Tax Free Dealer

Drich

Member
Joined
Nov 17, 2014
Messages
244
Hello  Is there any dealers anymore that do the free ship no tax?  Its hard to find them anymore. I know a few states don't collect. Need to get a new sander and trying to save a buck. thanks
 
The sales tax laws have changed a few years back regarding online out of state sales - placing the onus on the merchant to charge, collect and remit those taxes. Unless you live in a state that does not have a sales tax, the merchants MUST charge their customers the tax.
 
I know most states have to but their is a few that don't yet as I just bought some blades online and did not have to pay tax. I think it was Ohio.
 
I'm pretty sure that it depends on the shipping address. If you buy something that ships from a state with no sales tax and have it shipped to a state with sales tax, you pay the tax in that state.
This can also work to your advantage too though. If it comes from a state with a higher tax, you only pay the rate for your state.
 
Crazyraceguy said:
I'm pretty sure that it depends on the shipping address. If you buy something that ships from a state with no sales tax and have it shipped to a state with sales tax, you pay the tax in that state.
This can also work to your advantage too though. If it comes from a state with a higher tax, you only pay the rate for your state.

That’s exactly correct. It’s the state to which it ships that determines whether the customer is charged sales tax.
 
Thanks Mac Boy

New sander on order. I knew someone would know of a dealer. Now i have extra money for some paper
 
Michael Kellough said:
Also glad to hear from you Bob! Did you see that Per popped in?

Thanks! No I wasn’t aware about Per. Good to know; I have to give him a shout.
 
FYI:
Whether the dealer charges you sales tax or not, you are still required to pay it. An out of state dealer shipping into Arkansas hast to hit a threshold of $100,000 or 200 individual transactions in a tax year before they are required to charge tax.

If you don't pay tax at the purchase, then it becomes a use tax which you are required to submit in the month when the total amount due becomes >$25 or at the end of the calendar year. There is a form for this with the Arkansas income tax return.

Realistically, nobody has time to look for the $20-40 you just saved, but if you're unlucky enough to get hit with a random audit, it will likely be far more painful.

 
twistsol1 said:
FYI:
Whether the dealer charges you sales tax or not, you are still required to pay it. An out of state dealer shipping into Arkansas hast to hit a threshold of $100,000 or 200 individual transactions in a tax year before they are required to charge tax.

If you don't pay tax at the purchase, then it becomes a use tax which you are required to submit in the month when the total amount due becomes >$25 or at the end of the calendar year. There is a form for this with the Arkansas income tax return.

Realistically, nobody has time to look for the $20-40 you just saved, but if you're unlucky enough to get hit with a random audit, it will likely be far more painful.

This is spot on and that sales tax threshold is, I believe, different for each state, complicating things for the online merchants. The fact that virtually no one paid the “use tax” is probably responsible for the start of the legal suit (South Dakota v Wayfair) that resulted in the merchant having to collect sales tax in all states that have a sales tax, rather than charging sales tax in the states that the merchant has a “nexus of business.”

 
So this really is a question in the category "help me illegally avoid taxes"?

In Europe they did the same; German sellers shipping to the Netherlands now have to charge the 21% Dutch VAT instead of the German 19%. But if you let them deliver to the German post office on the other side of the street and go there in person you pay their 19%. That is in addition to already lower ex-VAT prices in Germany.
 
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