New Interstate Tax Laws and Collecting

A new law is going into effect on October 1st that will allow states to force out of state online retailers to collect sales tax from residents who purchase from out of state online retailers. Not all states are set to start collecting on October 1st, but my state, Illinois, is one of them. Apparently, it is expected that all states will start collecting this tax from their residents by the end of the year. Before this ruling, online retailers only had to collect taxes from customers that reside within the same state that the business has a physical presence. For example, if you live in California, Sideshow charges sales tax on purchases through them.

Do you guys think this will have an effect on your personal spending? Now, for example, if I were to purchase a $240 figure from Sideshow, it'd be a 6.5% tax on the figure and with Sideshow shipping at around $20, the total would come to $275.60, so it adds up pretty quickly.

Do you think this might have an effect on the high end collectible market in general? Will Sideshow and other online retailers lose sales and will they do anything to mitigate these losses? Will price increases slow down or will we get more coupons/deals to make up for the tax changes? It's an interesting situation.

Here's an article detailing the new law: https://taxfoundation.org/post-wayfair-options-for-states/

Re: New Intersate Tax Laws and Collecting

They will do nothing and pass that expense on to us....

As it has been and shall ever be ( and not just in figures but across the board)

And my guess is most collectors will gripe , but when its a “must have” they will pony up the dough.....



Sent from the inside of a giant slug in outer space.....

Re: New Intersate Tax Laws and Collecting

Its the republican way, run yoir platform on lowering income tax,

Then jack up taxes on other things.....


Sent from the inside of a giant slug in outer space.....

I'm not so much worried about this regarding collectibles as much as I am on other things like aftermarket car parts, which are sometimes large and quite heavy. It'll eventually have an effect on all on-line retail. I think people will just bite the bullet and pay or see if they get something cheaper elsewhere. I already pay Cal. sales tax so it can't be much worse. Choose wisely....

If an item is pre-ordered prior to the change can they tax it?

TurdFurgusonsHat said:

If an item is pre-ordered prior to the change can they tax it?

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Most tax is collected at time of payment.

If you didn’t fully pay you can be taxed.


Sent from the inside of a giant slug in outer space.....

xipotec said:

Most tax is collected at time of payment.

If you didn’t fully pay you can be taxed.


Sent from the inside of a giant slug in outer space.....

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That is what I am afraid of. I just looked and it appears my state is changing things January 1st. I wonder if Sideshow and other retailers will take full pay up front, anybody know if they will?

TurdFurgusonsHat said:

That is what I am afraid of. I just looked and it appears my state is changing things January 1st. I wonder if Sideshow and other retailers will take full pay up front, anybody know if they will?

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BigBadToyStore sent an email last week about it and I believe they will be collecting the taxes right away. I'm sure this is probably a complex change for retailers to implement with each state having different taxes and rules regarding what is to be collected at what percentage and at what particular limits regarding sales numbers. The smaller retailers and even Sideshow don't seem to be doing it yet for me, so we'll see what happens. Could also get complicated for people that sell a lot on Ebay to figure out how to collect the tax for each state and pay them individually.

Boba Ben said:

BigBadToyStore sent an email last week about it and I believe they will be collecting the taxes right away. I'm sure this is probably a complex change for retailers to implement with each state having different taxes and rules regarding what is to be collected at what percentage and at what particular limits regarding sales numbers. The smaller retailers and even Sideshow don't seem to be doing it yet for me, so we'll see what happens. Could also get complicated for people that sell a lot on Ebay to figure out how to collect the tax for each state and pay them individually.

Click to expand...

Ebay already has the tax box implemented....




Sent from the inside of a giant slug in outer space.....

xipotec said:

Ebay already has the tax box implemented....




Sent from the inside of a giant slug in outer space.....

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I'm not getting it calculated in total cost when I go to checkout with most out of state retailers. I tried some bigger 1/6 stores like Alter Ego Comics and no tax was added, but did get it applied to an item from Hasbotoyshop.

This is really aggravating. Already have to pay income taxes to make the money buy the stuff and pay property taxes to house it. Now have to pay additional taxes to spend the money you worked for that was already taxed. And politicians hide their motives behind "leveling the playing field" when the truth is they don't give a damn about fairness, they just want more of working people's money. Might be the nudge I need to stop buying so much of this stuff.

Honestly I can't believe it's taken them this long to start taxing internet purchases. I could've ended world hunger with all the tax money I've saved on ebay alone.

TurdFurgusonsHat said:

This is really aggravating. Already have to pay income taxes to make the money buy the stuff and pay property taxes to house it. Now have to pay additional taxes to spend the money you worked for that was already taxed. And politicians hide their motives behind "leveling the playing field" when the truth is they don't give a damn about fairness, they just want more of working people's money. Might be the nudge I need to stop buying so much of this stuff.

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Well we did get an income tax break!?Many politicians make their platforms on it every election.....But they get you some other way.......

while on one hand saying they want to support small business but then tax those businesses that will be affected most by internet tax....

Next up metered internet use so poor folks cannot use the internet as much as rich folks...


Sent from the inside of a giant slug in outer space.....

FYI if you’re in Illinois, you should already be reporting and paying tax on online (or out-of-state) purchases of “tangible” goods. It’s called the Illinois “Use Tax” and it has been in effect for years, and is actually a line item on your state income tax form. The only difference now is that online retailers are being tasked with the responsibility of collecting the tax.

I wonder if those auction house winning bidders and sellers of $150,000 comic art and $1,000,000 rare comics pay/collect taxes...lol

thebreen said:

FYI if you’re in Illinois, you should already be reporting and paying tax on online (or out-of-state) purchases of “tangible” goods. It’s called the Illinois “Use Tax” and it has been in effect for years, and is actually a line item on your state income tax form. The only difference now is that online retailers are being tasked with the responsibility of collecting the tax.

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Yeah, but Illinois has one of the worst tax burdens per household in the nation and people are moving out of the state in droves due to being taxed beyond what they can afford. Most people don't sit down and go through every online purchase they made with an out of state retailer, but didn't pay taxes on in order to give the state more of their money. That's why the state is so eager to implement this new rule to force out of state businesses to collect taxes for them now.

I can understand the case against Wayfair with South Dakota's need for additional tax income with the state having one of the lowest sales tax rates in the nation and no personal income tax, but Illinois residents are already overburdened by taxes as it is and this being added on top of all of that does suck for the people of this state.

https://www.npr.org/sections/money/2013/04/16/177384487/most-people-are-supposed-to-pay-this-tax

https://www.ilnews.org/news/economy/despite-national-economic-recovery-illinois-debt-per-taxpayer-worse-than/article_62d5071c-c036-11e8-9def-f7b98e97df52.html

Believe me Boba Ben, I hear you! I know about a half dozen people who are moving to Texas because of better job opportunities and no income tax. No with rumors of a mileage tax being considered... Ugh! but I digress.

I am hoping this will make it easier for me to budget and not have to worry about keeping track of tax liability so much, since the retailers are supposed to do it. But who knows how some etailers will cope.