Buying appliances online, pros/cons

[Addie]

Unfortunately for those folks who shop the internet in order to avoid their state sales tax, Amazon has been striking deals with individual states for Amazon to start collecting the sales tax. So I found Jet and buy all my taxable items from there. No sales tax, no delivery fee. Win/Win for me. Sorry Massachusetts. Gee, I hope they don't find Jet. I do go to Amazon for clothing items. No sales tax and I have Prime. No delivery fee for most items.

 

[cinisajoy]

Unfortunately for those folks who shop the internet in order to avoid their state sales tax, Amazon has been striking deals with individual states for Amazon to start collecting the sales tax. So I found Jet and buy all my taxable items from there. No sales tax, no delivery fee. Win/Win for me. Sorry Massachusetts. Gee, I hope they don't find Jet. I do go to Amazon for clothing items. No sales tax and I have Prime. No delivery fee for most items.

Addie,
I live in Texas. If the product comes out of a Texas Amazon warehouse, I pay sales tax. If it comes from another state, no sales tax.
Just thought I would clarify.

 

[Addie]

Addie,
I live in Texas. If the product comes out of a Texas Amazon warehouse, I pay sales tax. If it comes from another state, no sales tax.
Just thought I would clarify.

Texas then is one of those states that Amazon has an agreement with. State by state Amazon is making inroads. Which means more paperwork for Amazon.

 

[Andy M.]

Unfortunately for those folks who shop the internet in order to avoid their state sales tax, Amazon has been striking deals with individual states for Amazon to start collecting the sales tax...

Actually, I think it's the other way around. States have been pressuring Amazon to collect and pay sales taxes to them. MA is one of those states.

In general terms, businesses that have both a physical and internet presence are required to collect sales taxes in states where they have "brick and mortar" stores.

 

[jd_1138]

Even if the online seller doesn't collect sales tax, the law requires you to pay the sales tax on your state income taxes when you file them. Probably only 1/4th of the people actually do. I paid $200 extra in sales tax on my state income taxes this past year.

 

[cinisajoy]

Even if the online seller doesn't collect sales tax, the law requires you to pay the sales tax on your state income taxes when you file them. Probably only 1/4th of the people actually do. I paid $200 extra in sales tax on my state income taxes this past year.

Not all states have an income tax. I was under the impression that an income tax was based on income not anything you bought.

 

[jd_1138]

If your local store will meet or beat the internet price, then it would be silly to buy on the internet.
I have yet to see a brick and mortar store be able to compete with internet stores. I'm certain some may be able to, but I have not personally seen it.
I wish our local guy could compete, but he can't.
For me to buy locally, it would have to be out of civil loyalty. Not price.
I would prefer to buy locally. But they never deliver for free. Ever.
Some places get their mark up on delivery charges.
I paid $9 delivery fee once online for a $3 part.

Well to me, price is just one part of the equation. I like to keep our dollars local, because the appliance store is locally owned with local employees including the delivery people. I guess I am old fashioned?

As far as price, I think the last appliance we bought was $75 more at the local appliance store but the owner split the difference so I only paid $37 more than the online price. Shipping was $50 I think, so sure I paid an extra $87, but if there's ever a problem it's easier dealing with an established local dealer.

A few years ago, our fridge died, and it was still under warranty. The local dealer brought us out another -- brand new, free of charge.

My mother bought 4 new appliances from the local mom and pop dealer, and their delivery fee was $50 for all 4 appliances so not a huge deal.

 

[Andy M.]

Not all states have an income tax. I was under the impression that an income tax was based on income not anything you bought.

States that have a sales tax in addition to an income tax require that you report major items purchased without a sales tax. Then the lost sales tax is recovered on your income tax return.

 

[cinisajoy]

States that have a sales tax in addition to an income tax require that you report major items purchased without a sales tax. Then the lost sales tax is recovered on your income tax return.

Oh that makes more sense. I thought the guy meant rather than paying sales tax at the time of purchase, they had to keep receipts of everything purchased and pay at the beginning of the next year.
Not just for major online purchases.

 

[Addie]

Not all states have an income tax. I was under the impression that an income tax was based on income not anything you bought.

There are five states that do not have an income tax. For those with income tax, the rest of the states also have a sales tax. Some of those states tax everything and you pay the sales tax at the time of purchase. It is put upon the business to collect that tax at the time of sale. Some items have a double whammy tax on them. Sales tax as well as what is often called a "Use Tax." Connecticut is one of those states. That tax is usually put on luxury items like yacht-size boats, airplanes, etc. In sum states if the item is something you use in your profession, like tools for a carpenter, medical instruments for a doctor with a practicing office, specialized clothing, such as a helmet for the construction worker, white coat or jacket for a doctor, a hood for protection for a welder, etc. do not pay that use tax.

In Massachusetts there presently is no tax on medical expenses such as a hospital stay, tests, certain medical supplies etc. Presently there is a movement on Beacon Hill to remove women's cost tax for their monthly supplies. I think New York City and the State of California have some of the highest taxes in the country.

In Massachusetts we have taxes on hotel rooms, prepared foods to go such as FF, sandwiches, meals eaten in a restaurant, and entertainment. Those are separate from the income tax or sales tax. They don't call us Taxachusetts for nothing.

 

[Roll_Bones]

Even if the online seller doesn't collect sales tax, the law requires you to pay the sales tax on your state income taxes when you file them. Probably only 1/4th of the people actually do. I paid $200 extra in sales tax on my state income taxes this past year.

I get a statement from Amazon every year reminding me of the purchases and the suggested amount tax statement. I tried to find a copy in my files but I must have tossed it.
I do use it as it has little bearing on taxes owed. But in SC, Amazon does report it if I am correct?

Not all states have an income tax. I was under the impression that an income tax was based on income not anything you bought.

What does income tax have to do with sales tax?

Well to me, price is just one part of the equation. I like to keep our dollars local, because the appliance store is locally owned with local employees including the delivery people. I guess I am old fashioned?

As far as price, I think the last appliance we bought was $75 more at the local appliance store but the owner split the difference so I only paid $37 more than the online price. Shipping was $50 I think, so sure I paid an extra $87, but if there's ever a problem it's easier dealing with an established local dealer.

A few years ago, our fridge died, and it was still under warranty. The local dealer brought us out another -- brand new, free of charge.

My mother bought 4 new appliances from the local mom and pop dealer, and their delivery fee was $50 for all 4 appliances so not a huge deal.

I would prefer to buy everything local. Like I said in my previous post. I'm quite thrifty and the ease of online purchases make it even more attractive.
I bought all my Christmas gifts online last year. Its just mush easier. I hate shopping anyway.

 

[tenspeed]

If a business has nexus in a state, which is generally defined as sufficient business presence, then it is obligated to collect sales tax. This will include warehouses, sales agents, service operations, etc. In Amazon's case it is a distribution facility. As states are losing sales tax revenue to internet retailers, they are becoming more aggressive in collecting lost revenue. As Amazon represents huge amounts of taxes, they are a target. The company I used to work for was a tiny fraction of the size of Amazon, but we were periodically audited for sales tax compliance.

Sales tax is an unbelievably complicated patchwork of regulations. It's not just by state, but can also include cities, counties, and regions. It's so complicated that you cannot accurately collect by ZIP code in some states. Parts of Texas and California come to mind.

 

[cinisajoy]

I get a statement from Amazon every year reminding me of the purchases and the suggested amount tax statement. I tried to find a copy in my files but I must have tossed it.
I do use it as it has little bearing on taxes owed. But in SC, Amazon does report it if I am correct?



What does income tax have to do with sales tax?



I would prefer to buy everything local. Like I said in my previous post. I'm quite thrifty and the ease of online purchases make it even more attractive.
I bought all my Christmas gifts online last year. Its just mush easier. I hate shopping anyway.

The poster above me had said he paid $200 in sales taxes on his state income tax.
That is what one had to do with the other.

I have never gotten a statement from Amazon but then I live in a state with no state income taxes.
Oh and I bet one state over is hurting a wee bit on taxes.
IIRC, when you work in a state that has an income tax that state can withhold the taxes even if you are a resident of another state. Now come tax time, you can file a form to get that money back but the amount usually isn't worth the trouble. So the state profits.
I know our city sure got used to the sales tax it collected while the rig count was up.

 

[GotGarlic]

The poster above me had said he paid $200 in sales taxes on his state income tax.
That is what one had to do with the other.

I have never gotten a statement from Amazon but then I live in a state with no state income taxes.

I haven't, either, but my state does have an income tax. I think paying the sales tax with the income tax return is just a convenient way for the state to collect it. It has nothing to do with whether your state has an income tax.