Govberg Tax

[12Relojes]

I've dealt with them before. Bought a number of PP and Rx. Don't know what changed but now they charge tax to Florida. I just wonder how many clients they'll lose bc of this.

[Rowlf]

Blame the Wayfair decision.

[ZOOK]

Most retailers shipping across state lines are now collecting the sales tax charged by the state where the product lands. This is due to a US Supreme Court ruling disallowing retailer to ship without collecting remote sales tax.

[BSG75]

Same happened when I bought my Tudor BB 41 from Crown and Caliber. They charged sales tax, too. Even though they're in Georgia and I'm in Tennessee, sales tax is collected.

[sillo]

Yup, most places are no enforcing sales tax even for out of state purchases.

[The Libertine]

Odds are if they have the watch someone wants, tax won’t be much of an issue....

[12Relojes]

Originally Posted by The Libertine

Odds are if they have the watch someone wants, tax won’t be much of an issue....

You mean it won't matter because "Wayfair, you have just what I need?"



(Sorry, I'll let myself out.)

[daOnlyBG]

It's an "economic nexus tax" legal policy that was enforced in the last year or so by the US government.

Basically, each state has a threshold amount of sales allowed to other states before a tax kicks in, to basically counter the lost revenue of people avoiding sales tax by shipping to said state.

[SMD]

Guys, the tax was always owed. Wayfair did not change that. The only question in Wayfair was whether the seller has to collect and remit on the purchaser's behalf when they do not have a nexus to the state in question (in this case Florida). Wayfair redefined what it takes for a business to have a nexus with a particular state and, ergo, redefined who must collect the tax and remit on the purchaser's behalf. But make no mistake -- if your state has a sales tax you always owed the tax, its just that you were required to self assess and remit and opposed to the seller. Now the seller does it on your behalf.

[77T]

Originally Posted by SMD

Guys, the tax was always owed. Wayfair did not change that. The only question in Wayfair was whether the seller has to collect and remit on the purchaser's behalf when they do not have a nexus to the state in question (in this case Florida). Wayfair redefined what it takes for a business to have a nexus with a particular state and, ergo, redefined who must collect the tax and remit on the purchaser's behalf. But make no mistake -- if your state has a sales tax you always owed the tax, its just that you were required to self assess and remit and opposed to the seller. Now the seller does it on your behalf.

Agree with your analysis - I would add one thing.

It was not Wayfair - it was the State of South Dakota who sued Wayfair.

Only sharing in spirit of communication for those who may misunderstand the citation.

For many who would like to know more, see: https://www.aicpa.org/advocacy/state...v-wayfair.html


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[_speedmaster_]

Originally Posted by SMD

But make no mistake -- if your state has a sales tax you always owed the tax, its just that you were required to self assess and remit and opposed to the seller. Now the seller does it on your behalf.

It's amazing how many people never knew this.

My uncle actually got hit with a large tax bill a few years ago when an online watch business in Florida was audited. The clientele was made to pay back sales tax to their respective state of residence (unless they showed self-assessment on their prior tax returns).

[brandrea]

As it should be IMO.

[beshannon]

Originally Posted by brandrea

As it should be IMO.

Exactly!

If the tax on these amounts puts you off then perhaps you should not be buying?

[12Relojes]

Originally Posted by beshannon

Exactly!

If the tax on these amounts puts you off then perhaps you should not be buying?

If you avoided silly taxes you might have more than one Patek.

[JoseR]

Originally Posted by beshannon

Exactly!

If the tax on these amounts puts you off then perhaps you should not be buying?

Perhaps I shouldn't be buying...perhaps I should. Perhaps you should live your life and not mine. Vive tu vida no la mia! I don't worry or care what anyone does with their money....it's their money..no mines.

[JoseR]

I guess I got lucky since I live in Pennsylvania and purchased a Rolex from Maryland in April and asked about the taxes. I was told no taxes since I was out of state. I hope not all retailers start charging taxes... saved myself a few hundred $$.

[SMD]

Originally Posted by jrubero

I guess I got lucky since I live in Pennsylvania and purchased a Rolex from Maryland in April and asked about the taxes. I was told no taxes since I was out of state. I hope not all retailers start charging taxes... saved myself a few hundred $$.

Hate to break it to you but you did not get lucky. You ha e a delinquent tax liability to the State of Pennsylvania. And if they discover it, interest and penalties as well.

[_speedmaster_]

Originally Posted by SMD

Guys, the tax was always owed. Wayfair did not change that. The only question in Wayfair was whether the seller has to collect and remit on the purchaser's behalf when they do not have a nexus to the state in question (in this case Florida). Wayfair redefined what it takes for a business to have a nexus with a particular state and, ergo, redefined who must collect the tax and remit on the purchaser's behalf. But make no mistake -- if your state has a sales tax you always owed the tax, its just that you were required to self assess and remit and opposed to the seller. Now the seller does it on your behalf.

Originally Posted by SMD

Hate to break it to you but you did not get lucky. You ha e a delinquent tax liability to the State of Pennsylvania. And if they discover it, interest and penalties as well.

People don't seem to get this concept.

[JoseR]

I get the concept. I just don't worry about that stuff. I'll cross that bridge if I have to. .;) I sleep well at night. .:)

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[_speedmaster_]

Originally Posted by jrubero

I get the concept. I just don't worry about that stuff. I'll cross that bridge if I have to. .;) I sleep well at night. .:)

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Haha, fair enough.

[12Relojes]

Thanks. Govberg rep pretty much said the same thing. Expects everyone will be charging tax for on-line purchases.

[77T]

A seller doesn’t have to collect the tax if they don’t transact enough sales volume shipped to a distant State (and each State has set their own limits).

SMD correctly states that your home State is due the use tax from the buyer, whether the tax was collected by the seller or not. In a way, the seller is performing a tax collection service for you so you don’t have to file your own forms.

For example, PA taxes: https://revenue-pa.custhelp.com/app/...tail/a_id/3628


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[SMD]

Originally Posted by 77T

A seller doesn’t have to collect the tax if they don’t transact enough sales volume shipped to a distant State (and each State has set their own limits).

Currently. This is what will be hashed out over the next decade in courts across the country. The SD parameters were sufficient to find a nexus, but that does not mean that lower parameters wouldn't also pass constitutional muster. And states will be pushing those limits down as they scramble for more and more revenue. The problem comes in places like CA where you have 1400+ different local tax regimes. This is a huge barrier for smaller online sellers and a huge win for people like Amazon.

[77T]

Originally Posted by SMD

Currently. This is what will be hashed out over the next decade in courts across the country. The SD parameters were sufficient to find a nexus, but that does not mean that lower parameters wouldn't also pass constitutional muster. And states will be pushing those limits down as they scramble for more and more revenue. The problem comes in places like CA where you have 1400+ different local tax regimes. This is a huge barrier for smaller online sellers and a huge win for people like Amazon.

I agree SD v. Wayfair was a narrow decision on nexus alone. An internet presence now begets nexus.

But I think any State that tried to impose a burden of tax collection on a non-citizen of that State would be found unconstitutional. This would apply to small businesses particularly. The State’s don’t have the budget to chase people like TRF sellers who don’t live in their jurisdiction. And let’s realize most buyers here are not self-reporting for use tax purposes.

I agree it will take years to unravel - and that large retailers benefited since they were already collecting the State taxes anyway.


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[swils8610]

It’s becoming more common. The states don’t want to miss a dime in tax.


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[FloridaSam]

Buy a house in Delaware.

[imperio]

Originally Posted by jrubero

I get the concept. I just don't worry about that stuff. I'll cross that bridge if I have to. .;) I sleep well at night. .:)

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Originally Posted by 12Relojes

If you avoided silly taxes you might have more than one Patek.

[govbergjewelers]

Hi All - The posters on this forum are correct, our obligation to collect Sales Tax changed as a result of the Wayfair decision. On advice of our advisors, we are working with the States as they set their regulations and collecting Sales tax as required.

We have heard from other customers about dealers that are not collecting tax, and we expect that you will eventually see dealers hit with audits, back taxes and penalties that may put some of them out of business. You may also see states go after large individual customers that have avoided taxes. We didn't want to put ourselves or our customers through those issues so we have been out in front on the issue (much like Amazon has). eBay has also begun to collect sales tax as well. We expect that reputable dealers will comply as well over time and level the playing field.

"There's nothing certain in life except death and taxes" - its an unfortunate fact of life, but also a small price to pay for the Countries that we live and operate in.

[Abdullah71601]

How does the tax work for occasional sellers and used items?

If I bought a used lawn mower at a garage sale in another state, would I owe sales/use tax on it? If so, is the tax on the sale value or a book value?

[erne75]

Originally Posted by Abdullah71601

How does the tax work for occasional sellers and used items?

If I bought a used lawn mower at a garage sale in another state, would I owe sales/use tax on it? If so, is the tax on the sale value or a book value?

Thoughts that apply to such scenario:

-I always make it a point to contribute the least amount of my hard earned money to the King's coffers while simultaneously avoiding the wrath of the King's men

-What they dont know wont hurt them