Do you ever check the online sales tax charged?

Tucson Thump

Tucson Thump

Mint Heavy Relic
Joined
Feb 21, 2017
Messages
2,901
Location
Tucson, the other Arizona.
The online retailers that I use have now been able to distinguish the correct sales tax for your address. For example, Arizona started collecting online sales tax last year but the tax software companies couldn't distinguish between mailing address and location. I live in Pima County (6.1%) but was being charged for my mailing address which says Tucson (8.1%). On a guitar purchase that could be a hefty difference.

This year I know Reverb has updated their software so my purchases are charged the correct sales tax.

HOWEVER, I just ordered $376 worth of computer stuff from a well-known computer equipment vendor in another state.

a) They added the shipping insurance and the shipping (invoiced separately) to the purchase amount to determine sales tax. Each state is different so you should know.

b) They charged sales tax as though I lived in Tucson so added the extra 2%

c) to top it all off when I was running all of the numbers for my letter to them I discovered that they charged me an extra $1.83 in sales tax for absolutely nothing. Just tacked on to the sales tax total.

So after laying out everything to them including sales tax links I asked
_ What are you going to do for me?
_ What are you going to do for others who have had orders delivered to AZ
_ How much faith do you have in your sales tax software vendor?

We shall see what happens, but if you happen to read about some Fortune 500 software company getting a class-action lawsuit filed ..... you heard it here first.

Happy Holidays!
 
Great question... I was recently on the hunt for a guitar, primarily using Reverb for research. I reached out to some shops directly to talk about specific guitars and I discovered that SOME shops do not charge sales tax in others states, and some DO. Pretty sure it is mostly to do with the total volume of sales they do in a particular state. Let's just say, I used this info to fine tune where I wanted to shop, then went direct. I was getting the same total discount from multiple shops, and went with one that did not collect sales tax for my state. Saved myself $140.
 
TBH,

I've not checked. Always thought places like amazon had reasonable prices. Only time I might have kvetched was for inordinate shipping costs. Somethings (live gardening earthworms, for example, require express shipping because of living material). Really no way to avoid paying extra shipping for these unless you pay an arm and a leg at the local bait and tackle shop...

Books, CDs, all media mail. Can't think offhand what would be subject to suspect taxation practices in this region...sales tax rate locally is based on the entire state, not by county or town...o_O
 
Yeah, I thought it was pretty lame that they could charge tax when it isn’t purchased from a location in their state... essentially allowing the states to charge customs fees as though it were coming from a foreign port. To add insult to injury, while they were helping themselves to extra tax dollars, they included shipping fees so we could pay tax on behalf of the shipper, as well.

I’ve also taken to searching the net for any item before I buy. If the item is available direct, I’ll always try that first. You can save a little from time to time.

I’ll be interested to hear what your vendor does. To date, I haven’t been impressed with the new internet tax scam.
 
While no tax is fun to pay, I like the idea that sales tax should be charged for all sales (as long as it’s computed correctly). It’s at least somewhat elective; if you don’t want to pay the tax, don’t buy the item. It’s certainly a lot more fair than federal income tax which isn’t paid at all by an estimated 44% of the citizens of this country.
 
Well, you can take stock in this...taxes have been collected by nations and occupying armies before Moses' day. Since then, most all civilizations have collected taxes, funded by their citizens in order to pay for services that were designed to help the general population. Granted, time revealed that some governments had a better handle on this and did not burden their population with too heavy a tax. Other governments levied a heavy tax on its citizens, impartial of one's income. Some folks were taxed as to what their income could bear, while the rich paid taxes out of their excessive wealth.

It's interesting to note that the modern plot twist on all of this is that a sliding scale exists for American households, and yet some internet vendors have not towed the line regards charging the correct tax based on one's state sales tax, and have instead used an errant logarithm designed to charge the correct sales tax, but in fact does not.

Your plea for justice is in fact the stuff class action suits are made of. While the vendors have charged the OP sales tax incorrectly, it shouldn't take long before host sites who sponsor these vendors take note of their practices and bring forth what legal consideration should be justified.

Granted, it may not be that simple or easy. Identifying illegal practices is only as good as reporting them is. Your first step may be to the BBB with a consumer watchdog complaint.
 
Having to pay sales tax for online purchases has made me purchase more from my local stores than I did before. I figure if I have to pay taxes anyway, I might as well buy local. Unless what I’m looking is a shop special and I just have to have that one.
 
I don't mind if I have to the correct local tax as especially this year they can use it, however all of the music stores are in Tucson so that is an extra 2% dinger. They have to have what I want.
 
93studiolite said:
Having to pay sales tax for online purchases has made me purchase more from my local stores than I did before. I figure if I have to pay taxes anyway, I might as well buy local. Unless what I’m looking is a shop special and I just have to have that one.
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That’s the purpose of charging for internet sales, purportedly, though I haven’t seen evidence of the state sending rebates back to cities locally. I worked for government most of my life, so I obviously understand and support the funding mechanisms. I think the OP clearly does as well. There’s a whole volume of debate of where the tax should go (buyer or sellers location, etc) and lines of reasoning each way, as well as the online vendor argument of sales loss over the taxation. It’s not simple, and could go on forever.

As @Tucson Thump says, whatever you’re claiming, at least get that right. It’s money that belongs to, and was earned by, a citizen, after all.
 
RickP said:
That’s the purpose of charging for internet sales, purportedly, though I haven’t seen evidence of the state sending rebates back to cities locally. I worked for government most of my life, so I obviously understand and support the funding mechanisms. I think the OP clearly does as well. There’s a whole volume of debate of where the tax should go (buyer or sellers location, etc) and lines of reasoning each way, as well as the online vendor argument of sales loss over the taxation. It’s not simple, and could go on forever.

As @Tucson Thump says, whatever you’re claiming, at least get that right. It’s money that belongs to, and was earned by, a citizen, after all.
Click to expand...

Am looking forward to tax season again this year. It's one of the few times when filling out extensive forms brings a reward for your effort. Although I can't speak for others, I don't mind lending the local officials some of my earnings just so it's repaid after filing.

Of course, the powers that be will warn you against the crooks who may try to scam you out of your tax refund. As always, be vigilant and use caution during and after filing...

@OP: Given that you'd not need report any sales tax collected from your sales to either the feds or state (tax is collected by your hosted sales website and given to the state coiffeurs), it may be that the vendors you buy from who have the added 2% surcharge may be doing so as a handling fee, rather than a sales tax. Or, just guessing, it might be that the added 2% is collected instead of charging a 10-15% restocking fee if items were returned. IOW, ding everybody upfront so the occasional returns don't require restocking fees.

Could be a number of reasons, all legitimate, but inconvenient and seemingly excessive to the buyer who is more diligent calculating sales tax from the vendors...
 
Tucson Thump said:
Then I'll send you and @Tone-y my heartiest wishes for a wonderful holiday season. I believe that will be tax free, at least for the moment.
Click to expand...

I don’t want to get political on here, heck this is for guitars and fun.

Maybe someday we will have a drink, shoot the sh!t and put the world to rights.

Now @11top Steve (move over Seasick Steve, there’s a new Steve in town “I don’t wanna hear it” :)) where are you burying that crotch walnut Santana?!;)
 
Tucson Thump said:
I looked at upgrading a piece of software from Izotope and the same "sales tax plus some unaccountable amount" occurred. Didn't upgrade.
Click to expand...

@Tucson Thump:

Are some of these fees foreign transaction fees? If so, these are normal for transactions conducted between international boundaries. My BandCamp transactions typically get hit with a foreign transaction fee if the music creator resides outside of the USA.
 
Always checked it, and if it's reasonable, no more questions and buy it. Otherwise, it goes flushed out of add to cart.
 
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