[Leica] Borders / now sales tax

[jshul at comcast.net (Jim Shulman)]

They ARE taxed, which is not the point.  The point is that companies that
have no physical presence in a state cannot be forced to act as tax
collectors for that state.  According to a 1967 Supreme Court decision (the
National Bellas Hess decision) companies that do not have a physical
presence in a state--which can include a store, a shipping/distribution
center, a call center, a sales representative, etc.--cannot be forced to act
as sales tax agents for that state.  Thus, they do not collect sales taxes
on those items.  Of course, as a law-abiding resident of that state you
would remit the sales tax on items purchased out of state on your own,
voluntarily, since this is both required by the law and good citizenship.

As Bill Cosby used to say, "Yeah. Right."

The issue comes down to regulation of interstate commerce, which is the sole
province of the federal government. 

As for camera stores staying in business, suffice it to say that the
business model has changed so radically in the past decade that few are able
to survive.  Cameras have gone from a specialty item, requiring technical
assistance and a variety of consumable supplies, to a computer peripheral
requiring little additional supplies (save for batteries or the
now-occasional print).  The whole point-n-shoot market has largely
disappeared, thanks to sophisticated cell phone cameras.  The rock bottom
end are paper cameras in drugstores; the top end, prosumer equipment sold at
big box stores, and pro gear sold in the few real camera stores left with
sufficiently wealthy markets.  

Jim Shulman
Wynnewood, PA
    

-----Original Message-----
From: lug-bounces+jshul=comcast.net at leica-users.org
[mailto:lug-bounces+jshul=comcast.net at leica-users.org] On Behalf Of bill
pearce
Sent: Wednesday, February 16, 2011 5:59 PM
To: Leica Users Group
Subject: Re: [Leica] Borders / now sales tax

The subject of taxation of internet purchases is a thorny one. If all 
considerations were to be fair to all, then they would be taxed. But, thanks

to a far seeing group of etailers and generally foolish shoortsighted 
legislaters, it was not to be.

I feel sorry for all the local camera stores that have been run out of 
business by the internet. I always check my local dealer before I make the 
inevitable move to B&H.

Bill Pearce 


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