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Old 04-21-2010, 05:59 PM   #14
kcchief19
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Join Date: Oct 2000
Location: Kansas City, MO
A tangent to this is the horrific streamlined sales tax debacle that was thrust upon businesses and consumers. The concept was that companies would "voluntarily" collect sales tax on interstate sales.

However, the debacle was that the "streamlined" sales tax means you collect the sales tax on where the product was delivered, not where the produce was sold. What that means for retailers is that they must know the sales tax for every jurisdiction in the "streamlined" sales tax rate. In Kansas, every city and county has its own sales tax rate and some school districts and other improvement districts have their own rates, which means a single city can have multiple tax rates.

It's a horrible burden for businesses such as florists or other delivery-based businesses, because under the "streamlined" sales tax rate they are expected to collect tax on the destination, not the point of sale. It doesn't apply to cash-and-carry sales, which can be taxed at a single rate.

It didn't hurt out-of-state retailers because they just told Kansas to blow it out their ass. I know of a couple of businesses who closed their Kansas operations and setup exclusively in Missouri so they could sell "sales tax free" to Kansas rather than pay the jacked-up streamlined taxes.
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