Buying a Rolex out-of-state, will I get Tax exemption?

[snaggle]

Hey guys, Im traveling to VA very soon, and I am a FL resident. Just a quick question i've got, that may be stupid and obvious, but I tried searching for it online and couldn't find anything:

If I want to buy a DJII from the AD in VA when I go for a weeks vacation, will I get my taxes back at the airport or something? I am planning to pay cash at the AD if i do buy it. So is there anyway I can avoid paying taxes considering im not from VA>?

Thanks guys.

[dddrees]

If you buy it in another state and have them ship it to your house you won't have to pay any taxes in the first place.

[nauticajoe]

Have the AD mail the watch to your house to save on sales tax.

[snaggle]

Ok, sounds good. The last time I went to that AD in virgina, I do recall them saying they give discount on retail for a TT sub I was looking at. If they can give me 15% off the SS DJII, I will definately pull the trigger

[nauticajoe]

Good luck!

[rr-nyc]

If its mailed out of state, you don't have to pay the local sales tax but you are responsible to pay the sales tax in the state you live. Whether you choose not to is your business but it's not tax free unless you live in a no sales tax state which would raise the question as to why you would go somewhere else to purchase

[JustABreathAway]

Interesting question.

Not 2 weeks before I purchased my DDII, the State government here put out an article in the highest circulation newspaper letting us mere citizens know that They would be going after high value purchases to ensure that due taxes were paid unto the Governing Body, regardless of location of purchase. This partly lead me to abandon my efforts to avoid the 6% confiscatory exercise know as state sales tax.

[canvasback13]

When you buy out of state legally you are required to pay "use tax" when you bring it into your state. That use tax is equal to your home state sales tax. You file a form a pay the tax. Very few people actually do this, but it's the law.

I actually got a bill this last fall for an item i bought in another state in 2009. The bill came from my state comptroller. In addition to the tax, owed interest. I was shocked. I think states are short on revenue and are stating to go after this stuff. They wouldn't bother on small stuff. They got me on an item that costs 8k.

[david_ord]

Originally Posted by JustABreathAway

Interesting question.

Not 2 weeks before I purchased my DDII, the State government here put out an article in the highest circulation newspaper letting us mere citizens know that They would be going after high value purchases to ensure that due taxes were paid unto the Governing Body, regardless of location of purchase. This partly lead me to abandon my efforts to avoid the 6% confiscatory exercise know as state sales tax.

Wth? So you went ahead and paid taxes on $30K? That burns. I wouldn't allow some government to bully or intimidate me into paying $1800's, even if money were no object.

[train-time]

Originally Posted by JustABreathAway

Interesting question.

Not 2 weeks before I purchased my DDII, the State government here put out an article in the highest circulation newspaper letting us mere citizens know that They would be going after high value purchases to ensure that due taxes were paid unto the Governing Body, regardless of location of purchase. This partly lead me to abandon my efforts to avoid the 6% confiscatory exercise know as state sales tax.

With States facing huge budget deficits they are going after any revenue source they can. I purchased a couple GMTIIc's from a dealer and had them shipped and they made me sign a form for the tax man stating that I would be responsible for the state tax and the dealer was not collecting it and was not responsible. They said it was for the State Sales Tax Authorities.

Originally Posted by canvasback13

When you buy out of state legally you are required to pay "use tax" when you bring it into your state. That use tax is equal to your home state sales tax. You file a form a pay the tax. Very few people actually do this, but it's the law.

I actually got a bill this last fall for an item i bought in another state in 2009. The bill came from my state comptroller. In addition to the tax, owed interest. I was shocked. I think states are short on revenue and are stating to go after this stuff. They wouldn't bother on small stuff. They got me on an item that costs 8k.

In neighboring Delaware, where there is no sales tax, Maryland authorities have been stopping Marylander's at the Delaware - Maryland Toll coming back into Maryland and hitting them up for sales tax on items purchased in Delaware and brought into Maryland.

[donas]

I have been told the same as the above posts. What it comes down to is if the seller reports it. I have relatives that live in Tenn and purchased furniture in NC, they had a tax bill waiting in their mailbox a couple of weeks later.

A couple of months ago I was about to pull the trigger on a WG Sub at a local AD in South Carolina, where I live. He was up front with me and said he would ship the watch to Tenn for me to save on the sales tax, but had to file some sort of paperwork due to the purchase being over 10 grand. He told me that I would most likely be hit with a tax bill via mail a couple of weeks after purchase.

[canvasback13]

Originally Posted by Edward Arthur

In neighboring Delaware, where there is no sales tax, Maryland authorities have been stopping Marylander's at the Delaware Memorial Bridge crossing back into Maryland and hitting them up for sales tax on items purchased in Delaware and brought into Maryland.

The Delaware memorial leads to Maryland?......

[JustABreathAway]

Originally Posted by david_ord

Wth? So you went ahead and paid taxes on $30K? That burns. I wouldn't allow some government to bully or intimidate me into paying $1800's, even if money were no object.

You should see what the government bullies out of me on my business and personal taxes - that sales tax number isn't even a fraction of a rounding error! And, this is even before the Patient Protection and Affordable Care Act goes into effect, when the government will quite literally tell me what kind of healthcare I can offer you (which for what I do, will be deciding who gets a chance at life and who doesn't). Happy thoughts!!

[train-time]

Originally Posted by canvasback13

The Delaware memorial leads to Maryland?......

Ooops, not the bridge; the toll at the border on I-95

[DolphinV8]

Not every dealer would do that in my experience. Some would let you take the merchandise and ship the box to your home address for free. Some would charge hundreds to ship the merchandise w/ box. Being a resident of OR, I am lucky enough to buy many items in WA w/o taxes. =D
I guess it's probably easier to get the watch from one of the trusted seller on here. That way you don't have to worry about getting taxed.

[Welshwatchman]

Originally Posted by JustABreathAway

You should see what the government bullies out of me on my business and personal taxes - that sales tax number isn't even a fraction of a rounding error! And, this is even before the Patient Protection and Affordable Care Act goes into effect, when the government will quite literally tell me what kind of healthcare I can offer you (which for what I do, will be deciding who gets a chance at life and who doesn't). Happy thoughts!!

Let's not go there.

You are not alone in owning a business and paying sums of tax that would fund a grail watch or three.

We just don't discuss those sort of things here, it never ends happily.

To the OP:

Speak to the dealer and ask his advice. If it's considered tax evasion then he'll unlikely be happy in telling you it's ok. If it's allowed, subject to certain conditions, he'll explain them also.

[DDG]

If they have a website, and you buy it online, from another state, you don't have any sales tax to pay. They might charge you for shipping. My son bought a lady Datejust from a jeweler here in Kansas over the phone, and they sold it to him in Hawaii with no tax, and they shipped it too.

[JustABreathAway]

Originally Posted by Welshwatchman

Let's not go there.

You are not alone in owning a business and paying sums of tax that would fund a grail watch or three.

We just don't discuss those sort of things here, it never ends happily.

To the OP:

Speak to the dealer and ask his advice. If it's considered tax evasion then he'll unlikely be happy in telling you it's ok. If it's allowed, subject to certain conditions, he'll explain them also.

My apologies, I was just responding to a specific comment by another poster. I'll try to further limit my responses in the future.

[Welshwatchman]

Originally Posted by JustABreathAway

My apologies, I was just responding to a specific comment another poster. I'll try to further limit my responses in the future.

Cool.

[etp095]

Just another reason to buy from one of the trusted dealers here,i doubt you will get any slips in the mail from the tax man.

[canvasback13]

Originally Posted by DDG

If they have a website, and you buy it online, from another state, you don't have any sales tax to pay. They might charge you for shipping. My son bought a lady Datejust from a jeweler here in Kansas over the phone, and they sold it to him in Hawaii with no tax, and they shipped it too.

wrong, you still legally owe the tax. You probably won't get caught, but you do owe it. This is the same issue that state governments are sueing amazon.com over.

[train-time]

Technically it's not tax exemption, it's tax evasion to purchase out of state to avoid sales tax. If you check your State's sales and use tax laws I'm sure you will discover that technically you owe YOUR State the tax if an item is shipped into your State and not taxed. Most large internet or catalog sellers now collect and remit State Sales Tax to the State where the purchaser lives.

One local AD incurred large fines not to long ago when the State Tax Authorities discovered they were shipping empty boxes out of state and people where wearing the watch out the door.

[gwozhog]

Originally Posted by david_ord

Wth? So you went ahead and paid taxes on $30K? That burns. I wouldn't allow some government to bully or intimidate me into paying $1800's, even if money were no object.

If I recall right Justabreathaway scored his fabulous Piece for 40 percent off at the fire sale at Jared's. No one however was able to escape the Taxman from that promotion. I scored my wife a Platty Yachtmaster too from Jared's. Man what an exciting time.

[JustABreathAway]

Originally Posted by gwozhog

If I recall right Justabreathaway scored his fabulous Piece for 40 percent off at the fire sale at Jared's. No one however was able to escape the Taxman from that promotion. I scored my wife a Platty Yachtmaster too from Jared's. Man what an exciting time.

Goodness, I wish!! Some member here did get a fabulous YG DDII White Romans from Jared's at 40% off, but I was not that guy! I negotiated 20% off MSRP from my local AD, who is still in business. Unfortunately, I did pay state sales tax along with that.

[gwozhog]

Originally Posted by JustABreathAway

Goodness, I wish!! Some member here did get a fabulous YG DDII White Romans from Jared's at 40% off, but I was not that guy! I negotiated 20% off MSRP from my local AD, who is still in business. Unfortunately, I did pay state sales tax along with that.

It was someone else then. I just remember calling all 3 Jared's in Houston looking for your exact watch for 40 percent off. All of them were sold.

[Scott95]

Originally Posted by canvasback13

I actually got a bill this last fall for an item i bought in another state in 2009. The bill came from my state comptroller. In addition to the tax, owed interest. I was shocked. I think states are short on revenue and are stating to go after this stuff. They wouldn't bother on small stuff. They got me on an item that costs 8k.

Just wondering how your state Comptroller found out about the purchase? Someone had to tell - it must have been the retailer.

[harry in montreal]

Listen to Edward Arthur. You needcto inform yourself of your requirements to self-assess State and Local USE tax on out f state purchases. Penalties and interest can be horrific. Or you can move to quebec and pay 15pct on everything. Yup 15 percent. Cars. New houses. Etc

[azguy]

I travel a lot and frequent watch stores and art galleries as a past time. I ahve a small collection of both I can tell you first hand that good sales people will always ask where I am from and not 2 seconds later they are telling me they can ship it home to me and no sales tax is due.

In one case, an unnamed national waTch store shipped home an empty box and did not charge me tax when I bought a Breitling and wanted to wear the watch while in Vegas...they did "hem-and-haw" over it though

Retailers use it as a selling tool and I have no idea if its really legal or not.

[aardvarkbark]

Originally Posted by canvasback13

wrong, you still legally owe the tax. You probably won't get caught, but you do owe it. This is the same issue that state governments are sueing amazon.com over.

You owe the tax if the seller has a retail presence in your state. If you travel to VA and buy from a chain that has a store in your state, even if you have them ship it to you, you owe your state's sales tax or they face penalties. Texas has sued Amazon for taxes on shipments to TX buyers because and only because they have a distribution center in the state.

[dddrees]

Originally Posted by aardvarkbark

You owe the tax if the seller has a retail presence in your state. If you travel to VA and buy from a chain that has a store in your state, even if you have them ship it to you, you owe your state's sales tax or they face penalties. Texas has sued Amazon for taxes on shipments to TX buyers because and only because they have a distribution center in the state.

I know wikipedia may not be the final authority however this does go along with what aardvarkbark is saying:

There is no federal sales or use tax in the United States. 45 states, the District of Columbia, and Guam impose sales and use taxes on the retail sale, lease and rental of many goods, as well as some services. Many cities, counties, transit authorities and special purpose districts impose additional local sales or use taxes. Sales and use tax is calculated by multiplying the purchase price by the applicable tax rate. Tax rates vary widely by jurisdiction and range from less than 1% to over 10%. Sales tax is collected by the seller at the time of sale. Use tax is self assessed by a buyer who has not paid sales tax on a taxable purchase.

Unlike the value added tax, a sales tax is imposed only once, at the retail level, on any particular item. However, in cases where items are sold at retail more than once, such as used cars, the sales tax can be charged on the same item indefinitely. The definition of retail sales and what goods and services are taxable vary among the states. Nearly all jurisdictions provide numerous categories of goods and services that are exempt from sales tax, or taxed at reduced rates. The purchase of goods for further manufacture or for resale is uniformly exempt from sales tax. Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies.

Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to collect tax from customers, file returns, and remit the tax to the state. Procedural rules vary widely. Sellers generally must collect tax from in-state purchasers unless the purchaser provides an exemption certificate. Most states allow or require electronic remittance. States are prohibited from requiring out of state sellers to collect tax unless the seller has established a physical presence in the state sufficient to establish a nexus.