Buying a Rolex out-of-state, will I get Tax exemption?

[snaggle]

Thanks for the info guys. Well right now I have 3 possibilites.

#1: Once I arrive to VA, visit the AD and see exaclty what kind of deal they can give me.

#2: Buy from trusted sellers here, I talked to DavidSW already since hes very closeby, so we can do a face-to-face transaction if I decide to go with him

OR #3: wait till I get back to Bahrain in May and buy the watch from the AD for $7,700 out the door (no tax in Bahrain). Normally, I would stick to this option as it sounds like the best, but I am kinda scared of waiting till that long as then the prices might increase and the 2012 models would come out by then, not sure what would be best though, is my thinking right?

[train-time]

Originally Posted by aardvarkbark

You owe the tax if the seller has a retail presence in your state. If you travel to VA and buy from a chain that has a store in your state, even if you have them ship it to you, you owe your state's sales tax or they face penalties. Texas has sued Amazon for taxes on shipments to TX buyers because and only because they have a distribution center in the state.

The retailer must collect if you are buying out of state and shipping to a state that the retailer has a business location.

Even if a retailer doesn't have a location in the state the item is being shipped, the buyer, by Texas law, is responsible for the tax.

Buyer Beware:

Sales tax is, in fact, due on quite a few remote purchases and it is often the responsibility of the purchaser to know and report that.

“State and local use tax is due on all taxable items purchased out of state and brought or shipped into Texas for storage, use or consumption,” says Robin Corrigan with the Comptroller’s Tax Policy Division. “Many consumers simply aren’t aware that they owe use tax on out-of-state purchases.”

Others may believe the Internet Tax Freedom Act prohibits the taxation of Internet transactions, which is not the case, she says.

Several retailers — including Best Buy, Cabela’s and Wal-Mart — collect Texas sales and use tax on their online transactions. If the seller, however, does not collect the tax, purchasers can remit the applicable taxes via the Texas Occasional Use Tax Return on the Comptroller’s Web site.

http://www.window.state.tx.us/comptr...0803/shop.html

[Lion]

With the states going broke and not being able to balance their budgets it's not surprising that they are going after sales tax from purchases made out of state.....who else is going to pay for their yearly raises!!!

[dddrees]

Originally Posted by Edward Arthur

The retailer must collect if you are buying out of state and shipping to a state that the retailer has a business location.

Even if a retailer doesn't have a location in the state the item is being shipped, the buyer, by Texas law, is responsible for the tax.

Buyer Beware:

Sales tax is, in fact, due on quite a few remote purchases and it is often the responsibility of the purchaser to know and report that.

“State and local use tax is due on all taxable items purchased out of state and brought or shipped into Texas for storage, use or consumption,” says Robin Corrigan with the Comptroller’s Tax Policy Division. “Many consumers simply aren’t aware that they owe use tax on out-of-state purchases.”

Others may believe the Internet Tax Freedom Act prohibits the taxation of Internet transactions, which is not the case, she says.

Several retailers — including Best Buy, Cabela’s and Wal-Mart — collect Texas sales and use tax on their online transactions. If the seller, however, does not collect the tax, purchasers can remit the applicable taxes via the Texas Occasional Use Tax Return on the Comptroller’s Web site.

http://www.window.state.tx.us/comptr...0803/shop.html

If that's the case no wonder most don't know or believe they owe any sales tax for out of state purchases. No reasonable person would ever believe an honor system especially when most people don't know the rules could ever expect it to be followed.

[Scott95]

Originally Posted by Edward Arthur

Several retailers — including Best Buy, Cabela’s and Wal-Mart — collect Texas sales and use tax on their online transactions. If the seller, however, does not collect the tax, purchasers can remit the applicable taxes via the Texas Occasional Use Tax Return on the Comptroller’s Web site.

http://www.window.state.tx.us/comptr...0803/shop.html

Don't Best Buy, Cabela's and Wal-Mart collect Texas sales tax because they have brick and mortar presence in Texas? That's how is usually works. If the retailer has a presence in your state, they have to collect sales tax.

Still - the short answer to the Ops question is "no".

[donas]

Related to this topic, since I have read it in this thread a few times -- My local AD, that I mentioned in my previous post, advised me of a scam that they got stung with recently. They sold a very large multi-carat diamond ring to a couple from out of state; the couple talked them into mailing the empty box to their out of state residence and let them walk out with the ring. When the box arrived at the post office the couple acted "so excited" to get their extravagant purchase that they insisted on showing it off to the Post Master. Of course, when they opened the package in front of him the box was empty and they cried Scam!! Needless to say, the jewelry store couldn't complain because they violated the law to start with.

I was amazed at the creativity of the thieves, so I thought I would share with you guys.

[hsfrank]

Originally Posted by Edward Arthur

Ooops, not the bridge; the toll at the border on I-95

Well, as a Delaware resident who lives less than 2 miles from that toll, I have not heard of this. I hope it is not another urban legend. It seems to me to be a impractacle solution. Traffic is backed up enough and this would compound it even more.

[JustABreathAway]

Originally Posted by donas

Related to this topic, since I have read it in this thread a few times -- My local AD, that I mentioned in my previous post, advised me of a scam that they got stung with recently. They sold a very large multi-carat diamond ring to a couple from out of state; the couple talked them into mailing the empty box to their out of state residence and let them walk out with the ring. When the box arrived at the post office the couple acted "so excited" to get their extravagant purchase that they insisted on showing it off to the Post Master. Of course, when they opened the package in front of him the box was empty and they cried Scam!! Needless to say, the jewelry store couldn't complain because they violated the law to start with.

I was amazed at the creativity of the thieves, so I thought I would share with you guys.

The first time I heard of the practice of the AD mailing an empty box out of state while letting the purchaser walk out with the watch on his wrist, this is immediately what I thought of. As you allude, no written contract or description of actual events would exist as the AD has violated the law, so they are very much at the whim of the customer. You could argue that the AD could use security footage to show the customer walking out with the piece of jewelry, but again, this would be evidence of law breaking on the part of the AD.

[mcneguy]

This isn't watch related but I once bought a Blackberry from Verizon. They were having a two for one sale and I decided to send the fee one to my daughter who was living in California at the time. Once they rung up the sale, they had to inform me that because Verizon was shipping the free phone to California, they had to charge sales tax on the full retail price as if I had paid for it so in essence, California charges sales tax on items you paid nothing for. It's pure madness. Therefore I am not the least bit sorry that I buy all of my watches from an AD in my home state where he ships them to my new state and I pay no taxes. I simply do not get my moneys worth out of taxes whether thye be federal, local or state. It's a bad investement and I will always choose not to make that investment whenever I have the opportunity.

[rr-nyc]

Originally Posted by JustABreathAway

The first time I heard of the practice of the AD mailing an empty box out of state while letting the purchaser walk out with the watch on his wrist, this is immediately what I thought of. As you allude, no written contract or description of actual events would exist as the AD has violated the law, so they are very much at the whim of the customer. You could argue that the AD could use security footage to show the customer walking out with the piece of jewelry, but again, this would be evidence of law breaking on the part of the AD.

I know a lot of places that let you walk out with the merchandise as long as they mail something (another item of catalog).

[bewithabob]

can i tax a deduction for the cost of my Daytona for using my rolex to track how much time is spent during a business lunch on discussion of business ? yeah right…

[Nixster]

Will that work if I buy in Europe and have it sent to the uk ???

[Nixster]

Originally Posted by nauticajoe

Have the AD mail the watch to your house to save on sales tax.

Will that work if I buy in Europe and have it sent to the uk ???

[Calatrava r]

Originally Posted by DolphinV8

Not every dealer would do that in my experience. Some would let you take the merchandise and ship the box to your home address for free. Some would charge hundreds to ship the merchandise w/ box. Being a resident of OR, I am lucky enough to buy many items in WA w/o taxes. =D
I guess it's probably easier to get the watch from one of the trusted seller on here. That way you don't have to worry about getting taxed.

I think many dealers did that years ago, but now not so much. Its a huge headache if the watch box and papers are shipped but not the watch. To cover tracks with the tax people the parcel is fully insured. If the box is lost, how do you make a claim without alerting the carrier and insurer the shipment was a tax fraud scheme. Even if an empty box is shipped and the entire shipment is lost for whatever reason, the carrier will be wanting you to submit a claim for the full insured value, but you have no loss.

[eltonbalch]

The sales tax topic keeps coming up. Here’s another thread you may all want to read through.

https://www.rolexforums.com/showthread.php?t=614074

I know we all hate or resent paying sales tax in our own state when purchasing on line or in person in another State that doesn’t have sales tax. Unfortunately, use tax is the law in many (most) states and they are getting increasingly more sophisticated at collecting it. Most purchases leave a wide digital trail; letting sophisticated computer programs scrub the net for information is a new reality. Even paying cash is no guarantee you won’t be caught; if you think some out of state AD is going to cover your tracks you need a reality check. There’s your name on the receipt, a guarantee card, etc. trust me, States are desperate and will come after you for even a few hundred dollars. It’s definitely getting to the point where it’s not worth the risk.

[JR16]

Did this thread really get resurrected after 6.5 years? Lol


Sent from my iPhone using Tapatalk Pro

[nektar]

Originally Posted by JR16

Did this thread really get resurrected after 6.5 years? Lol


Sent from my iPhone using Tapatalk Pro

yep!


Sent from my iPhone using Tapatalk

[oysterflexer]

Buy it used
Better price and no taxes

[seal13il]

Originally Posted by dddrees

If you buy it in another state and have them ship it to your house you won't have to pay any taxes in the first place.

Actually, most states now days have a "use tax"... chances of getting caught are slim.....but when I was audited last year....I paid out of my nose for two IWC I purchased in NYC and shipped back home to "avoid" NY sales tax...

Sent from my SM-G965U using Tapatalk