Illegal to sell buy 2nd hand goods in Louisiana with cash

[Lessss]

http://www.techdirt.com/articles/20...it-illegal-to-use-cash-secondhand-sales.shtml

(moderator edit: moved from Items for Sale - Used to General Discussion as it is not a for sale thread. Please use the correct forum for posting discussion items.)

 

[wineboyrider]

And you called me a Troll? Really? :lol: :lol: :lol: :lol: :lol:

 

[StudEbiker]

Let me fill in the blanks.

Rickey Hardy = Democrat

BIG surprise!

 

[spinningmagnets]

States that rely on sales tax for a significant amount of their income are very concerned about how the internet has made it much easier to sell direct (craigslist, bookoo, etc).

If I donate clothing and household items to a charitible thrift store, I get a small federal tax deduction, then when the items are resold to the public, the city/state gets sales tax. If I sell an item direct to a guy down the street through craigslist, the state gets nothing.

It may not actually be a large amount of money in the big picture, but in these days of stretched budgets and states running a deficit (spending more than they have coming in) they are looking closely at any way to get every single dollar they can lay their hands on. My local city seems to now view minor traffic citations as revenue generation, and the tickets are being issued left and right.

Look for cities to crack down on yard sales without a permit (their cut). It may only be $5/$10 per yard sale, but trust me they will do it.

 

[Red_Liner740]

screw it....

i paid a tax on the item once....WHY EXACTLY DOES THE GOVERNMENT BELIEVE THAT A USED ITEM THAT IS TRANSFERRING HANDS NEEDS TO BE TAXED AGAIN!?! sorry for the caps but that infuriates me...

 

[oldpiper]

screw it....

i paid a tax on the item once....WHY EXACTLY DOES THE GOVERNMENT BELIEVE THAT A USED ITEM THAT IS TRANSFERRING HANDS NEEDS TO BE TAXED AGAIN!?! sorry for the caps but that infuriates me...

In Arkansas, if you buy a used car, there is no sales tax, because of that very reason. Come to think of it, that may be the only reasonable thing the state government has done, ever. At least, I'm at a loss for another.

Cameron

 

[Kin]

Ok, so it's convention to only tax new goods.

But to a certain extent this is not as unreasonable as it sounds:

Lets think: Do you think there should still be tax at pawn shops?
Should stores that sell refurbished items pay tax?

It doesn't sound like the government is trying to tax the 3rd grader's lemonade stand. But they're trying to deal with the idea that's rapidly sweeping through our society with all of the decentralized elements, particularly prevalent with the internet. It's talked a lot about in the sense that editors and publishing houses might be swept aside by self-publishers and blogging, and all that snazz, but in principle it can also exist with a decentralized store...like craigslist.

The reasons that government claims items can be taxed still apply for used items.... If we had things that never broke down, and didn't need to buy new items, then maybe the rationale for taxing used items would be more apparent. Taxes are not just a "tithe" that the government asks for because they're noble overlords, but exist because in theory it's part of the deal for living in a society with public goods, like public education and quality roads.

I'm frustrated, because I feel like all the tea party, or the occupy wallstreet movement, is getting credit for is their use of caps lock. And the sort of issues many people have with government are LEGITIMATE but not expressed well. Definitively not with caps lock [not directed at red-liner]. Still, ES is not the place for my counter-rant here, except in the way that some people who push the end of this really are committed to a sort of E-revolution

**quick disclaimer: Seriously, I never read that link, beyond the headline for used goods paid in cash being taxed. I'm totally tirading as a result of some other things I'm working on.**

 

[dogman dan]

Most places it's always been the case, that sales tax always applies. Some like NM have exemptions for not ready to eat food items, but the garage sale is supposed to pay tax.

The funny thing is, there is no real way to pay it in NM unless you get a state buisness licence. The intent is to get those who have a buisness in their home, to get a buisness licence and pay the tax. Tax may not apply to mail order, but that loophole is being closed in more places. I think the city ordinance is 4 garage sales a year max, to discourage under the table second hand stores popping up in R1 neighborhoods.

The idea behind any crackdown, is to go after folks who run a flea market or out of the garage buisness off the radar.

When I was making a whopping 3 thou a year as a furniture and pottery artist, I had to have a buisness licence and pay tax. Part of the process was proving that my buisness activity wasn't going to make life hell for my residential neighbors.

I thought it was kind of funny, that it didn't matter how bad I was starving, I still had to collect and pay sales tax. A lot of my fellow craft market vendors really resented this tax, and I never could get it through thier heads that the customer paid it, not them. But after collecting the tax for three months, there were sure times I had a hard time coughing it back up to make the payment, on a 3 thou a year income. The day I had to send that check, it sure hurt a few times.

Regarding the Louisiana law, I smell a crackdown on the gun show with that one.

 

[wineboyrider]

Most places it's always been the case, that sales tax always applies. Some like NM have exemptions for not ready to eat food items, but the garage sale is supposed to pay tax.

The funny thing is, there is no real way to pay it in NM unless you get a state buisness licence. The intent is to get those who have a buisness in their home, to get a buisness licence and pay the tax. Tax may not apply to mail order, but that loophole is being closed in more places. I think the city ordinance is 4 garage sales a year max, to discourage under the table second hand stores popping up in R1 neighborhoods.

The idea behind any crackdown, is to go after folks who run a flea market or out of the garage buisness off the radar.

When I was making a whopping 3 thou a year as a furniture and pottery artist, I had to have a buisness licence and pay tax. Part of the process was proving that my buisness activity wasn't going to make life hell for my residential neighbors.

I thought it was kind of funny, that it didn't matter how bad I was starving, I still had to collect and pay sales tax. A lot of my fellow craft market vendors really resented this tax, and I never could get it through thier heads that the customer paid it, not them. But after collecting the tax for three months, there were sure times I had a hard time coughing it back up to make the payment, on a 3 thou a year income. The day I had to send that check, it sure hurt a few times.

Regarding the Louisiana law, I smell a crackdown on the gun show with that one.

My dad collects the "gross receipts tax" and has to write a check all the time. Sure he collects from the customer, but times are tough these days. The only exemptions these days now are food and raw farm goods (like watermelons, pecans,etc) as long as it is not processed. The government hates barter systems and as the Zombie banks start charging more people to use debit ATM cards the local governments are scared they will lose even more revenue. Did you know that part of the Obama healthcare plan ( it's only 2000 pages you know) allows the IRS (and any government collection) agency to require banks to present individuals bank statements (debit accounts)? It wouldn't take much math for someone to find out that you are not reporting all of your income, especially if you love that debit card like I do.
This is going to hammer waitresses and people who earn their living on tips or who do side jobs.

 

[John in CR]

Isn't it great how people twist things around?

This law is for dealers in 2nd hand stuff, those in the business of buying and selling second hand stuff, including junk. They are the ones who are prohibited from using cash to purchase the used stuff they sell. The purpose of this change in the law is to discourage transactions in stolen property and provide a paper trail of evidence for those stupid enough to do so. That way, when someone jacks your ebike, he can't go down to the pawn shop and sell it anonymously. He gets a check or moneyorder instead, and has to show ID to get cash.

 

[dogman dan]

That makes some sense to me. Particularly since the really brisk buisness in used goods is guns to mexico.

But then, if you sell to the cartel they may be paying in drugs. In which case you aren't real likely to be caring much about details of the law.

Sortof , if you outlaw cash only outlaws will have cash. Hard to say if any of it does any good. Like the cartel, wise guys, etc give a rip.

As for you tax whiners, I bet you really give the Europeans on this forum a good belly laugh.

 

[Lessss]

I put this in for sale 2nd hand so anyone in LA selling 2nd hand ebike parts would see it.

Not that big a step to requiring all transactions be trackable.

 

[neptronix]

All transactions must now carry the mark of the beast... visa/mastercard

 

[John in CR]

All transactions must now carry the mark of the beast... visa/mastercard

It's pretty doubtful that people selling used things to businesses can take credit cards for payment. They weren't a listed payment method anyway, so to your joy credit card payments for these purchases by dealers would be illegal too.