Shipping to avoid local sales tax?

[DARK_KNIGHT]

Originally Posted by Abdullah71601

You still owe your home state the sales or use tax. The out of state AD doesn't collect tax for your home state, but you are still on the hook to pay it.

It's an honor system at the moment, but if you get caught the system will not look at it as an honest mistake. You'll pay the tax plus fines and their costs to collect.

Thanks for this info.

[eltonbalch]

Originally Posted by samson66

I hear you. It's extremely common here for people from Maryland, Pennsylvania, New Jersey, and even further out to buy big ticket items in Delaware. You would be amazed how many furniture stores are located just a few miles into DE from the nearest state line. Agree that at some point these other states will start positioning police at the borders collecting taxes from people coming across the line with sofas sticking out the back of their SUV's

Luckily watches are a little more inconspicuous than king size beds...

States like NY have graduated well beyond posting people at the borders. Now they are scrubbing bank records, digital transactions and purchase records from other states. Computer matching programs do the rest. Trust me...NY for one has gotten much better at this than you might think and they share information with other jurisdictions.

[samson66]

Originally Posted by eltonbalch

States like NY have graduated well beyond posting people at the borders. Now they are scrubbing bank records, digital transactions and purchase records from other states. Computer matching programs do the rest. Trust me...NY for one has gotten much better at this than you might think and they share information with other jurisdictions.

New York (much like my state) has always been particularly efficient at collecting as much money as possible form its residents

[Rose Gold]

I would be dealing in cash.

Originally Posted by eltonbalch

States like NY have graduated well beyond posting people at the borders. Now they are scrubbing bank records, digital transactions and purchase records from other states. Computer matching programs do the rest. Trust me...NY for one has gotten much better at this than you might think and they share information with other jurisdictions.

[05carbondrz]

Originally Posted by Rose Gold

I would be dealing in cash.

Which is even more scary for most People.

[twitch54]

Originally Posted by REFZ

The sales tax in the US is relatively low compared to the VAT you have to pay in Europe.
The VAT in Europe is between 20-25% depending on the country you buy the watch.

Just pay your taxes and don't complain about it if you want to wear a luxury item like a Rolex watch.

BS, that's one reason why centuries ago we Americans had the balls to tell England to shove their stupid taxes ! Accepting taxes for the inefficiencies of Gov't (local, state or federal) is not the American way ! ....... but unfortunately we do.......

as for the Rolex question, I live 20 minutes from tax free Delaware

[samson66]

Originally Posted by twitch54

BS, that's one reason why centuries ago we Americans had the balls to tell England to shove their stupid taxes ! Accepting taxes for the inefficiencies of Gov't (local, state or federal) is not the American way ! ....... but unfortunately we do.......

as for the Rolex question, I live 20 minutes from tax free Delaware

Exactly. You need to run for office!

I'll meet you at the Christiana Mall AD

[MonsterSS]

Originally Posted by mulgogy

Just going to leave this here...

https://www.nytimes.com/2002/06/05/b...-tax-case.html

wow!

[American Jedi]

Originally Posted by twitch54

BS, that's one reason why centuries ago we Americans had the balls to tell England to shove their stupid taxes ! Accepting taxes for the inefficiencies of Gov't (local, state or federal) is not the American way ! ....... but unfortunately we do.......



as for the Rolex question, I live 20 minutes from tax free Delaware

Sing it brah... No reason for Gov to pick our pockets at every stop we make. Especially in big failing cities that obviously have proven they no idea how to properly use money in the first place.

The coffers are like spoiled under educated children. The more you give them, the more they will need.

[gav329]

Originally Posted by twitch54

BS, that's one reason why centuries ago we Americans had the balls to tell England to shove their stupid taxes ! Accepting taxes for the inefficiencies of Gov't (local, state or federal) is not the American way ! ....... but unfortunately we do.......



as for the Rolex question, I live 20 minutes from tax free Delaware

Just for your info they are British taxes not just England but the countries of Scotland, Wales and Northern Ireland.

You guys in USA were quite right to tell us to shove our taxes I totally agree. Our country is so stupid it gives you VAT back and accepts USA does not reciprocate but that’s our problem which our government fail to answer when queried on it.

Liked your answer however


Sent from my iPhone using Tapatalk

[FLAJIM]

Twice I bought the watch in New Jersey and had it shipped to my office in NYC... I did not pay any tax. I did ask the salesman to ship an empty box... he refused saying he would not break the law... after I bought the second one from him, he said the same thing... Right or wrong, I told him he was doing the right thing, but I would not be back... I know I am wrong but oh well.... Be Safe JIM

[sunnygps]

My AD, I bought from last week will not ship Rolex watches out of State. He will, however ship other brands out of State. I think they don’t want to mess around with Rolex policies for the fear of losing their AD status.

[Rose Gold]

I find this statement rather odd. You know your behavior / expectations are wrong, yet you will punish a salesperson for doing the right thing... and you end with oh well.

For better or worse, I find your behavior discouraging; not that you should care one bit about what I think.

Joe

Originally Posted by FLAJIM

Twice I bought the watch in New Jersey and had it shipped to my office in NYC... I did not pay any tax. I did ask the salesman to ship an empty box... he refused saying he would not break the law... after I bought the second one from him, he said the same thing... Right or wrong, I told him he was doing the right thing, but I would not be back... I know I am wrong but oh well.... Be Safe JIM

[mml4]

Originally Posted by train-time

With the recent Supreme Court ruling on selling to buyers out of state, I imagine after the individual states react to and modify their laws make sure they get their fare share of lost tax dollars, shipping out of state to save the tax will be a thing of the past. The ruling effect more than internet sales.

I was told that it is for outlets without a brick and mortar store. Supposedly the ruling is for sellers that only have a web address.

[REFZ]

Originally Posted by twitch54

BS, that's one reason why centuries ago we Americans had the balls to tell England to shove their stupid taxes ! Accepting taxes for the inefficiencies of Gov't (local, state or federal) is not the American way ! ....... but unfortunately we do.......

as for the Rolex question, I live 20 minutes from tax free Delaware

Oh you are a real big boy....

After buying it "tax free" you probably should declare it on arrival in your home state but I assume you will forget about that....

Send from my smartphone with Tapatalk.

[Abdullah71601]

Originally Posted by 77T

If it is called a sales tax in your State, then the tax is levied against the seller. So the AD is taxed on sales made in the jurisdiction of their place of business and (now that the Supreme Court ruled) anywhere they consummated a sale remotely via shipping a product.

Remember it is the seller’s responsibility to pay a sales tax. The reason they charge you the tax is so they don’t lose margin in the business.

If the States could trust buyers to pay consumption based taxes, then the seller wouldn’t be in the loop at all. And the term would be “purchases tax”.




Sent from my iPhone using Tapatalk Pro

The term is Use Tax.

Use tax is a sales tax on purchases made outside one's state of residence for taxable items that will be used, stored or consumed in one's state of residence and on which no tax was collected in the state of purchase.

The sales tax is imposed on retail transactions. It applies to all retail sales of tangible personal property, and in some states services, in the state. The use tax is imposed on consumers of tangible personal property that is used, consumed, or stored in their state.


Here's a list of states: https://www.salestaxinstitute.com/resources/rates

[eltonbalch]

I rarely post three times in the same thread, but I continue to be amazed at all of the proselytizing over this issue. If you live in a state with no sales tax, consider yourself lucky but if you don’t, you are subject to use tax when purchasing outside of your state to avoid sales tax. You are breaking the law. If you believe you will never be caught, you are probably (mostly) right, for now. I posted earlier that states like NY have become more sophisticated at catching offenders and they are getting better at it by leaps and bounds because they are desperate for more revenue and sophisticated computer programs which match multiple data bases is making it easier. If they come knocking at the door of your favorite AD, they will comply with the appropriate data concerning sales and data on buyers. I resent paying sales tax as much as anyone; politicians don’t need more of my hard earned money to waste. So, if you can afford a watch that costs five figures, you can afford the tax. Hold your nose and pay up but I already know that NY is going through years of data to collect what’s due. Not currently worth the risk IMHO.

[SkagitDoug]

Originally Posted by dubins930

IYour not far out...fly into Oregon and still save a few hundred.

Do you have a favorite AD near Portland International Airport?

[gtnator]

Originally Posted by eltonbalch

I rarely post three times in the same thread, but I continue to be amazed at all of the proselytizing over this issue. If you live in a state with no sales tax, consider yourself lucky but if you don’t, you are subject to use tax when purchasing outside of your state to avoid sales tax. You are breaking the law. If you believe you will never be caught, you are probably (mostly) right, for now. I posted earlier that states like NY have become more sophisticated at catching offenders and they are getting better at it by leaps and bounds because they are desperate for more revenue and sophisticated computer programs which match multiple data bases is making it easier. If they come knocking at the door of your favorite AD, they will comply with the appropriate data concerning sales and data on buyers. I resent paying sales tax as much as anyone; politicians don’t need more of my hard earned money to waste. So, if you can afford a watch that costs five figures, you can afford the tax. Hold your nose and pay up but I already know that NY is going through years of data to collect what’s due. Not currently worth the risk IMHO.

Do you work for the IRS, lol.


Sent from my iPhone using Tapatalk

[Calatrava r]

Originally Posted by gav329

Maybe you guys can answer this query. In U.K. we get loads of people from USA and Asia who buy lux goods here including watches then out stupid government gives them 20% tax as a refund. Does that mean they never actually pay tax or do they then get the refund.

I was in USA last year and wanted to buy a new watch however California were going to take my tax, not refund me it then when I would have brought watch to U.K. our greedy government would want tax too.

Can anyone clarify that? Thanks folks


Sent from my iPhone using Tapatalk

If you took delivery in the store, that ended the matter from a sales tax perspective. Where you take it after that does not matter.

[eltonbalch]

Originally Posted by gtnator

Do you work for the IRS, lol.


Sent from my iPhone using Tapatalk

No, but I do have connections to current and former NYS Tax Dept employees. Trust me, they are becoming much more sophisticated at tracking down potential tax revenue by scraping the internet for purchase information.


Sent from my iPad using Tapatalk

[djgallo]

I see another tea party in the future....

[TheoMich]

Most AD do not ship because they are not allowed to compete with another AD in that area. Rolex sends different watches to different AD to have them sold. If you payed the 2 mill doll premium to own a Rolex store and then find out the guy across state lines 80 miles away is selling in your area , you would be pissed. Rolex is trying to avoid this problem, this isn’t Mcds at every corner

[pkincy]

Originally Posted by envuks

I asked to ship my 116710 to ovoid the tax when I bought it from an AD. He was very open to doing this. However, I asked the question if he would ship the box and papers and let me walk out with the watch. I was met with a razzing “that’s illegal” comment from my AD. I deal with the CEO of a mult-chain jewelry store as my AD contact and we have a great relationship.... I ended up folking over the tax and walking out with the watch on my wrist

There was a rather famous CEO of a large conglomerate that spent some years in jail for this same idea. Now he was buying very expensive original art in NY and having it shipped to his home in Connecticut to avoid the NY state and city taxes. The gallery would ship the box but the art would go to his place in NYC. I forgot the company, but remember, he got in trouble for spending $2.5 mm of his companies money on a birthday party for he or his wife. And the easiest way they could put him behind bars was for NY Tax Fraud.

[pkincy]

Tyco was the company and Dennis Kozlowski was the CEO. And it wasn't a few Rolexes but a bit over $13 million worth of art.

[Jostack]

Originally Posted by pkincy

Tyco was the company and Dennis Kozlowski was the CEO. And it wasn't a few Rolexes but a bit over $13 million worth of art.

He did a lot of other crazy things on the company dime, immoral and unethical, but not illegal. Tyco was also forced to split into 3 separate companies, and we are now required to complete all different kinds of online training regarding ethics and law every year. It’s a blast. Oh I do miss him.




Sent from my iPhone using Tapatalk

[Bozack90]

ahh tax evasion :)

[77T]

Originally Posted by Jostack

He did a lot of other crazy things on the company dime, immoral and unethical, but not illegal. Tyco was also forced to split into 3 separate companies, and we are now required to complete all different kinds of online training regarding ethics and law every year. It’s a blast. Oh I do miss him.




Sent from my iPhone using Tapatalk

22 felonies, 8-20 yr sentence and released in 2014. His decadence was likely one reason for the longer sentence.

BTW, he’s out and available as an investment wrangler in case anyone misses him...


Sent from my iPhone using Tapatalk Pro

[SackLVG]

Originally Posted by SkagitDoug

Do you have a favorite AD near Portland International Airport?

You have zero chance at an ad in Portland. it’s backdoored and a waitlist for heavy spenders.

[Cesium137]

Originally Posted by superdog

Rolex policy is face to face.

But it does happen. Depends on Ad.

Still supposed to pay the piper tho.

This is completely wrong. It’s AD policy, not Rolex. Rolex doesn’t care. As long as they get theirs.

As far as your questions, chances are, they will not ship empty box and papers. Only the watch.