What is Nexus for state Sales Tax purposes?; Business is going wireless; and everyone works out of their home.
1. The Final Report is in and confusion is the norm.
The Final report of the Advisory Commission on Electronic Commerce is finished and its recommendations [It required a super majority which did not happen] are bringing lots of action including trying to determine when a business has a Nexus with a taxing jurisdiction. [Some states are requiring their citizens to report purchases that are not subject to 'sales tax' and then apply a 'use tax' which may not be legal if the states did not enforce their 'use tax' prior to the Internet Moritorium was adopted in October 1998].
As Internet and E-Commerce become more popular, especially with the entertainment industry [music, video, and games] state and national boundaries are going to become irrelevant, with the taxing authorities of the various countries and other jurisdictions trying to recover lost revenues.
This result may be what the New Economy is all about if Cyberselfish: A Critical Romp Through the Terribly Libertarian Culture of High Tech, by Pauline Borsook is correct.
As an aside, the New Economy is affecting everything it touches including the relationships between Universities, students, faculty and their neighbors. It is not business as usual.
2. Sony is leading not following.
Sony has been in San Diego, California for a very long time, with sister operations in Mexico. Their United States R&D is located here, home of Qualcomm one of the leaders in wireless technology. Thus it is not surprising to see that Sony is moving aggressively into wireless on their consumer products including music, video, and games.
They see this as a must just to keep up with the movement of the the creators who have taken to the Web Brian DePalma, Music Makers or Pete Townshend, to market or sell their product. Where will all these 'entertainers', or the producers of 'entertainment products' be locating if ZERO CAPITAL GAINS TAX ZONES become a reality?
3. Everyone is working out of their home.
Yesterday we met with a real estate specialist, a venture capitalist, and a real estate developer, all of whom are working out of their homes, as is Martha Stewart. As Martha said in the New York Times: "...She is divorced, her daughter is grownup and she's just not a real suburbanite anymore... It is about change in lifestyle..." That sums it all up, and with highspeed computer, highspeed internet, and a Web site, the world is your market place. Enjoy.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.