can you really truely save on sales tax?

[WinkHPD]

Let your conscience be your guide. Most will tell you not to bother, and for now you will get away with it. What happens in the future is not yet certain.

Wink

 

[Lindalu]

My understanding is that you can save on sales tax in my state which does not have a state income tax. That is because there is not an actual location of the vendor in the state (neither on line or B&M). I have never had to pay tax on online purchases in similar circumstances unless the vendor sold from my state. I think the lesson for me is research is the key to meeting our legal obligations in each state.

 

[questionsRus]

lindalu - that was my understanding too, but not what they are saying i don't think.

 

[fire&ice]

----------------
On 7/15/2004 9:28:32 PM Wink wrote:

Let your conscience be your guide. Most will tell you not to bother, and for now you will get away with it. What happens in the future is not yet certain.

Wink----------------

On that I can agree. An incredible increase in interstate commerce could certainly force some changes. However, that actually would involve Inter-State cooperation. So, don't know if it will happen anytime soon.

Most simply do not know the tax code. And, I maintain -there are far more grievous moral issues than paying tax on an item from out of state. Way low on my moral compass. I pick my battles.

So, how many dealers treat cash differently?

 

[moremoremore]

"And, I maintain -there are far more grievous moral issues than paying tax on an item from out of state. Way low on my moral compass. I pick my battles."


I AGREE 101%

 

[WinkHPD]

----------------
So, how many dealers treat cash differently?

----------------

Hehe! Funny story about that.

I was being audited one time before I did my bookkeeping on a computer and the auditor asked me how I handled cash sales. (This was several hours into the audit.)

I got out my reciept book and went to an $8,000 receipt. $5,000 in cash.

Written on the receipt was, Wink kept $100. Scratch out, Wink kept $200, Scratch out, Wink kept $300 Scratch out. Ah Crap, Wink kept $1,000.

Auditor had a good laugh, checked the entry on my accountant's sheet saw that it was correctly entered as an $8k sale and declared the audit had gone far enough.

It really does not pay to play games with Uncle Sam, he just has too many tools and too much power to bring to bear if he thinks you are not playing square. I always figured any one who would cheat Uncle with all his power would just as soon cheat me who has none.

Wink

 

[luvmysparklies]

I guess I am confused about two things. To the poster that listed the states that are actively persuing out of state sales...you have listed MA and then Mass. Is the MA for another state or did you accidently list Massachusetts twice?

Second, to Eyes of Texas (or anyone who knows) how is buying from Niceice avoiding taxes in your own home state, if you have got a reporting requirement there? In other words, what is it about buying from Oregon that allows you to get around the sales and use tax? Is it that you have to go there in person or is this applicable over the net? Just trying to understand, not maliciously evade.

Luv

 

[denverappraiser]

It's not all that difficult to determine.

Sales and use taxes are identical, and they are imposed by the taxing authority of the location where the actually transfer of ownership takes place. This is a tax on the consumer, not on the merchant. The taxing authorities can include various cities, counties, water districts and other groups that can convince their voters to impose such a tax. With items like jewelry, the jurisdiction that usually applies is the ship-to address. With items like cars, they use the address at which you register the car. If you pick it up at the store, it's the address of the store. The address they ship from is of no consequence in any case. Asking merchants to collect taxes on their home state is dinstinctly an intrusion and they only get away with it because they require the merchant to have a license to do just that. If they didn't get the license, they would be required to pay sales tax on their purchases for resale. Most of them have entered into no such agreement with any other states and therefore are unable to collect the tax even if they wanted to.

You can bet that the tax collectors are working on this. There's quite a bit of money at stake. If the states could learn to cooperate a little better and share their data, they would quickly get good at this. This is a job for a computer, and the taxman knows it. There's a big bonus and a special place in hell for the programmer that works this out.

Neil Beaty, GG
www.gemlab.us

 

[jewelgal]

wow, i was thinking one of the pros from online diamonds was i could live in NY and not pay 8.75% on my diamond...

what's the % that i will have to pay it? and when?
do they compound interest??

 

[denverappraiser]

jewelgal,

I’m only familiar with the rules in Colorado but I strongly suspect that they similar in NY. The NY state taxing authorities should be able to give you correct information for your community. In Colorado, sales and use taxes are collected by the Colorado Department of Revenue. In most cases, they license merchants to collect taxes on their behalf and the merchants remit a tax return periodically in order to remit the taxes collected. How often this return is due depends on how much tax is collected and the nature of the merchant. Very high volume stores, for example groceries, will submit weekly. Very low volume stores will submit yearly. As a consumer, you are expected to file a Use tax return if your have items that were used, stored or consumed in Colorado. Here is the form that Colorado taxpayers are required to file along with a brief explanation of the rules.

The due date varies with the amount of tax you owe and penalties for late filing apply beginning the following day.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[denverappraiser]

Here is the form for NY residents.

 

[yowahking]

Here is another twist, some focus so much on not paying the tax that they pay too much for what they get. Sort of like those who go to St. Thomas and pay double for a tanzantie ring to screw Uncle Sam out of the duty at the duty free zone. They could have come home, bought the same ring on tv or at a local jeweler, or on the internet from the same HK company, paid the tax and got the matching earrings. Tax is an issue that will change very soon, I am on the national committee for taxation on small business. Some very passionate people who can't aggree on which place to get coffee before a meeting. Internet taxes will come, there is too much money that the GOV't can have and they will get it. States are just figuring out how much they are not getting. When states agree to share, it will work out. Problem is who wants to share equally, no one. That is why chocolate Hershey bars have the sections, not one could break it in half for their kids and one kid always got the short end. I say, for now, follow the rules and take advantage of legal ways to not pay tax, but still be willing to pay tax if the deal is still better that way.