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  1. #1
    Join Date
    Jan. 14, 2012
    Posts
    704

    Default Paying Sales Tax On Saddles?

    I have purchased multiple saddles from reps before and this is the first time I have been told that I have to pay sales tax. Does anybody know what the rules are on this?

    I live in x state.
    Company operates in a different state. Does not have a rep in my state or any assets.

    Should I be paying sales tax?



  2. #2
    Join Date
    Nov. 1, 1999
    Location
    Shangri-LA
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    3,470

    Default

    If your state requires the tax yes, it is supposed to be collected and paid. Hasn't there been plenty of talk about internet sales and states missing out on lots of sales taxes because internet sales by pass them; for the most part? I know I've ordered things and sometimes pay taxes and sometimes not, just depends on the seller but I believe "legally" if your state has a sales tax then the seller is supposed to be collecting them and paying the state for the sale transaction.
    "My treasures do not chink or gleam, they glitter in the sun and neigh at night."
    ~Gypsy saying



  3. #3
    Join Date
    Sep. 2, 2005
    Location
    Upstate NY
    Posts
    16,188

    Default

    The sale took place in your state? The rep came to your state, etc?

    I do not find it strange that you are being asked to pay sales tax.


    1 members found this post helpful.

  4. #4
    Join Date
    Feb. 2, 2003
    Location
    Iowa, USA
    Posts
    3,773

    Default

    If you buy within state, yes sales tax is due. Even for private transactions, but tax code is ignored since there's no way for authorities to find out about it, the lost revenue is not worth the resources it would take to enforce. (They do catch you on used car sales because the buyer has to register the car).

    Since the transaction occurred in-state, sales tax seems valid to me. If the transaction crosses state lines, then it's interstate commerce and different rules apply; in that case, a "use tax" is supposed to be self-reported and paid by the buyer. So, even if you had a case that you don't owe sales tax, you still owe use tax.

    Just because it's a rep that doesn't have an office, doesn't change the fact that it's a retail sale. That rep is merely following tax code. The others may be following the NJ mafia model of "hey, it fell off the back of the truck." and not reporting the sales.

    Secondary question is whether this current rep's business is run legitimately, and they're actually reporting/submitting the tax they collect to the state. Not sure how you'd verify.
    Your state Dept of Revenue could prob give you some answers, laws do vary by state.



  5. #5
    Join Date
    Aug. 17, 2004
    Location
    Rixeyville, VA
    Posts
    7,544

    Default

    Would you not buy the saddle if you have to pay sales tax?
    Where Fjeral Norwegian Fjords Rule
    http://www.ironwood-farm.com



  6. #6
    Join Date
    Feb. 6, 2003
    Location
    Deep South
    Posts
    15,993

    Default

    Some States require you to register for collecting sales tax if you travel to their State and make a sale. If they have a retail outlet within your State, suppliers are required to collect tax. (eg; Dover may ship from MA but will charge sales tax if they have a store in your State.) The rules are not universal, so check the law for your State.
    ... _. ._ .._. .._



  7. #7
    Join Date
    Jan. 14, 2012
    Posts
    704

    Default

    Like I said, I was just curious to about the rules on this since I have bought saddles before and haven't paid the tax. It sounds like its a fine line. Thank you for clearing that up.



  8. #8
    Join Date
    Feb. 9, 2006
    Posts
    2,020

    Default

    If they want you to pay tax, make sure you get a quality receipt from them. For some who are less ethical, "tax" is an easy way of making some extra ca$h.



  9. #9
    Join Date
    Jan. 26, 2006
    Location
    Fort Worth, Texas
    Posts
    7,021

    Default

    Quote Originally Posted by MorganJumper848 View Post
    Like I said, I was just curious to about the rules on this since I have bought saddles before and haven't paid the tax. It sounds like its a fine line. Thank you for clearing that up.
    check with your state's Comptroller of Public Accounts

    In Texas

    If you purchase merchandise through a catalog or the Internet from a seller located outside of Texas and use the taxable item in Texas, then you owe Texas use tax on the purchase.

    If the out-of-state seller does not have a Texas permit or does not collect Texas use tax, the use tax is due and payable by the purchaser.
    http://www.window.state.tx.us/taxinf..._use.html#use3



  10. #10
    Join Date
    Sep. 7, 2009
    Location
    Lexington, KY
    Posts
    25,972

    Default

    Quote Originally Posted by MorganJumper848 View Post
    Like I said, I was just curious to about the rules on this since I have bought saddles before and haven't paid the tax. It sounds like its a fine line. Thank you for clearing that up.
    Technically you're supposed to pay the sales tax if the seller doesn't. Not many people do.


    1 members found this post helpful.

  11. #11
    Join Date
    Apr. 13, 2013
    Posts
    27

    Default

    Quote Originally Posted by LauraKY View Post
    Technically you're supposed to pay the sales tax if the seller doesn't. Not many people do.
    Agreed. Most states have a corresponding use tax. Even if the seller is not reqd to collect sales tax, the buyer may be obligated to pay the tax as a use tax. Not all sellers are reqd to collect sales tax. It would depend on whether the seller has physical presence in the state.

    OP states that seller does not have a rep or assets in her "x" state, which I infer as physical presence. Indeed, seller may not have a requirement to collect, but the buyer still may be liable for the tax. It would depend on which state...



  12. #12
    Join Date
    Feb. 2, 2003
    Location
    Iowa, USA
    Posts
    3,773

    Default

    So it does raise a question, though; how would one know whether the sales tax collected is actually passed by the seller to the state? I mean, I agree that the OP should be agnostic since tax is owed no matter what (if not sales tax, then use tax).
    But let's face it, the number of private individuals reporting use tax is exactly, oh, none. If a seller is collecting and pocketing it, it would be galling. (But it's admittedly hard to defend: it's ok if I break tax law myself, but it's wrong if you do it for me? But you know, even if I'm planning to jump a subway turnstile, that doesn't make it ok for you to steal my subway token.



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