Author Topic: Buying on-line is NOT tax-free  (Read 10620 times)

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Offline CDM

  • Posts: 93
Buying on-line is NOT tax-free
« on: November 03, 2015, 07:07 AM »
In some recent FOG posts I've seen the suggestion that buying online from an out-of-state retailer is a way to get Festool products more cheaply because you don't have to pay sales tax.

I live in Illinois, and I buy Festool both online and from brick-and-mortar stores here.  When an online retailer does not collect sales tax because it doesn't have a physical presence in Illinois, I still have to pay tax.  There is a "use tax" that is the difference between any sales tax I actually paid and the sales tax I would have paid at a store in Illinois.  So the tax amount for me is the same whether I make the purchase in Illinois, online, or on a road trip to a state with lower taxes.

The problem for Illinois with the use tax is that reporting is on the honor system.  The tax isn't collected at the point of sale.   Instead, buyers are supposed to keep purchase receipts and self-report when filing annual Illinois tax returns.  As itemizing is a hassle, the state offers a straight tax alternative based on income.  Regardless, there's no way for the state to check how much people have spent at out-of-state retailers.  This means that many people who don't want to pay this tax do not pay it.

While I don't like many of the spending decisions made by the Illinois state government, I still pay my taxes.   I've really liked seeing FOG users speak up against abuse of Festool's generous return policy and for supporting Festool's manufacturing jobs in Germany.  I hope that FOG readers who may not have already will take the time to learn what their state's use tax obligations are and then do the right thing and pay the proper amounts.

Offline mastercabman

  • Posts: 1854
  • NORFOLK,VA
Re: Buying on-line is NOT tax-free
« Reply #1 on: November 03, 2015, 11:54 AM »
Alright!
That's the spirit!
If you like you can pay my taxes too!
I don't understand!?! I keep cutting it,and it's still too short!

Offline waho6o9

  • Posts: 1364
    • Garage Door Handyman.com
Re: Buying on-line is NOT tax-free
« Reply #2 on: November 03, 2015, 12:58 PM »
Taxed

Enough

Already

Offline Peter_C

  • Posts: 655
Re: Buying on-line is NOT tax-free
« Reply #3 on: November 03, 2015, 01:22 PM »
I just bought a Makita battery charger, from Ebay, out of Illinois and was quite surprised that I was charged sales tax. Some quick online reading to confirm I should be paying tax showed they were required to charge sales tax to California. Not that way for most states though.

Amazon is great in that it shows when you are going to pay sales tax or not. Of course I do not want to pay sales tax, but the reality is tax is what makes society better. The loop holes are slowly being closed as online sales are a recent trend, much like everyone owning a computer. In a few more years it won't matter where you buy something as we will be taxed. Then it comes down to driving to the local store to buy it, or have it delivered. Since I am a patient person, I like having things delivered, and it saves me hours of not shopping in stores. Plus I can search out the best deal. Festools price lock takes away any savings of buying from the internet, except sales tax for now...

Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #4 on: November 03, 2015, 02:36 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

Offline Dogberryjr

  • Posts: 112
Re: Buying on-line is NOT tax-free
« Reply #5 on: November 03, 2015, 03:16 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.
Because here in the US, sales taxes are levied by states and localities, not nationally. 

Offline Rob Z

  • Posts: 707
Re: Buying on-line is NOT tax-free
« Reply #6 on: November 03, 2015, 03:24 PM »
Alex, for the most part, sales taxes are collected at the point-of-sale ( exceptions for those entities that have don't pay at POS, but  they pay later via a separate filing, or for various tax-exempt entities such as churches, charities, government agencies), but only  in the jurisdiction where the sale tax is applicable. 

So, for a sale in Virginia, Virginia sales tax (and any local add-on) is collected .... but only for transactions conducted in Virginia.    Virginia (and by extension, the retailer/vendor/supplier,  as the "required agent for Virginia") only has the authority to collect sales tax for transactions within Virginia.  If someone from Iowa buys something online from a vendor in Virginia, the laws in Iowa don't apply to the vendor here in Virginia.  And the laws here in Virginia don't allow for the vendor to collect sales tax from the resident of Iowa and then to remit it to Virginia.




Offline greg mann

  • Posts: 1836
Re: Buying on-line is NOT tax-free
« Reply #7 on: November 03, 2015, 03:26 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

We are a collection of states, with some taxing done at the federal, state, and even local level. Some states have sales tax, some don't, and federal sales tax is pretty much limited to highway fuels. At one time we had a federal excise tax but it has been many years removed. My opinion, our system is both a blessing and a curse, take your pick.

I do believe without spotty collection of sales tax on internet purchases Amazon and other internet marketers would not be near what they are today and a fair number of failed brick and mortar stores would still be around. Of course, retail giants like Walmart and Home Depot have had a lot to do with the demise of small retailers as well. Each of us can arrive at our own conclusions whether this is a good thing or not.
Greg Mann
Oakland, Michigan

Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #8 on: November 03, 2015, 03:53 PM »
I know the because, I don't really need an explanation.

If all those different levels of governement, federal, state, county, city, wanted those taxes, they would simply adopt some legislation and they would all agree to it because it meant more money for all of them.

But they don't do that and keep the current situation as it is. They would only do that if they find it beneficial in some way. 

Offline Corwin

  • Posts: 2598
Re: Buying on-line is NOT tax-free
« Reply #9 on: November 03, 2015, 04:10 PM »
I know the because, I don't really need an explanation.

If all those different levels of governement, federal, state, county, city, wanted those taxes, they would simply adopt some legislation and they would all agree to it because it meant more money for all of them.

But they don't do that and keep the current situation as it is. They would only do that if they find it beneficial in some way.

Ha, ha, ha, ha, ha. Oh, Alex, you are priceless!  [big grin] [wink]

Remember how it worked here before the internet? You know, as in mail order. Some states had agreements to collect out-of-state sales taxes and others did not. The U.S. Congress didn't do us any favors by letting people go without paying the taxes that they otherwise would have owed -- now it is far more difficult changing people's behavior...
Looks like your rabbit joint is a hare off! ;)

Offline Rob Z

  • Posts: 707
Re: Buying on-line is NOT tax-free
« Reply #10 on: November 03, 2015, 04:12 PM »
Alex, there is a need for an explanation    [laughing]  The federal government isn't in the business of collecting sales taxes for the thousands of state/county/municipal taxing districts.  It doesn't have that authority.   And, the various states and other local governments of which I am not a legal resident, don't have any legal authority over me and my transactions.


Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #11 on: November 03, 2015, 05:30 PM »
Ha, ha, ha, ha, ha. Oh, Alex, you are priceless!  [big grin] [wink]

Remember how it worked here before the internet?

Corwin, I didn't even know America existed before the internet.  [wink]

Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #12 on: November 03, 2015, 05:38 PM »
Alex, there is a need for an explanation    [laughing] 

No, there realy is not. I know HOW your system works.

The federal government isn't in the business of collecting sales taxes for the thousands of state/county/municipal taxing districts.  It doesn't have that authority.   

I never said it did. But they can push for legislation if they wanted to. Or LOBBY for legislation with the states. Or the states can make agreements amongst each other without federal involvment. If they wanted to.

But really, quit thinking you're a collection of 50 states, you're in reality just one single country. The federal government has a lot more authority than most of you dare to admit.

And, the various states and other local governments of which I am not a legal resident, don't have any legal authority over me and my transactions.

If you do a transaction in another state, that state has authority over every element of that transaction. Heck, my email only passes through American servers, yet the American government thinks they can read them whenever they please.
« Last Edit: November 03, 2015, 05:42 PM by Alex »

Offline teocaf

  • Posts: 598
Re: Buying on-line is NOT tax-free
« Reply #13 on: November 03, 2015, 06:12 PM »
  I hope that FOG readers who may not have already will take the time to learn what their state's use tax obligations are and then do the right thing and pay the proper amounts.

ha ha, next time you get an audit, show the irs this thread and tell them: "not only did i pay all my taxes to the penny, BUT i also encouraged my fellow toolies to pay their full share with due diligence and accountability"...
i do think you meant well, but besides the obvious fact that you didn't listen to your momma when she told you never to stick your nose in other people's money affairs, who do you think is going to take tax advice posted by some random 'who knows who' on a tool forum.  you must be a riot at parties...

Offline teocaf

  • Posts: 598
Re: Buying on-line is NOT tax-free
« Reply #14 on: November 03, 2015, 06:18 PM »
  I didn't even know America existed before the internet.  [wink]

So now the discussion has moved from the american tax code to the dutch educational system... 
ha ha--Can't wait to see where it goes next!

perhaps the guy with the 'illegal use' opinion of paypal's friends and family option will chime in...

Offline vidkid26

  • Posts: 80
    • Home Video Productions
Re: Buying on-line is NOT tax-free
« Reply #15 on: November 03, 2015, 06:25 PM »
 [popcorn] [popcorn] [popcorn]
TS-75, RO90, Domino,CT-26, Kapex, MFT-3,MFT Kapex, OMF1400, HL850, OF2200,FS 2424/2-LR32

Offline charley1968

  • Posts: 491
Re: Buying on-line is NOT tax-free
« Reply #16 on: November 03, 2015, 06:28 PM »
 [big grin] [big grin] [big grin]
Just for today..

Offline charley1968

  • Posts: 491
Re: Buying on-line is NOT tax-free
« Reply #17 on: November 03, 2015, 06:37 PM »
..ceterum autem censeo Carthiginem esse delendam!
Just for today..

Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #18 on: November 03, 2015, 07:11 PM »
..ceterum autem censeo Carthiginem esse delendam!

Ceterum censeo nunc est bibendum.  [cool]

Offline charley1968

  • Posts: 491
Re: Buying on-line is NOT tax-free
« Reply #19 on: November 03, 2015, 07:18 PM »
...and one certainly pays tax on that as well..
Just for today..

Offline mastercabman

  • Posts: 1854
  • NORFOLK,VA
Re: Buying on-line is NOT tax-free
« Reply #20 on: November 03, 2015, 08:01 PM »
..ceterum autem censeo Carthiginem esse delendam!

Ceterum censeo nunc est bibendum.  [cool]
That's right Alex
Tell them how it is!
I don't understand!?! I keep cutting it,and it's still too short!

Offline Kev

  • Posts: 7651
Re: Buying on-line is NOT tax-free
« Reply #21 on: November 04, 2015, 01:33 AM »
I'll start by saying I pay my taxes as I simply don't have a choice. I don't like that taxation is simply unfair as the sheep in the middle are the easy targets and the ones that carry the burden.

If you get a chance to be a wolf ....

Offline teocaf

  • Posts: 598
Re: Buying on-line is NOT tax-free
« Reply #22 on: November 04, 2015, 10:26 AM »

..ceterum autem censeo Carthiginem esse delendam!

Ceterum censeo nunc est bibendum.  [cool]

i was mistaken; looks like the discussion has turned to the punic wars and dead poets society.
classic...

Offline sanangelo

  • Posts: 146
Re: Buying on-line is NOT tax-free
« Reply #23 on: November 04, 2015, 10:57 AM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

I hope we never see any type of European tax calculation in the US.  It's allready bad enough our gas tax is allready calculated in the the price per gallon and our income tax is usually allready deducted before we get paid by a large company.  The problem when the tax is allready included in the price is that people forget how much tax they are really paying.  If most Americans had any ideas what their gas tax was they would be very angery.  Also most people is the US have no idea what they are really paying in income tax.  They see their end of year refund as a "free money" and don't understand it was just a free loan they gave the government.   All fees and taxes need to be very clear and in your face for people to understand how much they really are paying.

Offline Wuffles

  • Posts: 1313
Re: Buying on-line is NOT tax-free
« Reply #24 on: November 04, 2015, 11:23 AM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?
Tool list updated to reflect knowledge :: hammer, screwdriver, one pozi bit, and another bigger hammer.

Offline charley1968

  • Posts: 491
Re: Buying on-line is NOT tax-free
« Reply #25 on: November 04, 2015, 11:47 AM »
@teocaf: it's all your fault. Your posts caused a certain hilarity/ hilariousness on my part! Thanx for that!
Just for today..

Offline Cheese

  • Posts: 4819
Re: Buying on-line is NOT tax-free
« Reply #26 on: November 04, 2015, 12:30 PM »
Teo...you're a stitch...

Offline sanangelo

  • Posts: 146
Re: Buying on-line is NOT tax-free
« Reply #27 on: November 04, 2015, 01:13 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?

You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

Offline Wuffles

  • Posts: 1313
Re: Buying on-line is NOT tax-free
« Reply #28 on: November 04, 2015, 01:51 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?

You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

The problem in the UK is that it's not a secret, kind of makes it worse  [unsure]

Figures from 2011.

Tool list updated to reflect knowledge :: hammer, screwdriver, one pozi bit, and another bigger hammer.

Offline sanangelo

  • Posts: 146
Re: Buying on-line is NOT tax-free
« Reply #29 on: November 04, 2015, 01:58 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?

You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

The problem in the UK is that it's not a secret, kind of makes it worse  [unsure]

Figures from 2011.



They usually have it on the pumps in my area or al least they did at one time usually on the side in small print but the large sign on the street only shows the whole price .  Had a friend see a gas price the other day that said 1.89 .  He was happy until I told him about .384 of that price was tax.  Like most he had no idea he tax here was that high.  At least it's not as high as some of the suckers in the north east pay in gas tax
« Last Edit: November 04, 2015, 02:13 PM by sanangelo »

Offline WastedP

  • Posts: 345
Re: Buying on-line is NOT tax-free
« Reply #30 on: November 04, 2015, 02:39 PM »

..ceterum autem censeo Carthiginem esse delendam!

Ceterum censeo nunc est bibendum.  [cool]


i was mistaken; looks like the discussion has turned to the punic wars and dead poets society.
classic...

I cannae say how happy I am that someone has addressed the elephant in the room.

Offline WastedP

  • Posts: 345
Re: Buying on-line is NOT tax-free
« Reply #31 on: November 04, 2015, 02:43 PM »
Most people are just plain to dumb to understand their actual tax bill.

"There are idiots.  Look around."  -- Larry Summers, former U.S. Secretary of the Treasury

Offline Alex

  • Posts: 5692
Re: Buying on-line is NOT tax-free
« Reply #32 on: November 04, 2015, 03:00 PM »
You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

I rather think most people know pretty well how much they have to pay in taxes but accept it without constantly eating themselves up about it, because they know that without taxes you can not run a civilised society. 

Offline Locks14

  • Posts: 291
Re: Buying on-line is NOT tax-free
« Reply #33 on: November 04, 2015, 04:02 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?

You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

There's a certain amount of irony when someone accusing people of being dumb, doesn't know the difference between "to" and "too"! ;D ;)

Offline Corwin

  • Posts: 2598
Re: Buying on-line is NOT tax-free
« Reply #34 on: November 04, 2015, 05:44 PM »
You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

There's a certain amount of irony when someone accusing people of being dumb, doesn't know the difference between "to" and "too"! ;D ;)

Uhm, and you missed one too.   [blink] [wink] [big grin]
« Last Edit: November 04, 2015, 05:46 PM by Corwin »
Looks like your rabbit joint is a hare off! ;)

Offline charley1968

  • Posts: 491
Re: Buying on-line is NOT tax-free
« Reply #35 on: November 04, 2015, 05:53 PM »
@WastedP : time to take some actium?
Just for today..

Offline sanangelo

  • Posts: 146
Re: Buying on-line is NOT tax-free
« Reply #36 on: November 04, 2015, 06:32 PM »
then do the right thing and pay the proper amounts.

Never gonna happen.

Me, as a bystander looking at your American system from a distance, I get the idea it is designed on purpose to work this way. I mean, over here all sales taxes are already calculated into the total price you see and pay. So why not in the USA? If you're a government that really wants to collect on these taxes, the best way is to do it right at the point of sale, not later.

If most Americans had any ideas what their gas tax was they would be very angry

I don't think you have too much to worry about on that score. Anyone know what we pay in tax and duty for fuel over in the UK?

You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

There's a certain amount of irony when someone accusing people of being dumb, doesn't know the difference between "to" and "too"! ;D ;)


I had to sale the extra O to pay the tax bill for my new toys  [big grin]
« Last Edit: November 04, 2015, 06:42 PM by sanangelo »

Offline sanangelo

  • Posts: 146
Re: Buying on-line is NOT tax-free
« Reply #37 on: November 04, 2015, 06:41 PM »
You pay to much and I am willing to bet the average person in your country have no real idea what they actually pay.   

This is the reason why governments like to have it built into the price of items.  Most people are just plain to dumb to understand their actual tax bill

I rather think most people know pretty well how much they have to pay in taxes but accept it without constantly eating themselves up about it, because they know that without taxes you can not run a civilised society.

I think you are wrong on people thinking they know how much they are paying (in my opinion in the US at least).  As to a civilized society that rally depends on your exact definition.  In other countries socialist provided services are considered great and in soome countries it's a waste of money and nothing but redistribution of wealth.  Now on another subject how was the weather today ?

Offline SRSemenza

  • Global Moderator
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  • Finger Lakes Region, NY State , USA
Re: Buying on-line is NOT tax-free
« Reply #38 on: November 04, 2015, 07:57 PM »
The weather here is in the middle of a stretch of 60 - 70 F and sunny. Really nice!  [smile]

Seth

Offline Wonderwino

  • Posts: 802
  • That Green Koolaid causes mutations.
Re: Buying on-line is NOT tax-free
« Reply #39 on: November 06, 2015, 08:09 AM »
My Mom lives in New York and when she had her house painted, the contractor offered one price if paid by check and a cheaper price if paid in cash; cabbage; $100 bills.  I'm sure he is on the "honor" system for paying income tax.....
Water separates the people of the world; wine unites them.

Offline Cheese

  • Posts: 4819
Re: Buying on-line is NOT tax-free
« Reply #40 on: November 06, 2015, 09:39 AM »
I always inquire about a cash discount and 50%-75% of the time I receive one.

Offline T. Ernsberger

  • Posts: 860
Re: Buying on-line is NOT tax-free
« Reply #41 on: November 06, 2015, 11:20 AM »
Be careful with the cash discount.  There is a couple things wrong with cash especially when getting work done on your house.

The contractor that accepts cash in my option is hiding something.  They may not have workers comp/liability insurance.  Not having that insurance will make the job about 30% cheaper.  Major problem if someone gets hurt on your project or they do bad work or damage something. 

The other thing they maybe trying to hide is illegal employees.  A legitimate company cannot hire or pay someone that doesn't have the right documentation proving they are legal.  If you pay them cash they can then pay illegal workers for the work and have no paper trail.

Offline Corwin

  • Posts: 2598
Re: Buying on-line is NOT tax-free
« Reply #42 on: November 06, 2015, 11:40 AM »
Oh, yes, let's make it easy for others to not pay their taxes. That ought to work out well.  [huh]
Looks like your rabbit joint is a hare off! ;)

Offline jobsworth

  • Posts: 5184
  • Does Anyone Know What Time It Is?
Re: Buying on-line is NOT tax-free
« Reply #43 on: November 07, 2015, 05:31 AM »
Personally,
I have no problem paying my taxes.

But I also look for every legal loophole not to.

If its legal then I have no problems.

In his book John Madden talked about his coaching style in What he called "My Fair Advantage" If there isn't no law against it or its with in the rules, then its legal.

I believe in taking my fair advantage.

No different then buying items from a company that offers free shipping over one that doesn't, if they don't but will if I order over a certain amount then I wait till I can make a large enough order to get the free shipping.

As long as its legal no reason not to save a few quid
« Last Edit: November 07, 2015, 05:34 AM by jobsworth »

Offline Kev

  • Posts: 7651
Re: Buying on-line is NOT tax-free
« Reply #44 on: November 08, 2015, 04:41 AM »
Personally,
I have no problem paying my taxes.

But I also look for every legal loophole not to.

If its legal then I have no problems.

In his book John Madden talked about his coaching style in What he called "My Fair Advantage" If there isn't no law against it or its with in the rules, then its legal.

I believe in taking my fair advantage.

No different then buying items from a company that offers free shipping over one that doesn't, if they don't but will if I order over a certain amount then I wait till I can make a large enough order to get the free shipping.

As long as its legal no reason not to save a few quid

@jobsworth

Yay brother .. work the system, don't suffer the system !!

Offline jobsworth

  • Posts: 5184
  • Does Anyone Know What Time It Is?
Re: Buying on-line is NOT tax-free
« Reply #45 on: November 08, 2015, 05:46 AM »
That's it, if there isn't a law against it then it's legal.

Online tjbnwi

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Re: Buying on-line is NOT tax-free
« Reply #46 on: November 08, 2015, 09:07 AM »
I always inquire about a cash discount and 50%-75% of the time I receive one.

I've had people ask the same, my response is "I still have to pay my bills". If I purchase material for the job cash or credit does not affect the cost. When I was audited by the IRS the auditor did not care what I claimed as income. She looked at every deduction and connected it to a job. When I asked her why she did it that way her response was, "people hide income, they never hide deductions, if you deducted more than you took in where did the funds come from?"

I deduct my tool purchases as a business expense. As to paying taxes on internet sales, for me it comes down to one question on the Indiana tax form--Did you purchase anything from outside the state that you would have paid taxes on in the state? If I responded "No", I would be falsifying a legal document and committing fraud. The cover up charges are always worse then the initial crime.

Tom

Offline Frank-Jan

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Re: Buying on-line is NOT tax-free
« Reply #47 on: November 08, 2015, 09:53 AM »
Funny thing, up untill just now, I thought sales tax was just another word for VAT. I didn't realise it was a totally different system. (This thread made me curious enough to look it up)

Offline sanangelo

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Re: Buying on-line is NOT tax-free
« Reply #48 on: November 08, 2015, 11:28 AM »
Funny thing, up untill just now, I thought sales tax was just another word for VAT. I didn't realise it was a totally different system. (This thread made me curious enough to look it up)

They are very different.  It's one of the reason why goods are usually cheaper in the US.  I would guess that most in the US don't understand the difference.

Offline Holmz

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Re: Buying on-line is NOT tax-free
« Reply #49 on: November 08, 2015, 04:38 PM »
Funny thing, up untill just now, I thought sales tax was just another word for VAT. I didn't realise it was a totally different system. (This thread made me curious enough to look it up)

They are very different.  It's one of the reason why goods are usually cheaper in the US.  I would guess that most in the US don't understand the difference.

In an Ayn Rand sense they're both someones hand into your pocket.

Offline sanangelo

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Re: Buying on-line is NOT tax-free
« Reply #50 on: November 08, 2015, 06:05 PM »
Funny thing, up untill just now, I thought sales tax was just another word for VAT. I didn't realise it was a totally different system. (This thread made me curious enough to look it up)

They are very different.  It's one of the reason why goods are usually cheaper in the US.  I would guess that most in the US don't understand the difference.

In an Ayn Rand sense they're both someones hand into your pocket.
. Most definitely... But one is compounded more then the other... But hey someone has to pay for all the free services

Offline L.J

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Re: Buying on-line is NOT tax-free
« Reply #51 on: November 09, 2015, 06:54 PM »
Where is the guy that started this whole thing ????
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Offline SRSemenza

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Re: Buying on-line is NOT tax-free
« Reply #52 on: November 09, 2015, 09:43 PM »
Where is the guy that started this whole thing ????

Good point. Maybe it's time to put this to bed?

Seth

Offline harry_

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Re: Buying on-line is NOT tax-free
« Reply #53 on: November 09, 2015, 10:23 PM »
I pay EVERY penny of sales tax the state of New Hampshire requires of me for EVERY purchase regardless of means or locale of seller.

I also pay EVERY penny of income tax required as well.

New Hampshire has neither  [tongue]


As for accommodating a cash discount, yup I can do that too. I am fully capable of making cash disappear. In fact I reserve it for things that I cannot deduct. Cash is for buying televisions.....not tools.
Disclaimer: This post is for educational and entertainment purposes only. Any resemblance to real persons, living or dead is purely coincidental. Void where prohibited. Some assembly required. Batteries not included. Contents may settle during shipment. Use only as directed. No other warranty expressed or implied. This is not an offer to sell securities. May be too intense for some viewers. No user-serviceable parts inside. Subject to change without notice. One size fits all (very poorly).

Offline Throwback7r

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Re: Buying on-line is NOT tax-free
« Reply #54 on: November 10, 2015, 08:05 AM »
Are you telling me that a Television as you call, it is not a Fixed presentation screen?

I pay EVERY penny of sales tax the state of New Hampshire requires of me for EVERY purchase regardless of means or locale of seller.

I also pay EVERY penny of income tax required as well.

New Hampshire has neither  [tongue]


As for accommodating a cash discount, yup I can do that too. I am fully capable of making cash disappear. In fact I reserve it for things that I cannot deduct. Cash is for buying televisions.....not tools.

Offline 7sec153

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Re: Buying on-line is NOT tax-free
« Reply #55 on: November 12, 2015, 05:13 PM »
In some recent FOG posts I've seen the suggestion that buying online from an out-of-state retailer is a way to get Festool products more cheaply because you don't have to pay sales tax.

I live in Illinois, and I buy Festool both online and from brick-and-mortar stores here.  When an online retailer does not collect sales tax because it doesn't have a physical presence in Illinois, I still have to pay tax.  There is a "use tax" that is the difference between any sales tax I actually paid and the sales tax I would have paid at a store in Illinois.  So the tax amount for me is the same whether I make the purchase in Illinois, online, or on a road trip to a state with lower taxes.

The problem for Illinois with the use tax is that reporting is on the honor system.  The tax isn't collected at the point of sale.   Instead, buyers are supposed to keep purchase receipts and self-report when filing annual Illinois tax returns.  As itemizing is a hassle, the state offers a straight tax alternative based on income.  Regardless, there's no way for the state to check how much people have spent at out-of-state retailers.  This means that many people who don't want to pay this tax do not pay it.

While I don't like many of the spending decisions made by the Illinois state government, I still pay my taxes.   I've really liked seeing FOG users speak up against abuse of Festool's generous return policy and for supporting Festool's manufacturing jobs in Germany.  I hope that FOG readers who may not have already will take the time to learn what their state's use tax obligations are and then do the right thing and pay the proper amounts.

I have no idea what you just said.

Offline mastercabman

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Re: Buying on-line is NOT tax-free
« Reply #56 on: November 12, 2015, 07:24 PM »
In some recent FOG posts I've seen the suggestion that buying online from an out-of-state retailer is a way to get Festool products more cheaply because you don't have to pay sales tax.

I live in Illinois, and I buy Festool both online and from brick-and-mortar stores here.  When an online retailer does not collect sales tax because it doesn't have a physical presence in Illinois, I still have to pay tax.  There is a "use tax" that is the difference between any sales tax I actually paid and the sales tax I would have paid at a store in Illinois.  So the tax amount for me is the same whether I make the purchase in Illinois, online, or on a road trip to a state with lower taxes.

The problem for Illinois with the use tax is that reporting is on the honor system.  The tax isn't collected at the point of sale.   Instead, buyers are supposed to keep purchase receipts and self-report when filing annual Illinois tax returns.  As itemizing is a hassle, the state offers a straight tax alternative based on income.  Regardless, there's no way for the state to check how much people have spent at out-of-state retailers.  This means that many people who don't want to pay this tax do not pay it.

While I don't like many of the spending decisions made by the Illinois state government, I still pay my taxes.   I've really liked seeing FOG users speak up against abuse of Festool's generous return policy and for supporting Festool's manufacturing jobs in Germany.  I hope that FOG readers who may not have already will take the time to learn what their state's use tax obligations are and then do the right thing and pay the proper amounts.

I have no idea what you just said.
I do but this guy needs a reality check!
I don't understand!?! I keep cutting it,and it's still too short!

Offline Holmz

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Re: Buying on-line is NOT tax-free
« Reply #57 on: November 12, 2015, 11:55 PM »
Interesting to get a lesson on morals, while the Romney's and most corporations give the least possible.

I would not mind a woodworking tip or two on FOG if they Re not overtaxed.

Offline SRSemenza

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Re: Buying on-line is NOT tax-free
« Reply #58 on: November 13, 2015, 11:27 AM »
This thread is going in a poor direction for FOG.