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Dan Eiken of Samco, an office and business supply store in Jefferson City, talks with a customer. Eiken is a proponent of a sales tax on Internet sales. Photo by Julie Smith.
Tuesday, January 17, 2012
Like many Jefferson City area businesses, Samco Business Products supports the local community through both taxes and through donations to local charities.
But not only do his biggest online competitors not support the community, they also don’t collect the 7.75 percent sales tax that Samco does.
“How absurd is that?” owner Dan Eiken asked. “I just don’t understand that. We invest in the community and state, and we’re at a disadvantage.”
Requiring online vendors to pay state and local sales taxes “seems like a no-brainer to me,” he said.
Lawmakers supporting an online sales tax will make another push at the Missouri Capitol this session.
News Tribune Facebook Question
Brick-and-mortar business owners face a big disadvantage in that they must collect sales tax while their online competitors don’t. Lawmakers are getting ready to make another push for an Internet sales tax during this session. Are you more likely to save a few dollars by buying online or do you support local businesses? Would you back an online sales tax?
Visit the News Tribune Facebook Page to answer this question and read others' responses.
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Comments
F35 4 months, 1 week ago
No Dan, your wrong. I understand your feelings about being disadvantaged. First, you open an online branch of your business to cash in on this. Second, you petition your lawmakers to LOWER your existing taxes, not levy new ones. As soon as they figure out they they can tax interent sales they will be right back taxing you higher. New taxes is NOT the answer, your governemnt spending is. You need to talk to your officials to find out where your money is going.
tonto_goldberg 4 months, 1 week ago
Dan Eiken's customers are not that dumb. They are buying office furniture, office machines, and office supplies. Those are all commodities, the same no matter who you buy them from. Think (please) about someone buying a few hundred dollars worth of stuff. They are going to pay shipping either way. If they buy from Samco they also pay sales tax. $500 or $538; your choice.
An online branch of his business would have to collect sales tax because a Missouri business has to collect sales tax on Missouri sales.
This is not a new tax. The tax is due now and you are a tax evader if you don't pay it. It's called a use tax. Look it up.
JCsleeper 4 months, 1 week ago
And just think; they'll be able to squeeze the Transformation Tax out of this, also. Never wish for a tax on someone else, because you will be next.
Gotigers 4 months, 1 week ago
Internet sales are the only thing that is keeping the US Postal Service in operation. If you think they are running a deficit now, just wait till those packages stop being shipped.
No More Taxes!
tonto_goldberg 4 months, 1 week ago
That's another US Postal Service problem. Most of those packages go through UPS or FEDEX.
JCLifer 4 months, 1 week ago
Two more elections and that 7.75 % sales tax will become 8.75%. How is that going to help the economy?
I purchase locally if/when they have what I want for a competitive price. However, If I can get a better product online for a lower price, and with better customer service- you bet I will shop online. It would be unpatriotic and anti-free market to do otherwise.
As for local stores donating to charities, that is fine if they want to, but that is not a compelling reason to have to put up with rude customer service, as well as pay higher prices for an inferior product. I donate to the charities of my choice- that is my business and the local store donating is their business.
JCLifer 4 months, 1 week ago
The city hall/Chamber of Commerce will be the only ones that benefit from an internet sales tax. Folks will still shop online for better service and better prices on better products.
Local stores still will not benefit much if this tax is passed.
gofish 4 months, 1 week ago
The overall cost, the cost of shipping and the time frame in which I need to obtain something are the biggest factors in whether or not to buy online. Also, convenience...I can shop worldwide in my pajamas from the warmth of my house. Sadly, some brick and mortar stores have forgotten the story about the fellas that stopped making buggy whips after the horseless carraige became mainstream. You have to adapt to change, not advocate for laws/taxes to stifle it. Read my lips. No New Taxes!
badigital 4 months, 1 week ago
Dan, interesting thought! Pass another tax so my business can survive! I wonder if Staples (whom taxes purchases either way) or Schriefer's feel the the same way. NOT! I compete with the bigger .coms all the time, I don't recall ever having sales tax becoming a deal breaker.
JCsleeper 4 months, 1 week ago
Many online retailer DO collect the Missouri 4.225% sales tax. The problem would be collecting local sales taxes for all of the taxing entities in the US - all of the counties and cities and other taxing districts and their differing rates. Apparently, local sales taxes are not on the books for online merchants or there would not be these complaints. This would be the equivalant of having Columbia, KC or St.Louis merchants collect JC sales taxes because the customer lives in JC (like they do for vehicle purchases). Best thing for local businesses would be to deliver superior products and services at a good price - and many do. If one feels guilty about not paying local sales taxes, they should total them up and make a full payment to JC and Cole County.
Festus_Hagen 4 months ago
I went to get a USB cable for my phone at Sprint after looking at them on Ebay. I want one now, not later. So the guy says "Yes we have it. It's 34.95. " HUH ....???? I tell him I can get the same cable off the net for 1.78 . He then tells me " This way your supporting your local economy" . Really ? So I should pay 32.00 more for a 2.00 item to "support local business' ?" Maybe come down to earth on your pricing and we can talk, but trying to ream me gets me to NEVER come back to your store. In other words, tax isn't the deal breaker, price is. And since these fine folks want to tax us more, I will refrain from getting my office supplies from SAMCO and will go to Staples from now on, and get my stamps and such online as well. You want higher taxes, I don't want you.
JCLifer 4 months ago
I think the Chamber would do well to host training classes for its members and their employees on how to improve customer service. Many sales clerks (and even owners) don't really know much about the products they sell. Often they are very rude to customers. They never really try to understand what the customer wants, and instead try to sell whatever old stock they have on the shelf, whether it fits the customer's need or not.
I'm not saying being a sucessful busineperson is easy- because it is not. But the days of opening a store, stocking it with high-priced junk, and expecting customers to come in to willingly buy the stuff, putting up with lazy rude service-- those days are gone. Customers have many alternatives, and if local stores want my money- they are going to have to have something that the online stores don't have. Right now it isn't looking good, because online stores have huge selections, low prices, very helpful customer service people who are motivated. The question to buy local usually boils down to "Is it something I need today or can I wait 2-3 days?".
Applying the total local sales tax to the online purchase will not have any effect- the prices will often be lower even after paying the taxes and the shipping.
Festus's example above is all to common. There are a multitude of things that are available for less than half of what local retailers charge. Check out online for auto parts, electronics, household items and supplies, vacuum cleaner bags, school supplies, clothing, etc. I purchase nearly everything besides groceries online. Even cars are so much cheaper online if you shop around.
JC_Enthusiast 4 months ago
To open, for starters the title references "level the playing field," not "Tax increase across the board." In the case of local business owners (I would have to think in the case of Samco as well) more taxes is never generally encouraged.
This article is referencing a tax that would hold business' without a Missouri "physical" presents to be included in the same tax laws as Missouri business owners.There is a 1992 decision by the U.S. Supreme Court held that states cannot force companies to pay sales or use taxes unless they have a physical presence in the state. So internet business' without a Missouri location would just be responsible for collecting the same sales tax from it's customers that Missouri business owners are responsible for collecting (not city tax. this is not pushing for local taxation. it is pushing to retain revenues in the state). This is a 24 state effort at bypassing the 1992 law. The "Missourian" also touches on the subject here is the link: please see end of post about links.
What is currently applied is a "Use Tax" on internet sales, which you have possibly been charged from a online vendor not with state presence. This tax does not require the vendor to collect this tax because of the 1992 law. In the example of our JC_Lifer who purchases "everything but groceries online," for all internet vendors that did not apply the Use Tax to the order (granted you spent $2,000 or more in a calender year, which is pretty easy to do) the state puts the responsibility of the consumer to flie a Use Tax return for the items purchased from internet vendor without a presence in Missouri. Ouch! Right? Here is a link to the document for the MO Department of Revenue spelling it out: please see end of post about links.
To put in a general scenario, if you imagine that you represent a local "Missouri owned and/or opperated" business in the checkout line at the grocery store... and the person in front of you in the line you notice doesn't have to pay sales tax on their groceries, but when you go through the line and your total comes up it includes sales tax!?! You ask the clerk, "why are you charging me sales tax on my items when the customer in front of me wasn't?" She then explains that since the customer doesn't live or own personal property in the State of Missouri they are not required to pay taxes on their groceries (the out of state resident representing the internet business' referenced). That is the playing field. Not quite fair is it when you look at it from a consumer perspective.
The editor has told me that the url address of my links is poor language. so if you would like the links please send me your email and i would gladly give them to everyone. I have a second post because the editor said I had too many characters.
JC_Enthusiast 4 months ago
here is the rest of my comment...
In reference to the comments about regarding Samco, Staples, and Schriefer's, they all have "physical" presences in Missouri and the tax is collected. So, great! Buy from any of those vendors because even though all three vendors have online stores, they also have Missouri stores (Sales/Use Taxes are collected). And a far as the wait and quality of goods...these vendors are in the service business, not manufacturing. And in addition to that, both Schriefer's and Samco offer MORE products than Staples. They also have nation-wide distribution channels for delivering products in a day or two. If you don't believe me, look at their websites. To close, in reference to the "Transformation" comment, that was developed by Jefferson City Chamber, the City of Jefferson, and hundreds of volunteers to improve our area. If we aren't willing to improve the place we live in, why would anybody else? They won't. If you are unsure about all of the improvements being pushed please visit the site it spells out everything in detail for each project. Here is the link: please send me email for this one as well if you would like information from anything I referenced. It is silly to have the ability to add a link in the editor, but pick them up as foul language.
Petunia 4 months ago
JC_Enthusiast: there are ways to provide the links in your comments. This is what I have done and it worked. I have left off the h--p and the dubyas and provide the rest of the website address. As an example I'll use this website address: newstribune.com/news/2012/jan/17/taxing-internet-sales/?login
All people need to do is copy it. there may be other ways to do it - this has worked for me. Hope this is helpful for you.
JC_Enthusiast 4 months ago
Thank you Petunia! Your suggestion worked great. Links in order below:
columbiamissourian.com/stories/2011/02/26/missouri-lawmakers-renew-call-internet-sales-tax/
dor.mo.gov/business/sales/
jeffersoncitytransformation.com/
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