Tax on online purchases?

.:bHd:. · 03-02-2011, 02:47 PM

How does this work? I was about to order a hard drive off of apple.com but they're taxing me $66.30. Same product on amazon has no tax.

How the hell does that make sense

BTM · 03-02-2011, 02:54 PM

Both you and Apple are in California. In-state online purchases are subject to sales tax.

persian54 · 03-02-2011, 02:55 PM

apple is in CA

you are in CA

so you have to pay tax

Amazon isn't in CA

You pay taxes when you're in the same state as the business

.:bHd:. · 03-02-2011, 02:56 PM

oh got it. That sucks apple had it cheaper. Freaking work I'd rather spend 700 on an ipad than a hard drive >.<

schoy · 03-02-2011, 02:56 PM

My understanding is that it depends whether the online retailer has a physical place of business in the state to which the product is being shipped. Since Apple has physical places of business in CA, you have to pay CA tax. Amazon has no physical place of business in CA, which is why it doesn't charge tax.

Caveat: Even if Amazon doesn't charge you sales tax, I believe you're supposed to report the purchase on your tax returns, and then pay the sales tax then.

Buegie · 03-02-2011, 02:57 PM

You would probably have to pay in other states if apple has a physical store in your state, correct?

BTM · 03-02-2011, 03:02 PM

Quote:

Originally Posted by schoy

Amazon has no physical place of business in CA, which is why it doesn't charge tax.

Amazon does have subsidiaries in CA...so I'm not sure how that works. Much of the time you are buying from a 3rd party with Amazon acting as the intermediary...I'm honestly not sure how the sales tax works (whether they charge WA residents where they are HQ'd) or it's up to where the end seller is located...I've only bought a few things on Amazon and was frankly underwhelmed with the quality of their 3rd party sellers.

BTM · 03-02-2011, 03:09 PM

Quote:

Originally Posted by Buegie

You would probably have to pay in other states if apple has a physical store in your state, correct?

You mean a retail store? I don't believe you pay tax just because there is a retail store in your area...I don't recall doing so ordering from like Best Buy for example

Tondtar · 03-02-2011, 03:15 PM

Have someone from out of state buy and ship it to you ...Saves money in most instances.

.:bHd:. · 03-02-2011, 03:16 PM

Quote:

Originally Posted by Tondtar

Have someone from out of state buy and ship it to you ...Saves money in most instances.

then you pay for shipping twice

Tondtar · 03-02-2011, 03:21 PM

Quote:

Originally Posted by .:bHd:.

then you pay for shipping twice

But if you are paying $66 for tax alone, the shipping may cost you a whole lot less. Works only on big ticket items.

Also some States like OR do not have any sales tax on many items like PC stuff. I had my wife's cousin up there pick up a laptop I saw at Costco here and had it shipped to me. Tax would have been around $100 here. It only cost around $20 to ship it including insurance! ...I had better uses for that $80 I saved.

chinoxs203 · 03-02-2011, 03:25 PM

apple charges everyone tax no matter what state

BrokenVert · 03-02-2011, 03:27 PM

I believe it's if you are having shipped from a shipping depot in the state or out of the state.

If shipped between two states interstate commerce laws take over and no sales tax involved.

Buegie · 03-02-2011, 03:31 PM

Quote:

Originally Posted by BTM

Quote:

Originally Posted by Buegie

You would probably have to pay in other states if apple has a physical store in your state, correct?

You mean a retail store? I don't believe you pay tax just because there is a retail store in your area...I don't recall doing so ordering from like Best Buy for example

Yes, that's what I meant. I've heard that before but I'm not sure if it's true, could just be a myth

Georgeair · 03-02-2011, 03:45 PM

Keep in mind that if you purchase things from out of state and don't pay sales taxe you are required to pay use tax in your state of use.

I'm sure everyone here does that. I know I do.......

Freakazoid · 03-02-2011, 03:49 PM

Quote:

Originally Posted by Georgeair

Keep in mind that if you purchase things from out of state and don't pay sales taxe you are required to pay use tax in your state of use.

I'm sure everyone here does that. I know I do.......

correct.

Although I'd say the big problem is if people continue to not pay the use tax....inevitably the government will probably step in and figure out a way to charge sales tax, no matter where the destination.

Tondtar · 03-02-2011, 04:11 PM

Quote:

Originally Posted by Freakazoid

correct.

Although I'd say the big problem is if people continue to not pay the use tax....inevitably the government will probably step in and figure out a way to charge sales tax, no matter where the destination.

Government taxes us enough already ...Sales tax is a state by state regulation. This issue of taxing cross-state commerce has been around before most of you guys (and I) were born. The advent and rapid popularity of e-commerce and ease of buying almost anything on line has just added more fuel to the fire. There are no easy answers and states know it. Every once in a while a state attorney somewhere threatens to take legal action against the big guys and gets some concession in return. Some like Dell, play ball and lay on their sides and let consumer pay up because they don't give a sh*t. Some like Amazon recognize that not charging sales tax brings more business their way and fight it. And it will continue on and on ....

Freakazoid · 03-02-2011, 04:32 PM

Quote:

Originally Posted by Tondtar

Government taxes us enough already ...Sales tax is a state by state regulation. This issue of taxing cross-state commerce has been around before most of you guys (and I) were born. The advent and rapid popularity of e-commerce and ease of buying almost anything on line has just added more fuel to the fire. There are no easy answers and states know it. Every once in a while a state attorney somewhere threatens to take legal action against the big guys and gets some concession in return. Some like Dell, play ball and lay on their sides and let consumer pay up because they don't give a sh*t. Some like Amazon recognize that not charging sales tax brings more business their way and fight it. And it will continue on and on ....

Yep, you are correct here...but with this continued recession....I think that they may get a little more aggressive of trying to figure out a convoluted solution. I really hope not, but time will tell. Not necessarily from the sales perspective, but the purchaser's perspective. I mean, technically the IRS can currently crack down on you for it.

Blake · 03-02-2011, 04:33 PM

apple charges sales tax in any state they have a brick and mortar store, not just CA. that's how most retailer do it even if you order online. amazon gets through so many loopholes it's puzzling. amazon HAD a distribution center here in dallas, but recently announced it's closure due to the state of texas trying to bone collect on sales tax not collected and paid. i order a fuck ton of shit off amazon and have never once been charged sales tax.

.:bHd:. · 03-02-2011, 05:12 PM

Quote:

Originally Posted by Tondtar

But if you are paying $66 for tax alone, the shipping may cost you a whole lot less. Works only on big ticket items.

Also some States like OR do not have any sales tax on many items like PC stuff. I had my wife's cousin up there pick up a laptop I saw at Costco here and had it shipped to me. Tax would have been around $100 here. It only cost around $20 to ship it including insurance! ...I had better uses for that $80 I saved.

Or order from amazon and not pay tax. Pretty much anything on the Apple site is available on Amazon as well. Sometimes cheaper

DougLikesBMW · 03-02-2011, 06:06 PM

Quote:

Originally Posted by schoy

Caveat: Even if Amazon doesn't charge you sales tax, I believe you're supposed to report the purchase on your tax returns, and then pay the sales tax then.

Lol fat chance

asdflkijd · 03-02-2011, 08:28 PM

Quote:

Originally Posted by chinoxs203

apple charges everyone tax no matter what state

Not Oregon.. That state is tax exempt. I remember I drove down there with a friend a couple years back to get her macbook.

03-02-2011, 02:47 PM	#1
.:bHd:. Major 367 Rep 1,149 Posts Drives: E92 335i MT Join Date: Feb 2008 Location: So Cal iTrader: (0)	Tax on online purchases? How does this work? I was about to order a hard drive off of apple.com but they're taxing me $66.30. Same product on amazon has no tax. How the hell does that make sense __________________
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03-02-2011, 02:54 PM	#2
BTM Banned 501 Rep 10,309 Posts Drives: A///MERICAN!!! Join Date: Mar 2010 Location: A///MERICA!!! iTrader: (11) Garage List 2007 BMW Z4 M Coupe [7.20]	Both you and Apple are in California. In-state online purchases are subject to sales tax.
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03-02-2011, 02:55 PM	#3
persian54 Lieutenant General 986 Rep 15,816 Posts Drives: M760/G83M4 Join Date: Jun 2009 Location: The Valley, SoCal iTrader: (298)	apple is in CA you are in CA so you have to pay tax Amazon isn't in CA You pay taxes when you're in the same state as the business __________________ From E93 335i to E89 Z4 to E93 M3/E89 Z4 to E350/SL550
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03-02-2011, 02:56 PM	#4
.:bHd:. Major 367 Rep 1,149 Posts Drives: E92 335i MT Join Date: Feb 2008 Location: So Cal iTrader: (0)	oh got it. That sucks apple had it cheaper. Freaking work I'd rather spend 700 on an ipad than a hard drive >.< __________________
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03-02-2011, 02:56 PM	#5
schoy Major 997 Rep 1,003 Posts Drives: Melbourne Red E90 M3 Join Date: Apr 2010 Location: USA iTrader: (0)	My understanding is that it depends whether the online retailer has a physical place of business in the state to which the product is being shipped. Since Apple has physical places of business in CA, you have to pay CA tax. Amazon has no physical place of business in CA, which is why it doesn't charge tax. Caveat: Even if Amazon doesn't charge you sales tax, I believe you're supposed to report the purchase on your tax returns, and then pay the sales tax then.
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03-02-2011, 02:57 PM	#6
Buegie Captain 51 Rep 714 Posts Drives: 330xi Join Date: Feb 2008 Location: CT/DC iTrader: (2)	You would probably have to pay in other states if apple has a physical store in your state, correct? __________________ Black Dakota \| Aluminum \| Sport \| Premium \| Cold \| iDrive \| CA
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03-02-2011, 03:15 PM	#9
Tondtar 12 yr old Juvie 1149 Rep 881 Posts Drives: His Mom Crazy Join Date: Apr 2008 Location: El Lay iTrader: (2) Garage List 2008 (RIP in 2011) ... [0.00]	Have someone from out of state buy and ship it to you ...Saves money in most instances.
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03-02-2011, 03:25 PM	#12
chinoxs203 Major 129 Rep 1,368 Posts Drives: 08 E92 335xi AW Join Date: Oct 2007 Location: CT iTrader: (7)	apple charges everyone tax no matter what state __________________ FOR SALE: Dropbox - please
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03-02-2011, 03:27 PM	#13
BrokenVert Resident Kerbalnaut 489 Rep 10,703 Posts Drives: Topless Brute/Hybrid Boogaloo Join Date: Apr 2009 Location: Fahrvergnügen/NY iTrader: (0)	I believe it's if you are having shipped from a shipping depot in the state or out of the state. If shipped between two states interstate commerce laws take over and no sales tax involved. __________________
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03-02-2011, 03:45 PM	#15
Georgeair Captain 80 Rep 803 Posts Drives: '08 Melbourne E92 M3 Join Date: Apr 2009 Location: Madison, MS iTrader: (2)	Keep in mind that if you purchase things from out of state and don't pay sales taxe you are required to pay use tax in your state of use. I'm sure everyone here does that. I know I do....... __________________ Objects in mirror are slower than they appear.
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03-02-2011, 04:33 PM	#19
Blake Banned 803 Rep 4,643 Posts Drives: Chevy Aveo Join Date: May 2008 Location: Parent's Basement iTrader: (7)	apple charges sales tax in any state they have a brick and mortar store, not just CA. that's how most retailer do it even if you order online. amazon gets through so many loopholes it's puzzling. amazon HAD a distribution center here in dallas, but recently announced it's closure due to the state of texas trying to bone collect on sales tax not collected and paid. i order a fuck ton of shit off amazon and have never once been charged sales tax.
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