Sales Tax in NY

[Customguy]

Might seem like a really stupid question, but do you pay sales tax when you buy a diamond? I''m talking reputable dealers in NY like Mark T. of ERD, or Leon Mege? 8.5% on a $10,000 -$12,000 stone starts to make a big difference and wasn''t something I really though about until I got closer to my purchase. Does paying in cash do anyting?

 

[Ellen]

If you live in NY, and buy in NY, yes, you pay tax.

Not sure "cash" will do anything for you.

 

[gtn]

Some jewelers will give you a discount for paying in cash. Others don''t. I suggest you ask them. whenever I buy jewelry, I always ask if paying for cash will make a difference in many cases it has. Since business get charged a percentage of the purchase price of an item, and by law, they can''t pass that charge on to the consumer, they will include the surcharge in the cost of the item and will give discounts to cash customers.

 

[Sharon101]

Not that I personally would ever do anything illegal etc.......but where I come from, cash actually means something altogether different! I think if you went around asking if people accept cash, or give discount for cash, it has a meaning that things will be done off the books. Not that I personally know anyone who would even think of trading in this way or buying in this way. But I have heard about it.

 

[Kissmark]

Hi do you also live in NY? if not and if you order online from ERD or Leon Mege don''t they charge you your own state/city tax and not NY''s?

 

[DBM2]

i believe it would be legal for you to have them ship the ring to where you are located (out-of-state) and then they are not required to charge sales tax. correct me people if i''m wrong.

 

[neatfreak]

The law is fuzzy and getting fuzzier in this area, but as of right now, you do not have to pay sales tax in a state where you do not receive the item. Thus, if you pick it up in NY or are a NY state resident, you must pay tax on the item. If you have it shipped out of state, you don''t have to pay NY''s sales tax but theoretically you are supposed to pay it to your own state.

I think this will be cracked down on in the future at least in terms of internet sales...but the interstate thing is messy.

 

[Kay]

This is probably more than you want to know, but one of the biggest controversies in the field of state taxation today concerns the constitutional authority of the states to impose sales or use taxes on goods purchased over the Internet. Under prevailing constitutional law (based on the dormant Commerce Clause), states lack jurisdiction to require out-of-state vendors to collect a sales or use tax when the vendor has no "physical presence" in the taxing state. For example, suppose a California resident purchases a ring from GOG through its web site. Because GOG has no physical presence in California (i.e., it neither owns nor rents property in the state, hires no employees or independent contractors there, and delivers all of its merchandise into the state through common carriers), California is constitutionally prohibited from requiring GOG to collect the tax.

In California, if the vendor does not collect sales tax then the purchaser has a duty to report the purchase on his or her individual income tax return and pay a use tax (because the ring is used in CA) that is equal to the sales tax. Other states with a use tax may have similar requirements. In other words, just because the vendor does not collect tax does not mean you do not owe any.