|
|
06-22-2010, 02:05 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
|
Clever Colorado
I order frequently from amazon.com and of course enjoy not paying Colorado sales tax. The party may be over -- I notice that shipping notices on my orders now contain a link that gets me the following: We are not obligated to, and do not, collect Colorado sales tax. Your purchase is subject to Colorado sales tax unless it is specifically exempt from taxation. The purchase is not exempt merely because it is made over the Internet or by other remote means. The State of Colorado requires that the taxpayer file a sales/use tax return at the end of the year reporting all of the purchases that were not taxed and pay tax on those purchases. Retailers that do not collect Colorado sales tax are obligated to provide purchasers an end-of-year summary of purchases in order to assist purchasers in filing their tax report. Details of how to file this return may be found at the Colorado Department of Revenue's website, www.taxcolorado.com. Retailers that do not collect Colorado sales tax are required by law to provide the Colorado Department of Revenue with a report of the total amount of all of your purchases at the end of the year above certain thresholds set by the Colorado Department of Revenue.
I have a feeling Colorado is going to get me, come year end.
Coach
__________________
"Comprehensive health insurance is an idea whose time has come in America." President Richard M. Nixon, February 6, 1974
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-22-2010, 04:13 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
|
I've been waiting for this shoe to drop. In Michigan they ask you to rat yourself out on the yearly income tax form.........but I've pleaded the 5th.........
|
|
|
06-22-2010, 04:19 PM
|
#3
|
Recycles dryer sheets
Join Date: Feb 2007
Posts: 116
|
Connecticut has threatened this for years with the use tax. You must fill it out on the year end income tax return. If it's zero you must put in 0, you just can't skip it.
|
|
|
06-22-2010, 04:20 PM
|
#4
|
Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,199
|
Ohio does the same. My excuse is that many counties add an additional percentage to the state sales tax rate, but there is no way to determine the correct amount in this situation. In terms of Amazon, they have no physical presence in Ohio, so I don't see it as applicable.
__________________
I thought growing old would take longer.
|
|
|
06-22-2010, 04:20 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 6,256
|
I have been wondering for a couple years now: If those companies that do add tax to the purchase actually turn it back to Colorado. I, generally, abort the purchase when a Tax shows up but this isn't always feasible (Adobe, for instance). How would you check to see if they turn it over to the State without putting yourself in harms way?
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
|
|
|
06-22-2010, 08:13 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,821
|
Quote:
Originally Posted by braumeister
Ohio does the same. My excuse is that many counties add an additional percentage to the state sales tax rate, but there is no way to determine the correct amount in this situation. In terms of Amazon, they have no physical presence in Ohio, so I don't see it as applicable.
|
That is exactly the case where it is applicable. If they have brick mortar presence, they will add it to your bill. You don't have to add county tax, this is the state that is asking, so just state tax. County will be asking next year .
AFAIAC, if the state is actually has legal claim to the tax, then they need to do the same as when I buy at a brick&mortar store - add it at the amount due at the cash register when I check out. Its a bit of a burden for the average Joe to collect every receipt from every on-line purchase made to see if he was required to, but did not already pay state tax, add them up, and calculate the amount due. If they want the money, collect it at the transaction point.
What would Timmy do?
-ERD50
|
|
|
06-22-2010, 08:16 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,821
|
Quote:
Originally Posted by RonBoyd
I have been wondering for a couple years now: If those companies that do add tax to the purchase actually turn it back to Colorado.
|
The only ones adding it now, as far as I know, are the ones with B&M presence in the state. As I understand it, it's pretty risky to not turn it over, but I would have no idea how to track it.
-ERD50
|
|
|
06-22-2010, 08:30 PM
|
#8
|
Full time employment: Posting here.
Join Date: Apr 2010
Posts: 853
|
i don't understand how colorado can require someone who does not have a physical presence in their state to file paperwork. we own a small business...and if they wanted us to file paperwork in every state we ship something to, i'd tell them to get lost. what are they going to do? send me letters? it's the other state's problem, not mine.
isn't there a law or something somewhere who says who gets to control interstate commerce?
|
|
|
06-22-2010, 09:32 PM
|
#10
|
Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
|
Lawsuits have already started over the law, which is meant to put some teeth into the requirement to pay a use tax on what you purchase online without payment of a sales tax.
Details here: Colorado Tells Online Retailers “It’s Tax Time” « E-commerce News
Whether an online business has to collect a sales tax depends on whether that business has a "nexus" with the state where the purchaser is located, such as a retail store or offices. IIRC Congress could decide to allow states to require these businesses to collect sales tax but it has not.
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
|
|
|
06-22-2010, 10:17 PM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
|
It would be wrong and illegal to fail to pay taxes due.
I wonder if Amazon accepts money orders as payment? I wonder if they would ship your purchase to a PO box, to "I.M Customer or another identifier you choose? I wonder if several people chipped in together to get such a PO box, how it could be determined who that shipment was for?
But, it would be a lot of trouble to cheat the system, and it would be WRONG.
|
|
|
06-22-2010, 10:30 PM
|
#12
|
gone traveling
Join Date: May 2008
Posts: 3,864
|
Quote:
Originally Posted by Coach
...above certain thresholds set by the Colorado Department of Revenue.
|
Which are? Seems like an important bit of information to avoid running afoul of the latest revenue-grubbing tax scheme law.
|
|
|
06-23-2010, 09:39 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
|
Alaska, New Hampshire, Delaware, Montana, and Oregon have no state sales taxes. It seems you could set up a mail forwarding business in one of those states. Amazon (and other online retailers) wouldn't charge sales tax on purchases shipped there. You'd just charge people a small handling charge in addition to the actual shipping costs to re-mail packages to them. I don't think there's anything illegal about forwarding items to people in this fashion. The ultimate recipient would still be obligated to pay the sales taxes, but it would be impractical to track them down without the "sold to" records from the retailer.
|
|
|
06-23-2010, 09:55 AM
|
#14
|
Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
|
Quote:
Originally Posted by samclem
Alaska, New Hampshire, Delaware, Montana, and Oregon have no state sales taxes. It seems you could set up a mail forwarding business in one of those states. Amazon (and other online retailers) wouldn't charge sales tax on purchases shipped there. You'd just charge people a small handling charge in addition to the actual shipping costs to re-mail packages to them. I don't think there's anything illegal about forwarding items to people in this fashion. The ultimate recipient would still be obligated to pay the sales taxes, but it would be impractical to track them down without the "sold to" records from the retailer.
|
But if you are audited there likely will be a paper trail to Amazon evidencing your payments to them.
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
|
|
|
06-23-2010, 10:08 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 6,256
|
Quote:
Originally Posted by samclem
You'd just charge people a small handling charge in addition to the actual shipping costs to re-mail packages to them.
|
Which would end up being about the same as the Tax. Doesn't seem like a "Money Maker" to me... and an incredible amount of labor involved.
__________________
"It's tough to make predictions, especially when it involves the future." ~Attributed to many
"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
"Those who have knowledge, don't predict. Those who predict, don't have knowledge."~ Lau tzu
|
|
|
06-23-2010, 10:15 AM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
|
Quote:
Originally Posted by RonBoyd
Which would end up being about the same as the Tax. Doesn't seem like a "Money Maker" to me... and an incredible amount of labor involved.
|
I think it would depend on the item. Lots of people buy jewelry and electronics over the internet. Several states have sales tax rates of 7% and higher, and they are far more likely to up in the future than down.
|
|
|
06-23-2010, 10:22 AM
|
#17
|
Full time employment: Posting here.
Join Date: Apr 2010
Posts: 853
|
Quote:
Originally Posted by samclem
I think it would depend on the item. Lots of people buy jewelry and electronics over the internet. Several states have sales tax rates of 7% and higher, and they are far more likely to up in the future than down.
|
your solution presents many problems. the biggest being that the sales tax liability for purchases made over the internet or mail ordered are the purchaser's responsibility. you aren't saving taxes, you are technically deferring it. so i could ship that bad boy all over the country and the world even, regardless of how many different tax free places it went to, i would still owe sales tax on it in my home state.
my state has sales tax and i could easily setup a business to do what you say and i would never have to pay any sales tax.
when it comes, it will be some kind of national tax.
|
|
|
06-23-2010, 10:29 AM
|
#18
|
Moderator Emeritus
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
|
Quote:
Originally Posted by ronocnikral
your solution presents many problems. the biggest being that the sales tax liability for purchases made over the internet or mail ordered are the purchaser's responsibility. you aren't saving taxes, you are technically deferring it. so i could ship that bad boy all over the country and the world even, regardless of how many different tax free places it went to, i would still owe sales tax on it in my home state.
|
He understands that. He is just speculating a ways not to get caught in the trap that Colorado has set.
I thought about putting up a poll on whether people pay sales/use tax on online purchases but why have people admit they are tax cheats?
__________________
.
No more lawyer stuff, no more political stuff, so no more CYA
|
|
|
06-23-2010, 10:34 AM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
|
Quote:
Originally Posted by ronocnikral
you aren't saving taxes, you are technically deferring it.
|
No, I'm proposing a way that the law might be successfully broken. Amazon collects no taxes and (presumably) files no paperwork with any taxing entity when it ships a $500 item to Bill Smith in Delaware (to a PO box at a forwarding company). The forwarding company re-ships the package to Bill Smith at his home in California (sales tax rate= 8.25%). Mr Smith still officially owes California $41.25, but how are they going to know about this purchase without the information provided by the seller?
Martha has proposed that they'd find out if they audit your record of payments made via credit cards, etc. I just never thought they'd do that.
Next stop: Buy a gift card and use that for payment.
|
|
|
06-23-2010, 10:41 AM
|
#20
|
Full time employment: Posting here.
Join Date: Apr 2010
Posts: 853
|
Quote:
Originally Posted by samclem
but how are they going to know about this purchase without the information provided by the seller?
|
exactly. which is why we wouldn't your business.
i wish an audit on no one. but it is an eye-opening experience...
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|