Uh-oh..... B&H and the Taxman Cometh
Nov 14, 2019 15:03:26 #
Nov 14, 2019 15:24:36 #
Sales taxes on the "listed" price, not the actual sales price?
THAT IS NASTY!
THAT IS NASTY!
Nov 14, 2019 17:03:23 #
I guess NY looks at discounts and rebates as monies paid on the invoice total.
Nov 14, 2019 17:20:16 #
Longshadow wrote:
Sales taxes on the "listed" price, not the actual sales price?
THAT IS NASTY!
THAT IS NASTY!
This is an artifact of the NY state tax code. The way the subject line is written, you would think that B&H is the subject taxing - they are the victim of the state action.
Nov 14, 2019 17:45:58 #
rehess wrote:
This is an artifact of the NY state tax code. The way the subject line is written, you would think that B&H is the subject taxing - they are the victim of the state action.
For collecting on the "wrong invoice total"?
Nov 14, 2019 17:52:51 #
47greyfox wrote:
https://www.theverge.com/2019/11/14/20964980/b-h-photo-taxes-lawsuit-new-york-state?fbclid=IwAR1PMVui1PIzJhSXbaiE-uMTTbN_65TYEMdH_8BaiFfObssfcG9vZj2kTT8
They are NOT paying taxes on the sales value at all. When a manufacturer offers an instant rebate then SALES tax is paid on the actual sale price. What B&H failed to do was pay INCOME taxes on the instant rebate checks they got back from the manufacturers! Their instant rebate sales added up to a LOT of net income that they chose not to pay state taxes on. Look for the feds to follow suit if indeed they chose not to report that income on their federal returns as well.
Nov 14, 2019 18:05:31 #
Zeke4351
Loc: Kentucky
B&H should move out of New York along with the many others tired of taxes out the wazoo.
Nov 14, 2019 18:38:27 #
MT Shooter wrote:
They are NOT paying taxes on the sales value at all. When a manufacturer offers an instant rebate then SALES tax is paid on the actual sale price. What B&H failed to do was pay INCOME taxes on the instant rebate checks they got back from the manufacturers! Their instant rebate sales added up to a LOT of net income that they chose not to pay state taxes on. Look for the feds to follow suit if indeed they chose not to report that income on their federal returns as well.
Thanks, Shooter. I was hoping you would chime in. After reading the article this morning..... I was a little confused on where B&H had slipped and what the Fed was chasing them on. I liked the headline about "not looking for any great sales for a while."
Nov 14, 2019 18:43:14 #
Interesting...
Some people read sales tax, others read income tax.
Poorly written article or we can't read.
Some people read sales tax, others read income tax.
Poorly written article or we can't read.
Nov 14, 2019 19:26:33 #
It's interesting. When you buy a car with a rebate (at least in NY) the sales tax is applied to the purchase price and then the rebate is deducted. If you buy an item with a mail in rebate, you pay tax on the full purchase price and hopefully get you rebate check in six to eight weeks. They do not rebate any of the sales tax.
Since I now live in a no sales tax state I can't check this out. But for those who pay sales tax, when you make a purchase with a rebate, does the sales tax reflect tax on the purchase price before or after rebate? If the vendor is applying the rebate first, they are not collecting enough sales tax. So even if the vendor forks over everything they collected, it isn't enough.
I wouldn't be surprised if this isn't the case with B&H. If somebody has a receipt from B&H where they showed the sales tax on a sale with a rebate, let us know how the applied the tax. Please.
As I see it, B&H didn't benefit, their customers did. But for sales in NY the vendor is responsible for collecting the tax.
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Since I now live in a no sales tax state I can't check this out. But for those who pay sales tax, when you make a purchase with a rebate, does the sales tax reflect tax on the purchase price before or after rebate? If the vendor is applying the rebate first, they are not collecting enough sales tax. So even if the vendor forks over everything they collected, it isn't enough.
I wouldn't be surprised if this isn't the case with B&H. If somebody has a receipt from B&H where they showed the sales tax on a sale with a rebate, let us know how the applied the tax. Please.
As I see it, B&H didn't benefit, their customers did. But for sales in NY the vendor is responsible for collecting the tax.
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Nov 14, 2019 19:39:17 #
rehess wrote:
This is an artifact of the NY state tax code. The way the subject line is written, you would think that B&H is the subject taxing - they are the victim of the state action.
California too, when it comes to rebates, which are not actually discounts.
Nov 14, 2019 20:43:33 #
MT Shooter wrote:
Did you see the link to the actual court filing in that article? "Intentionally underpaid sales tax..."...What B&H failed to do was pay INCOME taxes on the instant rebate checks they got back from the manufacturers!
"Sales tax" is mentioned 106 times in that document according to my browser search function
Nov 14, 2019 20:46:33 #
FWIW - "Connecticut and six of the states require retailers to collect sales tax on the full price when they sell any item of taxable property or services that includes a manufacturer's coupon or rebate, even if the customer receives the value of the rebate at the time of the sale."
NY is one of the six. PA is not.
NY is one of the six. PA is not.
Nov 14, 2019 20:47:27 #
California has been collecting sales tax on internet sales for years. Nothing new here, sadly. They can't let any excuse to tax us more get by them.
Nov 14, 2019 20:51:21 #
Linda From Maine wrote:
Did you see the link to the actual court filing in that article? "Intentionally underpaid sales tax..."
"Sales tax" is mentioned 106 times in that document according to my browser search function
"Sales tax" is mentioned 106 times in that document according to my browser search function
By saying intentionally, although it may have been an error, the state will try to collect huge damages above and beyond just paying the taxes with interest. In these cases the mantra is always, "Pile on, Pile on".
Unless they were collecting the sales tax from the customers and not handing it over to the state, B&H had nothing to gain.
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