California Sales Tax Increase

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Eric S

Eric S

Demoted Webmaster
Jul 12, 2005
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Tustin
www.everydayflowers.net
State / Prov
CA
Right now the Governor of California is proposing a temporay increase of sales from 5% to 6.5%. This will bring the total for us to 9.25% to 9.75% depending upon the area that we are delivering our products to.

I'm sure you realize where I am going with this and wanted to see if there is somthing that we can do together to try and level the playing field. Currently most out of state companies do not collect the sales tax and most market to consumers this way. Just today I had a customer call and asked if I could wave the Sales Tax on their order but I explained to them that I have to collect it on products delivered in California by us. Of course he went ahead and placed his order but he was tempted to order with Proflowers because of this.

But seriously what is it going to be like when our customers have to pay 9.25% on their orders with us or have the option to place the same order with any of the Wire Services and not have to pay it? What do you think is going to happen? This Temporary Increase will last up to three years and I don't think we can wheather that storm for that long.

We have two options. We can start by contacting our representives and the govenor to see what can be done to create a level playing field or we could stop filling orders. (You knew that one was coming).

I am opened to suggestions.

For now if anyone would like to send an email to the govenor I think now would be a good time.
 
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Naw send them to me instead of proflowers.

I'll give ya a cut.:jester
 
well maybe some Chicago/cook county florists would like to chime in here since their sales tax is over 10%....anyone? they would have much better experience with this since it just happened I think last fall?
 
Why is it that whenever a governmental body is short on money the first response is to raise taxes? IL is in the same boat as CA.

For once I would love to see big govt cut expenses rather than propose more taxes. Raising taxes does nothing than reduce disposable income for its residents.

Proflowers???? What would happen if ALL online vendors were forced to pay 25 sales tax while you and I kept our 6.25 pct sales tax?

Business would flow back our way.

joe
 
Perhaps the Sales Tax issue is the best yet (to date) item to be brought to the attention of Capitol Hill and the heads of each state to level the playing field a little bit.

I collect it on every order, do not care where it came from or where it's going, and I pay it.

Perhaps a presentation by SAF at Congressional Action Days (beat the hell outa the immigration issue) showing how much money is not being collected and paid would garner some attention?
 
SAF will get involved?

BOSS said:
Perhaps the Sales Tax issue is the best yet (to date) item to be brought to the attention of Capitol Hill and the heads of each state to level the playing field a little bit.

I collect it on every order, do not care where it came from or where it's going, and I pay it.

Perhaps a presentation by SAF at Congressional Action Days (beat the hell outa the immigration issue) showing how much money is not being collected and paid would garner some attention?
Click to expand...

I have been following the sales tax issue with vigor, but have yet to see any organization in Canada or the US willing to step up to the plate and advocate for the issue with government. I spoke with a guy from the Retail Council of Canada yesterday, and he sounded tired and bored when I brought up this issue.

He said it is part of a larger issue of taxes online as a whole, and the focus has been on lost income tax due to sites like eBay.
 
Joe Mioux said:
Why is it that whenever a governmental body is short on money the first response is to raise taxes? IL is in the same boat as CA.

For once I would love to see big govt cut expenses rather than propose more taxes. Raising taxes does nothing than reduce disposable income for its residents.
Click to expand...

Joe, the head of the Calif. legislature keeps saying that we don't have a spending problem, we have a REVENUE problem. And, needless to say, when he says revenue he means taxes.

While Calif. may not raise the sales tax, we certainly will increase some taxes. Maybe triple the car registration fees. They don't seem to realize that no matter what they call it, taxes increases hurt middle and lower income working people and small businesses. It ain't gonna be pretty.
 
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TEMPORARY? Don't believe it!

Sorry to hear that the TERMINATOR is proposing a TEMPORARY hike in your sale's tax.

Fact is that, their TEMPORARY is always EXTENDED, after which, it always becomes PERMANENT!

New York State began imposing Sales Tax back in 1965 and in Westchester County, it was only 1% and we were told back then that, it was TEMPORARY.

http://www.tax.state.ny.us/pdf/publications/sales/pub718a_808.pdf

In 1981, it went to 1.5%, in 1991 to 2.5%, and in 2004 to 3%.

And now, we're anywhere from 7% to 8.75% when combined with the variable County and City imposed sales tax surcharges.

So much for TEMPORARY, ey?

NYS has also required Internet Companies with any form of an affiliate presence in the state to collect and pay the NYS sales tax, regardless of where the sale originated from.

This could be the solution to the problem which the SKIMMERS present once the definition of AFFILIATE can be resolved in the courts.

http://www.tomsguide.com/us/amazon-tax-overstock,news-1367.html

While Amazon agreed to collect and pay the NYS sales tax, others like Overstock have axed their affiliates in NYS.

In the meantime, we're on the HONOR SYSTEM and we're supposed to report all items which we purchased on line, for which, those vendors did not collect NYS sales tax.

There's a seperate line item on our NYS Income form for just that purpose.

Which then means, whenever I place an order with BLOOMZ on the west coast for a delivery of flowers to THE LOVELY LINDA in New York, I will add in the sales tax he didn't collect nor pay, to the line on my NYS return, and pay it accordingly and promptly.

Be forwarned JB! Patterson and Schwarzenegger are COMING TO GET YOU! They'll be on the same line with Obama, Pelosi, Reid, and Kennedy.
lol

 
I really don't have a problem paying sales tax. I think they should start collecting sales tax on food items as well.

I really don't think people understand how much online business does hurt them. I'm not jsut talking about our industry. Take amazon or the recent law suite against border books. All of these companies that continue to operate outside every state and are not subjected to collecting sales tax.

Did you know that most consumers that do buy this way are suppose to pay use tax? They don't and there isn't enough people to police the issue.

With the goverment saying they don't have enough IRS people to get the money that is owed to them I feel we are in need of some radical changes. Perhaps a national sales tax or flat tax. Income tax doesn't work and the sales tax has so many loop holes in it. It is time for some changes.

So to get back to the issue at hand. What can we do to start moving on this. This is something we cannot sit around a wait for to happen. We need to start contacting our representives and start sending in the letters. I know there is more florist here in california that are on the board here. Lets get some ideas out there and start making a difference.

And Bloomz I really can take care of my customers. Thanks for the offer though.
 
Eric, for some reason there is just no support for an internet sales tax. Probably too hard to monitor. The fact that internet companies pay no tax really puts the brick and morter guy at a disadvantage.

There are a couple of new sales tax schemes out there that have a chance, so we'll see.
 
Bigted said:
Eric, for some reason there is just no support for an internet sales tax. Probably too hard to monitor. The fact that internet companies pay no tax really puts the brick and morter guy at a disadvantage.
Click to expand...
New information on Internet Sales Tax...the last paragraph is key...

http://www.internetretailer.com/dailyNews.asp?id=29668

I have re-opened this thread to keep continuity in the forums...
 
Clarify something for me.........If I take an order from my customer for an out-of-town order, and I call a shop direct - I don't belong to a wire service in this case ), Do I need to collect TWO sets of sales taxes - one set for my state AND one set for the recieving state?

Now, The same scenario - customer, out of town order, this time I go through a wire service - I collect my State's tax only.

For those who DO NOT BELONG TO A WIRE SERVICE - How do you handle this situation of taxes?
 
RWK said:
Clarify something for me.........If I take an order from my customer for an out-of-town order, and I call a shop direct - I don't belong to a wire service in this case ), Do I need to collect TWO sets of sales taxes - one set for my state AND one set for the recieving state?

Now, The same scenario - customer, out of town order, this time I go through a wire service - I collect my State's tax only.

For those who DO NOT BELONG TO A WIRE SERVICE - How do you handle this situation of taxes?
Click to expand...

No we pay the sales tax in the Originating state. whether you belong to a wire service to transfer orders is irrelevant. (Unless you are in a sales tax free state - then you collect no tax)
 
Yeah, I don't understand this. Now that we are located in CT, if you were my neighbor and you hired me to do your wedding and your wedding was held in DC, I collect sales tax for DC? We have to file with Maryland, Virginia, NY, every quarter? It never makes sense. They really need to simplify the codes.
 
Here's why I am confused. I am calling the florist in the area my customer wants his flowers to go to. I am using my shop's credit card to pay for the order. Do I not become the purchaser?

Do I need to provide my tax-exempt number to the recieving florist?
 
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