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13 commentsFriday, December 19, 2008

Consumers Asked To Avoid Online Shopping

And pay their taxes like good citizens

The International Council of Shopping Centers (ICSC) has launched a campaign asking consumers to shop locally at brick-and-mortar stores instead of shopping online. Their reason: online retailers don’t collect sales taxes and don’t support local jobs and community organizations.

The ad campaign will run through December 22 on major networks like NBC, ABC, CNN, Fox News, and The Weather Channel, and is titled “Give Your Community a Lift…Shop Locally for Your Gifts!” Added to the anti-smoking and anti-piracy ads pervasive on TV and DVDs, you could call it the latest in “shame-vertising.”
Consumers Asked To Avoid Online Shopping
“Many consumers shop online and avoid paying sales tax, and while this may appear to consumers as a way of saving a few dollars, in the end it may cost them more if local tax revenue is eroded and municipalities are forced to cut back on services,” said ICSC CEO Michael P. Kercheval.

In the TV ad, Trenton, NJ mayor Douglas Palmer pleads, “Sales tax revenue is important to local communities, because it’s our life’s blood. We need those kinds of moneys to provide the services, whether it’s police, fire, public works and all the other services that cities have to provide.”

With all the homogenization of chain-store, local-vendor-crushing, consumer-corralling, wage-dwindling going on in most American towns, one could ironically suggest a new tagline for the campaign: Do your part. Shop at Wal-Mart!

At least the city makes up in sales tax what it lost in local worker income tax, right?   

Maybe it’s not the sales tax consumers are avoiding. Maybe it’s the maze of same-old-same-old commerce. Maybe they miss the variety that comes from all that local flavor our towns used to have and cost a little more to have. Can you imagine the Antiques Road Show in a hundred years and all that early 21st Century made-in-China plastic?

Just sayin’. 
 

Give me a break! If local

Give me a break! If local governments and municipalities managed to run things a little bit better, maybe they wouldn't have to resort to this. It's audacious to ask people to willingly spend more money at such a bad economic time simply to boost tax revenue. Appalling.

(For the record, I did ALL of my holiday shopping online this year and used Sortprice.com almost exclusively. I highly recommend it)

www.sortprice.com

Sales tax for online sales

It's a trickier issue than appears on the surface. Online sellers must pay sales taxes in any states where they have "sufficient minimum contacts" to be subject to jurisdiction. I am a Missouri resident. My online sales shipped to Missouri are subject to Missouri sales tax. Let's say I have a satellite office across the Mississippi River in Illinois. Then my online sales shipped to both Missouri and Illinois are subject to state sales tax. What if you are Nordstom? They make a large volume of sales online and will be subject to state sales taxes in all states where they have employees (20 states?). What about Amazon.com? They are kind of a hybrid because, although strictly doing online sales, they have employees in at least 9 US states (and probably more). I'd bet that Congress will eventually pass a law imposing state sales tax on all online sales regardless of whether you have employees in the state or not. The states are crying loud and hard about this and big online retailers like Amazon have an incentive to level the playing field by causing all online retailers to pay sales tax.

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