Out of state sales tax

[kumar75203]

Is there a new law (very recent) where jewelers are legally required to charge sales tax on out of state purchases?

I bought a Rolex from NYC shipped to Dallas two weeks ago and wasn’t charged sales tax.

Currently attempting to buy an AP from a different jeweler in NYC and am being told he is required to charge sales tax now to residents from all but five states.

[tyler1980]

you have always been required to pay it... to the state. retailers just didn't collect it

5 states dont have sales tax

AFAIK you are paying texas sales tax not NY sales tax and the retailer is collecting it on behalf of texas where the watch is going and where it is due since you are using the product there. Like paying VAT in the UK when you import something

[kumar75203]

Thanks

So technically a lot of these retailers are breaking the law by not collecting at the time of sale?

[Fencer]

Some are still flying under the radars, but yes, as far as I know they are all required.

[Rrpdc]

Originally Posted by kumar75203

Is there a new law (very recent) where jewelers are legally required to charge sales tax on out of state purchases?

I bought a Rolex from NYC shipped to Dallas two weeks ago and wasn’t charged sales tax.

Currently attempting to buy an AP from a different jeweler in NYC and am being told he is required to charge sales tax now to residents from all but five states.

Depends on retailer. You always supposed to pay when you do your taxes but retailers was not required to collect it. Even in same states, collection varies with retailer.

[Dan Pierce]

Originally Posted by kumar75203

Thanks

So technically a lot of these retailers are breaking the law by not collecting at the time of sale?

No, technically you're breaking the law by not paying the tax.
dP

[tyler1980]

Originally Posted by Fencer

Some are still flying under the radars, but yes, as far as I know they are all required.

same as what buyers use to do... flew under the radar. The obligation to your state was always there

I guess the positive if a retailer is not collecting is thats on them i suppose, previously it was on you to self report. That would be an interesting legal argument as now you can say the retailers obligation is to follow the law, you are just buying and have an expectation they are doing it legally. Probably wouldn't work, but its easier to play dumb if the burden is not on you anymore.

[kumar75203]

Originally Posted by Dan Pierce

No, technically you're breaking the law by not paying the tax.
dP

Well that’s why I’m confused.

Is it the retailer’s lawful responsibility to charge it? Or is the consumer supposed to self report it to the tax office?

Edit: or as Tyler just said, that’s the change in the law? Dealers are supposed to charge it now so it’s jot left in the hands of the consumer.

[Dan Pierce]

Originally Posted by kumar75203

Well that’s why I’m confused.

Is it the retailer’s lawful responsibility to charge it? Or is the consumer supposed to self report it to the tax office?

Self report. But that obviously didn't work.
dP

[kumar75203]

Originally Posted by Dan Pierce

Self report. But that obviously didn't work.
dP

Did you even bother to read the question that was asked?

[RichM]

Saw this for the first time. Note the price in the third line and what comes after it. Glad I live in Delaware. The days of the honor system is coming to an end.
https://www.rolexforums.com/showthread.php?t=656862

[Tools]

New tax laws call for Internet and mail-order purchases to be charged tax for the destination state be phased in.

[RichM]

Originally Posted by kumar75203

Did you even bother to read the question that was asked?

This should help clear things up. https://www.salestaxinstitute.com/sa...lect_sales_tax

[El-Duderino]

So, yes, as the purchaser you are supposed to self report if an item you purchased that was shipped to you from out of state did not include sales tax. How many do this? I’m going to guess very few people.

This typically applies to anything purchased that was shipped across state lines. However, the state department of revenue is not going to spend the time and resources to get that $2 for the shirt you bought from some online store.

[sirC]

South Dakota VS Wayfair ruling is the cause I believe

[tyler1980]

Originally Posted by El-Duderino

So, yes, as the purchaser you are supposed to self report if an item you purchased that was shipped to you from out of state did not include sales tax. How many do this? I’m going to guess very few people.

This typically applies to anything purchased that was shipped across state lines. However, the state department of revenue is not going to spend the time and resources to get that $2 for the shirt you bought from some online store.

seems as the marketing gurus could have sold this better. Since its not a tax increase at all. ...

its the "eliminating consumer burden and paperwork, streamlined and efficient taxation act of 2019"

The only other option is to do what most of the rest of the world does and have a national sales tax instead as most sales taxes are pretty close anyway (8%-ish as far as i know, there are outliers though). Manchester doesnt set different VAT rates from London as its on a national level. How its distributed back to the states i have no idea though.

Its weird how it is now because its like exporting and importing between states, usually thats what you get crossing international borders.

[RichM]

Originally Posted by sirC

South Dakota VS Wayfair ruling is the cause I believe

Correct June 21, 2018 was the date of the Supreme Court Ruling.

[El-Duderino]

Originally Posted by tyler1980

seems as the marketing gurus could have sold this better. Since its not a tax increase at all. ...

its the "eliminating consumer burden and paperwork, streamlined and efficient taxation act of 2019"

The only other option is to do what most of the rest of the world does and have a national sales tax instead as most sales taxes are pretty close anyway (8%-ish). Manchester doesnt set different VAT rates from London as its on a national level.

I can tell you, it is a real pain in the butt if you’re a business trying to keep track of who charged sales tax and who didn’t for things you purchased. I wish they would hurry up and streamline it here in the US as putting that burden on the consumer is onerous busywork.

[Fat_ninja]

Yeah they the big AD’s have started collecting sales tax.

[77T]

Originally Posted by sirC

South Dakota VS Wayfair ruling is the cause I believe

Yes...that’s it.

There aren’t “new” laws...States always had sales tax codes on their books governing interstate deliveries. The nexus for a retailer paying sales tax was “presence” in the distant State.

The Supreme Court 2018 ruling interpreted Internet commerce as nexus in SD v Wayfair. So some States are now scrambling in their legislatures to add Internet sales nexus to their tax codes. Many already had it in their codes like South Dakota did.

Now here’s a twist - the retailer must pay the tax but they have the right to swallow that without collecting it from you. Then, as Dan said, you must pay use tax in your own State. Twisted, eh?

Save your receipts in case some enterprising State Revenue staffs begin using data-driven tax collection efforts. If your distant seller collected sales tax on your $400,000 PP, but never submitted it, you sure don’t want the State trying to get it from you.


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[Maybelline]

How else are we going to pay for all these social programs?

Me. I always try to pay as little taxes as I can.

[tyler1980]

Originally Posted by Maybelline

How else are we going to pay for all these social programs?

Me. I always try to pay as little taxes as I can.

state and local taxes are the least abstract taxes there are as you see what they go for since its on a local level and where you live. Schools, police, parks, roads, etc. I get the idea of being anti-tax but taxes on a more local level isn't the same thing as far as "what am i paying for"

being from Montana originally i wish we had a sales tax as every year paying like $1000 to register your car to make up for the fact their is no sales tax puts more burden on specific people where as in texas the same car is like $40 per year. With a sales tax people who visit the state and use public services like roads, police, parks, etc also leave some of their money behind to help pay for it when they buy something. In Montana, we subsidize all the tourists with residents paying higher taxes on our property and our cars but the tourists get the benefit of what we are paying for when they visit ...for free.

[Maybelline]

Originally Posted by tyler1980

state and local taxes are the least abstract taxes there are as you see what they go for since its on a local level and where you live. Schools, police, parks, roads, etc. I get the idea of being anti-tax but taxes on a more local level isn't the same thing as far as "what am i paying for"

being from Montana originally i wish we had a sales tax as every year paying like $1000 to register your car to make up for the fact their is no sales tax puts more burden on specific people where as in texas the same car is like $40 per year. With a sales tax people who visit the state and use public services like roads, police, parks, etc also leave some of their money behind to help pay for it when they buy something. In Montana, we subsidize all the tourists with residents paying higher taxes on our property and our cars but the tourists get the benefit of what we are paying for when they visit ...for free.

I pay for needles so people can shoot heroine. I get an excise tax bill on our cars every year so they can “fix the roads”. I pay for programs that I can not mention here because it will start a war.

Should I keep going?

I only want to pay my fair share. That is it. Btw I live in Taxachusetts.

[GoingPlaces]

Originally Posted by Dan Pierce

No, technically you're breaking the law by not paying the tax.
dP

Technically speaking, it is the business's responsibility to collect the sales tax, period. They are the entity that actually is liable to the state for all sales taxes collected. If no tax is collected, the state is not coming after the buyer, it is the business that gets the heat. However tif he seller is a non-commercial entity, then it is the buyers responsibility to pay a "use" tax as opposed to a sales tax.

[Maybelline]

Technically if I drive 66mph in a 65 zone I’m breaking the law.

[77T]

Originally Posted by tyler1980

In Montana, we subsidize all the tourists with residents paying higher taxes on our property and our cars but the tourists get the benefit of what we are paying for when they visit ...for free.

Not so fast...I’ve paid


https://mtrevenue.gov/taxes/miscella...ging-facility/




And communities add resort taxes...




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[Dan Pierce]

Originally Posted by kumar75203

Did you even bother to read the question that was asked?

Yes, hence my answer.

Originally Posted by GoingPlaces

Technically speaking, it is the business's responsibility to collect the sales tax, period. They are the entity that actually is liable to the state for all sales taxes collected. If no tax is collected, the state is not coming after the buyer, it is the business that gets the heat. However tif he seller is a non-commercial entity, then it is the buyers responsibility to pay a "use" tax as opposed to a sales tax.

Thanks for the clarification.
dP

[tyler1980]

Originally Posted by 77T

Not so fast...I’ve paid


https://mtrevenue.gov/taxes/miscella...ging-facility/




And communities add resort taxes...




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we pay that too.

Generally speaking a sales tax in a state with a lot of tourists means they leave some of that money. Shopping etc

there is basically a hotel tax and thats pretty much it

[tyler1980]

Originally Posted by Maybelline

I pay for needles so people can shoot heroine. I get an excise tax bill on our cars every year so they can “fix the roads”. I pay for programs that I can not mention here because it will start a war.

Should I keep going?

I only want to pay my fair share. That is it. Btw I live in Taxachusetts.

i would just be happy if everyone paid their fair share. We just bought a house in Houston. In a very good school district and we paid through the nose as our property taxes are way high because the home values are high because of the schools. My wife works with a guy who uses a friends address so his kids can go to the good school too. He totally could afford to live there too but doesnt want to pay for it.... its tax avoidance and we pay for his kids to be educated, he doesnt. He actually lives further enough out that his home value is lower and his taxes are lower. Apparently lots of people do stuff like that.

[texasmade]

Originally Posted by tyler1980

i would just be happy if everyone paid their fair share. We just bought a house in Houston. In a very good school district and we paid through the nose as our property taxes are way high because the home values are high because of the schools. My wife works with a guy who uses a friends address so his kids can go to the good school too. He totally could afford to live there too but doesnt want to pay for it.... its tax avoidance and we pay for his kids to be educated, he doesnt. He actually lives further enough out that his home value is lower and his taxes are lower. Apparently lots of people do stuff like that.

Protest the home value. I protest every year to keep from paying through the nose. Whatever my final assessment is, I pay up in January.

I think the biggest chunk goes to the school district and I have no kids. I don't benefit directly but don't really complain about it either since it's better for the neighborhood to have well funded schools to educate kids.