Jay Evensen
  • Front Page
  • Opinions
  • Second Thoughts
  • Portfolio
  • Awards
  • About

Paying sales taxes online won't stop you from buying

2/1/2017

0 Comments

 
Picture
Stores and malls are dying from coast to coast. That’s hardly a secret, and it’s not really up for debate.

This trend may vary a bit from state to state, but if you drive down a major road with big-box retailers you’re likely to see it in action — or perhaps in inaction.

After you’re done doing that, examine how often you drive to shop today versus 10 years ago. Then look at how much you buy online.

What is up for debate is what government can do about it. When stores die, sales taxes go with them. Governments rely on those taxes, and even though Utah has long required people to voluntarily pay taxes on purchases they make remotely, few do.

Utah lawmakers once again are attempting to fix this by requiring online sellers to pay taxes. They 
feel compelled because Congress won’t do anything about it.

But if you really want a debate, try proving that sales taxes will entice people to drive to real stores once again, or that the state really is missing out on the $220 million a year from these taxes that legislative fiscal analysts say it is.

If you step away from legislative hearing rooms and into the world of business, you’ll find a lot of opinions as to why traditional businesses are suffering. Few of them are related to taxes.

At a legislative hearing Tuesday, the owner of a Utah clothing store complained that customers regularly come to her place to try dresses, compare colors and styles and then, after sometimes using hours of her employees’ time, pull out a cell phone and purchase the same dress elsewhere online in order to avoid a sales tax.

A lot of merchants complain about this tactic, known as “showrooming.” It really happens. A lot. No question.

But business experts say complaining won’t help, and it won’t change customer behavior. They suggest retailers embrace “showrooming” by offering their own online specials and turning their physical stores into mini fulfillment centers. The website smallbiztrends.com notes than 74 percent of small businesses offer no sales online, which means their customers are forced to look elsewhere if they’re making comparisons.

Successful stores “all realize that having some kind of sticky customer experience across all channels is the path to success,” Todd Werden, vice president of the consulting firm Boston Retail Partners, told National Real Estate Investor.

Translation — give people lots of ways to buy your products, and make it easy for them.

That doesn’t help governments much, though. Sen. Curt Bramble’s SB110 would require any retailer who sells more than $100,000 in Utah to collect and remit sales taxes to the state, even if they don’t have a physical store here.

The bill is opposed by so-called Mommy bloggers, who worry they no longer will be able to make money when their readers click ads on their websites. Others say it will invite a lawsuit because the Supreme Court long ago ruled that states may collect taxes only from companies that have an actual presence there.

Mark Griffin, speaking on behalf of Overstock.com, may have made the most credible observation. He said the state already collects much of the money it is worried about losing, estimating all but a few of the top 100 online retailers already collect sales taxes here. Amazon.com recently signed an agreement to do so, as it has in 39 states so far.

I have opposed similar attempts by Bramble in the past, but now I am becoming sympathetic. Perhaps that’s mostly an acknowledgement that online sales taxes are coming anyway, and that they’re mostly here already.

But despite what was voiced on Utah’s Capitol Hill Tuesday, this has little to do with how the world is changing.

Business Insider’s Ashley Lutz spelled out the challenge for storeowners in a report last summer. Quoting figures from the real estate research firm Cushman and Wakerfield, she said mall visits declined 50 percent from 2010 to 2013 alone, from about 35 million to 17 million. Big stores with familiar names are failing.
​
Sales taxes are a factor. However, you’ll be paying them online in the future, and my guess is that won’t stem the online tide.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    RSS Feed

    Search this site


    Like what you read here?

      Please subscribe below, and we'll let you know when there is a new opinion.

    Enter your email address:

    Delivered by FeedBurner

    Picture

    The author

    Jay Evensen is the Opinion Editor of the Deseret News. He has more than 40 years experience as a reporter, editor and editorial writer in Oklahoma, New York City, Las Vegas and Salt Lake City. He also has been an adjunct journalism professor at Brigham Young and Weber State universities.

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Campaign 2012
    Congress
    Crime
    Culture
    Iran
    Oil And Gas
    Poverty
    Steroids
    Taxes
    Utah
    Washington
    World Events
    World Events

    Links

    Deseret News
    Newslink
    Marianne Evensen's blog

Powered by Create your own unique website with customizable templates.
Photos from jamesjoel, DOWN ESPAÑA, garethjmsaunders, University of Salford, Adam Jones, Ph.D. - Global Photo Archive, marcoverch, See-ming Lee 李思明 SML, edgarzunigajr, Theo K, ActuaLitté, Mike Licht, NotionsCapital.com, Backbone Campaign, OIST (Okinawa Institute of Science and Technology), bradleygee, @sage_solar, sianiweston, makelessnoise, COD Newsroom, philozopher, Congressman George Miller, Jordi Bernabeu, edgarzunigajr, National Assembly For Wales / Cynulliad Cymru, simpleinsomnia, Mike Bonitz, Becker1999, manhhai, BiblioArchives / LibraryArchives, amira_a, Ken Lund, Bread for the World, r.nial.bradshaw, DearEdward, sinisterbluebox, denebola2025, thedoc31, ** RCB **, IQRemix, sandiegoduiattorney, Rob.Bertholf, Seluryar, Ben Sutherland, O.S. Fisher, Tony Webster, www.rubenholthuijsen.nl, Zachi Evenor, jonnwilliams, Lion Multimedia Production U.S.A., penjelly, jillccarlson, ADAM TAS IMAGES, UNMEER, DonkeyHotey, USDAgov, The Prime Minister's Office, Maicon Garcia, CountyLemonade, familymwr, Muffet, DonkeyHotey, tedeytan, KristineL761, penjelly, Leap Kye, sully213, NLNY, frankieleon, haven't the slightest, ljlandre, jalbertbowdenii, Rvs1966, Marion Doss, Vassilis Online, Dan Bock, Prestonbot, Frontierofficial, L. Bartha, educators.co.uk, Kelly Hunter, lindsayloveshermac, Michael.Jolley, dw_ross, Janitors, KAZVorpal, combusean, wuestenigel, apardavila, BodyWorn, MDGovpics, MHS Touchdown Club, JeepersMedia, Elvert Barnes, fred_v, CountyLemonade, mitchell haindfield, qbac07, David Holt London, Hoshi_sae, DonkeyHotey, aaronrhawkins, Ruth and Dave, CountyLemonade, Akademija Oxford, NASA Goddard Photo and Video, Chimpanz APe, huskyte77, GotCredit, sandiegoduiattorney, pacificpelican, streetsensedc, ell brown, Aaron Volkening, rgserapio, Asian Development Bank, paularps, ThoseGuys119, USDAgov, SIM USA, gnrklk, kthypryn, Zeitfixierer, vwcampin, regan76, frankieleon, Robert Couse-Baker, JoeInSouthernCA, SounderBruce, ThoseGuys119, CDC Global Health, Gage Skidmore, bunnicula, Fire At Will [Photography], Alexandre Prévot, Anth0ny Gale, vastateparksstaff, raphael.chekroun, Gerry Dincher, halseike, Prayitno / Thank you for (12 millions +) view, Gage Skidmore, infomatique, omarsalvatierragracida, Jerk Alert Productions, DonkeyHotey, Österreichisches Außenministerium, Photocapy, USDAgov, Taymaz Valley, jencu, Peter Krantz, WayShare, Mike Licht, NotionsCapital.com, gruntzooki, CountyLemonade, makelessnoise, Denise Cross Photography, Roadgeek Adam, Tony Webster, amy.gizienski, faungg's photo, makelessnoise, FolsomNatural, Loimere, free pictures of money, Exile on Ontario St, EvinDC, ell brown, kamirao, coachphatty, Keith Allison, Raido Kaldma, avrene, Shutterbug Fotos, Elvert Barnes, Andrew Feinberg, Tony Webster, danxoneil, GrandGeneralStormCommando, MShades, Joe Frazier Photo, Kurdishstruggle, Omranic, SounderBruce, Mike Morbeck, Got Credit, Scudamore's Punting Company, wuestenigel, r.nial.bradshaw, NIAID, torbakhopper, 81disasters, gaobo, John Haro, Metro Atlanta Transit Productions, foundin_a_attic, Sten Dueland, tedeytan, CarbonNYC [in SF!], Mike Licht, NotionsCapital.com, marcn, pburka, BBurchell Photography, wbaiv, heyexit, Phillie Casablanca, Neil T, LendingMemo, Elsie esq., Mike Licht, NotionsCapital.com, n4rwhals, WalterPro4755, railsr4me, JLaw45, Janitors, USDAgov, MarkDoliner, educators.co.uk, wuestenigel, Franco Folini, JeanneMenjoulet&Cie, WayShare, Gamma Man, ninara, Bob Linsdell, H.KoPP, Vegar S Hansen Photography, denebola2025, Aircaft @ Gloucestershire Airport By James, Talusss, LaBellaVida, wwarby, easysentri, evelynquek, Ken Lund, rdmsf, North Charleston, t--h--s, denisbin, stcyshn, Tim Evanson, KAZVorpal, jurvetson, Simon_sees, thisisbossi, Photographing Travis, Phil Roeder, rich701, BPPrice, Kadano, quinnums, MoneyBlogNewz, wickenden, Lost Albatross, Bernd Thaller, Dave Snowden, CountyLemonade, au_ears, annikaleigh, magerleagues, MICOLO J Thanx 4 725k+ views, DonkeyHotey, progre, frankieleon, quinn.anya, Ryan Hallock, jsnsndr, abominable_eagle, Alan Cleaver, aflcio, CDC Global Health, NASA Goddard Photo and Video, jellygator, Jason M Parrish, USDAgov, Mystery in the mail, CJS*64 "Man with a camera", BenDibble, Joybot, JoeInSouthernCA, Pawel Maryanov, kennethkonica, mitchell haindfield, USDAgov, stevebott, Tyler Merbler, NCDOTcommunications, Exile on Ontario St, CBP Photography, jboe2009, WWYD?, liveoncelivewild, vaxomatic, Hunky Punk, tedeytan, GotCredit, Find Your Feet, Fibonacci Blue, Nicholas_T, Sergey Galyonkin, shock264, Georgie Pauwels, EU Humanitarian Aid and Civil Protection, adifferentbrian, Seluryar, Riik@mctr, Andrew Moura, Michael.Jolley, kellybdc, inkknife_2000 (7.5 million views +), JeepersMedia, TheTruthAbout, Anton V. Larionov, HloomHloom, surreynews, {Guerrilla Futures | Jason Tester}, Secretary of Defense, The All-Nite Images, FootMassagez, You're In My Light (jerrysEYES), BLMOregon, Achilli Family | Journeys, Gerry Dincher, Ken Lund, Triple-green, yourbestdigs, Richard Elzey, Prestonbot, automobileitalia, Fora do Eixo, mary_gaston22, bk2000, AutrementDit Toronto., Elvert Barnes, dualdflipflop, mikemacmarketing, Hoshi_sae, torbakhopper, eburniche3, Mike Licht, NotionsCapital.com, Abeeeer, Rob.Bertholf, Don Hankins, dannielleblumenthal-thinkbrandfirst, USDAgov, wuestenigel, Michael.Jolley, xiquinhosilva, Images_of_Money, OregonDOT, [email protected], gregfriese, SounderBruce, Kevin Johnston, Imagens Evangélicas, loop_oh, Magic Robot, funktionhouse, Gage Skidmore, Yosuke WATANABE, Mark Scott Johnson, F43r1x, ljlphotography, dsearls, David Holt London, ER24 EMS (Pty) Ltd., Images_of_Money, roberthuffstutter, monkeyz_uncle, zemistor, fred_v, DonkeyHotey, Obama-Biden Transition Project, CedarBendDrive, nestor galina, brianholsclaw, ryochiji, thisisbossi, Bright Meadow, richard winchell, Svadilfari, Edward M Johnson, NavaInstigator>>>, VarsityLife, ourbethlehem, Mr. T in DC, mwanasimba, Franco Folini, qnr, Dougtone, LightinkLibrarian, Obama-Biden Transition Project, The Official CTBTO Photostream, AstroSamantha, MoreSatisfyingPhotos.com, The Shopping Sherpa, The National Guard, craigdietrich, kamshots, ewan traveler, World Can't Wait, Gila Forest, kaffeeringe, jgurbisz, gruntzooki, Supermac1961, thievingjoker, Rod Waddington, PlayfulLibrarian, Philip Taylor PT, AlicePopkorn, Raido Kaldma, dan taylor, Cannabis Culture, surreynews, cliff1066™, Lars Plougmann, ANZ Cluster Munition Coalition, Tracy O, www.davidbaxendale.com, Rob Barrett Photography, BuzzFarmers, Political Graveyard, ojbyrne, US Mission Geneva, inkknife_2000, ubiquit23, Dan Bock, irrezolut, Frankie Roberto, Abode of Chaos, KOMUnews, John Pavelka, ElectronicFrontierFoundation, DonkeyHotey, carlos.a.martinez, pnoeric, ARTS, ubiquit23, Ken Lund, Tony Fischer Photography, brewbooks, || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL ||, blackplastic, cristee12, Shan213, OPEN Sports, Korean Resource Center 민족학교, cocoate.com, karola riegler photography, 4nitsirk, gnuckx, citizenactionny, rezsox, Jeffrey Beall, david_shane, Mrs. Gemstone, Erik Daniel Drost, stockicide, kadluba, joaquinuy, quinn.anya, ReneS, StockMonkeys.com, loop_oh, Steve Tolcher, Iqbal Osman1, kiwanja, rawmustard, Anthony J, El Bibliomata, International Information Program (IIP), Alex McClung, danielmoyle, "G" jewels g is for grandma, slgckgc, Images_of_Money, fivedollarones, x1klima, Gabriel GM, redjar, andertoons, gvgoebel, .Larry Page, Mr. T in DC, chintanamin, KatVitulano Photos, Ken Lund, adactio, shroncin, RobotSkirts, jeffschuler, VinothChandar, Joybot, neurollero, erasergirl, Matías Garabedian, viviandnguyen_, Digitale Gesellschaft, markhillary, mkphotonet, jgBeachcomber, jimbowen0306, Franco Folini, dno1967b, jurvetson, MargaretNapier, Elvert Barnes, muddum27, [email protected], Frontierofficial, dsearls, Shamanic Shift, Andrew Feinberg, Prayitno/ more than 2 millions views: thank you!, playerx, FSonne-pennstate73, The Daring Librarian, Vicky Hugheston, thenestor, Dusan Simonovic, David Reber's Hammer Photography, Justin A. Wilcox, Hollywood_PR, AR McLin, BrownGuacamole, Gage Skidmore, zache, Medill DC, wheat_in_your_hair, patricialow, Matt McGee, Bill Stanley, jerekeys, cletch, 6SN7, killrbeez, شبكة برق | B.R.Q, colros, Eric Kilby, kenteegardin, Mike Licht, NotionsCapital.com, Erik Daniel Drost, Edward Dalmulder, chris friese, simone.brunozzi, Daquella manera, stevebott, stevendepolo, DFID - UK Department for International Development, justinmatthew21, a.drian, cudmore, Extra Ketchup, wbaiv, Loren Javier, swanksalot, CountyLemonade, indigoprime, Bryn Pinzgauer, Paul Robertson, Gruenemann, r.nial.bradshaw, Sam Beebe, Ecotrust, Fibonacci Blue, .jocelyn., RESchroeder, MoneyBlogNewz, matze_ott, swskeptic, peterolthof, Charleston's TheDigitel, Tony Webster, Themeplus, sDanOoO, CountyLemonade, Our Dream Photography (Personal), anitakhart, Waiting For The Word, Matt-Zimmerman, Dougtone