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Is this true? I received this Email from BGD.

sledge

Ideal_Rock
Premium
Joined
Apr 23, 2018
Messages
3,818
If we are looking unilaterally from a consumption standpoint, then yes, these are your top states as @TreeScientist pointed out.




However, if you start looking from a corporate tax perspective, then perhaps the view point changes.




Lastly, if you are choosing a state to live and don't buy many large purchases then maybe a different state is favorable to you based on the personal state income tax rate.

 

TreeScientist

Brilliant_Rock
Premium
Joined
Jan 16, 2018
Messages
1,248
If we are looking unilaterally from a consumption standpoint, then yes, these are your top states as @TreeScientist pointed out.




However, if you start looking from a corporate tax perspective, then perhaps the view point changes.




Lastly, if you are choosing a state to live and don't buy many large purchases then maybe a different state is favorable to you based on the personal state income tax rate.

Optimal solution: Live and run your own business in Washington State or Nevada, and make weekend trips to Oregon* to buy your own big-ticket crap. :mrgreen:

*Yes, I know that you need to declare out-of-state purchases on your taxes, but just like online purchases prior to these new regulations, how many people actually do that?
 

Wink

Ideal_Rock
Trade
Joined
May 3, 2001
Messages
7,366
There is no breakdown as far as I understand between material and labor that would apply on a finished product. All taxable as far as I understand. I would assume there is an exclusion for labor only servicing. Lordy I hope that is not up to individual states as well!
Sadly, it is. Some states tax lawyer's and accountant's fees, some do not. Some states tax the cost of an appraisal, some do not.

When I give away a viewing kit, I was originally told by the state sales tax employee that I was working with that it was a taxable event since I claimed an exemption on paying taxes when I bought them for resale. I was able to show the tax agent that I was writing up the giving of the viewing kit as part of the overall cost of the diamond, and that the viewing kit itself was put on the invoice at $0.00. The agent agreed with me that this was within the letter of the law. He did tell me that if I had not included them on the invoice that I would have owed a potload of back taxes, interest and penalties on what I have been paying for the viewing kits. (But only on the ones I sold in Idaho as I was not required to collect taxes for other states at that time...)

As TL and others have stated, it is beyond the comprehension of many small retailers and the tax auditors are just looking for excuses to nail the small retailers to the wall. The big retailers are harder targets, as they have rooms full of accountants doing all that work.

Fortunately, my software will keep track of when I reach the Nexus for various states and alert me to sign up for them. They will actually do it for me, and file the reports too, but it is a royal pain to pay a fee for a $0.00 tax contribution for one month and a multi thousand dollar contribution on another. It is still the same fee for each State's report. And Goodness Gracious, if the report were to get lost in the mail! I just let them do it, and they do it all electronically.

Wink
 
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