Thursday, April 18, 2019
The camel got its nose beneath the tent flap and nobody noticed
The item I was going to purchase from Amazon cost $66.99
Six percent of $66.99 is $4.02
Amazon charges $5.76 for tax because they roll in the cost of shipping.
Shipping is a service. I, and every other on-line shopper, are now paying sales tax on shipping. We are paying sales tax on services.
You are looking at a precedent that nobody is challenging. Every state in the union is stacking up "precedence" where they are charging sales tax on services.
Suppose you paid $400 to have your taxes prepared. If you live in a state with 8% sales tax then expect to pay $432 next year. If it is legal (i.e., unchallenged) to force people to pay sales tax on shipping then it is legal to compel them to pay sales tax on every other service.
Mechanics worked on your vehicle and the work came to $500 in parts and $600 in labor? Expect the bill to go up $48 next time because you will be paying sales tax on the labor.
Do you really expect states to NOT exploit this newly created revenue windfall?