Nobody likes paying sales tax, and it is becoming increasingly difficult to avoid, as online merchants such as Amazon are now giving in and collecting it for many states.
Here are some Jew tips to reduce or eliminate payment of sales tax....
Amazon: Amazon now collects sales tax for many states, but that doesn't mean you can't shop tax free on Amazon! They only collect sales tax for items bought directly through them, or items bought through a company that has a presence in your state. Often you can choose a company listed as "FULFILLMENT BY AMAZON", which means it's a third party company shipping the product, with a contract with Amazon. Usually those do not charge sales tax, unless they happen to be located in your state. If you are still being charged sales tax (or if the fulfillment company isn't listed), try other merchants. If they ship from a state other than yours, you will likely pay no sales tax.
Items Bought Mail Order Where the Company Has a Presence in Your State: There are lots of tax mistakes on mail-order items. Mail order counts as anything delivered to you! This includes large items such as furniture or appliances. It does not matter if you were physically in a showroom or store when ordering them. If it's shipped to you, it counts as mail order. The sales tax you pay on these items is the tax for where the item "lands". What do I mean by "lands"? In most cases, it's where you receive the item. In a few cases, when there are two delivery companies involved, it's where the second delivery company receives the item, but this is very rare, as it's almost always just one delivery company. Make sure you are paying the right sales tax, unless they are accidentally charging you lower tax! Also keep in mind that sales tax can vary from county to county, and even city to city, especially in California. Know your local tax rate, and verify that the item you are ordering is being taxed at that rate! If it isn't, you should demand them to revise it. Do not let them give you excuses as to why they can't or won't. It's the law. If they swear that there is no way for the computer to tax it properly, then have them give you a discount as compensation. It is illegal to charge you sales tax for another city, county, or state when you receive mail order merchandise. If they refuse, speak to someone higher up. If they still refuse, threaten to report them to the state equalization board.
Items Bought Mail Order Where the Company Has No Presence in Your State: Typically there is no sales tax in this situation. If they claim there is, make sure you are being charged the right rate, and make sure the company really has a presence in your state. If they don't, demand proof that they are actually submitting the tax to your state's board of equalization. Don't just let them adjust the tax to your local rate, and then keep it. For example, when we bought hats on Donkdown, we ordered from a small Florida company. They erroneously charged us Florida sales tax. When I called them, they simply took off the tax. Had they said they wanted to charge me Nevada tax, I would have asked if they have an office in Nevada, or for proof that my tax would be submitted to Nevada.
Cars: Cars get taxed at the rate of the address where they are registered. If you have more than one address where you can register the car, always register it at the lowest sales tax address (and this is legal, too). Similar to mail order, it does not matter where the dealer is located. It matters where you register the car.
Services: About 20 years ago, I bought some flat-rate long distance, and I got Washington sales tax on my bill, because the company was located in Washington. I had them remove it. As a California resident, it was illegal to charge me Washington sales tax. Do not ever pay sales tax for another state, city, or county, unless you are physically standing in that state, city, or county when you are paying or using the service! So if you're ordering a service from a company in Washington, they need to either charge sales tax in your locality, or not charge any at all. Refuse to pay any illegal taxes.
Returns: You should always get 100% of the tax back when you return items. Verify that this always happens, as sometimes there are mistakes (intentional or unintentional). Do not accept excuses as to why this could not be done. It is illegal for them to keep tax on returned items.
Reply With Quote
Originally Posted by JSTAT
