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Online Sales Tax
MUFF WIGGLER Forum Index -> General Gear Goto page 1, 2, 3  Next [all]
Author Online Sales Tax
dubnspace
WTF, just noticed everyone is charging Sales Tax now to most states, Sweetwater, American Musical, Alto etc. Is there anywhere to still buy gear Sales Tax free? How long til the Modular shops start doing this too?
diophantine
Online sales tax laws went into effect yesterday, related to California and I believe some other states.

Not sure the specifics of the laws, but I believe in theory every online retailer should be charging CA sales tax now.
rowsbywoof
diophantine wrote:
Online sales tax laws went into effect yesterday, related to California and I believe some other states.

Not sure the specifics of the laws, but I believe in theory every online retailer should be charging CA sales tax now.


Yep... They rolled this one out very quietly. I've been dreading this day since I first heard mention of it back in December from a friend... End of an era. waah
rowsbywoof
Or... We can all move to Oregon. grin
JohnLRice
eek! Literally an hour ago I received a letter in the mail from B&H Photo with a summary of all purchases that I made in 2018 and that I need to file some sort of special tax return so I can pay taxes on all of it? seriously, i just don't get it Dead Banana

rowsbywoof
JohnLRice wrote:
eek! Literally an hour ago I received a letter in the mail from B&H Photo with a summary of all purchases that I made in 2018 and that I need to file some sort of special tax return so I can pay taxes on all of it? seriously, i just don't get it Dead Banana



Holy crap! That's rough. I wonder if CA will get similar letters.

On one hand, of course, it sucks. We've gotten used to shopping around and skirting around consumer taxes online... Basically everything I buy now online got 10% more expensive yesterday...

But, on the other hand we all knew we were supposed to be claiming these purchases for a long-ass time on our taxes. I mean, most of us have had two decades plus of tax free shopping online, so I can't really say I didn't see this day coming, and knew eventually we'd have to pay taxes everywhere, especially after major retailers like Amazon, Target, etc made the switch so many years ago.

Still sucks, though wink
pulse_divider
This is what changed:

https://en.wikipedia.org/wiki/South_Dakota_v._Wayfair,_Inc.
JohnLRice
I don't understand the retroactive aspect of it though. hmmm..... Seems like the retailer should have charged the tax at time of purchase and if they didn't they should pay it themselves?

Maybe to make it simple in the future, out of state retailers could just charge a flat 5% or similar sales tax that gets sent to the state of the buyer?

I'm all about fixed rate flat tax on everything though, but that's a longer discussion that would likely anger a bunch of people? oops
donato
In regards to the letter it seems pretty clear you’re only bound by the honor system in 2018. If you decide not to pay nothing will happen.
Dave Peck
donato wrote:
In regards to the letter it seems pretty clear you’re only bound by the honor system in 2018. If you decide not to pay nothing will happen.


Actually, the letter says they will ALSO give your purchase amount info to the state (they just won't provide the state with details about exactly what you bought). So if the state wants to, it can check your tax return against that info and find out if you are neglecting to pay the tax on those purchases.
JohnLRice
Dave Peck wrote:
donato wrote:
In regards to the letter it seems pretty clear you’re only bound by the honor system in 2018. If you decide not to pay nothing will happen.


Actually, the letter says they will ALSO give your purchase amount info to the state (they just won't provide the state with details about exactly what you bought). So if the state wants to, it can check your tax return against that info and find out if you are neglecting to pay the tax on those purchases.
That was my understanding as well, Dave. I sent off the information to the nice folks who do my taxes so I'm sure they will make sure I do things right.

It looks like there are no purchases listed before July 2018, but I don't know if that's because the law went into affect then or I just happened to not buy anything from them the first half of the year? hmmm..... I'd like to find something somewhere that shows how far back they can retroactively do this and how far into the future they can demand sales taxes on purchases made in 2018? (like I don't want to keep seeing these letters randomly trickling in over the next five years!)
dubnspace
diophantine wrote:
Online sales tax laws went into effect yesterday, related to California and I believe some other states.

Not sure the specifics of the laws, but I believe in theory every online retailer should be charging CA sales tax now.


I see 36 states now listed in where Sweetwater and AMS now charges Sales Tax.
dubnspace
rowsbywoof wrote:


H.. Basically everything I buy now online got 10% more expensive yesterday...

)


Pretty much will not buy anything new now, will wait for 2nd hand as much as possible. Even the 10% coupons most modular shops mean nothing now.. At least MF and GF do 15% and sometimes 20% coupons, plus the 8% back in rewards means they will now get whatever new gear business of the stuff they carry.
donato
Dave Peck wrote:
donato wrote:
In regards to the letter it seems pretty clear you’re only bound by the honor system in 2018. If you decide not to pay nothing will happen.


Actually, the letter says they will ALSO give your purchase amount info to the state (they just won't provide the state with details about exactly what you bought). So if the state wants to, it can check your tax return against that info and find out if you are neglecting to pay the tax on those purchases.


My mistake. I checked analoguehaven.com to see what their policy is now. Seems they are only collecting in California, but since they’re located there I guess they always did. Anyway, this is one of the few times I’m glad I’m not in California. For big purchases this is brutal.
Synth Con Meo
rowsbywoof wrote:
Or... We can all move to Oregon. grin


Not just No but F%CK NO!!!! The population in Portland has exploded over the last few years. Of course half of them are homeless people figuring out that Portland won't do anything to weed them out. Traffic is such a mess I dread driving anywhere anymore.
jabs
JohnLRice wrote:
eek! Literally an hour ago I received a letter in the mail from B&H Photo with a summary of all purchases that I made in 2018 and that I need to file some sort of special tax return so I can pay taxes on all of it? seriously, i just don't get it Dead Banana


e: Just noticed sharing of your $s with the state... still, curious how thorough enforcement will be.
nolongerhuman
Synth Con Meo wrote:
rowsbywoof wrote:
Or... We can all move to Oregon. grin


Not just No but F%CK NO!!!! The population in Portland has exploded over the last few years. Of course half of them are homeless people figuring out that Portland won't do anything to weed them out. Traffic is such a mess I dread driving anywhere anymore.


Hahah. I’m actually leaving after 15 years here because of the population explosion. Never seen anything like it.
nolongerhuman
Double post
Jason Brock
JohnLRice wrote:
eek! Literally an hour ago I received a letter in the mail from B&H Photo


I got a similar letter a month ago from Musician's Friend. Just another reason to stick to the BST subforum. Dead Banana

jabs wrote:
still, curious how thorough enforcement will be.


Enforcement of collecting back taxes on purchases from a year ago will be just that letter in the mail and nothing else. No one is going to come knocking on your door. But I guess if you were audited by the IRS for some reason they could discover it. Maybe.
monads
Yup. Sweetwater advised me a month ago when I was purchasing an item this was going into effect and if thinking about a big purchase this was the time. So much for the good times.
kcd06
Quote:
...I need to file some sort of special tax return so I can pay taxes on all of it?


Depending on what state you reside in, you may have been obligated to do this on all mail-order, or depending on the law, all out-of-state purchases for years/decades now; enforcement has just taken a while. California extends its laws to other states by trying to restrict firearms purchases and sales by residents while out of state, other states have gone after citizens attempting to bypass taxes on tobacco, booze, cars, etc. (State of Nevada went after my grandfather after he bought a truck in Oregon, and one of my sisters sold a car at a loss rather than dealing with the abuse she was put through trying to register a CA car in Arizona.) Governments have rarely been subtle about trying to get any and all monies they can, and its much easier and cheaper for them to nickle-and-dime many people to death than to go after campaign donors with deep pockets and many minions.
Nelson Baboon
purchased an item from a Chicago Reverb.com seller a few days ago, and was not charged tax. Then bought another item from them, and wtf? $41 tax.

My complaint was, why didn't one of them - the seller, or Reverb, have this in large print somewhere? The seller blamed Reverb, Reverb blamed the govt, but any fool knows that they have to obey the laws or else they can suffer penalties. What I was royally pissed off about was the lack of communication, and the only real reason that I can think for it is that they thought that they might lose some $$$.

$41 in the broad scheme of things isn't a big deal, but I didn't have the opportunity to choose another purchase, or buy from someone else, etc. In this case the fucking item was used. So, stupid me, I guess.

Reverb had the audacity to say that I should have looked at the store's policies, which, sure enough, was JUST changed. But i don't think it's reasonable to check a store's policy every couple of days.

Fuck you, Mary Tyler Moore, Fuck you.
JohnLRice
I just paid the tax on my B&H purchases from last year and unfortunately I bought a lot of semi small items and a couple biggish ones and my local tax is high at 10.2% so I had to shell out almost $350! eek! Dead Banana

I hope no one else sends me one of those letters! (hides)
oldgearguy
Don't know about other states, but Maryland tracked me down for tax on an item I bought internationally. Apparently DHL turns over your info to the state and since they know your name and address (and SSN - now required by DHL to actually receive the item), even the state government can find you.

Time to go back to scanning craigslist for stuff I guess.
pelican
This law really pisses me off. I guess it would be different if the states actually used the money for a good cause, but the bloated government never does. It’s never enough tax, tax, tax. So much for land of the “free”
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