- Apr 3, 2004
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.
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.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.
@Texas Leaguer Can you please weigh in on the above from WF’s perspective, assuming an out-of-Texas-state purchase?
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.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.
Grandfather comes to mind but who knows?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.
That could be a felony depending on amount in some states.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.
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.Per WF’s FAQs: https://www.whiteflash.com/about-diamonds/faq/
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?
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).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.
Depends on the city and county you live in. Generally speaking 7.25 to 10.25%. More details here:What sort of level in per cent terms are the sales taxes?