Thursday, November 2, 2017

The Mississippi Taxman says Merry Christmas

Get ready to pay sales tax on those Christmas presents you purchase online. The Department of Revenue will being charging sales tax for internet sales even if the retailer has no presence in Mississippi.   DOR submitted a notice of a new rule to the Secretary of State yesterday.  The new rule will go into effect on December 1. The notice states:


Short explanation of rule/amendment/repeal and reason(s) for proposing rule/amendment/repeal: This new rule is intended to provide guidance to out of state sellers who have a substantial economic presence In the state and provides a list of activities considered to purposefully and systematically exploit the market.
 The department reached an agreement with Amazon earlier this year for the collection of sales tax on Amazon purchases made by Mississippi residents.  Other online retailers such as Apple and Best Buy collect sales tax if they have a physical presence in the state.



The new rule states:

Sellers who lack physical presence nexus in Mississippi but who are purposefully or systematically exploiting the Mississippi market have a substantial economic presence for use tax purposes if their sales into the state exceed $250,000 for the prior twelve months. These sellers are required to register with the Department of Revenue in order to collect and remit tax as provided by Miss. Code Ann. Section 27-67-4(2)(e).  (KF: Exploiting? Is that what capitalists are called in Mississippi now? What if I invest my money with a Wall Street firm and don't use a local one? Is that exploiting Mississippi?)
The Revenooers define "purposefully or systematically exploiting the market" to include any form of advertising anywhere that might possibly be seen by someone living in Mississippi:

1. Television or Radio advertising on a Mississippi station;
2. Telemarketing to Mississippi customers;
3. Advertising on any type of billboard, wallscape, bus bench, interiors and exteriors of buses or
other signage located in Mississippi;
4. Advertising in Mississippi newspapers, magazines or other print media;
5. Emails, texts, tweets and any form of messaging directed to a Mississippi customer;
6. Online banner, text or pop up advertising directed toward Mississippi customers;
7. Advertising to Mississippi customers through applications “apps” or other electronic means on
customer’s phones or other devices; or
8.  Direct mail marketing to Mississippi customers.
MERRY CHRISTMAS!!!!

Kingfish note: This new rule directly opposes a Supreme Court ruling on collecting sales taxes on retailers who don't have a presence in a state.  Off to court we go. 
 




15 comments:

Pittpanther said...

Next time I travel out of state and buy something, I will tell the merchant "don't charge sales tax, I'm going to pay MS tax when I get home." Let's see how that flies...

Lee Morris said...

We are going to start saying Merry Christmas again, you better believe it.

-DJT, 45th Pres. of the U.S.A.

Anonymous said...

This violates a US Supreme Court ruling... and they know this.

Quill Corp. v. North Dakota created the Bright Rule.

I guess Herb just doesn't give a shit about rule of law and the Supreme Court being the highest court in the land?

Anonymous said...

Pitt, that will work if you have the merchant ship it to you in MS, but not if they hand it to you while in their state. Nice try though to try to drag your Herring across the path.

Anonymous said...

@1135, Herb is well aware of Quill, I am sure. But he and many others recognize that Quill was issued at a time when most out of state orders were placed using a company's 800 toll free number - even before most people were using fax machines. Today's economy and business practices are totally different and it is anticipated that the Supreme Court will take a new look at the issue - just as many other cases get overturned and change as time passes.

Anonymous said...

I want to be the lead plaintiff on this one. We are going to get paid. Every time I am chraged I will file a complaint and log it.

Anonymous said...

11:35, Feel free to go to court, but you are a little out of date on using Quill as a bright line. U. S. Supreme Court Justice Kennedy recently wrote (2015), “Given…changes in technology and consumer sophistication, it is unwise to delay any longer a reconsideration of the Court’s holding in Quill. . . The legal system should find an appropriate case for this court to reexamine Quill and Bellas”. As a result of Kennedy’s dare, North Dakota (home of Quill) passed legislation establishing “economic nexus” over physical presence, intentionally contradicting Quill and for the purpose of triggering a new U.S. Supreme Court case. A lower court has issued an injunction until the Supremes can hear the legal challenge to the new legislation. Meanwhile a total of twelve states have adopted Kill-Quill statutes or regs. Additionally, five states have enacted, and three more considering, legislation that would impose collection obligations on companies offering online platforms on which third-party retailers sell their products. It looks like for once Mississippi is not last in something.

Pittpanther, you apparently don’t understand the difference between sales tax and use tax. Have you ever actually been outside of Mississippi?

Anonymous said...

yes, Mississippi with our millions of high earning residents will be a tax gold mine. ends any reason to shop brick and mortar which I still do in some areas of my limited consumerism.

Anonymous said...

@11:35 AM

Mississippi likely knows about the Supreme Court case, but they probably do not care. If the state were to sue, they essentially have unlimited funds and resources to prosecute, where as the little guy doesn't. Only a retailer as large as Amazon or Newegg would have sufficient resources to defend, and Amazon already caved.

Pittpanther said...

Explain the difference logically to me...

If I drive to LA and buy something, I pay LA sales tax.
If I call the same business, buy something and tell them to ship it to me, now I'm supposed to pay MS use tax.

If I call a business in a state that has no sales tax, buy something and and tell them to ship it to me, why should that transaction involve MS revenue at all?

The root is that MS is pissed that I bought something in another state. If MS could get away with searching my car at the State border and forcing me to pay taxes on anything I bought while in another state, they would.

Anonymous said...

@11:10. If you buy from Best Buy, or a company with a store in state, it moot.

But I have purchased cars, boats, and other materials and asked for (and given) local sales tax waivers. And when you register the car, boat, trailer, etc, in MS, you are assessed MS sales tax.

And that’s how it works.

I used to ship materials out of state when I had an e commerce business. I never charged them local taxes. For those in MS, they were charged.

/for there is no greed like government’s greed

Anonymous said...

My Christmas shopping will be online and there will be no sales tax.

All my purchases will done through the Army Air Force Exchange Site. Ninety percent of what I buy, especially major purchases is done through AAFES, either online or when I'm on the coast at Keesler. If I happen to be traveling and stop at a base, well I just buy it and have them ship it to me. No sales tax and free shipping on anything over $49.00's. Find an item the PX has and its cheaper else where.....provide proof and they match the price. Even more savings.

Also since they've started a rewards program for using their purchase card, two points back for each $ spent.

So all you vets (to include Guardsmen) and retirees, save yourself some money and tax $'s, shop online at AAFES.

Anonymous said...

We talking small potatoes here, has anyone put a pencil to the new federal tax proposals. In the short term I would save about $1500 on $70,000 income. When the tax credit phases out in 5 years it would be about $900 in savings.

Anonymous said...

Lee Morris No one can be forced to say Merry Christmas

Anonymous said...

Now you know how the Legislature plans to pay for all of those tax cuts given to their buddies!

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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!!!

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