Posted by Terry Anderson on August 10, 1997 at 16:56:41:
In Reply to: Re: state sales tax posted by Common Right Group at San Diego county on July 22, 1997 at 20:34:25:
: : Help! Does anyone have any info on a states lack of authority to force an individual or a business to charge and collect Sales Tax?
: : We operate a business (in Colorado) set up in a Pure Trust. The Colorado Department of Revenue has been investigating us for over a year and is preparing to file criminal charges.
: : The only license we have with the Sate is the a health license, since the business is a resturant. We are also claiming we have independent contractors working for us and not employees.
: : Thanks in advance,
: : B. Morris
: B. Morris,
: Not overly familiar with Colorado law, but do know about 42 USC 1994, Anti Peonage Law under authority of 13th Amendment.
: There is a story of a lady in California some years back that told the Franchise Tax Board of California that she was unwilling to work for the board without pay. When they offered to pay her [to collect the tax], she told them that she did not choose to work for them. She [the business owner] then went on to make them [the board] and offer, to wit.:
: "I'll rent you a space for a [sales] tax collection booth near the exit from my store where you may collect you tax. However, you must sign certain documents that will guarantee you will not damage customer relations, and a confession of judgment should it be shown that you have damaged customer relations."
: As the story goes, that was the end of the story.
: Although we know we haven't been of any specific help, maybe we've been able to set you on a path and track to something. Also, maybe this posting will trigger something in someone else's mind that will take off from here. Hope so, and place the blessings of our Creator on you.
If your business is in a pure commmon-law trust, then the state, per article 1, section 10 of the United States Constitution may not impair the obligations of contracts, which is what a trust is. If the state can 'require' your business to pay taxes, then they have interjected themselves into a two-party contract, which they cannot do. Perhaps you should challenge their jurisdiction, requiring them to proove at law thea they can lawfully do what they say they can. Remember, government will always try to get you to 'volunteer' to do what they want you to, but (usually) if you demonstrate that you know what your rights are and exercise them timely, they back off. Well, there's always hope...!
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