The flip side of this is the reason why companies selling out-of-state sales haven't been required to collect taxes. Each state has its own forms, and its own rates. Say that Old-timer runs a vac shop, and I call him and order bags from him. If collecting taxes of sales out of state is required, and he ships them to me, suddenly he now has to file with my state to get a taxpayer ID and sales tax permit, then he needs to learn my state's rate and how to fill out my state's forms, and then he has to file them all regularly, not just after selling me the bags, but forever. In that kind of a system, I have no doubt he'd just refuse to sell me the bags.
 
Now, as you get bigger, when you have a monster company like, say, Amazon.com, or Dell Computer, they can have the staff to fill out forms for all 50 states. Where do you draw the line? How do you handle this administratively?   How does the South Dakota revenue department audit a shop in Alabama that they think is underreporting sales tax? The administrative nightmare is why this hasn't been resolved yet.
 
Now, you might think that one solution might be that the selling company would just have to charge their own sales tax. That would work, sort of. Then if someone in New Jersey bought from a store in Alabama, they'd get charged Alabama tax. That would level the field a bit since there would be tax on out-of-state purchases, even if it wasn't the exact same rate. Or would it? What about the states that don't have sales tax? There are several states with no state sales tax. If this was the rule, guess what? The big online vendors would all move to New Hampshire, and then they could sell for less because they'd have no sales tax. The system would still be unfair, just in a different way.
 
In the end probably the only real answer to to make all sales tax payable to the Federal government who in turn would divide it up between the states. If you think that bigger and more powerful Federal government is the answer, you'll probably like this solution.

Hi guys,
 
May I throw this out for thought?  There is still such a thing as killling the goose that laid the golden egg.  Purely from a consumer's stance, were we obliged to pay sales tax per state of origin when buying online, would that possibly swing sales moreso in the direction of states with the lowest sales tax?
 
As an example -- unless it was a thing that couldn't be got elsewhere -- I can't imagine anyone ordering online from a New York vendor unless the base price on an item is quite low due to the more than eight-percent on the dollar in tax that would have to be paid.
 
When I research and shop online it is not only an exercise of convenience but near to a survival tactic. It's the best way I know to get specifically what I want at the best price.  Otherwise, I'd just walk down the street and get it.  I like high-end stuff  and quality as much as anyone else but like many people that I met while in Europe, I find myself having to learn to be my own economist more everyday.
 
Online shopping is here to stay and shoppers will be becoming more and more savvy as to where to go to get what at a good price.
 
I maintain the feeling that if government doesn't tread lightly in regard to this issue or provide significant relief in other ways it might well have an effect on online business by way of volume.  Something is better than nothing and asking too much can often end you up with just that -- nothing.
 
Venson

Slim pickins this past weekend on the vacuum sales front with most retailers positioning for the Memorial Day Holiday sales.
 
No vacuums this past Sunday in the Parade section.  Sears had a nice ad for vacuums premiering and featuring the HOOVER WT Self-Propelled as it's top price choice.
 
BEST BUY has the DC14 Animal on sale for $549 BEFORE $50 instant cash off.  And to round out the selection, the Dirt Devil Swivel Glide for $50.  What do you think BEST BUY will sell more of?  If you have any doubt, look at the number of each stocked on the shelves.
 
Carmine D.

You'll recall my posting that according to NPD, an industry source used by another Forum poster not me, claimed in print that Dirt Devil had the highest vacuum sales in units for the period January 2005 -June 2005.  FWIW.
 
Carmine D.

Quote from Carmine_Difazio   on 05/22/06 at 11:14am:
That was probably while I was gone from the forum. So you're saying Hoover is no longer #1 in either units or dollars?
 
Moose, you hit the nail on the head. When I was first in business I cared about unit volume, but it didn't take me too long to figure out that I can't feed my family on units.