WI to Exempt Some Small Retailers from Internet Sales Tax

Not only do I not like the tax increase, I thoroughly dislike that an unelected agency is making these arbitrary decisions instead of the legislature.

The Department of Revenue’s administrative rule to allow the state to begin collecting the sales tax on some online transactions will include an exemption for smaller retailers.

The DOR’s announcement yesterday is consistent with the U.S. Supreme Court ruling that cleared the way for states to begin collecting the sales tax from online and remote sales involving retailers with no physical presence in their states.

That means retailers must have annual sales of at least $100,000 in Wisconsin or at least 200 transactions before having to collect the sales tax.

The Walker administration told WisPolitics.com on Monday that it planned to begin collecting the tax Oct. 1 and was in the process of notifying retailers.

The Legislative Fiscal Bureau on Monday released a memo projecting the state could collect an additional $90 million in the current fiscal year if it began collecting the tax Oct. 1. It would then bring in an estimated $120 million annually.

25 Responses to WI to Exempt Some Small Retailers from Internet Sales Tax

  1. Kevin Scheunemann says:

    Typical DOR, making a vague “gotcha” rule again.

    What happens when they get to $101,000, is merchant responsible for tax on prior $100,000?

    Is the first $100,000 exempted every year?

    Or once you hit you always need to tax, even if next year is only $50,000 in sales?

    These are the kind of things that drive businesses insane.

  2. Le Roi du Nord says:

    Well, the Secretary of DOR is appointed by walker, so this is your baby.  But I’m sure you all would be unwilling to vote for some one else come Nov.

  3. Kevin Scheunemann says:

    Nord,

    Walker deserves criticism on this.

    Promulgated rule making authority is BS I have long opposed!

    I don’t defend Walker on this just because he is “my guy”!

    If you can show me a Democrat that is not worse crap on this issue I should like to see that magic unicorn.

  4. Le Roi du Nord says:

    k:

    Since neither the D’s nor the R’s will get to vote on this we’ll never know, will we?.  This is all on your guy, and you folks that voted for him.  Enjoy.

  5. Kevin Scheunemann says:

    Nord,

    Yes 1 strike against Walker, but he’s done 1000 other great things.

    Doyle it was 1000 bad things to every 1 good thing, if any.

  6. Le Roi du Nord says:

    Since you provided no source for your claim, “but he’s done 1000 other great things”, I’ll say you are wrong.

  7. Kevin Scheunemann says:

    Lowest unemployment, ever!

    Need I say more?

  8. Le Roi du Nord says:

    Maybe, still 998 short.

  9. Kevin Scheunemann says:

    Wow! You granted me the 1st one. I’m shocked. Just shocked.

    Lowest Hispanic unemployment rate ever!

    Lowest African American unemployment rate ever!

    Record tax revenues!

    Record tax cuts!

    Shall I continue?

  10. Le Roi du Nord says:

    So if we have record employment, effectively full employment, why did walker send $billions$ of my grand kids dollars for Foxconn???

    Again, you have provided no proof of any of your claims, so I can say you are wrong with the same degree of certainty .

  11. Kevin Scheunemann says:

    Stop being such a bitter partisan Nord.

    Enjoy the prosperity!

  12. Le Roi du Nord says:

    This is a long-term fiscal matter.  Foxconn doesn’t provide any prosperity to the northern part of the state, and probably won’t help the folks in Kewaskum much either.

    And you are pretty clueless when calling others bitter partisans. Take a look in the mirror.

  13. Le Roi du Nord says:

    Looks like a lot of states are eating our lunch, and they didn’t have to spend $billions of our grand kids dollars.

    https://www.usnews.com/news/best-states/rankings

  14. Mark Hoefert says:

    @ Nord: Looks like a lot of states are eating our lunch, and they didn’t have to spend $billions of our grand kids dollars.

    I take it you did not take a look at the article?  WI, #11 – that means 39 states are behind WI – being in the top 22% is not exactly “a lot of states are eating our lunch”.  In any event, if you had read the article, you would have seen that different factors were given higher weightings, such as Health Care & Education.  As it is, WI ranked #3 in Quality of Life; # 8 in Opportunity (with Foxconn that one may shoot up, who knows).  Economy is #27 – Foxconn may be a right step in that direction – remains to be seen.  Infrastructure is #26 – may be due to so much of our tax money going to roads and highways that serve sparse populations that most state residents will not use – those roads and highways “up north”.

    Again, WI is #11.  Washington is #10 – and they spent over $7B on Boeing economic package.  So, you make absolutely no sense trying to correlate state economic incentives to state rankings, when one of the states that “is eating our lunch” spent double what WI will be spending.  Washington has not revealed how many billions they are offering to keep Amazon from establishing another headquarters (New Jersey offered 7B).

     

  15. Mark Hoefert says:

    and they spent over $7B on Boeing economic package.

    I was wrong in my comment above, more like $8.7B in 2013, past incentives bring it to $12.3B.  Pretty expensive cost to “eat our lunch.”

    http://www.latimes.com/business/hiltzik/la-fi-hiltzik-boeing-washington-20170503-story.html

  16. Merlin says:

    If y’all were paying even a little bit of attention to your Wisconsin income tax forms you’d know that you’ve been obligated to declare the tax due the state on your internet purchases all along. That burden has been on you the Wisconsin citizen as a consumer, not the retailer. An unenforceable obligation, for certain.

    I suppose it’s not exactly wise public policy to rely upon the honesty of the citizenry when it comes to tax collection, but the only thing likely to change here is the collection mechanism of a tax you’ve been obligated to pay all along.

  17. dad29 says:

    Good point, Merlin.

    That said, I still agree with Kevin here:  what gives Walker the right to decide who gets taxed and who does NOT get taxed (regardless of reporting methodology)?

    Recently, Walker has been displaying a lot of soft-socialist tendencies.

    @ Mark Hoefert:  THANK YOU for noting that Wisconsin has thrown away hundreds of millions of dollars on highways in the middle of nowhere which are used about 30% of the year.

    But the local wildlife gets full, un-impeded, use of those Highways to Nowhere 100% of the year.  Rudolph the Red-Nosed Reindeer sends his thanks.

  18. Merlin says:

    Dad:

    You’re not the only one who’s noticed that Walker is starting to sound a lot like a politician who’s maybe getting too long in the job.

    Walker can talk taxes all he wants knowing it’s the legislature that makes tax law. All he really gets to do is either sign, line item veto, or outright veto a Voss and Fitzgerald final product. Other than that it’s all political speak.

    Still irritating, though.

     

  19. Le Roi du Nord says:

    Mark:

    But MN didn’t.  I rest my case.

  20. Jason says:

    Because MN is … “Looks like a lot of states are eating our lunch, “.

    You’re resting on your biscuits and gravy saddle bags, basement troll….

  21. Kevin Scheunemann says:

    Nord,

    MN doesn’t even have a professional football team…hardly a level we want to dumb ourselves down to.

  22. Mark Hoefert says:

    @ Nord: But MN didn’t.  I rest my case.

    Man, you are one special kind of stupid.

     

     

  23. Paul says:

    Let’s hope the troll’s grandkids shut him in a nursing home soon.

  24. jjf says:

    Don’t worry, everyone, Dad29 and Merlin will still vote for Walker the next time around.

  25. dad29 says:

    Paul, are you talking about the troll below your post, or a few slots above it?

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