesting you had made that claim.

tfvc.org
12-01-2016, 02:48 PM
BTW free shipping at Amazon is now $50. I won't pay for Prime, so I avoid them unless there is no one else who has the product I am looking for, even if it does cost a bit more. I refuse to fill my shopping cart to pay $50 for free shipping for an $8 item when I can find it at ebay for the same price or a bit more.

Scott5114
12-02-2016, 04:18 AM
I own a small online business, so here's my perspective. If I were based in another state, I would probably end up ignoring whatever law Oklahoma passed, whether it be that I have to collect the sales tax and remit it to them, or send them a statement showing how much Oklahoma use tax they owe, or putting a scary notice on the packing slip, or whatever.

Reason being that 1) I am not in Oklahoma so Oklahoma law more or less doesn't apply to me, 2) it is hard enough keeping up with changing federal laws and laws in my own state, much less whatever the other 49 states (some of which I may not ever sell to) are doing, 3) my CPA is not licensed in Oklahoma and is unlikely to be of much help in advising me in proper compliance with Oklahoma law, and 4) learning the tax remittance procedures for 50 different state governments is bound to be a major time sink.

Of course, I am actually based in Oklahoma, so of course I do collect 8.75% Norman sales tax on orders bound for Oklahoma. If it leaves the state I don't collect taxes.

Realistically, the only way that online sales tax ever happens is if the federal government institutes a system where we remit collected sales taxes to the IRS, which then redistributed them to the proper states and municipalities. Of course, determining the correct rate to charge the customer in real time and ensuring that's all properly reported to the IRS will be a major headache in and of itself.

Maybe the fact that online shopping breaks the sales tax model is a sign that we should consider different funding mechanisms than sales taxes, which have a lot of other problems anyway.

Of Sound Mind
12-02-2016, 06:24 AM
BTW free shipping at Amazon is now $50. I won't pay for Prime, so I avoid them unless there is no one else who has the product I am looking for, even if it does cost a bit more. I refuse to fill my shopping cart to pay $50 for free shipping for an $8 item when I can find it at ebay for the same price or a bit more.

My Amazon Prime membership pays for itself many, MANY times over throughout the year... every year that I have had it. It's a no-brainer for me (and my entire family who uses my account for the free shipping).

To the sales tax point, it's a sticky situation. It seems dumb to voluntarily self-report, handing over hundreds of dollars to the state that most of my neighbors, co-workers and friends likely do not. Additionally, I'm not likely to remember to set aside roughly 8.5% of every purchase to remit annually upon filing my state tax return... that's a big chunk of change... much easier to absorb with each purchase. If businesses that have a physical presence in the state who also have online sales can do it, there should be a way that everyone can do it. Perhaps a central database that payment-processing services can tap into to figure the appropriate sales tax based on the buyer's address.

HangryHippo
12-02-2016, 06:48 AM
Maybe the fact that online shopping breaks the sales tax model is a sign that we should consider different funding mechanisms than sales taxes, which have a lot of other problems anyway.

This is what I was thinking about. It appears the model is broken, so the attention really should turn to a different tax model.

riflesforwatie
12-02-2016, 09:40 AM
Paying use tax of $200 would require a federal AGI of over $350k a year. How many can't afford use tax of $200 to help fund the lion's share of municipal government on an income >$350k? Now let's say that someone lives in a tax district with a 9% sales tax - that same $200 in sales tax would require untaxed purchases in the amount of $2,222.22.

Law already exists to pay use tax on your out-of-state purchases where sales tax wasn't originally remitted, but it works on the honor system. Forcing amazon (but more importantly, a bunch of small businesses) to report tax amounts owed to the consumer (but not the state) doesn't change the enforcement difficulties. All it does is add paperwork and compliance burdens on business without actually solving the problem of use tax non-compliance on the part of the taxpayer, or without addressing the competitive advantage out-of-state retailers and others have over in-state retailers.

onthestrip
12-02-2016, 10:03 AM
I own a small online business, so here's my perspective. If I were based in another state, I would probably end up ignoring whatever law Oklahoma passed, whether it be that I have to collect the sales tax and remit it to them, or send them a statement showing how much Oklahoma use tax they owe, or putting a scary notice on the packing slip, or whatever.

Reason being that 1) I am not in Oklahoma so Oklahoma law more or less doesn't apply to me, 2) it is hard enough keeping up with changing federal laws and laws in my own state, much less whatever the other 49 states (some of which I may not ever sell to) are doing, 3) my CPA is not licensed in Oklahoma and is unlikely to be of much help in advising me in proper compliance with Oklahoma law, and 4) learning the tax remittance procedures for 50 different state governments is bound to be a major time sink.

Of course, I am actually based in Oklahoma, so of course I do collect 8.75% Norman sales tax on orders bound for Oklahoma. If it leaves the state I don't collect taxes.

Realistically, the only way that online sales tax ever happens is if the federal government institutes a system where we remit collected sales taxes to the IRS, which then redistributed them to the proper states and municipalities. Of course, determining the correct rate to charge the customer in real time and ensuring that's all properly reported to the IRS will be a major headache in and of itself.

Maybe the fact that online shopping breaks the sales tax model is a sign that we should consider different funding mechanisms than sales taxes, which have a lot of other problems anyway.

This is why this should be addressed on a federal level, not state by state. The Marketplace Fairness Act, which is the federal bill thats been lingering, you had to do like a few million in sales before you would be required to collect and remit sales taxes on purchases. So small time internet retailers, etsy dealers and such would not be required to do this. Im sure if Oklahoma looked at a state bill, it would likely have a similar minimum sales amount before requiring collection as well.

And the headache you mention of collecting the proper sales tax amount is solved pretty easily with already existing software.

We want to put the onus on the large e-tailers for collecting and remitting taxes, just like bricks and mortar retailers already do with their online sales. It makes no sense to make the millions of ordinary purchasers to have to keep track of this and pay their share of sales taxes.

onthestrip
12-02-2016, 10:08 AM
This is what I was thinking about. It appears the model is broken, so the attention really should turn to a different tax model.

I dont see how the model is broken. Congress simply has allowed a technicality remain in place giving an unfair advantage to the Amazons of the world. Plenty of other retailers with an online presence that collect sales taxes show that nothing is broken. Its just that they have to play from a different set of rules, for no real good reason.

chuck5815
12-02-2016, 11:09 AM
I dont see how the model is broken. Congress simply has allowed a technicality remain in place giving an unfair advantage to the Amazons of the world. Plenty of other retailers with an online presence that collect sales taxes show that nothing is broken. Its just that they have to play from a different set of rules, for no real good reason.

it seems you're acknowledging that the system is, in fact, broken. and I would agree. Congress needs to pass the Marketplace Fairness Act immediately--like in Trump's first 100 days in office. Every significant online retailer has the capability to collect and remit sales tax based on a buyer's geographical location. Simply use the zip code from the shipping address to determine the proper amount of sales tax. As others have noted, there is software that makes quick work of this issue.

On the other hand, I don't think that sales tax savings is the major driver of online retail's growth. For most people, I think the convenience and the seemingly infinite amount of choices is what allows online shopping to beat brick and mortar in most cases.

Zuplar
12-02-2016, 11:33 AM
One of these days I imagine this will be fixed, and we will be paying tax on everything. :(

Until then, lol, at those that pay use tax on online purchases.

onthestrip
12-02-2016, 01:24 PM
One of these days I imagine this will be fixed, and we will be paying tax on everything. :(

Until then, lol, at those that pay use tax on online purchases.

When republicans in places like Oklahoma, Kansas, Louisiana, and now likely in DC, when they cut taxes on oil and gas production, cut income taxes on high earners, eliminate franchise taxes, give credits to corporations, etc, to make up for that lost revenue, they look to the masses to make it up with more sales taxes, cigarette and alcohol taxes, and eliminating credits for low earners.

baralheia
12-02-2016, 01:32 PM
I pay my use taxes because not complying with state law jeopardizes my ability to remain gainfully employed. But even if that wasn't the case, I still would pay it because the fact is that not paying use taxes is breaking the law; not reporting use taxes constitutes filing a fraudulent return, with a minimum penalty of not less than $1,000 and/or 2 years in jail (68 O.S. § 241 (http://www.oscn.net/applications/OCISWeb/DeliverDocument.asp?CiteID=91914)). We are all legally obligated to pay it, so why wouldn't I?

David
12-13-2016, 01:42 PM
I wonder if this might change some things:

U.S. top court rejects trade group's challenge to Colorado tax (http://www.reuters.com/article/us-usa-court-colorado-idUSKBN1411PE)


The U.S. Supreme Court on Monday left in place a Colorado law dubbed the "Amazon tax" designed to make it easier for the state to collect sales taxes on out-of-state internet purchases, refusing to hear a challenge to it by an industry trade group.

The justices declined to take up the Direct Marketing Association's appeal of a February ruling by the 10th U.S. Circuit Court of Appeals in Denver upholding the law, whose nickname refers to huge online retailer Amazon.com Inc.

The action by the justices handed a victory to states seeking to boost revenue by ensuring that online shoppers pay state taxes on their purchases.

David
12-13-2016, 03:18 PM
Speaking of, from https://twitter.com/davidfholt:


@stevelackmeyer Very interesting. As you know, skepticism re: state power to tax such purchases has caused OK & others to sit & wait. 1/

@stevelackmeyer But in light of this, I think we should reconsider that approach. I'm putting this on my 2017 list right now. 2/

@stevelackmeyer This is not a new tax. This has always been about best way to collect a tax citizens have already approved & accepted. 3/

jerrywall
12-13-2016, 04:24 PM
I pay my use taxes because not complying with state law jeopardizes my ability to remain gainfully employed. But even if that wasn't the case, I still would pay it because the fact is that not paying use taxes is breaking the law; not reporting use taxes constitutes filing a fraudulent return, with a minimum penalty of not less than $1,000 and/or 2 years in jail (68 O.S. § 241 (http://www.oscn.net/applications/OCISWeb/DeliverDocument.asp?CiteID=91914)). We are all legally obligated to pay it, so why wouldn't I?

People think they won't get caught, and in most cases it's true. But if you get audited by the OTC, you can bet they will.

Stew
12-13-2016, 04:31 PM
People think they won't get caught, and in most cases it's true. But if you get audited by the OTC, you can bet they will.

I've never provided my SSN to any online vendor. How will the OTC catch me?

mkjeeves
12-13-2016, 07:46 PM
I've never provided my SSN to any online vendor. How will the OTC catch me?

My guess would be the OTC requiring a person to produce credit card records during an audit would be enough to nail most people. The crafty could probably cover their tracks fairly easily with some premeditated tax fraud.

TU 'cane
02-02-2017, 08:12 AM
Tulsa World has a story saying Amazon could be weeks away from finally applying sales tax on our purchases at the check out.

jerrywall
02-02-2017, 08:26 AM
I've never provided my SSN to any online vendor. How will the OTC catch me?

During an audit they look at bank accounts.

baralheia
02-02-2017, 01:10 PM
It's now official - Amazon will begin collecting use taxes on behalf of Oklahoma residents beginning 01 March. http://newsok.com/amazon-to-collect-sales-tax-from-oklahoma-customers/article/5536651?articleBar=1

d-usa
02-02-2017, 01:26 PM
As an Amazon shopper, danged. As someone living in Oklahoma, about time.

Bullbear
02-02-2017, 02:42 PM
I'm good with this.. won't affect my shopping on Amazon in the least. and a good tax income for the state since its clear most people don't pay the sales tax as they are required.

jerrywall
02-02-2017, 03:11 PM
My only thing is I would prefer if online retailers would just send me a statement of my purchase amounts for the year, because I don't only buy from amazon, and don't keep good records, so I'll be paying sales tax to Amazon, and also claiming the state amount on my tax return.

Stew
02-02-2017, 06:34 PM
During an audit they look at bank accounts.

The state of Oklahoma? LOL, that's a good one.

jerrywall
02-02-2017, 09:16 PM
The state of Oklahoma? LOL, that's a good one.

I've been audited. Multiple times but the state only once. They absolutely looked at my bank statements. If anything, working with Oklahoma was significantly worse than the IRS. (side note: owning small businesses can suck sometimes).

BBatesokc
02-03-2017, 04:35 AM
Couple of thoughts....


As pointed out previously, I doubt most people choose to buy on Amazon simply to save 8% in sales tax. They do it because it's convenient, more selection, easy return policy and often better prices.

To me, what's helped the B&M retailers get more of my business is by being more customer friendly, loosening return policies and matching reputable online prices.

I was in Academy Sports the other day buying the wife some boxing gloves (don't ask). I pulled up Amazon to get reviews and compare prices. The exact same item was 50% cheaper on Amazon. Fortunately, Academy will price match plus, take off an additional 5%. So, I shopped local. Target has done the same.

I already shop at target over Walmart when I can and the difference if about the cost of sales tax - so, I don't think the 8% tax is a huge deciding factor.

Lastly, if you wanna get an even better price than Amazon - install WikiBuy to your browser (desktop or phone). It's an awesome little plugin. When you search Amazon and pick an item - it finds the exact same item from other retailers cheaper. And, most do not collect sales tax and shipping is free. I've bought lots of items they suggested and have yet to have an issue and saved about 30% over Amazon.

Also, I often find the same items new on Ebay for cheaper than B&M or Amazon (sometimes they are much higher though, so compare prices). Latest find.... Recently wanted a shelf for the tops of my iMac's (to sit portable drives, etc. on) and a shelf for the top of my TV (for my Cox mini box, Apple TV, Tivo mini, etc.). The Stanley brand TV shelf is $50 in B&M (plus tax), $37 on Amazon (soon to be plus tax), $33 on WikiBuy (no tax, no shipping fee) and $28 on Ebay (no tax, no shipping fee) - Exact Same Brand New Item. *FYI - if you need a shelf for the top of your TV or computer monitor - this thing is awesome and cheap!

As for my reporting of online sales tax.... I use a CPA and my online purchases are marked in Quickbooks. She calculates the tax when she does my taxes. Fortunately, most of my online purchases are business related and deductible. But, again, I don't mind paying 8% when shopping the most convenient sellers and getting the best possible price.

traxx
02-03-2017, 09:52 AM
I was in Academy Sports the other day buying the wife some boxing gloves (don't ask).

But I have to.

jerrywall
02-03-2017, 09:56 AM
But I have to.

Do you even fight bro? :P

Bunty
02-03-2017, 09:36 PM
I've been audited. Multiple times but the state only once. They absolutely looked at my bank statements. If anything, working with Oklahoma was significantly worse than the IRS. (side note: owning small businesses can suck sometimes).
I'd be for abolishing Oklahoma corporate income tax, but don't see how it would be politically possible to raise a tax or make new taxes to make up for lost revenue.

BBatesokc
02-04-2017, 02:57 AM
Quote Originally Posted by traxx :
But I have to.


Do you even fight bro? :P

She joined a boxing gym in Edmond and really likes it. Now, I have to be on my best behavior!

u50254082
02-04-2017, 02:45 PM
I was just thinking.. if Amazon could just add the estimated sales tax amount to the price shown for an item, this transition would be a lot easier.

It looks like they have a spot on the Checkout page for estimated tax, but that means you'll have to go into your cart (or use the sidebar feature with the little dropdown) to see what your running tax total is.

I'm sure Amazon won't do this, though, because they aggressively try to price match or beat other retailers and in their defense, taxes are not their problem.

Like they say.. the only sure things in life are taxes and death, so this change was inevitable. :Sperm:

Pete
02-05-2017, 12:37 PM
Are there any Amazon facilities in Oklahoma?

I couldn't find anything through my research.

BBatesokc
02-05-2017, 01:35 PM
Are there any Amazon facilities in Oklahoma?

I couldn't find anything through my research.

I've looked previously and did not find any. I believe Texas and Kansas have them though.