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[OM] Re: Is Olympus going bankrupt? Am I a creditor?

Subject: [OM] Re: Is Olympus going bankrupt? Am I a creditor?
From: "PhotoSphere Olympus Camera Service" <olyfix@xxxxxxxxxx>
Date: Fri, 19 Aug 2005 11:45:38 -0500
When I went into bidness back in the dark ages, the state tax man told me
(and the rest of the folks attending the Small Business Admin. class) that
the Federal courts had ruled that, for the most part, tax judgements from
one state have no weight outside of that state.  So if I purchase something
via mail order (or now, internet), from a supplier outside of Texas, the
supplier cannot be held accountable for collection and remission of taxes
assessed by the State of Texas UNLESS that supplier has a physical business
presence within the State of Texas.

The same holds true for anyone outside Texas purchasing something from me --
since I don't have a business presence outside Texas, New York (for example)
cannot require me to collect and remit _their_ sales tax.

It is up to the citizens of that state to voluntarily notify their state's
collection office and remit the appropriate tax (yeah, right!).  On my
"Texas Sales And Use Tax Return" form (which is before me as I type -- due
on the 22nd, btw, gotta get busy!) there is an item entry titled "Taxable
Purchases", wherein I am obliged to enter the total of all purchases made
for which state sales tax was not collected, including "...out-of-state
sellers, or items taken out of inventory for use, items given away, and
items purchased for an exempt use but actually used in a taxable manner."
To the best of my memory, thank god, that has never happened to me in the
course of business!

BUT, if someone is physically present at your place of business, you _MUST_
collect state sales tax from all taxable purchases.  We used to get the
question routinely: "I'm from another state -- why do I have to pay _your_
state tax?"  The reasoning is that, since you are within this state, you
benefit from the services provided by the state, and so must contribute.

>
> I'm betting the compliance rate on that particular item (if most people
> even know what the heck the FTB is asking about) is somewhere between
> zero and nil. Probably one of the more exceedingly stupid ideas I've
> seen yet, as the cost of enforcement would easily exceed revenues gained
> for almost every case, unless they were after some big fish for other
> non-compliance issues.
>
> ---
> Scott Gomez
>
> -----Original Message-----
> From: Moose [mailto:olymoose@xxxxxxxxxxxxxxx]
> Subject: [OM] Re: Is Olympus going bankrupt? Am I a creditor?
>
> Audits. Or simply, as someone else suggested, when trying to catch you
> for something else. The tax return form asks if you have any such items
> and to pay use tax on them. You then sign the statement on the bottom.
> If they put that statement together with proof of unreported/paid out of
> state purchases - Gotcha!
>
> The practical situation for most of us ordinary, minor tax grifters is
> that it's no problem, but the threat is there.
>
> Moose
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