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Is this true? I received this Email from BGD.

Dancing Fire

Super_Ideal_Rock
Premium
Joined
Apr 3, 2004
Messages
30,577
I wanted to inform you that due to the Supreme Court ruling, California will be implementing internet sales tax for online purchases starting April 1, 2019.
 

sarahb

Brilliant_Rock
Premium
Joined
Jul 20, 2012
Messages
1,758
I’m in MI & just paid sales tax on a WF invoice Tuesday...:cry2:
 

the_mother_thing

Ideal_Rock
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Mar 2, 2013
Messages
5,808
I wonder if you upgrade, say via WF, are you charged sales tax on only the upgraded value (difference between what was paid vs new diamond), or the entire diamond value including the upgrade & previous diamond cost. :confused:

:wavey: @Texas Leaguer Can you please weigh in on the above from WF’s perspective, assuming an out-of-Texas-state purchase?
 

cmd2014

Ideal_Rock
Premium
Joined
Aug 6, 2014
Messages
2,435
Canada has been doing this for quite some time now. We pay federal and provincial sales tax on all online purchases inside of Canada, and we pay them in the form of duty (plus duty) for anything imported from outside. It's been a little sad...
 

Gussie

Ideal_Rock
Premium
Joined
Apr 20, 2017
Messages
2,436
I wonder if you upgrade, say via WF, are you charged sales tax on only the upgraded value (difference between what was paid vs new diamond), or the entire diamond value including the upgrade & previous diamond cost. :confused:

:wavey: @Texas Leaguer Can you please weigh in on the above from WF’s perspective, assuming an out-of-Texas-state purchase?
I am in Texas and I only pay sales tax on the difference in trade in, thank goodness! I would think paying on the full value of the new stone would be double taxing. But that wouldn't be the first time for it.
 

the_mother_thing

Ideal_Rock
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Joined
Mar 2, 2013
Messages
5,808
Per WF’s FAQs: https://www.whiteflash.com/about-diamonds/faq/
B1929A7A-ECF3-4017-8A55-256C8BA5EDFA.jpeg

But I am still curious about the upgrade value vs full value tax. Or if WF did not collect it at original purchase, are they required to collect it on the upgrade purchase unless purchaser provides proof of direct payment to the state of residence? :think:
 

the_mother_thing

Ideal_Rock
Premium
Joined
Mar 2, 2013
Messages
5,808
I am in Texas and I only pay sales tax on the difference in trade in, thank goodness! I would think paying on the full value of the new stone would be double taxing. But that wouldn't be the first time for it.
Agreed and makes sense, but what if they didn’t collect it on the first purchase ... e.g., original purchase pre-dates the effective date for collecting/reporting the purchase to other states.
 

OoohShiny

Ideal_Rock
Premium
Joined
Apr 25, 2014
Messages
6,628
Does this tax apply to overseas purchases? I'm guessing (hoping!) it doesn't but I'm tired and not on top form right now... lol
 

PreRaphaelite

Brilliant_Rock
Joined
Feb 2, 2015
Messages
1,617
Depending on the scale of future purchases, consumers might be better off booking a Disney stay and having jewellery shipped tax free to the front desk at the resort! Maybe you’d only break even, but you’d have a good story at least.
 

Karl_K

Ideal_Rock
Trade
Joined
Aug 4, 2008
Messages
8,691
Does this tax apply to overseas purchases? I'm guessing (hoping!) it doesn't but I'm tired and not on top form right now... lol
No you would still pay whatever tax/duty your country charges to import and no additional tax.
 

Karl_K

Ideal_Rock
Trade
Joined
Aug 4, 2008
Messages
8,691
Really nothing as changed in how much tax is owed as in almost all states you owed the tax anyway.
It's called a use tax.
Many people did not pay it however, so now thanks to the court ruling they can force the sellers to collect it and pay them just like a local store would.
 
Last edited:

Karl_K

Ideal_Rock
Trade
Joined
Aug 4, 2008
Messages
8,691
Depending on the scale of future purchases, consumers might be better off booking a Disney stay and having jewellery shipped tax free to the front desk at the resort! Maybe you’d only break even, but you’d have a good story at least.
That could be a felony depending on amount in some states.
 

Dancing Fire

Super_Ideal_Rock
Premium
Joined
Apr 3, 2004
Messages
30,577
Per WF’s FAQs: https://www.whiteflash.com/about-diamonds/faq/
B1929A7A-ECF3-4017-8A55-256C8BA5EDFA.jpeg

But I am still curious about the upgrade value vs full value tax. Or if WF did not collect it at original purchase, are they required to collect it on the upgrade purchase unless purchaser provides proof of direct payment to the state of residence? :think:
AFAIK you'll paid the difference in the upgrade price. i.e... if you paid $5K for your upgrade then you'll pay $5K whatever % in sale taxes to your state.
 

missy

Super_Ideal_Rock
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Joined
Jun 8, 2008
Messages
28,479
Well, this is going to hurt both consumers and vendors IMO. This is not a small amount of money when we are purchasing beautiful bling.sad :((
 

OcnGypZ

Shiny_Rock
Joined
Dec 18, 2006
Messages
271
More and more states are passing laws regarding internet sales and collection of taxes. My state just passed the new law.
 

TreeScientist

Brilliant_Rock
Premium
Joined
Jan 16, 2018
Messages
1,248
Really nothing as changed in how much tax is owed as in almost all states you owed the tax anyway.
It's called a use tax.
Many people did not pay it however, so now thanks to the court ruling they can force the sellers to collect it and pay them just like a local store would.
I'm glad I'm not the only thinking this. Nothing has changed here people. Sales taxes on out of state purchases have been in place for quite some time now. It's just that now states are actually cracking down on the vendors and making them charge consumers the tax up front, rather than relying on consumers to declare these purchases on their year-end tax returns (which many people didn't do).

I do feel sorry for small vendors though. I know that, at first, most states were only considering forcing businesses to collect the tax if they had more than 50 or so employees. But I think many of the new laws are trying to force all online businesses to collect out of state sales taxes regardless of size. That could definitely hurt small companies that do not have dedicated staff accountants. :(
 

sledge

Ideal_Rock
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Apr 23, 2018
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4,074
What sort of level in per cent terms are the sales taxes?
Depends on the city and county you live in. Generally speaking 7.25 to 10.25%. More details here:

https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax-rates.htm

Most states work pretty simple. You have a base state tax that is unavoidable. Then normally a county tax that is variable and unavoidable. I've seen some counties at 0% in certain states. Then you have a city tax that is inclusive of the special bills, etc passed specific to them. So kind of a 3 legged system.

While most consumers dont choose their home address by the tax rate, many businesses do. Simple ways would be to locate your business outside city limits and/or in a county with a 0% county tax rate.

Nothing is illegal about the operation but yields a small competitive advantage to the customer as you have a lower overall cost. This may seem trivial until you start pushing $100 million + of dollars of material sales and then it has bite.

Some trade offs might be a different buying demographic and/or higher (or lower) ship rates depending on distance from the manufacturer.

Where things would get particularly interesting for CA is if the border hugging residents can establish a shipping address within a different state (technically) that doesn't collect internet tax or at the least does so at a lower rate. I'm not advocating as it's illegal but reality is a consumer spending $20k and saving $1,500 to $2,000 may be enough incentive for some buyers to become creative.

As far as the question about getting taxed on the whole amount vs trade difference it will depend on the state laws.

I faced a similar issue a few years back. Bought a new vehicle stickered at approx $50k. Dealer reduced the sales price. Then I used a partial trade to reduce the balance due even lower. I paid the remaining with cash.

The net result per the state was I had to pay tax based off sales price minus dealer rebates and discounts. This did not include my trade (which had already been taxed) nor did it include the cash (also already taxed by both the state and federal government) I paid down at the dealership.

So I still paid tax on about $35k despite using a previously taxed trade and money. I hope your state is different. To me this is double taxation at its finest. Although in fairness this state taxes your income and sends you a refund for excess payment. Then the next tax year you have to report that refund (an over payment of taxes) as additional income that gets retaxed. Rinse and repeat. Pisses me smooth off as again double taxation. Luckily I have my deductions, etc setup where I get a very small refund or pay in a small amount each year. I dont believe in big refunds as I like to use my money throughout the year as I like and until those entities start paying me interest to use my money I'd rather save it and collect a paultry couple percent myself.
 

Dee*Jay

Super_Ideal_Rock
Premium
Joined
Mar 26, 2006
Messages
12,961
:wavey: from the land of the 10.25%...

The combined sales tax rate for Chicago, IL is 10.25%. This is the total of state, county and city sales tax rates. The Illinois state sales tax rate is currently 6.25%. The Cook County sales tax rate is 1.75%.
Illinois: 6.25%
Chicago: 1.25%
Cook County: 1.75%
Special: 1% -- *special*? Oh it's *special* all right...

:cry2:

(If you think this is bad you should see how our property tax bills read.)
 
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