Sales Tax on Internet Items

Flash Gordon

Flash Gordon

Well-known member
Joined
Feb 6, 2010
Messages
11,450
Reaction score
459
Amazon started charging sales tax in Tennessee effective today. Would paying a sales tax cause you to reconsider buying online if you can find the same product locally?
 
I think we have an all out war between internet and in store. Rather go to store to see what the product looks like. I think we would always see tax from now on,however, when an item is priced competitively it will sell
 
Finding the same products locally is easier said than done. Taxes, as always, will have a stifling effect. People will just spend less. Maybe the unemployment rate will move up a notch. What else is new?

WWMFD?

What Would Milton Friedman Do?
 
Bill1234 said:
I think we have an all out war between internet and in store. Rather go to store to see what the product looks like. I think we would always see tax from now on,however, when an item is priced competitively it will sell
Click to expand...

I think if brick -n- mortar stores start price matching, internet sales will suffer dramatically. I would much rather buy local

Dogfather said:
Finding the same products locally is easier said than done. Taxes, as always, will have a stifling effect. People will just spend less. Maybe the unemployment rate will move up a notch. What else is new?

WWMFS?

What Would Milton Friedman Say?
Click to expand...

He would probably say something like this:

Nothing is so permanent as a temporary government program

Or this:

Governments never learn. Only people learn


:laughing:
 
I almost always bought off Amazon for everything. I have made over 200 purchases in the last 2 years. Couldn't beat the free shipping and no sales tax. I had to save over $700 on sales tax alone in that time. They starting collecting taxes in New Jersey about six months ago I believe, and I have cut back on orders. I now only buy if I can't get it locally or if Amazon has it for sale cheaper.
 
I have to pay sales tax on all AG orders since I live in Florida and they are in the state. Amazon is opening a distribution center 20 minutes from my house in the next year or so then I'll have to pay sales tax on all their orders too. 7%
 
Flash Gordon said:
I think if brick -n- mortar stores start price matching, internet sales will suffer dramatically. I would much rather buy local



He would probably say something like this:

Nothing is so permanent as a temporary government program

Or this:

Governments never learn. Only people learn


:laughing:
Click to expand...

Can you tell me where I can get CarPro and AutoFinesse locally? How about a Daytona brush? 'Cause I'd be there in a second. Yes, I hate ordering online - but where else are you going to find this stuff?

I know some people have Megs and Duragloss hookups. But, to get exactly what you want, detailing wise, a lot of times online is your only option - whatever it costs. Of course if your talking buying TVs and what not, it's still likely cheaper to buy online - even if you pay tax. Because in my state you pay tax at the retail level as well.

Just a thought.
 
swanicyouth said:
Can you tell me where I can get CarPro and AutoFinesse locally? How about a Daytona brush? 'Cause I'd be there in a second. Yes, I hate ordering online - but where else are you going to find this stuff?

I know some people have Megs and Duragloss hookups. But, to get exactly what you want, detailing wise, a lot of times online is your only option - whatever it costs. Of course if your talking buying TVs and what not, it's still likely cheaper to buy online - even if you pay tax. Because in my state you pay tax at the retail level as well.

Just a thought.
Click to expand...

Good points. I still see problems on the horizon for internet based business'
 
I guess being from Jersey I'm use to paying taxes...LOL.
Don't order much from Amazon but I'm not surprised by what is happening. Heck they chrge us an " Emergency Room" tax here in Jersey.
I will wait for sales if I can't find it local.
 
dsg03gt said:
I almost always bought off Amazon for everything. I have made over 200 purchases in the last 2 years. Couldn't beat the free shipping and no sales tax. I had to save over $700 on sales tax alone in that time. They starting collecting taxes in New Jersey about six months ago I believe, and I have cut back on orders. I now only buy if I can't get it locally or if Amazon has it for sale cheaper.
Click to expand...

If I owned stock in Amazon I would dump it tomorrow ;)

custmsprty said:
I have to pay sales tax on all AG orders since I live in Florida and they are in the state. Amazon is opening a distribution center 20 minutes from my house in the next year or so then I'll have to pay sales tax on all their orders too. 7%
Click to expand...

Looks like you are double screwed !!

:(
 
I didn't buy my new computer from DELL because they were charging tax (didn't match the correct % for the sales tax in my state) so I went to Amazon to buy it.
 
The new sales tax collection for TN was not a welcome addition.
Although Im not a high volume shopper the no sales tax and free two day shipping makes it so much easier and cheaper to just shop online unless I am already planning to go out to run additional errands anyway.

Even though stores like best buy would match the amazon price it would still be cheaper to purchase through amazon given the no sales tax and free amazon prime shipping.

I can see all the big electronic stores are just becoming show rooms where people go to look and decide on their new LED tv etc and then go home and order off amazon. Even with the addition of sales tax you can still usually find it cheaper online.

Amazon gets most things to you unbelievably fast. I get quite a few items over night even if it scheduled for two day shipping
 
Flash Gordon said:
If I owned stock in Amazon I would dump it tomorrow ;)
Click to expand...

I personally think that wouldn't be that good of an idea. Its going to come down to you paying sales tax on anything you buy online. The government will get there way.
 
dsg03gt said:
I personally think that wouldn't be that good of an idea. Its going to come down to you paying sales tax on anything you buy online. The government will get there way.
Click to expand...

True. But it will take several more years for this to happen. Amazon will start losing sales/profits effective immediately IMO
 
I know that no-one does this, but technically you are supposed to pay Use-tax to your state on at the end of the year for your non-taxed internet purchases.

On a side note Amazon is supposed to start charging IN sales tax as of today.
 
Flash Gordon said:
I think if brick -n- mortar stores start price matching, internet sales will suffer dramatically. I would much rather buy local

He would probably say something like this:

Nothing is so permanent as a temporary government program

Or this:

Governments never learn. Only people learn
Click to expand...

Vey well said! Very well indeed!!! ;)

A thought ran through the room tonight during the news. They were showing the story about legal 'pot' sales in Colorado. Then there was the woman running the store that said her price was $325 per once, and that sales tax was another 25%. That ends up being $406.25 an once, sounds freaking criminal to me! :eek:

Now I don't smoke, never have, just don't like the entire cigarette thing what so ever. But, I've been saying for decades that if they legalized this or that that they have not legalized through the years, that it would make a TON of money for both the state, (and if the Fed's are on board) the Federal Government as well. Plus the millions they are spending on busting and chasing low level users they could use for programs to help hard working families. (Do remember the position that our government once had on alcohol sales, only to finally realize that billions were to be made from legalizing it.) Go figure. :rolleyes:

So anyhow, now Colorado has legalized 'smaller' amounts, (even ¼ ounce for out of state residents) so we'll see how that goes. DUH... I lost my car dude! :eek: But........ it was brought to my attention that even "primo" these days can be bought for $300~$350 (tops). Which begs the question of WHAT WERE THEY THINKING? Now to be "legal" you spend more than you do to be "illegal". Once you have it 'in hand' what's the difference?

What I'm getting at is if the state government wants to take a 'test run' at this whole approach. That it'd seem they would try to make their product at least competitive with the "street dealers" and "street thugs" they claim to be protecting the public from. To price your 'legal' product higher doesn't make a ton of sense. IOW's do some sort of price control (along with all the other hoops that you make the dispensaries jump through) that will allow them to make a profit, and the state to make a fortune.

You can BET that once it catches on beyond a handful of states that the Federal Government can, and will not only make it "legal" (for small amounts) but tax the living HELL out of it. Yet when you tax it to the point where it's higher than it is on the street you'll do NOTHING to remove it from the street.

Back to detailing;

If, for products I can get locally, all things are equal (prices match either before or after taxes and shipping) I'll buy locally. I'll support my local business, my local tax base, and my local community. If in doing that I can support the small businesses, EVEN BETTER!

However, that means that all things need to be equal. With detailing supplies that usually just isn't practical. ;)

I still maintain at least a presence with a local electronics distributor because some of the items that they carry I can't get locally, or if I can I have to pay retail for. :) And there, I may or may not pay sales tax. (Have a resale number, but it's just a LOT easier to pay the tax and pass it on in the cost. Once it's paid you don't have to pay it twice.)

One final note; This country went to war with Great Britain over unfair taxation. Even though it wasn't exactly a "tea tax", but rather a continuation of a "three-pence-per-pound" duty tax that had been in place since 1767.

Think about that, we staged a Revolution over 3% tax, THREE PERCENT! Fast forward 235 years and look how bad our OWN government is taxing it's people. While mind you, going broke, digging the hole deeper, and never having an end to the problem. Been that way most of my life and will be that way till long after my bones, my children's bones, and their children's bones have turned to dust.

What did we learn? :dunno:
 
In theory, sales tax or not internet retailers should still be competitive price wise. They have far fewer employees per-volume, less overhead, less locations. Take Newegg vs Best Buy, for example. Newegg has thousands less employees, many many fewer buildings and properties, and yet does as much business as Best Buy. That's how they can be so competitive.
 
I would rather buy locally. I HATE buying off the internet. Something usually is wrong, takes longer to get, but most of these types of products can't be found here. Luckily I have never had to pay sales tax online and I try to get free shipping when I can.
 
The only tax that I truly hating paying was the county income tax when I domiciled in Huntington In.
I had previously never heard of a local govt collecting income tax.
 
You must log in or register to reply here.
Back
Top