The purpose of this thread is simple..... to see how many other SCC users have the same regulatory issues I have in Pennsylvania.
In PA if your physical location is PA, and you sell something online to someone who lives in PA, you must charge sales tax to that person.
Now, Scott has informed me that this functionality isn't even on their radar yet, my reply to him was that since this is a regulatory issue and not merely something for on a wish list, they should dedicate their resources to it and get it done sooner rather than later. I got the distinct impression that the SCC developers don't think this is an issue for that many users, that it's mainly affecting me and a few others, but not the majority of users.
Here's an excerpt from business.com:
If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes. In legal terms, this physical presence is known as a "nexus." Each state defines nexus differently, but all agree that if you have store or office of some sort, a nexus exists. If you are uncertain, whether or not your business qualifies as a physical presence, contact your state's revenue agency. If you do not have a physical presence in a state, you are not required to collect sales taxes from customers in that state. This rule is based on a 1992 Supreme Court ruling (Quill v. North Dakota, 504 U.S. 298, (1992)) in which the justices ruled that states cannot require mail-order businesses, and by extension, online retailers to collect sales tax unless they have a physical presence in the state. The Court reasoned that forcing sellers to comply with over 7,500 tax jurisdictions was too complex for sellers to manage, and would put a strain on interstate commerce. Determining which sales tax to charge can be a challenge. Many online retailers use online shopping chart services to handle their sales transactions. Several of these services are programmed to calculate sales tax rates for you. I understand their are other programs I could change to, but the bottom line is, if you are going to create software to be used for ecommerce it should be mandatory that the use of said software should follow all applicable laws. Even if it is meant to be a simple program.
My reason for this thread is simple. If you are required to collect sales tax for sales made to residents in the state that you are located in(and a majority are), I would like you to reply so that maybe the decision makers at CC will understand and realize how many of their users or potential users are effected by this issue.
If you are impacted by this rule it could mean a lot of fines if you don' collect it somehow. At this point I am deducting the 6% PA sales tax after the sale and sending that portion to my state, in effect losing 6% in all of my sales to PA residents. I am not about to collect tax from residents of all states just because that's the only option in the software other than not collecting any tax at all. Some others are even impacted further by city or county tax on sales.
So, if you are impacted by sales tax on internet sales please respond to this thread and let CoffeeCup know . There is strength in numbers.
Scott, as I said at the beginning of this post I am not going to say anything else in this thread. It is merely an effort to show you how many of your users are impacted by their states sales tax rules.
CoffeeCup Software Ambassador
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