Tax and Online Retailers at DVinfo.net

Chris Mueller · December 30th, 2003, 06:49 PM

Do you have to pay sales tax if you buy online from a retailer like B&H (assuming you don't live in NY)?

John Locke · December 30th, 2003, 07:25 PM

I don't know if this applies to non-professionals, but I know professional shooters in Texas are required to pay some form of local tax on goods bought from out of state. This would only become known if you're audited, but if you are...and haven't paid...you'll get stung.

As I said, that was my experience in Texas...I'm guessing it's different in every state?

Frank Granovski · December 30th, 2003, 07:39 PM

You pay no state tax, if it's being shipped out of state to another state. But you may or may not be dinged local state tax---depending if there is one, how good your state is with collecting the tax, and finding out about the purchase.

John Locke · December 30th, 2003, 07:44 PM

Right...and that's where the "audit" card comes into play. I'd check with your local tax authority. Two things are certain in life...

Jeff Donald · December 30th, 2003, 07:53 PM

You also have to pay a state sales tax if the operation has a unit doing business in the state being shipped to. For example, Apple Computer charges state sales tax on mail order (online) shipments if they have a retail store in your state.

Some online retailers get around this by setting up a separate corporation for their online sales. Ritz/Wolf Camera is an example of this. They have retail operations in 48 states, yet charge no state sales tax on online sales.

David Mintzer · December 30th, 2003, 11:23 PM

By the letter of the law, you are required to report the purchase and to pay the tax in your state--(all states that have a sales tax require this). although this seldom happens, and as John said you will only get stung if the taxman finds out. I wager a guess that 90% of those who purchase products out of state never pay state taxes even though they should. Actually, a common ploy of the rich is to purchase an expensive item in one state and give a friends residence in another state in order to avoid taxes. I believe that that is one of the charges against the guy from TYCO currently on trial in New York. I think in his case the items were fine paintings.

Matthew de Jongh · December 31st, 2003, 10:56 AM

the worst thing is in mass. the tax is a use tax which is higher than what the mass sales tax is!

matthew

Christopher C. Murphy · December 31st, 2003, 11:21 AM

It's TAX FREE in New Hampshire always, so you get a great deal. Also, Great Northern Video has given me great deals before...tell them Chris Murphy sent you please!

I'd like to suggest Chris Hurd check them out for a possible sponsor. They're great on pricing...actually THE best I've ever found. The contacts I have there are Kurt Detwiler and Kevin Long.

Murph

Kent Fraser · January 8th, 2004, 10:33 PM

Here in MN I believe you only have to pay this "Use Tax" if your out of state purchases exceed $770 (for 2003). If it does you pay tax on the whole shot. Additionally, If you paid any state tax from another state, and that tax rate was lower than MN's sales tax, you pay the difference.

Best thing is is to check it out with your state. You can likely do it online.

December 30th, 2003, 06:49 PM	#1
Chris Mueller Regular Crew Join Date: Aug 2003 Location: Washington, DC Posts: 49	Tax and Online Retailers Do you have to pay sales tax if you buy online from a retailer like B&H (assuming you don't live in NY)?

December 30th, 2003, 07:25 PM	#2
John Locke Retired DV Info Net Almunus Join Date: Sep 2001 Location: Austin, TX USA Posts: 2,882	I don't know if this applies to non-professionals, but I know professional shooters in Texas are required to pay some form of local tax on goods bought from out of state. This would only become known if you're audited, but if you are...and haven't paid...you'll get stung. As I said, that was my experience in Texas...I'm guessing it's different in every state? __________________ John Locke SursumFilms.com

December 30th, 2003, 07:44 PM	#4
John Locke Retired DV Info Net Almunus Join Date: Sep 2001 Location: Austin, TX USA Posts: 2,882	Right...and that's where the "audit" card comes into play. I'd check with your local tax authority. Two things are certain in life... __________________ John Locke SursumFilms.com

December 30th, 2003, 07:53 PM	#5
Jeff Donald Warden Join Date: Mar 2002 Location: Clearwater, FL Posts: 8,287	You also have to pay a state sales tax if the operation has a unit doing business in the state being shipped to. For example, Apple Computer charges state sales tax on mail order (online) shipments if they have a retail store in your state. Some online retailers get around this by setting up a separate corporation for their online sales. Ritz/Wolf Camera is an example of this. They have retail operations in 48 states, yet charge no state sales tax on online sales. __________________ Jeff Donald Carpe Diem Search DVinfo.net for quick answers \| Where to Buy? From the best in the business: DVinfo.net sponsors

December 31st, 2003, 11:21 AM	#8
Christopher C. Murphy Trustee Join Date: Sep 2003 Location: Boston, MA Posts: 1,707	It's TAX FREE in New Hampshire always, so you get a great deal. Also, Great Northern Video has given me great deals before...tell them Chris Murphy sent you please! I'd like to suggest Chris Hurd check them out for a possible sponsor. They're great on pricing...actually THE best I've ever found. The contacts I have there are Kurt Detwiler and Kevin Long. Murph __________________ Christopher C. Murphy Director, Producer, Writer

December 30th, 2003, 07:39 PM	#3
Frank Granovski Outer Circle Join Date: May 2002 Location: Hope, BC Posts: 7,524	You pay no state tax, if it's being shipped out of state to another state. But you may or may not be dinged local state tax---depending if there is one, how good your state is with collecting the tax, and finding out about the purchase.

December 30th, 2003, 11:23 PM	#6
David Mintzer Rextilleon Join Date: Apr 2002 Location: Pleasantville, NY Posts: 520	By the letter of the law, you are required to report the purchase and to pay the tax in your state--(all states that have a sales tax require this). although this seldom happens, and as John said you will only get stung if the taxman finds out. I wager a guess that 90% of those who purchase products out of state never pay state taxes even though they should. Actually, a common ploy of the rich is to purchase an expensive item in one state and give a friends residence in another state in order to avoid taxes. I believe that that is one of the charges against the guy from TYCO currently on trial in New York. I think in his case the items were fine paintings.

December 31st, 2003, 10:56 AM	#7
Matthew de Jongh Major Player Join Date: Sep 2003 Location: sounthern maine Posts: 344	the worst thing is in mass. the tax is a use tax which is higher than what the mass sales tax is! matthew

January 8th, 2004, 10:33 PM	#9
Kent Fraser Regular Crew Join Date: Jun 2003 Location: Bemidji, MN Posts: 75	Here in MN I believe you only have to pay this "Use Tax" if your out of state purchases exceed $770 (for 2003). If it does you pay tax on the whole shot. Additionally, If you paid any state tax from another state, and that tax rate was lower than MN's sales tax, you pay the difference. Best thing is is to check it out with your state. You can likely do it online.