USA sales tax rules changed?

[Analysing You]

Whats the position in New York? I was hoping to pick up a few bits for my wife whenever I visit? I presume they have the equivalent of VAT there. Can it be refunded, if so where?

[GB-man]

Originally Posted by Analysing You

Whats the position in New York? I was hoping to pick up a few bits for my wife whenever I visit? I presume they have the equivalent of VAT there. Can it be refunded, if so where?

We don’t have VAT we have a base sales tax on goods. So you’d owe 8.875% extra if bought in NYC. If you had a hotel in NJ (across the river) and the place was willing to ship you might sneak in before this rule is implemented but understand that this grey area practice is actually just illegal tax avoidance and nothing else.

[ArtNouveau]

My AD was willing to ship my last two purchases to my out of state sister to "waive" sales tax but I opted to just pay it. I'm not a crusader or the tax police but A. I wanted instant gratification and B. I didn't want the risk even if small of having them lost during shipping. If I can afford $10K watches, I can afford the $800 in tax.

[Analysing You]

Originally Posted by GB-man

We don’t have VAT we have a base sales tax on goods. So you’d owe 8.875% extra if bought in NYC. If you had a hotel in NJ (across the river) and the place was willing to ship you might sneak in before this rule is implemented but understand that this grey area practice is actually just illegal tax avoidance and nothing else.

Thanks, that's helpful. In that case, better just to pay.

[pickettt]

Originally Posted by tyler1980

its less that and more the fact that people who pay sales tax support essential services like police, fire, schools etc when your neighbor doesn't. It's annoying. The entire idea of a sales tax is you dont have to pay it if you dont buy stuff, so you can also afford it for a luxury watch.

IMO state and local taxes are way less abstract than federal taxes as you really see what they go towards. Federal taxes, ok i have no idea what im paying for most of the time

I agree. The bitter pill to swallow, however, is that I’ve already paid tax on that money.....and now I’m going to be taxed again when I spend it. If you ever sat down and figured what you pay in taxes (and taxes disguised as “fees”), it would make you wonder if slavery was ever really abolished.

[feb29]

Originally Posted by GoingPlaces

Question for the thread:

If you are a resident of a non-sales tax state (i.e. Delaware) can you avoid paying tax at the point of sale of do you still need to have it shipped home to avoid the tax?

You have to buy in person in Delaware to avoid paying the tax. Shipping want work anymore.

[feb29]

Originally Posted by pickettt

I agree. The bitter pill to swallow, however, is that I’ve already paid tax on that money.....and now I’m going to be taxed again when I spend it. If you ever sat down and figured what you pay in taxes (and taxes disguised as “fees”), it would make you wonder if slavery was ever really abolished.

double whammy for government.

[77T]

Originally Posted by feb29

You have to buy in person in Delaware to avoid paying the tax. Shipping want work anymore.

Where did you read that?
Delaware is one of the states that did not join into the nexus filings.

They only tax gross revenues of wholesaled sales to retailers and the retailers gross revenue. There is no sales tax on face-to-face sales or e-commerce sales.

https://revenue.delaware.gov/frequen...et-sales-faqs/


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[AdamW]

This may help...

https://www.thebalance.com/which-sal...tomers-3193251

https://www.salestaxinstitute.com/sa...lect_sales_tax

[feb29]

Originally Posted by 77T

Where did you read that?
Delaware is one of the states that did not join into the nexus filings.

They only tax gross revenues of wholesaled sales to retailers and the retailers gross revenue. There is no sales tax on face-to-face sales or e-commerce sales.

https://revenue.delaware.gov/frequen...et-sales-faqs/


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Yes, that's correct in regards to face-to-face and e-commerce(over the internet). But Rolex watches are not sold over the internet, at least by the AD in Delaware who confirmed to me that I need to pay taxes to the local state they shipping to if I'm purchasing watch in person.
Off course, it doesn't make sense to ship the watch to other state if you buying in person and not paying taxes anyway.

[77T]

Originally Posted by feb29

Yes, that's correct in regards to face-to-face and e-commerce(over the internet). But Rolex watches are not sold over the internet, at least by the AD in Delaware who confirmed to me that I need to pay taxes to the local state they shipping to if I'm purchasing watch in person.

OK, I did misunderstand your original context. Online sellers in Delaware do have to collect the distant state’s sales tax.

But...for that AD, the answer isn’t automatic.

The AD is correct only if the nexus tests are met. If a buyer walks into a Delaware AD, pays for the Rolex, and has the AD ship it to me in Georgia, then the Delaware AD must collect Georgia sales tax IF there is nexus.

Which means that AD must have a presence (virtual or physical) in Georgia or transacts business via financial instruments crossing state lines.

Since an AD can not engage in e-commerce (selling a watch online via the internet or telephone) then the deal misses test #1.

If that AD doesn’t own a store in Georgia then they miss test #2. (Now if it’s Mayor’s, that does automatically meet the test since they have stores here)

Since the funds were delivered in person within the state of Delaware (not wired, not CC over telephone) they this deal misses test #3.

For the reasons I gave, having them ship it to Georgia doesn’t automatically trigger Georgia sales tax.

Sorry for the long exposition - this whole situation is still in flux as different states pass legislation to add their own nexus wording into their tax statutes.

It is a mess and I believe SCOTUS erred in S. Dakota v. Wayfair.


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[77T]

Originally Posted by AdamW

This may help...

https://www.thebalance.com/which-sal...tomers-3193251

https://www.salestaxinstitute.com/sa...lect_sales_tax

That is helpful for people to better understand. The twist is when an origination state chooses to interpret the tax on the retailer domiciled in their State one way (to tax the retailer’s gross revenue). And then use their nexus wording added to the termination side to collect tax from individuals who have the item shipped into their State.

This is what some states see as a windfall from S. Dakota v. Wayfair decision. In a way, states are acting like small countries levying tariffs against other states’ retailers to protect their own retailers. But that goes into a lot of philosophy we can’t resolve here without becoming political.

My comments should only be taken as a general theory of taxation. We all need to fund the various functions of local, state and federal entities somehow and that is OK by me.


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[superstarmar]

Wow , BS!!!

[pain888]

Yes was inform yesterday by my AD in NYC..Now ship to NJ must collect tax. So I ship to Maryland, no tax. Phew that was a great news.

[Johndong888]

Yep same for me in NJ. Would love to buy a place in DE. Tax savings would offset the house payment but what the hell do I do with it? Lol

Another idea is to get a mailbox address (not the P.O. Box). Then I would have to camp out at the mailbox business the day of my watch shipments.


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[Wesley Crusher]

Sucks. Total scam.

[GB-man]

Originally Posted by pain888

Yes was inform yesterday by my AD in NYC..Now ship to NJ must collect tax. So I ship to Maryland, no tax. Phew that was a great news.

Why is Maryland still good?

[pain888]

Originally Posted by GB-man

Why is Maryland still good?

Don't know why MD still good . My ad say so.

[mschafer]

Well, if you bought out of state you're supposed to report that purchase to your local state authority and pay the sales tax upon "import". I guess few people did. I remember some "Wall Street know it alls" buying Alden Shoes on Madison ave. and have them shipped to CT to save tax on their purchase. Just to put them on and come back to work and party in NYC and use NYC amenities (like a working fire department or police force). Wanna be a big boy, play like one...

[77T]

Originally Posted by pain888

Yes was inform yesterday by my AD in NYC..Now ship to NJ must collect tax. So I ship to Maryland, no tax. Phew that was a great news.

Originally Posted by GB-man

Why is Maryland still good?

Originally Posted by pain888

Don't know why MD still good . My ad say so.

After S. Dakota v. Wayfair decision last June, almost all states needed to update their statutes to include virtual presence in their nexus definitions. About 30 have done so. Maryland is still reviewing theirs so (for the time being) e-commerce sellers do not have to collect Maryland sales tax as long as they don’t meet nexus rules there.

See: https://taxes.marylandtaxes.gov/Busi...ormation.shtml



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[GB-man]

Originally Posted by 77T

After S. Dakota v. Wayfair decision last June, almost all states needed to update their statutes to include virtual presence in their nexus definitions. About 30 have done so. Maryland is still reviewing theirs so (for the time being) e-commerce sellers do not have to collect Maryland sales tax as long as they don’t meet nexus rules there.

See: https://taxes.marylandtaxes.gov/Busi...ormation.shtml



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Thanks Paul. You seem to know a bit about everything

[Cru Jones]

Originally Posted by mschafer

Well, if you bought out of state you're supposed to report that purchase to your local state authority and pay the sales tax upon "import". I guess few people did. I remember some "Wall Street know it alls" buying Alden Shoes on Madison ave. and have them shipped to CT to save tax on their purchase. Just to put them on and come back to work and party in NYC and use NYC amenities (like a working fire department or police force). Wanna be a big boy, play like one...

Exactly this.

It’s not a “windfall” for states or a “scam” or “BS”.... just a way to force people to do what they were supposed to have been doing all along.

[feb29]

Originally Posted by AdamW

This may help...

https://www.thebalance.com/which-sal...tomers-3193251

https://www.salestaxinstitute.com/sa...lect_sales_tax

Thanks! Good read, explaining a lot

[pain888]

Originally Posted by 77T

After S. Dakota v. Wayfair decision last June, almost all states needed to update their statutes to include virtual presence in their nexus definitions. About 30 have done so. Maryland is still reviewing theirs so (for the time being) e-commerce sellers do not have to collect Maryland sales tax as long as they don’t meet nexus rules there.

See: https://taxes.marylandtaxes.gov/Busi...ormation.shtml



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thanks great info.