Sales Tax

[kevblah]

My AD at AP just told me that AP is now collecting sales tax on all watches being shipped even out of state. Apparently has something to do with a new law that was passed?

Anyone have more info or confirmation?

[othertbone]

Originally Posted by kevblah

My AD at AP just told me that AP is now collecting sales tax on all watches being shipped even out of state. Apparently has something to do with a new law that was passed?

Anyone have more info or confirmation?

Yep that is the law in 2019 now for any company doing a decent size business. Small mom and pop businesses and individual eBay people don't have to charge tax. And yea the extra $1,200 on my recent 15500st was a punch in the balls lol

[JR16]

Originally Posted by kevblah

My AD at AP just told me that AP is now collecting sales tax on all watches being shipped even out of state. Apparently has something to do with a new law that was passed?



Anyone have more info or confirmation?

Correct- sort of- I believe this is the rule starting October. The sales tax charged should be for the state to which it is being shipped. So if you live in a state without sales tax, then they shouldn’t charge tax.

It’s hard to argue w this new ruling as tax on the watch should be paid by the buyer when his/her tax return is filed - it’s just that most people would not do this. This simply makes the process more efficient/reliable in theory.


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[danicasi2002]

this has been discussed in a few threads. Here is the most recent one in case you need more info. Good luck.

https://www.rolexforums.com/showthread.php?t=694615

Got my 15500 the week before the new policy was initiated. Yes it sucks but it would not have changed my mind wrt buying the piece; hopefully the state will put it to good use.

[GB-man]

Pretty sure unless you have a billing and matching shipping address in a tax free state like Delaware or Oregon you are ponying up.

[thekman]

Yeah just had to pay taxes on my out of state AP from the AP NYC Boutique.

[cascavel]

Another tap on the brakes of the economy.

[jag32]

This just closes the gap in the premium between a new RO or going gray and not waiting. $21.5k MSRP and sales tax for a new RO, or 23k Gray and I can have it now? Basically only a $1500 premium having to go gray now. Unless you want blue dial.

[jag32]

Originally Posted by cascavel

Another tap on the brakes of the economy.

This is going to really hurt ecommerce. I know my buying habits will change.

[vipergts66]

Odd how business are interpreting this new law.

March 2019 received my 15500 Blue from Florida —> Texas tax free

August 2019 told by a small local AD in Louisiana they have would assess tax on a Bluesy submariner.

September 2019 told by large Texas Rolex Boutique they could ship anywhere out of state for tax free.

[msm2]

Originally Posted by jag32

This just closes the gap in the premium between a new RO or going gray and not waiting. $21.5k MSRP and sales tax for a new RO, or 23k Gray and I can have it now? Basically only a $1500 premium having to go gray now. Unless you want blue dial.

Well technically the grey dealer should also still be charging sales tax.

[cascavel]

Originally Posted by vipergts66

Odd how business are interpreting this new law.

March 2019 received my 15500 Blue from Florida —> Texas tax free

August 2019 told by a small local AD in Louisiana they have would assess tax on a Bluesy submariner.

September 2019 told by large Texas Rolex Boutique they could ship anywhere out of state for tax free.

I know other people in Texas who have not had to deal with this yet. In New York it started June 1st of this year.

[Kliminator]

Originally Posted by vipergts66

Odd how business are interpreting this new law.

March 2019 received my 15500 Blue from Florida —> Texas tax free

August 2019 told by a small local AD in Louisiana they have would assess tax on a Bluesy submariner.

September 2019 told by large Texas Rolex Boutique they could ship anywhere out of state for tax free.

In my experience as well actual practice varies. Also got different answers from different AD's

[porschejeff]

Yes, it was as a result of the U.S. , Supreme Court case on Wayfair a large online retailer. Internet retailers must charge sales tax, or, technically, they could be liable for it.

[77T]

Originally Posted by porschejeff

Yes, it was as a result of the U.S. , Supreme Court case on Wayfair a large online retailer. Internet retailers must charge sales tax, or, technically, they could be liable for it.

That case (SD vs Wayfair) did not command sellers to charge sales tax.

The ruling was that States may levy tax on remote sellers for purchases shipped into their State. And that is possible even if the seller does not have a physical presence there.

The seller is always liable for payment of sales tax. The seller can choose to collect it from the buyer or not. But it is always the seller who remits the tax to the various States.




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[pkincy]

This is "State" sales tax, so any discussion of whether it is charged or not must be state specific. And each state has or will soon have passed a law that sets what their threshold is for an out of state seller to register with their state's taxing authority and the rules for collection and remittance of "State" sales tax.

A summary is that someone that does little business yearly into the state where the item is being shipped likely will not have to charge sales tax unless they are selling through a larger "facilitator." Like Ebay or Amazon or Walmart sellers platforms.

So your best bet is to buy from a smaller nonaffiliated seller and that likely will miss sales tax for some time. For instance in Ca the seller must sell over $500,000 of goods into the state each year to be require to collect and remit Ca sales tax. So likely Watchbox will have to collect tax for near every state, but Govberg only collects for about 23 states now. Or at least it was 23 states last watch I bought from them 3 months ago.

[Mobert19]

Do you still get the 5 year warranty buying new from a grey?

[Plastique999]

Originally Posted by vipergts66

Odd how business are interpreting this new law.

March 2019 received my 15500 Blue from Florida —> Texas tax free

August 2019 told by a small local AD in Louisiana they have would assess tax on a Bluesy submariner.

September 2019 told by large Texas Rolex Boutique they could ship anywhere out of state for tax free.

What about for the horrible state of CA which already charges near 10% sales tax?


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[watchucallit]

I was told AP boutique is charging tax unless shipped to a state that does not charge sales tax--- e.g. Oregon or Texas

[TonyD]

Its nice to have an office in NH!

[Commonproject]

Originally Posted by kevblah

My AD at AP just told me that AP is now collecting sales tax on all watches being shipped even out of state. Apparently has something to do with a new law that was passed?

Anyone have more info or confirmation?

All states have to by 2020. Look at South Dakota v Wayfair

[golfski]

Originally Posted by watchucallit

I was told AP boutique is charging tax unless shipped to a state that does not charge sales tax--- e.g. Oregon or Texas

Pretty sure Texas has sales tax. No income tax though ;). My understanding is its NH, Delaware, Oregon, Alaska and Montana with no sales tax.

Florida, Nevada, Washing, Texas, Alaska, SD, Wyoming have no income tax.

[watchucallit]

You are correct. I used to live in TX .. so dah on my part..

Originally Posted by golfski

Pretty sure Texas has sales tax. No income tax though ;). My understanding is its NH, Delaware, Oregon, Alaska and Montana with no sales tax.

Florida, Nevada, Washing, Texas, Alaska, SD, Wyoming have no income tax.

[golfski]

Originally Posted by watchucallit

You are correct. I used to live in TX .. so dah on my part..

I get it! I have lived in half of the states listed - hard to keep track. Financially though, will take no income tax over no sales tax any day. Though, I guess it does matter how many watches you buy a year

[jacksprat]

Originally Posted by Mobert19

Do you still get the 5 year warranty buying new from a grey?

I've bought BNIB Rolex and AP from greys from this forum and all have come with full factory warranty and my name on the card (if applicable)