Who Else Is Paying Sales Tax

[sherbs]

Here is a example of my savings. Last night I purchased a Tekin RX4 from RPP, shipped the price was $179.95. The same item from Amain would have been $199.79. No sales tax from RPP and coupon was for $5 more off than Amain. So maybe the States are not going after the smaller sellers?

[svt923]

Originally Posted by sherbs

Here is a example of my savings. Last night I purchased a Tekin RX4 from RPP, shipped the price was $179.95. The same item from Amain would have been $199.79. No sales tax from RPP and coupon was for $5 more off than Amain. So maybe the States are not going after the smaller sellers?

Amain has an agreement with Hobbytown that I'm sure equates to Amain having a physical presence in any state with a Hobbytown location so they have to collect sales tax the way any business in the state of the buyer would.

[Panther6834]

Originally Posted by svt923

Amain has an agreement with Hobbytown that I'm sure equates to Amain having a physical presence in any state with a Hobbytown location so they have to collect sales tax the way any business in the state of the buyer would.

It's not so-much that Amain has an "agreement" with HobbyTown... Amain operates the HobbyTown marketing, as well as the entire online sales. That's why they're websites are (essentially) identical.

~ More peace, love, laughter & kindness would make the world a MUCH better place

[Robbob]

Originally Posted by sherbs

Here is a example of my savings. Last night I purchased a Tekin RX4 from RPP, shipped the price was $179.95. The same item from Amain would have been $199.79. No sales tax from RPP and coupon was for $5 more off than Amain. So maybe the States are not going after the smaller sellers?

So heres my State law, Connecticut.

Connecticut legislators also enacted a law this year that requires online companies to remit sales taxes if they have at least 200 transactions or collect at least $250,000 in gross receipts from Connecticut consumers in a 12-month period.Jun 21, 2018

So according to my state law RPP has to pay CT sales tax for all purchases from CT state orders IF they have at least 200 orders OR gross 250,000$ in sales from CT orders.

So RPP and any other online vendor has to make a decision. Do they not collect the tax from the buyer and hope not to exceed the threshold or do they collect the tax in case they do hit it and have to pay the state.

If they hit the threshold and owe the state but dont charge for it then they are on the hook for the tax money for all CT orders. But they didnt collect any so its money out of their pockets.

Different states have different thresholds and are still figuring out their laws. Online sites are finding it easier to collect and bank it in case they do owe it. Shitty part is if they dont hit it then they have the extra income sitting there and we paid for something we shouldnt have. Of course sites like Ebay and Amazon or even Walmart could absorb the hit but you take small sites. You take any of the vendors you buy off from here or any RC site and hit them with the possibility of 30+ state tax bills they didnt collect for and shits gonna hit the fan for them.

Heres an example using me selling to anyone in Utah ....

collect sales tax will apply to companies that do at least 200 sales or $100,000 worth of sales in Utah in a year.

The consumer drove the states to doing this .....

[Robbob]

Originally Posted by svt923

Amain has an agreement with Hobbytown that I'm sure equates to Amain having a physical presence in any state with a Hobbytown location so they have to collect sales tax the way any business in the state of the buyer would.

Nothing to do with having a physical location in any state any more.

[sherbs]

Originally Posted by svt923

Amain has an agreement with Hobbytown that I'm sure equates to Amain having a physical presence in any state with a Hobbytown location so they have to collect sales tax the way any business in the state of the buyer would.

Up until this last order Amain never collected sales tax from me. I asked them in a email and Amain said they started Nov. 1st.

[Greatscott]

Originally Posted by Robbob

So heres my State law, Connecticut.



So according to my state law RPP has to pay CT sales tax for all purchases from CT state orders IF they have at least 200 orders OR gross 250,000$ in sales from CT orders.

So RPP and any other online vendor has to make a decision. Do they not collect the tax from the buyer and hope not to exceed the threshold or do they collect the tax in case they do hit it and have to pay the state.

If they hit the threshold and owe the state but dont charge for it then they are on the hook for the tax money for all CT orders. But they didnt collect any so its money out of their pockets.

Different states have different thresholds and are still figuring out their laws. Online sites are finding it easier to collect and bank it in case they do owe it. Shitty part is if they dont hit it then they have the extra income sitting there and we paid for something we shouldnt have. Of course sites like Ebay and Amazon or even Walmart could absorb the hit but you take small sites. You take any of the vendors you buy off from here or any RC site and hit them with the possibility of 30+ tax bills they didnt collect for and shits gonna hit the fan for them.

WOW, what a pain in the butt for online retailers. I guess the "good-ole days" are over, and its time to pay the piper...

Originally Posted by Robbob

The consumer drove the states to doing this .....

WWWHHHHAAAATTTTT?!?

You mean actions have consequences? Get out of town...!

[sherbs]

In my case the closest full line hobby shop is a Hobby Town and that ends up being a 6 hour round trip. I supported the local shop, a 2 hour drive but he retired. Mail order for me is a must.

[svt923]

Originally Posted by Robbob

Nothing to do with having a physical location in any state any more.

NC still has the physical presence test as of the most current sales tax legislation. In fact, it is the second test right behind "are you a business incorporated in NC?" and before any sale limits come into play.

[GA Dawg]

Originally Posted by Robbob

The consumer drove the states to doing this .....

Some might argue that high sales taxes drove consumers towards tax-free alternatives.

[Robbob]

Originally Posted by svt923

NC still has the physical presence test as of the most current sales tax legislation. In fact, it is the second test right behind "are you a business incorporated in NC?" and before any sale limits come into play.

You sure about that?

https://www.google.com/search?q=nort...hrome&ie=UTF-8

Actual NCDOR letter
https://files.nc.gov/ncdor/documents.../sd-18-6_0.pdf

Originally Posted by GA Dawg

Some might argue that high sales taxes drove consumers towards tax-free alternatives.

I could agree with that too.

[svt923]

Originally Posted by Robbob

You sure about that?

https://www.google.com/search?q=nort...hrome&ie=UTF-8

Yes because the DOR directive doesn't include the full list of tests under Gen. Stat. § 105-164.8(b), only excerpts. Physical presence is 1 of a series of tests under the general statute related to remote sales and if any 1 applies then you have to collect NC sales tax. You don't necessarily have to have a physical presence to be required to collect sales tax but if you do, then you absolutely have to collect sale tax.

[Robbob]

Originally Posted by svt923

Yes because the DOR directive doesn't include the full list of tests under Gen. Stat. § 105-164.8(b), only excerpts. Physical presence is 1 of a series of tests under the general statute related to remote sales and if any 1 applies then you have to collect NC sales tax. You don't necessarily have to have a physical presence to be required to collect sales tax but if you do, then you absolutely have to collect sale tax.

Frigin tax law blows ..... But this part is interesting.

(3) The retailer solicits or transacts business in this State by employees,
independent contractors, agents, or other representatives, whether the remote
sales thus subject to taxation by this State result from or are related in any
other way to the solicitation or transaction of business. A retailer is
presumed to be soliciting or transacting business by an independent
contractor, agent, or other representative if the retailer enters into an
agreement with a resident of this State under which the resident, for a
commission or other consideration, directly or indirectly refers potential
customers, whether by a link on an Internet Web site or otherwise, to the
retailer. This presumption applies only if the cumulative gross receipts from
sales by the retailer to purchasers in this State who are referred to the retailer
by all residents with this type of agreement with the retailer is in excess of
ten thousand dollars ($10,000) during the preceding four quarterly periods.
This presumption may be rebutted by proof that the resident with whom the
retailer has an agreement did not engage in any solicitation in the State on
behalf of the seller that would satisfy the nexus requirement of the United
States Constitution during the four quarterly periods in question.

From how Im reading your statue and the one I posted any online sale whether having a presence in your state or not is on the hook for NC sales tax.

Definitions
“Engaged in business”
1
is defined, in part, as “[m]aking a remote sale, if one of the conditions
listed in G.S. 105-164.8(b) is met.” Internet Web site or otherwise
“Remote sale”2
is defined as “[a] sale of tangible personal property or digital property ordered by
mail, by telephone, via the Internet, or by another similar method, to a purchaser who is in this
State at the time the order is remitted, from a retailer who receives the order in another state and
delivers the property or causes it to be delivered to a person in this State. It is presumed that a
resident of this State who remits an order was in this State at the time the order was remitted.”
“Retailer”3
is defined, in part, as a “person engaged in business of making a remote sale if one
of the conditions listed in G.S. 105-164.8(b) is met.”

Internet Web site or otherwise

But either way ..... internet sales tax is pretty much gonna be the norm. I just hate seeing the Chinese sites charging it

[GA Dawg]

Some third party Amazon sellers still aren't charging sales tax and neither are a bunch of ebay sellers.

I got a VFD transmission coming my way with no tax and free shipping courtesy of Amazon and I have bought a bunch of parts off of ebay in the last few weeks that had no tax on them.

[soze]

Originally Posted by GA Dawg

Some third party Amazon sellers still aren't charging sales tax and neither are a bunch of ebay sellers.

I got a VFD transmission coming my way with no tax and free shipping courtesy of Amazon and I have bought a bunch of parts off of ebay in the last few weeks that had no tax on them.

I don't think it's up to the sellers for eBay. GA might not have the tax mandatory yet for eBay.

When I purchased stuff on eBay from a Chinese seller, the tax was collected by eBay and not the seller.

[Panther6834]

What it all comes down to is this:

Laws differ from state to state. Thresholds differ from state to state. What state the purchaser is in, and what state the vendor is in, plays a HUGE part in whether, or not, the vendor collects sales tax from the purchaser. On top of that, there are some businesses that are collecting sales tax, even though they are not necessarily required to (as for what they do with that money, who knows).

Then, on top of all that, the tax laws can be different (again, from state to state) depending on whether what's purchased is classified as "goods", or "service". For example, in California, "goods" are taxable, but "service" is not (which, by the way, brings up a VERY interesting question regarding Amazon, as they collect sales tax from Amazon Prime subscribers, even though Amazon Prime is a "service", and then they illegally keep that tax money).

I have seen where some people will have a friend from a "non-taxing" state order the items for them, and ship them (once received) to the friend wanting the items, to which the 'wanting' friend reimburses the 'ordering' friend. What I've never fully understood about doing this is, sure, there might not be any sales tax involved, but if the 'wanting' reimburses the 'ordering', including the cost of shipping to the 'wanting', in the end, did they pay less? Or the same? Or, possibly, even more? The cost of shipping, from 'ordering' to 'wanting' could be equal, or even exceed, the amount of the sales tax.

~ More peace, love, laughter & kindness would make the world a MUCH better place

[GA Dawg]

Originally Posted by soze

GA might not have the tax mandatory yet for eBay.

It's been in effect since 1/1 of this year.

[spookyseven]

Originally Posted by Robbob

You can thank Amazon, Ebay and New Egg for the law, theyve been collecting sales tax for over a year.


Its up to your Home state to decide if they want to enforce the law but we have to charge the tax.

Thank amazon, ebay and new egg? I'm pretty sure you can thank south dakota for this one. South dakota vs way fair is the court case that overturned the previous precident that states didn't have to collect sales tax.

[Levi]

Yep it's starting to be a thing slowing, paying online taxes. I don't complain about it at all. It is what it is. Besides taxes are where my paycheck comes from and my retirement.