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Bad news for Californians and maybe others
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Mar 9, 2019 11:33:05   #
Longshadow Loc: Audubon, PA, United States
 
leftj wrote:
Really??? You make decisions on which camera technology to buy based on sales tax law?

Timing - before the tax?
He was probably going to purchase it anyway, but just moved it up to save the tax dollars.

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Mar 9, 2019 11:37:26   #
AndyH Loc: Massachusetts and New Hampshire
 
I think some are missing the point on the benefit to local shops. As sales have shifted dramatically to the web, if they don't collect the local sales tax for the state, the online seller has an automatic price advantage ranging from 5% to as much as 10%, depending on the local tax rate. I know this is just a fact, not data, but in our small town, in a state with no sales tax, we have a surviving camera shop, as well as another one located two towns away. They both price match on cameras and lenses, and they carry the full variety of bits and bobs that they always have. By comparison, the one remaining shop in the big Massachusetts city where I work seems to be barely hanging on, despite their size, experience, and knowledgeable staff. There seems to be only one camera shop remaining inside Boston city limits as well.

I can't help but think that taking away the automatic "Internet Advantage" of not collecting sales tax has had a big impact on the sale of big ticket items in brick and mortar shops located in high sales tax states. Taking away the sales tax "discount" will undoubtedly help small retailers, including camera stores, in my opinion.

Andy

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Mar 9, 2019 11:39:23   #
traderjohn Loc: New York City
 
Shutterbug57 wrote:
You are missing the point. In most states with a sales tax, the user of the product is legally required to pay a sales or use tax on the product. Retailers make this easier for you by charging it and remitting it to the state, but if you buy from a retailer that does not do so, you are legally required to remit the tax. If your don’t, you are not paying what is required by law, hence a freeloader - in other words, a bum.


No way. A freeloader is that group that has spent a generation on welfare and every other entitlement program. Their children will follow in their footsteps. There is no level of expectation that will ever end. Then there are 11,000,000 plus illegal aliens. These groups are the freeloaders. As you say "bums"

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Mar 9, 2019 11:42:08   #
Glenn Harve
 
AndyH wrote:
I live in a state with no sales or income tax. We also have crumbling roads and infrastructure, generally poor schools except in the most affluent communities, and poor public services. Not to mention some of the highest property tax rates in the nation - which have a higher impact on the elderly and those on fixed incomes. Although we continually vote down broad based taxes, the support for them has been growing - mostly FROM those newcomers who are used to better schools, roads, and services.

Meanwhile, our neighbor Massachusetts has a higher net in-migration rate, despite its reputation (partly deserved) as "Taxachusetts".

Seems illogical, but them's the facts.

Andy
I live in a state with no sales or income tax. We ... (show quote)


Watch the "shell game". The tactics used for taxes are rarely as they seem. Look where the money is really going. I guarantee that money that could be used on your roads exists but is being mis-spent. The prime trick they use is the children, ie: so-called "education". Voters are gullible, they buy it.

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Mar 9, 2019 11:45:07   #
leftj Loc: Texas
 
AndyH wrote:
I think some are missing the point on the benefit to local shops. As sales have shifted dramatically to the web, if they don't collect the local sales tax for the state, the online seller has an automatic price advantage ranging from 5% to as much as 10%, depending on the local tax rate. I know this is just a fact, not data, but in our small town, in a state with no sales tax, we have a surviving camera shop, as well as another one located two towns away. They both price match on cameras and lenses, and they carry the full variety of bits and bobs that they always have. By comparison, the one remaining shop in the big Massachusetts city where I work seems to be barely hanging on, despite their size, experience, and knowledgeable staff. There seems to be one camera shop remaining in Boston as well.

I can't help but think that taking away the automatic "Internet Advantage" of not collecting sales tax has had a big impact on the sale of big ticket items in brick and mortar shops located in high sales tax states. Taking away the sales tax "discount" will undoubtedly help small retailers, including camera stores, in my opinion.

Andy
I think some are missing the point on the benefit ... (show quote)


Although sales tax can be an advantage factor it's not going to keep the brick and stick camera stores in business. The online sellers have low comparative overhead which is the primary reason for their advantages.

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Mar 9, 2019 11:48:24   #
Longshadow Loc: Audubon, PA, United States
 
The "convenience" of on-line shopping is killing a lot of little places.
Unless you need it post-haste, two to three day delivery is no problem, and people don't need to leave the house.
Plus I've found that brick & mortars are carrying less, which forces people to purchase what they are looking for on-line. (I wanted some 16Gb SDHC cards, many stores are only carrying 32+, got the 16s on-line from B&H.)

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Mar 9, 2019 11:49:36   #
AndyH Loc: Massachusetts and New Hampshire
 
leftj wrote:
Although sales tax can be an advantage factor it's not going to keep the brick and stick camera stores in business. The online sellers have low comparative overhead which is the primary reason for their advantages.


That's true, of course, but around the margins I think it makes a difference, at least according to the local shop owners I've spoken with. Margins are thin in this business, and every little bit helps. The advantage is seven percent in neighboring Massachusetts, and about the same in Vermont and Maine.

But I agree that Brick and Mortar retailers will only survive as long as they offer superior service, return policies, and knowledge.

Andy

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Mar 9, 2019 11:54:57   #
jaycoffman Loc: San Diego
 
leftj wrote:
Really??? You make decisions on which camera technology to buy based on sales tax law?


No, I made a decision on WHEN to buy--I'd already done my research on the camera and lens.

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Mar 9, 2019 11:55:00   #
Glenn Harve
 
leftj wrote:
Although sales tax can be an advantage factor it's not going to keep the brick and stick camera stores in business. The online sellers have low comparative overhead which is the primary reason for their advantages.


Depends on the biz. If your payroll is coming from the 10% of revenues left over after all the other expenses (including a barrage of other taxes), then another 5% is death. I ran a biz for 40 years, it makes a difference.

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Mar 9, 2019 11:58:51   #
mikee
 
I live in washington state, and ebay has started collecting state sales tax.

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Mar 9, 2019 12:10:39   #
traderjohn Loc: New York City
 
AndyH wrote:
That's true, of course, but around the margins I think it makes a difference, at least according to the local shop owners I've spoken with. Margins are thin in this business, and every little bit helps. The advantage is seven percent in neighboring Massachusetts, and about the same in Vermont and Maine.

But I agree that Brick and Mortar retailers will only survive as long as they offer superior service, return policies, and knowledge.

Andy


You left out the highest cost. Inventory, cost of goods.

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Mar 9, 2019 12:19:00   #
Rickyb
 
Trump's ideas. Needs more money to buy golf balls. His wings are out of alignment!

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Mar 9, 2019 12:47:54   #
RRS Loc: Not sure
 
Rickyb wrote:
Trump's ideas. Needs more money to buy golf balls. His wings are out of alignment!


You have to be dreaming, President Trump works for free, how about you? He has more then enough money to buy golf balls, he most likely has more balls then you but he sure as hell doesn't have wings.

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Mar 9, 2019 12:48:51   #
leftj Loc: Texas
 
RRS wrote:
You have to be dreaming, President Trump works for free, how about you? He has more then enough money to buy golf balls, he most likely has more balls then you but he sure as hell doesn't have wings.



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Mar 9, 2019 12:55:18   #
FiddleMaker Loc: Merrimac, MA
 
wnagel wrote:
I live in California. Visited B&H today in NYC. Was told that as of April 15, B&H will be collecting California sales tax. Didn't ask about other states.

I think Taxachusetts also now pays sales tax (6.25%)

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