Tuesday, November 8, 2016

Hood seeks to raise taxes

Attorney General Jim Hood issued the following press release: 


AG Hood Asks Supreme Court to Provide Level Playing Field For Mississippi Merchants
Attorney General Calls on Legislature to Enact Internet Sales Tax

 JACKSON— Attorney General Jim Hood announced today that Mississippi and 10 other states have asked the U.S. Supreme Court to overturn a 1992 decision that effectively prohibited states from implementing sales taxes on online purchases.

In an amicus curiae brief, Attorney General Hood and other state attorneys general encouraged the court to hear arguments in Brohl v. Direct Marketing Association and reconsider a 1992 ruling that requires a business to have a physical presence in a state before states may collect sales and use taxes from that business.  With the remarkable increase in online shopping, the physical-presence requirement has placed local retailers at a disadvantage and thwarted states from collecting revenue that could have supported important government services.

“More and more, the marketplace is moving from Main Street to the Information Superhighway, and our local merchants are at an unfortunate disadvantage,” Attorney General Hood said. “If local stores are unable to compete with out-of-state online retailers, we lose jobs, an important tax base and a critical investment in our communities. We’re asking the Supreme Court to even the playing field for merchants and to allow the states to gain the revenue that should be due to them.”

According to the U.S. Census Bureau, e-commerce sales for U.S. retailers were about $300 billion in 2014 and e-commerce accounted for nearly 7 percent of all retail sales that year. Online sales were up more than 15 percent from the previous year, a trend expected to continue since most Americans own smartphones that often come preloaded with online shopping apps.

Retailers have argued against sales taxes on goods purchased online, stating that calculating thousands of tax rates based on a consumer’s location would be too great a burden. However, the states argue in their brief there is readily available software that can easily calculate tax on any sale.

Attorney General Hood said a sales tax on online purchases would especially benefit Mississippi because ongoing budget problems have led to layoffs and service reductions across state government. Attorney General Hood called on the Legislature to enact an Internet sales tax to help balance the budget and support local merchants.

“At least 13 states now have laws to levy sales taxes on purchases through third-party affiliates like Amazon, for example,” Attorney General Hood said. “Courts in New York have upheld this type of tax, and I will be asking the Legislature to stand up for our local businesses and adopt a similar tax next year. I also remain hopeful that the brief we filed today will move the Supreme Court toward opening the door for states to collect sales tax on all Internet sales.”

Kingfish note: 

 Retailers have argued against sales taxes on goods purchased online, stating that calculating thousands of tax rates based on a consumer’s location would be too great a burden. However, the states argue in their brief there is readily available software that can easily calculate tax on any sale.

The A.G. leaves out the fact that it is the audit that matters even more.  Those same businesses will be subject to audits from all the jurisdictions that will collect the sales tax. Fine for Amazon.  Not fine for smaller businesses.  There is a reason some people call this the effort the Amazon or Big Box protection racket.  
 

19 comments:

Anonymous said...

Kingfish, if online taxes are collected, will the ABC/Dept. of Revenue/restaurant lobby/liquor store lobby, et.al. then concede online wine purchases directly from wineries??? For some reason, I thought the US Supreme Court already decided that issue holding that it violated the Commerce Clause, but the rub here in MS was that they couldn't collect the taxes on said online purchases.

Can someone shed light here, please??

Anonymous said...

He needs to go.

Anonymous said...

Mississippi residents are already required to pay sales tax on these types of purchases when they file their income tax returns.

From Form 80-100 Mississippi Individual Income Tax Return Instructions

Line 21: Consumer Use Tax
If during 2015 you made out-of-state purchases of
goods or services that you used, stored or
consumed in Mississippi and did not pay sales
taxes to any state, you are required to pay
Mississippi Consumer Use Tax at a rate of 7% of
the purchase price.
An example of such purchases includes books,
clothing, computers, electronics, furniture,
household items and downloads of digital products
such as music, movies, e-books and software.

Anonymous said...

@9:30

That rub was probably with the Baptists.

Anonymous said...

Collecting the tax will mean more for government but not more for small businesses.

Anonymous said...

This state is slowly going broke with tax collections not meeting expectations. More tax revenue will have to occur from some source. This proposal does have some problems and is probably not workable. But state government will, at some point, have to raise taxes or shut down services.

Anonymous said...

As a conservative Republican, I would love to see an online sales tax replace some existing tax (maybe reduce the overall sales tax by 1% or increase the state income tax exemption up to the 2% threshold).

Anonymous said...

11:05, I hope you are not dumb enough to think any existing taxes will be reduced. Must be a politician that thinks they can blow smoke with that crazy talk.

Anonymous said...

I confess, I have not paid sales tax on my online purchases. Im sure the AG reports all his on line purchases along with deductions ffor commuting to the office he abandoned in Jackson

Anonymous said...

Misleading headline.
Local businesses have to have the ability to get on a level playing field. Shoppers will go to the trouble of coming into a store, trying on or sampling merchandise, taking our time, then they leave to go buy online.

Anonymous said...

SIMPLE

The "1000's of tax rates" can be simplified to be (only) an EXACT 5% for ALL jurisdictions... take it or leave it.

SIMPLE

That would also eliminate need for audits from any and all jurisdictions.

SIMPLE

Anonymous said...

12:41, ever thought about why a person would do that? Ever think the cost difference might have something to do with it? If the costs was even close they would buy it when they were in the store. Don't blame people for buying something at a much better cost.

Anonymous said...

2:55 Don't comment if you don't know what you're talking about, and you don't. In-store and online is the same price. They simply do not have to pay tax on it, hence the need for a tax on online orders.
Oh, then there are those who order online without having previously "sampled" in-store, then bring it to the store to restock so they can avoid packing it back up and, if applicable, return shipping costs.

Anonymous said...

4:51, do you think taxes paid on something do not add to the price of that item? Online and in store can be the same price but online you do not have to pay taxes. Get it yet? Less money out of your pocket.

Anonymous said...

@4:51, Don't comment if you don't know what you're talking about, and you don't.

Please heed your own advice. When you order online from a merchant that has a physical presence in the state, that merchant is required to collect state sales tax on that online purchase per the physical presence rule. If you are ordering online from a different merchant, the in- store price at local merchant A is most likely different from online merchant B.....and due to volume and lower overhead, the online option can most likely offers savings that are much higher than just avoiding sales tax.

Smoky said...

You guys ever hear of shipping costs?

I just ordered a firewood rack that costs $49.95. Since the merchant has a Nexus in Mississippi, I have to pay sales tax (even though the Mississippi stores do not carry wood-racks and tell customers to order online).

It's rare, but shipping is free. But, if I were having to pay for UPS delivery it would cost me more at the end of this transaction, especially if I paid shipping. But, I would not to have to haul it out of the store and home - If the store had them.

Now, If Home Depot carried these wood racks, I would have to pay the same $49.95 plus sales tax and haul it home. But I would not pay shipping.

The solution to the conundrum is to install gas logs. But, my wife loves a fire.

Anonymous said...

2:49 -- damn!! Wonder why nobody else thought of that solution since it is truly SIMPLE.

But, I'd bet the folks in FL wouldn't like your solution since they don't pay any sales taxes. That new 5% probably would piss them off. And those folks in NJ would have to close down some more bridges because their losing that 4% from their 9% tax would cost them a bunch.

But, simplicity is always good. That's why it is so simple.

Anonymous said...

Oh look a squirrel!

We can't collect taxes from offshore accounts of multinational corporations and American businesses, so the average person is the squirrel.

( Hood: unless you can magically collect taxes being passed through tax havens--do not look at the populous for support on this)

I'm tired of paying MORE taxes to support their greed. This whole argument is bullshit.

Anonymous said...

Someone has to support the politicians and their lavish spending. They cannot take anymore tax money from the rich people or they will stop donating.
Guess who is left to cough up the money they want and need? People can suggest the politicians stop their reckless spending but it is a waste of time. You do not have to voluntary give them the money, they will take it by force. You are the only people they can force to give them the money. Imagine how much rich people would laugh at them if they tried to force them to give them the money.
Just shut up and hand it over.

Suscribe to latest on JJ.

Recent Comments

Search Jackson Jambalaya

Loading...

Subscribe to JJ's Youtube channel

Who is the hottest reporter?

Archives

Who is the Hottest Reporter in Jackson?

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.