Party Source Shipping

[barturtle]

I believe there was a recent order now forcing online retailers like Amazon to start collecting state taxes - after allowing them for years to have a leg up on local stores. I guess it didn't become important until even Wal-Mart was having trouble competing with them.

Yes, and therein lies some of the problem. They only collect the taxes of where it's being shipped to, so the state loses it's sales tax. And what about shipping into KY, where most of the counties are dry? Do you think our local liquor stores with their meager selection of wines want to compete with some store in CA? Do you think our distributors want to lose sales to those distributors?

[w3wa2003]

i know theres more to the whole thing than this, but.......KY is losing out on a LOT of tax money by not allowing its own retailers to ship out of state. KY is THE main provider of a worldwide demanded item. sell it and tax it, ship it to every state that will allow the importation of alcohol. but that would make too much sense....

but let ALL retailers offer the shipping of alcohol, not just one. level the playing field.

How were their competitors being harmed? Its not as if they will now get the business lost by TPS. Out of state business simply disappears.

[HighInTheMtns]

How were their competitors being harmed? Its not as if they will now get the business lost by TPS. Out of state business simply disappears.

Internet sales = more volume = more buying power that none of their local competitors had access to.

[P&MLiquorsEric]

Yes, and therein lies some of the problem. They only collect the taxes of where it's being shipped to, so the state loses it's sales tax. And what about shipping into KY, where most of the counties are dry? Do you think our local liquor stores with their meager selection of wines want to compete with some store in CA? Do you think our distributors want to lose sales to those distributors?

This is a valid example. Items unavailable in KY.

The entire tier system was created to ensure the state was able to collect a high amount of taxes on booze. When you allow it to be broken for "items not available here", you also open it up to a number of other problems.

For example.

You order XYZ super duper red blend from a California retailer because it is not available in KY. The same california retailer also sells captain morgan rum for less than "wholesale" cost here in KY. You start ordering Capt Morgan by the case along with your XYZ wine because it is cheaper (even with shipping). The state of KY does not see any tax money from the sale of alcohol in this case.

The consumer benefits in this case and the state doesn't miss out on much.. Now imagine retailer in KY also sees this loophole and is buying Capt Morgan for significantly cheaper from California not by the case but by the pallet. Multiply this times 100's of retailers and customers.

[MauiSon]

and what do you have there? Just free enterprise, a system that promotes the purchase and delivery of goods at the lowest cost, laws forbid that should happen!

Edited October 1, 2013 by MauiSon

[393foureyedfox]

and what do you have there? Just free enterprise, a system that promotes the purchase and delivery of goods at the lowest cost, laws forbid that should happen!

you are erroneously assuming that all laws should make sense

[portwood]

Simple rule of taxation: as long as volume is low, tax authorities look the other way. As soon as volumes become significant they want their cut.

Similar situation happened in the early days of internet shopping, practically everything came over the border without tax, as soon as the majority of people began to use the system government stepped in to make sure courier companies collect tax. The courier companies complied because they also add their own tax in the form of brokerage fees for collecting tax on behalf of the gov.