Shipping to avoid local sales tax?

[jimcameron]

Originally Posted by fsprow

Maybe naive on my part, but trying to avoid paying lawful sales tax by alternate shipping, or not declaring taxes when due, seems really a bad idea when most states are struggling to pay employees and debt obligations during the pandemic.

You're not naive your ethical. Your parents should be proud.

[fsprow]

Originally Posted by jimcameron

You're not naive your ethical. Your parents should be proud.

Thank you. I hate to sound "better than any one else" - I'm certainly not. Just feel strongly about this.
Frank

[stateman]

Originally Posted by whiterabbit66

Well from my perspective I see paying my state tax for purchasing something in another state a riff off and am very happy not to. My state already takes enough money off me in income and sales taxes and squanders it so I sleep well thanks.

Guess people have the option, pay sales tax in their state or don't pay the sales tax or maybe a 3rd if people feel guilty they can donate the savings to a charity or similar.

Guess we all have the option to follow or break any law. If your home state has a sales/use tax (which 45 of 50 do), then the law requires to pay the tax even if purchased out of state in that manner. Considering this could be $1K+ in sales tax for some of these watches, that's not a minor theft. Don't think it is simply a matter of feeling guilty or liking it.

[whiterabbit66]

Originally Posted by stateman

Guess we all have the option to follow or break any law. If your home state has a sales/use tax (which 45 of 50 do), then the law requires to pay the tax even if purchased out of state in that manner. Considering this could be $1K+ in sales tax for some of these watches, that's not a minor theft. Don't think it is simply a matter of feeling guilty or liking it.

Well in 20 years I don't know one person who has ever voluntarily paid sales tax when receiving goods from another state. Guess people should also be declaring the money they make on reselling a watch at a higher amount too then and paying state income taxes on the profit as well as federal.

Sorry to offend the self righteous so much.........just wanted to post its still possible and an option for people wanting to save money.

[77T]

Originally Posted by whiterabbit66

Guess people should also be declaring the money they make on reselling a watch at a higher amount too then and paying state income taxes on the profit as well as federal.



Sorry to offend the self righteous so much.........just wanted to post its still possible and an option for people wanting to save money.

I don’t think you’re offending anyone. People are opining on the ethics of feeling that one has “paid enough already”...
You do as you like - but when you take the time to advertise your POV, expect some feedback about your actions.

BTW the sale of personal property is exempt from taxes in most states. That is, not a for-profit enterprise.



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[Paul7]

Originally Posted by fsprow

Maybe naive on my part, but trying to avoid paying lawful sales tax by alternate shipping, or not declaring taxes when due, seems really a bad idea when most states are struggling to pay employees and debt obligations during the pandemic.

State governments wildly overspending, which was a problem long before the pandemic, is another issue.

Two years ago I bought my wife's DJ 31 from Jomashop, between the lower price compared to the local AD and no tax it saved $1K.

Here's a question: Do the new tax laws requiring tax collection on out of state retail purchases apply to private sellers such as here on TRF?

[stateman]

Originally Posted by whiterabbit66

Well in 20 years I don't know one person who has ever voluntarily paid sales tax when receiving goods from another state. Guess people should also be declaring the money they make on reselling a watch at a higher amount too then and paying state income taxes on the profit as well as federal.

Sorry to offend the self righteous so much.........just wanted to post its still possible and an option for people wanting to save money.

Ha ha...not offended at all. Just describing your proposal in objective terms. We’re all adults, do what you want.

[DoctorA]

This is a very confusing issue.... some ADs quote and implement the new regulations, as of 10/2019, applying the local taxes even if they ship the watch, while others will ship without charging taxes!
I guess it’s another game some ADs will play

[brucethemanlee]

technically tax evasion - isn't it? you "should" be self assessing.

whether one does or not is a different story. No different than not reporting all your income. its really up to the individual

[77T]

Originally Posted by Paul7

Here's a question: Do the new tax laws requiring tax collection on out of state retail purchases apply to private sellers such as here on TRF?

The answer varies and it depends upon the platform the private seller uses (e.g. Chrono24, eBay, etc. or personal website), the State to which the watch is shipped, and safe harbor limits in many tax laws to avoid undue burdens on sellers.

See this white paper for a full understanding: https://taxfoundation.org/state-remo...ction-wayfair/

Originally Posted by DoctorA

This is a very confusing issue.... some ADs quote and implement the new regulations, as of 10/2019, applying the local taxes even if they ship the watch, while others will ship without charging taxes!

I guess it’s another game some ADs will play

It is confusing for the ADs, too. The large chains have instituted CRM sales platforms to vet buyer shipments for applicable taxes.

The small single shop AD may never sell online, may have no nexus in the buyer’ home State, and have de minimis sales volume being shipped.

I’m not saying every sales rep is 100% honest, but on the other hand ADs aren’t corrupt organizations colluding to avoid your or my sales tax exposure.



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[holdingon]

i purchased a watch at DavidSw two weeks ago...no sales tax.

[stateman]

Originally Posted by brucethemanlee

technically tax evasion - isn't it? you "should" be self assessing.

whether one does or not is a different story. No different than not reporting all your income. its really up to the individual

Completely agree. I know that it may sound otherwise, but I'm not moralizing when I give my thoughts on the legal requirements.

I drove 85 mph today and know that is against the law, and if caught would have been at risk of statutory reckless driving in this state. That was my choice, knowing the rules and possible outcomes. If your home state has a sales tax, you will almost certainly have an obligation to self-report the liability and remit to your state, even if the seller didn't collect the tax.

Everyone can make their own choices, I just don't want anyone trying to make an informed choice to think this is a legal 'option'. Speeding isn't legal either.