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revrob57

Audioholic Intern
I haven't purchased anything on Ebay lately and just made two purchases and at the checkout taxes were added to my total. I live in Rhode Island. But I also recently purchased some speakers at Accessories 4 Less for $3,000 and was not charged tax or shipping.

Question. So why does eBay charge taxes but A4L doesn't? Just curious.

Thanks.
 
highfigh

highfigh

Audioholic Overlord
I haven't purchased anything on Ebay lately and just made two purchases and at the checkout taxes were added to my total. I live in Rhode Island. But I also recently purchased some speakers at Accessories 4 Less for $3,000 and was not charged tax or shipping.

Question. So why does eBay charge taxes but A4L doesn't? Just curious.

Thanks.
They haven't decided to start- they'll all have to start collecting sales tax, eventually. If t hey don't, other state taxes will increase because the states haven't been able to receive the revenue they had with B&M stores and that puts them in the position of having to increase property tax and other fees.
 
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revrob57

Audioholic Intern
Thanks for the reply. Not paying taxes for online purchases is a big reason why I do most of my shopping there. I wonder how that will affect online sales in the future?
 
BoredSysAdmin

BoredSysAdmin

Audioholic Overlord
Technically even if the reseller didn't charge you for the sales tax during the purchase, it doesn't mean that you don't own it to your state. Most states aren't happy with this situation and pushing for mandatory online sales tax to taken during the purchase time.
 
ryanosaur

ryanosaur

Audioholic Ninja
Yup... in CA you are supposed to report and pay taxes due on any online purchases that were not taxed at time of purchase.
I'm fairly certain every body in the state complies. o_O:oops::rolleyes:

;)
 
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revrob57

Audioholic Intern
I am glad I purchase my new speakers when I did or else I would have been looking at a tax bill of more than $200.00
 
Kvn_Walker

Kvn_Walker

Senior Audioholic
Amazon and ebay both collect sales tax on Virginia orders now. Been that way since last year I think. Like choombak said, it's only a matter of time before no one gets away.

Death and taxes, the saying goes...
 
Verdinut

Verdinut

Audioholic Samurai
I haven't purchased anything on Ebay lately and just made two purchases and at the checkout taxes were added to my total. I live in Rhode Island. But I also recently purchased some speakers at Accessories 4 Less for $3,000 and was not charged tax or shipping.

Question. So why does eBay charge taxes but A4L doesn't? Just curious.

Thanks.
EBay started collecting sales taxes on some sales. I recently sold a used parametric EQ to an audiophile in Oklahoma and I had to add the state sales tax to the invoice. When the buyer paid the invoice, PayPal transferred the collected OK sales tax to eBay and I received the remaining balance.
What I don't agree with is charging a sales tax on a used item. A sales tax was somehow collected when the item was new, so charging a sales tax when this same item which was used is sold again, sales tax is collected again. Countries, states and provinces take advantage of their power but I consider that as unfair.
I remember there was a time when there was no sales tax on used items in the UK. I don't know if that situation still remains.
 
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ryanosaur

ryanosaur

Audioholic Ninja
We are supposed to be protected from multiple taxation. In truth... but in practice?
*facepalm
 
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revrob57

Audioholic Intern
Agreed. I really don't like paying taxes on used items.
 
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roadwarrior

Audioholic
Thanks for the reply. Not paying taxes for online purchases is a big reason why I do most of my shopping there. I wonder how that will affect online sales in the future?
They'll be just fine trust me.
 
highfigh

highfigh

Audioholic Overlord
Agreed. I really don't like paying taxes on used items.
Ever buy a used item in a store? Sales tax is charged for all items sold at retail and in wonderful places like Wisconsin, the materials used for some construction work and for custom integration (like wire & hardware) have a 'Use Tax', which is their way of taxing the items, even though there's no sales tax. This is paid by the contractor and it's not supposed to be charged to the customer. Right- just add it to the burden of the contractor. Thanks. Thanks a lot.This can be avoided by having the items and materials shipped directly to the job site, but that's hard to do when the contractor doesn't know if or who will be there when the shipment shows up and there may not be a place for it.
 
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revrob57

Audioholic Intern
I don't know about Wisconsin but trust me in the Northeast the contractor will pass that cost on to you one way other.
 
lovinthehd

lovinthehd

Audioholic Slumlord
Ever buy a used item in a store? Sales tax is charged for all items sold at retail and in wonderful places like Wisconsin, the materials used for some construction work and for custom integration (like wire & hardware) have a 'Use Tax', which is their way of taxing the items, even though there's no sales tax. This is paid by the contractor and it's not supposed to be charged to the customer. Right- just add it to the burden of the contractor. Thanks. Thanks a lot.This can be avoided by having the items and materials shipped directly to the job site, but that's hard to do when the contractor doesn't know if or who will be there when the shipment shows up and there may not be a place for it.
That makes no sense. It's simply a cost for the contractor and of course he'd pass on the cost....maybe not after the fact as an added line item after a quote.....but the law actually specifies you're to "absorb" this cost without passing on this part of it?
 
highfigh

highfigh

Audioholic Overlord
That makes no sense. It's simply a cost for the contractor and of course he'd pass on the cost....maybe not after the fact as an added line item after a quote.....but the law actually specifies you're to "absorb" this cost without passing on this part of it?
WI is a tax-hungry state and you're right, it makes no sense. The Department of Revenue also likes to go after small businesses that owe a small amount and are less than a year late, rather than go after the ones who owe large sums (sometimes, in the $1M plus range).

The new guidelines have changed- they added "Presumably, the tax on the contractor’s purchases will be taken into consideration as a cost of doing business when the contractor negotiates the contract price." to the requirement.

They also added "data and communication cabling in a residence" to the section:

"Examples – Contractor As a Consumer. The following examples illustrate when a contractor is acting as a consumer in a real property construction activity. The contractor’s receipts from real property construction activities are not subject to the sales tax. However, the contractor must pay a sales or use tax on its purchase of materials consumed in such activity unless an exemption applies.".

I was told by a tax preparer that nobody pays use tax. I would hate to be audited by this state.
 
lovinthehd

lovinthehd

Audioholic Slumlord
WI is a tax-hungry state and you're right, it makes no sense. The Department of Revenue also likes to go after small businesses that owe a small amount and are less than a year late, rather than go after the ones who owe large sums (sometimes, in the $1M plus range).

The new guidelines have changed- they added "Presumably, the tax on the contractor’s purchases will be taken into consideration as a cost of doing business when the contractor negotiates the contract price." to the requirement.

They also added "data and communication cabling in a residence" to the section:

"Examples – Contractor As a Consumer. The following examples illustrate when a contractor is acting as a consumer in a real property construction activity. The contractor’s receipts from real property construction activities are not subject to the sales tax. However, the contractor must pay a sales or use tax on its purchase of materials consumed in such activity unless an exemption applies.".

I was told by a tax preparer that nobody pays use tax. I would hate to be audited by this state.
I still don't see what you said in terms of the law. Makes no sense so far. Could be interpretation or is simply lack of planning that has left some costs uncovered? Glad you guys got Foxconn, tho, right? :)
 
highfigh

highfigh

Audioholic Overlord
I still don't see what you said in terms of the law. Makes no sense so far. Could be interpretation or is simply lack of planning that has left some costs uncovered? Glad you guys got Foxconn, tho, right? :)
Some terms have changed the last times I read the requirements and in the new form, it's easy to see where Foxconn and a few others got exemptions and the difference will be made up in other areas. Some things that were considered improvements and not taxable are now called 'tangible property'.
 
Truthslayer

Truthslayer

Junior Audioholic
Your taxed when you make money, your taxed when you save money, your taxed when you buy goods, your taxes when you sell goods, your taxed when you win money, your taxed when you give money, and your even taxed on your money when you die. And yet some in this country want socialism, I guess they want no money.
Our government officials must really enjoy themselves sitting back and laughing at us as we allow this to keep going on. And yet they constantly vote for themselves a raise. Not sure of any other job out there that would allow you to vote or give yourself a raise. Employers would think your nuts.
When or if the people ever wake up to this tax scheme, the governing officials better run for the hills.
 

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