Sales tax, saving a few bucks

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Sundancer

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I've bought some "hand held" avionics online lately - my state's sales tax is 7%, and I've saved a bit by avoiding retailers who collect it. If the shipping is free (or a wash) between retailers, the diffrence is, well, 7%.

My imperfect understanding is the Amazons of the world were quick to begin collections when the courts backed it - as it put a new burden on small(er) competitors. I've seen manufacturers in other arenas who sell direct online are slow to adopt collecting the taxes. Brave new world. . .
 
Taxachusetts always had the requirement to pay a use tax on items purchased out of state. The tax payer is responsible for paying the use tax.

The number of printed copies of the form for paying the use tax is probably the lowest count of any tax forms...
 
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New Hampshire put liquor stores on the MA/NH border years ago. Tax savings made it worth the drive. For a while they tried to catch people "Smuggling" into MA.
 
Amazon begrudingly collects the tax. They were doing better when they didn't because it gave them a preference over in-state retailers who had no choice but to charge it.
The problem is that they've gotten so fat, that they pretty much have nexus EVERYWHERE.
 
It's gonna take the 80k agents just to clear the backlog. I just settled an issue from my FIL's 2018 return. They haven't even processed 2019 and 2020 yet.
 
Chip Sylverne said:
It's gonna take the 80k agents just to clear the backlog. I just settled an issue from my FIL's 2018 return. They haven't even processed 2019 and 2020 yet.
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wow - that's even worse than the 31 months to process and issue my refund for the 2019 tax year.
 
Hang 4 said:
New Hampshire put liquor stores on the MA/NH border years ago. Tax savings made it worth the drive. For a while they tried to catch people "Smuggling" into MA.
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LOL! Years ago Maryland was "catching" people buying furniture in NC, staking out some popular NC retail locations - that went over real well with MD residents and NC businesses. I understand it's on the books, so hey, shout at your state reps - but most states, the majority, don't have revenue problems - expenditure problems, yeah. But not revenue.

Montgomery county in MD, close in metro DC, has ABC stores - local gov't selling booze - their "breakage" rate (read thefts) was astronomical, as are/were their prices. Those of us commuting to/from Nothern Virginia bought our beer and wine in the grocery stores there.
 
If a retailer doesn't collect the tax its up to you to remit it to the state. I'm sure you're an upstanding citizen and will take care of that.
 
NealRomeoGolf said:
If a retailer doesn't collect the tax its up to you to remit it to the state. I'm sure you're an upstanding citizen and will take care of that.
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True, and some states (PA,NC) are pretty aggressive on following up to collect, from personal experience.
With boats and planes states use federal databases to find when someone has registered in their state. Also, marinas and FBOs report long term tenants. Then they’ll add interest penalties for being late…which rival credit card rates.
It’s risk vs reward, and I don’t think the reward is worth it.
 
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Virginia tried to hit me up almost a year after the fact when I bought my plane (mining the FAA registration database). I pointed out that I'd already paid.
 
Hang 4 said:
New Hampshire put liquor stores on the MA/NH border years ago. Tax savings made it worth the drive. For a while they tried to catch people "Smuggling" into MA.
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Don't forget the Pheasant Lane Mall - Mall is in NH and parts of the parking lot are in MA.
 
Chip Sylverne said:
It's gonna take the 80k agents just to clear the backlog. I just settled an issue from my FIL's 2018 return. They haven't even processed 2019 and 2020 yet.
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I have a client where we just closed out 2006 in 2020 and are still working on 2007-2009. It’s a large public company, so the IRS isn’t throwing their new people at it. They’re just very slow and very overworked. They got much less efficient during covid lockdowns when they were all working from home. Even other clients that are in a continuous audit program where the audit is supposed to be completed before filing the return each year have issues open from a year or two ago. Inefficiency + work from home has really brought the Service’s audit function to a grinding halt.
 
Live in Ohio and there is no sales tax on aviation purchases.
Sure was nice not paying sales tax on $59K when I got a new panel in my aero plane from a Ohio based avionics shop.

Ohioians have been going to Indiana and Kentucky for 65 years or more for our booze and cigarettes. The local bar owner I know gets his booze by the pickup truck load from Indiana. No one that I ever heard of has been busted for it.
 
Bob Noel said:
wow - that's even worse than the 31 months to process and issue my refund for the 2019 tax year.
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Not surprising…bet they would’ve cut that time down significantly if you owed them money…
 
It’s also 80,000 over 10 years including replacements for turnover…
 
Sundancer said:
LOL! Years ago Maryland was "catching" people buying furniture in NC, staking out some popular NC retail locations - that went over real well with MD residents and NC businesses. I understand it's on the books, so hey, shout at your state reps - but most states, the majority, don't have revenue problems - expenditure problems, yeah. But not revenue.

Montgomery county in MD, close in metro DC, has ABC stores - local gov't selling booze - their "breakage" rate (read thefts) was astronomical, as are/were their prices. Those of us commuting to/from Nothern Virginia bought our beer and wine in the grocery stores there.
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VA has ABC stores for liquor. Prices were crazy high, so people bought in DC. One big store, VA stationed state troopers to radio in the tag number of VA cars buying large amounts to be stopped going back into DC (bridges limit the number of ways to go).

When the liquor store found out, the called the DC police on the "trespassers." After getting a number of troopers arrested, VA gave up. And started selling at a reasonable price.

Montgomery County stores have some very good sale prices.
 
Legally, I have to declare any untaxed transactions at the end of the year. I don't buy much online and I'm unaware of any vendors I do buy from who do not collect taxes.
 
There’s a couple aviation websites that do not collect sales tax. Makes a big difference if you typically pay >10% sales tax.
 
bflynn said:
Legally, I have to declare any untaxed transactions at the end of the year. I don't buy much online and I'm unaware of any vendors I do buy from who do not collect taxes.
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The "big" retailers like Amazon, Walmart (Sportys) generally do collect. Manufacturers and some specialty online retailers sometimes do not. It's worth checking around to see, if your state's sales tax is high and/or you're shopping a bigger ticket item.
 
It doesn't matter, if they don't collect it, it's due when I file taxes.
 
This topic just ****es me off. Florida has a tax exemption if aircraft MGW is over 2000 pounds. Totally arbitrary number. Of course my Decathlon MGW is 1800 pounds. Gonna cost me a ton of money when I pick up my overhauled engine. Should have done that out of state.
 
Ed Haywood said:
This topic just ****es me off. Florida has a tax exemption if aircraft MGW is over 2000 pounds. Totally arbitrary number. Of course my Decathlon MGW is 1800 pounds. Gonna cost me a ton of money when I pick up my overhauled engine. Should have done that out of state.
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Did you fail to purchase the STC for the temporary 200lb tax exemption ballast, to be installed for taxiing only?
 
luvflyin said:
Florida Man who actually filed an Out-Of-State Purchase Return has been taken into custody for 48 hour Psychiatric Evaluation. More details on the Eleven O'clock Eye Witness News
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I'm calling BS on that.

How could anyone find the appropriate form to make such a return?

;)
 
luvflyin said:
Florida Man who actually filed an Out-Of-State Purchase Return shirtless while on meth and carrying a live alligator has been taken into custody for 48 hour Psychiatric Evaluation. More details on the Eleven O'clock Eye Witness News
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FIFY
 
Gary Ward said:
Live in Ohio and there is no sales tax on aviation purchases.
Sure was nice not paying sales tax on $59K when I got a new panel in my aero plane from a Ohio based avionics shop.

Ohioians have been going to Indiana and Kentucky for 65 years or more for our booze and cigarettes. The local bar owner I know gets his booze by the pickup truck load from Indiana. No one that I ever heard of has been busted for it.
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A bar is the only one I've ever heard of being caught for it, actually. I guess the state can audit books as part of their liquor sales license and that's how they caught it. Not that I'm condoning what the state did. And I say that after just coming back from Lawrenceburg, IN with a couple bottles this weekend myself, for personal consumption though.
 
sorry to bring up a dying thread but just seen it. We have another issue with the online tax. Most places now collect the tax ,but we are outside city limits. Its 3 % higher in the city than the unincorporated county. We get hit for the extra 3 % because the Zipcode covers both. Someone is getting money they should not be over this. If I check out online and i see they are hitting me for the city rate I cancel the transaction. The only retailer that never put up a fight was Nextel. They said its their job to check it, called me back two days later and said your correct we will change it.
 
Using zip codes to ID political boundaries is just lazy - especially with the GIS data so readily available. There is at least one zip code,on a military reservation, that crosses state lines.
 
Sundancer said:
The "big" retailers like Amazon, Walmart (Sportys) generally do collect. Manufacturers and some specialty online retailers sometimes do not. It's worth checking around to see, if your state's sales tax is high and/or you're shopping a bigger ticket item.
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These retailers have nexus in most states so they have little choice.
 
flyingron said:
These retailers have nexus in most states so they have little choice.
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After Wayfair the threshold for nexus is so low that a lot of the companies not collecting sales tax are probably in the wrong. States have started getting pretty aggressive on this issue. If the resident didn’t pay the use tax, they go after the resident while they fight with the seller for not fulfilling their collection requirement. It’s really back to taking advantage of disparate laws in states to avoid the tax legally at this point. Anyone avoiding it by just buying from some remote seller who doesn’t collect it is playing the audit lottery.
 
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