New Egg Collecting Sales Tax
Jan 21, 2019 06:15:26 #
traderjohn wrote:
Maybe not. If I go to a store in NYC and that store has no presence in New Hampshire which has no sales or income tax and I have the store ship the item to NH. There is no sales tax.
Income tax is not part of this discussion, but you are correct, NH does not have sales or use tax, so making a purchase in a brick and mortar store in NYC that is shipped to NH does not obligate the store to collect sales tax. Shipping a box full of books or rocks and taking the item with you at the time of purchase, well that is a whole other story.
Jan 21, 2019 06:17:16 #
JeffR wrote:
It's not where you live, it's where the purchase is delivered. I live in Delaware, with no sales tax. But if I have the package delivered to my dad in Idaho, Amazon charges me the Idaho sales tax.
I moved to Millsboro in Oct and I am totally enjoying (and taking full advantage of) the tax free state! But the use tax rules are usually written to require the residence, not the delivery point, to be used to determine tax rates.
I owned several businesses that sold goods and services across state lines, so I am very familiar with sales and use tax regulations in a number of states.
Jan 21, 2019 06:21:27 #
gjgallager wrote:
Newegg provided the CT Department of Revenue Service with all sales to CT customers for a 3 year period. My neighbor received a tax bill from the DRS for several hundred dollars and will never buy from them again.
So the tax evader is blaming Newegg for not collecting the taxes that the evader should have been reporting and paying all along. Hmm, that makes a whole lotta sense (sarcasm intended). I hope the tax bill included interest and penalties.
BTW, the decision last June directly forbids a state from retroactively collecting sales tax not collected at the time of sale. Your neighbor may have a case if he/she wants to pursue it.
Jan 21, 2019 08:16:28 #
rwww80a
Loc: Hampton, NH
Use to be! The law has changed.
Work around...
Use USPS with parcel forwarding... Have a friend in NH or DE that can forward your package.
OR
Move to NH or Delaware, no sales tax.
I'm in NH now; Maine taxes are way to high in a granny state.
Work around...
Use USPS with parcel forwarding... Have a friend in NH or DE that can forward your package.
OR
Move to NH or Delaware, no sales tax.
I'm in NH now; Maine taxes are way to high in a granny state.
Jan 21, 2019 09:07:51 #
wgraburn
Loc: Chicago
Businesses did not used to charge state sales taxes if they did not have a physical presence in the state. That has changed. Now, if you order by internet from a state with a sales tax you are now charged the sales tax of the state from which you order.
Jan 21, 2019 09:17:55 #
Gene51 wrote:
The June 2018 decision does not require the collection of taxes. It only allows the individual states to craft laws to do so.
Thank you for the clarification. IANAL so sometimes I'm not clear on the fine details of things like that.
Jan 21, 2019 10:42:50 #
And that is the way most of the states' laws are written.Do you really think they would let those in the non-tax states avoid paying just by being selective of the state where you order stuff? Get used to it. Are they taxing freight yet? As I posted yesterday most of the tax states call the laws a Sales & Use tax.
Jan 21, 2019 14:57:42 #
hookedupin2005
Loc: Northwestern New Mexico
boberic wrote:
If you buy it in a state tax state, you must pay the sales tax, regardless to where it is shipped. If you BUY it in a tax free state- no sales tax. Regardless to where it is shipped. Whbat counts is the oplace where the item is bought. So if its a signifigant $ item wait till you get back to NH before you buy the item.AS the sales gtax in NY City is 8 3/4 % a 4 or 5 grand purchace you are lookinjg at a tax of 400+ bucks.
Your statement needs a bit of clarification. If you order online from say, B&H, you will pay NO NY sales tax, but will be subject to whatever tax laws there may be in the state you have it delivered to. The only caveat to that would be if you lived and ordered from NY..... Then you would be subject to NY taxes.
Jan 21, 2019 15:24:58 #
Bill P wrote:
That was once the law, but a recent Supreme Court decision threw that out. Get used to it, it's the brave new world.
Trader is 100% correct. NH is a no sales or use tax state. Items shipped to NH are not subject to state use tax if there is no local tax. NH similarly, NH is not obligated to collect tax for NYS. You are very confused about this.
Jan 21, 2019 15:25:53 #
hookedupin2005 wrote:
Your statement needs a bit of clarification. If you order online from say, B&H, you will pay NO NY sales tax, but will be subject to whatever tax laws there may be in the state you have it delivered to. The only caveat to that would be if you lived and ordered from NY..... Then you would be subject to NY taxes.
Simple. He's wrong. No further clarification is needed.
Jan 21, 2019 15:28:42 #
DirtFarmer wrote:
Thank you for the clarification. IANAL so sometimes I'm not clear on the fine details of things like that.
No problem. It is sad that people with opinions (wrong ones at that) don't take the time to do the research to avoid creating false facts and adding their own confusion to everyone's else's.
Jan 21, 2019 15:35:46 #
wgraburn wrote:
Businesses did not used to charge state sales taxes if they did not have a physical presence in the state. That has changed. Now, if you order by internet from a state with a sales tax you are now charged the sales tax of the state from which you order.
Only if the business is shipping to the 30 states that have use tax laws based on "Economic Nexus" as clarified in Wayfair vs South Dakota - that have passed the test of constitutionality.
https://blog.taxjar.com/economic-nexus-laws/
The federal courts don't pass laws or change laws. That is up to the legislative branch. All the fed courts can do is open the doors in this case - it's not a federal tax, it's a state tax - therefore a state legislative matter. All the fed court did was grant the matter it's blessing, by reversing it's earlier decision on Quill vs North Dakota which was based on the disruption to interstate commerce. But that was not internet commerce, it was catalog-based mail order commerce. Different times, different impacts and interpretations.
Jan 21, 2019 15:38:18 #
nadelewitz wrote:
Sure. Until the store gets caught up with by New York State. Then they are in tax trouble. What they are doing is violating tax laws.
You have no clue what you are talking about. No laws are being violated. Read and understand before you comment.
Jan 21, 2019 17:37:48 #
hookedupin2005 wrote:
Your statement needs a bit of clarification. If you order online from say, B&H, you will pay NO NY sales tax, but will be subject to whatever tax laws there may be in the state you have it delivered to. The only caveat to that would be if you lived and ordered from NY..... Then you would be subject to NY taxes.
Hooked up, Your statement about taxing out of state shipments is the way it was until the Supreme Court changed their opinion last fall. It was left up to the individual states to decide whether or not to have their retailers charge the tax. Some states, the ones that are not constantly crying about not having enough money have not changed their law, but can you imagine NY forgoing that amount of money? You have obviously not purchased from B&H recently or read their post of explanation of why they have to charge tax in out of NY shipments; it's the law, and even B&H isn't able to take on NY over this dispute. Although I don't have my latest B&H invoice handy I'm sure it was taxed.
Jan 21, 2019 22:52:27 #
jerryc41 wrote:
New Egg will now be collecting sales tax for customers in NY. That's got to be a monumental headache, considering the varying rates in different states and counties. I suspect someone is making software that does all that computing automatically.
ya think?
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