cathmom Posted January 14, 2009 Share Posted January 14, 2009 North Carolina drives me crazy with their taxing of EVERYTHING, but it especially upsets me when I read things like this: States that are struggling with budget deficits during the economic downturn are looking to reverse that stance and tap into another source of tax revenue. North Carolina, for example, loses an estimated $300 million in taxes on Internet sales for the whole article, go here: http://www.wral.com/news/local/politics/story/4305764/ They aren't losing anything - it was never theirs to begin with!!! And it has nothing to do with the economy, because they have been trying to get their greedy little hands on that money since people started buying things on the Internet. E-commerce accounts for about 8 percent of the nation's retail sales – an estimated $204 billion last year – and is one of the few retail segments that has grown during the recession. And why did it grow? I doubt it was because people were trying to evade paying sales tax. Hmmm, it probably had something to do with the fact that gas went up so high people were shopping online. Andy Pittman, owner of Jeffreys Appliance, said the sales tax differential is unfair to businesses like his. "It's definitely frustrating for any business owner," Pittman said. "That 6.75 percent sales tax can make a difference, so it can tip a consumer to buy online." We do not have much money, but I can tell you for a fact that sales tax has never entered the equation for whether or not I buy something online. Let's see, I buy books and curriculum online, a lot of which is not available in a real store in my area. I suppose I could have a bookstore order what I want and then go pick up, wasting gas, time and energy dragging 4 dc 5 and under into the store with me. I don't really buy anything else online. Pittman said he wants a level playing field for his business, but he's not so concerned about helping the state collect taxes. A state sales tax holiday on energy-efficient appliances in November marked the three biggest sales days at Jeffreys Appliance, he said. "It was a huge deal for us," he said. Do people really buy appliances online? Would these people have ordered them online but for the state sales tax holiday? Or did they just wait and buy the appliances they needed anyway on the days it would save them money? I think these questions need to be answered before we assume that it's because people don't have to pay sales tax on Internet purchases! And then, after reading this article about how our wonderful NC politicians want to increase taxes in a recession in a state with the highest unemployment rate ever, I read this: North Carolina also should lower its corporate income tax rate from 6.9 percent to 6.5 percent so it will no longer be the highest rate in the Southeast, the report said. A UNC survey found that executives preferred the lower rate to targeted incentives. full article here: http://www.wral.com/news/state/story/4305541/ Lovely. So, has the fact that you don't have to pay sales tax ever entered into your decision to buy something online? Quote Link to comment Share on other sites More sharing options...
Veritaserum Posted January 14, 2009 Share Posted January 14, 2009 I buy online for one or more of the following reasons: To save money. This could be due to sales tax or coupon codes or simply lower prices. Convenience. With five kids it's not so fun to go shopping in a store. To find uncommon items that can't be found locally. So, yes, sales tax has factored in at times. Quote Link to comment Share on other sites More sharing options...
Janna Posted January 14, 2009 Share Posted January 14, 2009 Sales tax isn't an issue for me with Internet shopping. However, shipping is. I just placed an order where the shipping was 17% of the total. If it wasn't for the fact that I can't get what I ordered locally, and it's a need, not a want, I would never have purchased it. Shipping is definitely a factor for me. Quote Link to comment Share on other sites More sharing options...
Michelle T Posted January 14, 2009 Share Posted January 14, 2009 Sales tax here in Los Angeles county is 8.25%. But I rarely take tax into consideration when ordering online. I do however check out the shipping charges before placing an order. I often end up not ordering, as I just can't justify the shipping charge. Michelle T Quote Link to comment Share on other sites More sharing options...
Rhonda in TX Posted January 14, 2009 Share Posted January 14, 2009 I regularly order from companies that charge sales tax. Shipping, though, can be a deal breaker for me. We have an online store, so I know what's appropriate for shipping charges. Some companies really gouge you with the shipping. Quote Link to comment Share on other sites More sharing options...
klmama Posted January 14, 2009 Share Posted January 14, 2009 Tax doesn't figure into our decision to buy online. Our state requires us to pay tax on online purchases anyway, so it's actually more of a hassle to keep track of what we owe. Even so, it's easier and cheaper to purchase online at times, so that's what we do. Quote Link to comment Share on other sites More sharing options...
RebeccaS Posted January 14, 2009 Share Posted January 14, 2009 I don't consider sales tax when shopping online. It's a nice bonus when I don't have to pay it, I'll admit. But, I'm in the shipping catagory, too. I look at the shipping charges more than anything else. I've also not placed orders due to the outrageous shipping costs. Quote Link to comment Share on other sites More sharing options...
Danestress Posted January 14, 2009 Share Posted January 14, 2009 I definitely love the no sales tax part. If I can get free shipping, I consider it a good deal to just order online. Even if I can't get free shipping, I really appreciate not having to go out shopping. At Christmas, I ordered almost everything online = partly because of the tax savings, partly because I could easily look around and find the best deals, and mostly because I hate shopping. Quote Link to comment Share on other sites More sharing options...
lynn Posted January 14, 2009 Share Posted January 14, 2009 isn't there a law in some states regarding paying online taxes for items? Quote Link to comment Share on other sites More sharing options...
JFSinIL Posted January 14, 2009 Share Posted January 14, 2009 Shipping is usually the bigger issue for me. Sometimes shipping/handling is equal to to more than the item i am considering! Hell-o?! Amazon had some funny gag gift items for stocking stuffers BUT they only came from outside vendors and s/h was MORE than the value of the items! Need I add, I did NOT buy the fart pens! Quote Link to comment Share on other sites More sharing options...
Ria Posted January 14, 2009 Share Posted January 14, 2009 Sales tax doesn't enter the equation when I buy online...I do that for convenience. I will say, however, that I'll gladly drive 45 minutes to Delaware to make any major appliance purchases...no sales tax there. Ria Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted January 14, 2009 Share Posted January 14, 2009 isn't there a law in some states regarding paying online taxes for items? You are in MOST of them still required to pay. Sometimes it's on the State income tax form. We had a sales tax audit at work (in CA), it was worse than the IRS audit the year before. We had to pay back sales tax on ALL our internet purchases. It was way easier to order from people in CA that charged us than other places. So while you may not like it - your state may already "require" you to pay it. This was one of the reasons i tried to do all of my Christmas shopping locally - we are in a budget crisis here in FL. They keep raising my property taxes to pay it. I'd much rather pay sales tax locally than have that (because i'm tired as a homeowner supporting everyone that doesn't own here). Also, our town has worked very hard to get retail into our area - buy shopping here i won't have to go back to driving 60 miles to shop. ANYWAY, i personally don't have a problem with it since the money goes to support running the state/town. Quote Link to comment Share on other sites More sharing options...
MomOfOneFunOne Posted January 14, 2009 Share Posted January 14, 2009 As you said, I don't really consider sales tax when I buy online. If I needed something and IF I knew that I wouldn't have to pay sales tax at the time I needed it, I'd wait a day or two if I needed. Shipping, though . . . I despise shopping and just about everything that goes along with it. I am happy to pay shipping charges for the pleasure of not having to contend with a trip out to shop. However, really exorbitant shipping costs have kept me from buying online before. For example, I recently bought a 28 qt pressure cooker/canner. I wanted to purchase online but I couldn't really understand the shipping. For a couple of inexpensive, not what I wanted pressure cookers, the shipping was cheap. For what I wanted, the shipping was huge. Yet, it seemed to me that the things were the same size and weight. I thought the two ppl who had what I wanted were gouging. I didn't buy it. I couldn't find what I wanted in any store locally, though. I finally sent out WTBs on all the list-servs I belong to and got the thing. Another way shipping charges impact my purchasing is that I usually shop at Lands' End over a couple of other favorites b/c of return shipping. I like Lands' End about as well as several others but if I don't like it with LE, it's so much easier to return. Maybe that's just convenience, though. And it may have changed in the last several years, I haven't checked. So, no, sales tax doesn't impact my purchasing decisions but shipping does. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 14, 2009 Share Posted January 14, 2009 Sales tax doesn't enter the equation when I buy online...I do that for convenience. I will say, however, that I'll gladly drive 45 minutes to Delaware to make any major appliance purchases...no sales tax there. Ria HAHAHA! That's funny, I was just thinking the same thing. It's not sales tax, though, it's that our local appliance store doesn't have what we want and Dover is closer than Annapolis. We've paid sales tax on items delivered to us, when purchased in DE. The "rule" is that, if there is an actual store in MD and it's delivered here, we have to pay sales tax. So, when we bought our laundry machines at a private appliance store in DE, there was no sales tax. When we bought our fridge at Home Depot in DE, there was. We order things online because there is nothing here. I have to drive an hour to get to a book store. The closest homeschool store (with actual curriculum) is over 2 hours away, literally across the state. I used to drive to the one located at about the halfway mark, but they closed that location. Really, we have one grocery store, one discount store, and a handful of little basket/tchotchke shops and antiques stores. My husband did find it annoying, though, when LL Bean opened a crappy outlet neaby, thus requiring us to pay sales tax on stuff we order (because it is NOT available at the crappy outlet store). He also used to have a "thing" about going to the Sam's Club in Dover (rather than Annapolis) because of the lack of tax... except MD doesn't tax food, so.... Oh, and on "the rule"... the MD Comptroller rule is that we are supposed to record every purchase made across state lines and claim that unpaid sales tax on our return. Yeah, I'm sure everyone's doing that. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 14, 2009 Share Posted January 14, 2009 Yet, it seemed to me that the things were the same size and weight. I doubt it. My 16 qt is HUGE. A 28 qt, packed in a box, etc. is probably over the regular shipping limit for dimensions. But, yeah, shipping can be annoying. Really, really annoying. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted January 14, 2009 Share Posted January 14, 2009 I order online solely for convenience. I found out last week that our town is so far away from civilization that we are considered an "island." For us shopping in person is an expedition that requires careful planning. Shopping online is a necessity. Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted January 14, 2009 Share Posted January 14, 2009 Oh, and on "the rule"... the MD Comptroller rule is that we are supposed to record every purchase made across state lines and claim that unpaid sales tax on our return. Yeah, I'm sure everyone's doing that. And, not to pick on you - because i'm not, you just mentioned what is required in your state - but that is WHY the states want online purchases taxed. Face it, minor that it seems to "you", you are violating a tax code law in your state and if you are audited will have to pay it plus penalties. (again, that is a generic "you" - seriously - that sales tax audit at work was a scary thing!). Quote Link to comment Share on other sites More sharing options...
Jennay Posted January 14, 2009 Share Posted January 14, 2009 Gulp....I'm in MD and I never knew this until today... I buy soooo much online. I wonder if I can find receipts for everything I bought online in the past year. Does this include ebay? Quote Link to comment Share on other sites More sharing options...
H.S. Burrow Posted January 14, 2009 Share Posted January 14, 2009 So, has the fact that you don't have to pay sales tax ever entered into your decision to buy something online? Sometimes. I have an Amazon prime account. I pay the yearly fee of $79 and individual orders are delivered in 2 days no tax or shipping. I tell you this so that you can better understand my "sometimes". When I want/need to purchase a book for school, the first place that I look is on Amazon. If the book is not available as a "prime" purchase, then I will look at other websites and compare their shipping rates and whether or not I will pay sales tax and what that tax will be. Then I will check our 1 local bookstore. It's very close to home and other errands and my kids are old enough that I can pop-in without taking them with me. If I am going to pay tax and shipping, then I would rather just pay the tax and get it locally....even if that means that I have to get the bookstore to order it. But I will also share that we have recently decided to order other "household" items from Amazon because the prices are lower than what I can get at our local Wal-Mart. For these items, I do consider the tax. By that I mean that in determining which is the best unit price, I add our 8.25% tax to the cost of the item at Wal-Mart and then divide by number of items/uses. Quote Link to comment Share on other sites More sharing options...
Nestof3 Posted January 14, 2009 Share Posted January 14, 2009 Well, technically, you are supposed to pay that sales tax when you file your taxes. What a pain. If they're entitled to the sales tax, just collect it at the point of sale, and don't expect me to keep a record of my sales. We are taxed to death here in VA anyway. But, I won't get into it on the board. :) Quote Link to comment Share on other sites More sharing options...
Cheryl in NM Posted January 14, 2009 Share Posted January 14, 2009 Sales tax and shipping. If can buy it cheaper locally, I do. But I also factor in the cost of fuel to drive to the store to get it. Quote Link to comment Share on other sites More sharing options...
Kim in Appalachia Posted January 14, 2009 Share Posted January 14, 2009 I live an hour from stores. They only thing near me is a Walmart and a few dollar stores. Shipping often factors into my decision. The sales tax sometimes does, but I consider it a bonus. TN sales tax is almost 10% so it can be a large break. Quote Link to comment Share on other sites More sharing options...
Tammy Posted January 14, 2009 Share Posted January 14, 2009 nt Quote Link to comment Share on other sites More sharing options...
Mommy22alyns Posted January 14, 2009 Share Posted January 14, 2009 Our sales tax is 9.75%, so sometimes it does factor into my decision to buy online. That only works if shipping is free though. Most of the time, I buy online because I live in a small town and I can find things online that I can't even find when I drive into Nashville. Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted January 14, 2009 Share Posted January 14, 2009 And, not to pick on you - because i'm not, you just mentioned what is required in your state - but that is WHY the states want online purchases taxed. Face it, minor that it seems to "you", you are violating a tax code law in your state and if you are audited will have to pay it plus penalties. (again, that is a generic "you" - seriously - that sales tax audit at work was a scary thing!). It was my understanding that you only had to pay sales taxes to companies that had a physical presence in your state so for example everyone would prbably have to pay sales tax for an on-line Walmart purchase but no one would on an ebay purchase (they have no physical presense anywhere). That's why only some companies charge sales tax on-line and then only to residents of their states. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 14, 2009 Share Posted January 14, 2009 And, not to pick on you - because i'm not, you just mentioned what is required in your state - but that is WHY the states want online purchases taxed. Face it, minor that it seems to "you", you are violating a tax code law in your state and if you are audited will have to pay it plus penalties. (again, that is a generic "you" - seriously - that sales tax audit at work was a scary thing!). Yep. And, frankly, it is entirely unenforceable. Exactly how would they determine that my toilet paper is "foreign" and from a state that does not collect sales tax? (If sales tax is paid in the state of purchase, I do not, then, have to also pay it here.... except cars or some other price tipping point, I think. We bought our car in DE, but they collected MD sales tax and registration fees, etc.) Anyway, if I buy a pack of gum in Dover and carry it across the state line, I am, indeed, violating the tax code. It would cost the state several hundred times the value of that tax revenue to enforce their own law. One very easy thing that Maryland could do to upgrade the law in the state's favor is to simply require sales tax to be collected for all purchases delivered to MD addresses. Other states do it. It's not difficult. To my knowledge, such a change has never been proposed. In this way, they choose to not enforce the existing code. Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted January 14, 2009 Share Posted January 14, 2009 Our sales tax is 9.75%, so sometimes it does factor into my decision to buy online. That only works if shipping is free though. Most of the time, I buy online because I live in a small town and I can find things online that I can't even find when I drive into Nashville. HOLY TAX BATMAN!!!!:eek: It's cheaper to buy online because the manufacturers aren't required to charge sales tax to everyone. Only to people in their state. I know that technically when you buy/sell online you're supposed to keep track and pay those taxes, but I don't know anyone who does. Do you think if you get audited they look in your checkbook to see what you've ordered online and how much?:glare: Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted January 14, 2009 Share Posted January 14, 2009 No, it makes no difference to me. Our state sales tax is 9.25% and very few states that would collect taxes from me have a higher rate. I only buy on-line if I cannot find an item locally and then I do consider overall price and shipping rates. I buy from the place where I can get the best combination of customer service and price. Amazon get almost all book purchases because I can almost always get a book for less and usually without paying shipping. Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted January 14, 2009 Share Posted January 14, 2009 It was my understanding that you only had to pay sales taxes to companies that had a physical presence in your state so for example everyone would prbably have to pay sales tax for an on-line Walmart purchase but no one would on an ebay purchase (they have no physical presense anywhere). That's why only some companies charge sales tax on-line and then only to residents of their states. Depends on your state. That may very well be how it is in your state - but others still "require" you to pay that tax, the store you are buying from currently does only collect it if there is a physical presence in the state. BUT, in some/most places - that doesn't mean you still don't owe it. This explains it pretty good: http://www.msnbc.msn.com/id/23351894/ A snippet: States cannot legally require out-of-state retailers to act as their collectors. They can only pressure them to do so. It has to do with a 1992 Supreme Court ruling pertaining to remote merchants, which the states are hoping to eventually convince Congress to alter. Until then, they can only exude pressure, mainly on those retailers who have some sort of physical presence in their state — be it a warehouse or visiting salesmen with a booth at a convention. But, while this ruling excuses Amazon.com, for example, from having to collect state sales taxes, it does not prevent the states from going after consumers for the taxes the retailer did not ask them to pay. Generally, the States only choose to do so for large purchases. This is because big ticket items — like manufacturer-direct living room sets shipped across state lines — tend to leave a paper trail and are easier to trace to a specific consumer than an online shopping spree. “Many states have data sharing agreements. They share it because they all have the same sales tax collection problem. There is also data sharing going on between the states and the IRS,†adds Peterson. Quote Link to comment Share on other sites More sharing options...
TraceyS/FL Posted January 14, 2009 Share Posted January 14, 2009 No, it makes no difference to me. Our state sales tax is 9.25% and very few states that would collect taxes from me have a higher rate. I (i'm not picking on you :tongue_smilie:) Any place that would charge you sales tax on an online order would be charging you your rate - the 9.25% - not the state they are ins rate. It's based on the delivery address, not where it shipped from. Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted January 14, 2009 Share Posted January 14, 2009 Here's what I find interesting. Say you buy a car out of state. Say that state charges %5 sales tax. You go to register it in your state, which has %9 sales tax. You're required to pay your state the difference which is %4. BUT Say the state you bought the car in charges %9 and your state charges %5 - they don't reimburse you the %4. They just say, sucks to be you! You should have bought a car in state!:glare: Quote Link to comment Share on other sites More sharing options...
Margaret in GA Posted January 14, 2009 Share Posted January 14, 2009 I think all internet sales should be subject to sales tax. It stinks for us as consumers, but in the long run it is better for us as citizens. Right now the retail environment is so glum where we are. A brick and morter store has so much overhead and someone selling something out of their basement has none. I think we need to level that playing field. If all our shopping centers sit empty, we lose. Margaret Quote Link to comment Share on other sites More sharing options...
cathmom Posted January 14, 2009 Author Share Posted January 14, 2009 What NC did was add a consumer use tax to the state income tax form. Either you can keep all your receipts and pay what you actually owe, or you can use a table that goes by your taxable income and gives you an amount to pay. It pisses me off but I do it anyway. NC is greedy greedy greedy! Quote Link to comment Share on other sites More sharing options...
KidsHappen Posted January 14, 2009 Share Posted January 14, 2009 (i'm not picking on you :tongue_smilie:) Any place that would charge you sales tax on an online order would be charging you your rate - the 9.25% - not the state they are ins rate. It's based on the delivery address, not where it shipped from. Oh yeah, you are right. In any case, I still pay the 9.25% so it makes no difference to me. Quote Link to comment Share on other sites More sharing options...
LaxMom Posted January 14, 2009 Share Posted January 14, 2009 Here's what I find interesting. Say you buy a car out of state. Say that state charges %5 sales tax. You go to register it in your state, which has %9 sales tax. You're required to pay your state the difference which is %4. BUT Say the state you bought the car in charges %9 and your state charges %5 - they don't reimburse you the %4. They just say, sucks to be you! You should have bought a car in state!:glare: From the MD Comptroller's FAQs Maryland grants a credit for sales tax paid to another state up to the amount of Maryland's 6 percent sales and use tax liability. For example, if you paid a 4 percent sales tax to another state, you would be liable only for the difference, or 2 percent Maryland sales and use tax when you brought the property into Maryland. If you paid a 6 or higher percent sales tax to another state, you would not be liable for Maryland sales and use tax when you brought the property into Maryland. However, strictly speaking of cars, if you do not have a bill of sale from a duly licensed dealership (who holds a "sales and use" tax certificate from their state), you are responsible for paying the tax on the Blue Book value of the vehicle to MD when you register it here. The requirement to pay sales tax for tangible items purchased out of state is designed to keep MD businesses from having a disadvantage because of surrounding states not having the same tax rate. So, if I bought lovely, hand thrown mugs from a potter in Maine while I was on vacation (strictly hypothetical, of course) do I really need to cough up that $1 to cover the discrepancy between the tax rates? There is no direct competition there. I didn't choose to drive to Maine to buy mugs I could have purchased here. Quote Link to comment Share on other sites More sharing options...
coffeefreak Posted January 14, 2009 Share Posted January 14, 2009 From the MD Comptroller's FAQs However, strictly speaking of cars, if you do not have a bill of sale from a duly licensed dealership (who holds a "sales and use" tax certificate from their state), you are responsible for paying the tax on the Blue Book value of the vehicle to MD when you register it here. The requirement to pay sales tax for tangible items purchased out of state is designed to keep MD businesses from having a disadvantage because of surrounding states not having the same tax rate. So, if I bought lovely, hand thrown mugs from a potter in Maine while I was on vacation (strictly hypothetical, of course) do I really need to cough up that $1 to cover the discrepancy between the tax rates? There is no direct competition there. I didn't choose to drive to Maine to buy mugs I could have purchased here. To register a car the first time, you have to have a bill of sale. I've bought several cars out of state and never been reimbursed. It's funny, I forget how blessed I am to live where I am. Our tax system is very simple. It's so complicated to live on the east coast.:001_smile: Quote Link to comment Share on other sites More sharing options...
tibbyl Posted January 14, 2009 Share Posted January 14, 2009 My state is one of highest in nation for sales tax. But my decision to purchase online has little, if anything, to do with sales tax. If that were the issue, I'd drive across the border to one of the 2 neighboring states, which are 1/2 hour away. For me, it has everything to do with convenience and the fact that I H A T E to go shopping in stores for anything except books. Quote Link to comment Share on other sites More sharing options...
cathmom Posted January 15, 2009 Author Share Posted January 15, 2009 Hmm, I am glad I posted this. Now that I know that people do actually shop online to avoid paying sales tax, I am not so annoyed at NC anymore. Still annoyed, just not as much. :D Quote Link to comment Share on other sites More sharing options...
bookmomma Posted January 15, 2009 Share Posted January 15, 2009 Between our state (TN) sales tax and local sales tax, we pay 9 1/2 % on EVERYTHING!!! Yes, I buy online...to save money and for the convenience of shopping from home with my three screaming kids here instead of at the store! Quote Link to comment Share on other sites More sharing options...
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