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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (154663)	3/6/2000 2:03:00 PM
From: TigerPaw	Read Replies (1) \| Respond to of 176387

when we recently purchased our new Dell, sales tax was included Do you know if the rate was the Texas rate about 8 1/2 % or the Washington rate? TP

To: Chuzzlewit who wrote (154663)	3/6/2000 2:13:00 PM
From: John Koligman	Respond to of 176387

CTC, As far as the tax is concerned, I wonder if it could be due to Dell having groups of people possibly working with Microsoft on a more or less permanent basis in your state?? Regards, John

To: Chuzzlewit who wrote (154663)	3/6/2000 3:26:00 PM
From: Bob Frasca	Respond to of 176387

The economic effect is to raise the tax burden on those businesses subject to state and local sales tax. I don't know that there is really any additional tax burden other than administrative costs as state and local taxes are pass-through revenue, i.e. they collect and pay them but it doesn't touch the bottom line. The internet taxes that are currently being debated are not sales taxes. It is my understanding that they are "usage" taxes. These are the taxes related to the infrastructure, i.e. a brick-and-mortar business uses roads, public utilities, police, fire and other public services. In addition, some sites, like Wine.com, are skirting other kinds of taxes such as the so-called "sin" taxes. Also, to the best of my knowledge, Dell is required by law to charge sales tax in those states (ship-to state) that require it. This is true whether the sale is over the internet, over the phone, or out of a catalog. Usually there is a disclaimer in small print somewhere stating that the purchase is subject to sales tax if delivery is to a list of states.

To: Chuzzlewit who wrote (154663)	3/6/2000 7:35:00 PM
From: rudedog	Respond to of 176387

Chuzz - The Congress for ridiculous reasons has not taxed internet sales by having the vendor collect the tax. Not correct at all. Direct marketers have been fighting this battle for 20 years and I think they have a good argument. Retailers have an obligation to collect and pass through all taxes including local sales taxes. The taxes are the tax due at the retail establishment, not the tax due where the buyer lives... here in Texas, as in many states, local taxes are on a district by district basis, so while I may pay an 8.25% tax at my local store, I pay only 8% or maybe 8 1/2% if I drive a few miles. And those rates can change at any time... There are currently nearly 10,000 local tax districts in the US. There is no central agency which, on a national basis, tracks what the taxes are or notifies merchants when they change. A big retail chain with 1000 stores might have to track 1000 tax districts - but they have a physical presence and people who will be notified by the local taxing authority. So the compromise that has been worked out is that when a seller has no physical presence in a taxing district, the customer has the obligation to pay the tax, not the seller. This in no way relieves the customer of the need to pay the tax, although in practice it works that way in most cases. There is nothing about selling over the internet which changes that. The tax laws apply equally and customers are still supposed to pay the tax. Kind of silly but not an internet issue, just a direct sales issue. The discussion around "taxing the internet" was around taxing the infrastructure itself, much as common carriers are charged. I assume that as soon as legislators figure out how to track the money on the internet, they will find a way to tax it.