online vs. b&m, sales tax issue.

[redhawk]

I have working with a wholesale jeweler here in chicago, and have seen a great selection of round brilliant diamonds, the prices seem to be comparable to online ps stores, like wf, bl, etc. The advantage of purchasing the stone from the B&M is that I have seen the actual diamond in person which is great, but sales tax in chicago is almost 10%, I would not have to pay this if I bought from blue nile, for example. Is this what most of you have thought about as well?

 

[denverappraiser]

Sales taxes are imposed on the consumer, not on the merchant. In-state merchants collect these and submit them to the Department of Revenue as a convenience for consumers (and because they are required by law to do so) but the tax is still owed if you buy from an out of state or out of country supplier, including Blue Nile and the other dealers you mentioned. Many people find this surprising and choose not to pay. Most get away with it.

Here’s the instructions and explanation, straight from the Illinois Department of Revenue
http://www.revenue.state.il.us/taxforms/Sales/st44.pdf
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[redhawk]

Thank you for the note, I didn''t even think about that not having made a significant purchase online, but will take the advice.