The forum is now at http://forum.brickset.com. Please update your bookmarks.
Please refrain from posting animated GIFs, memes, joke videos and so on in discussions other than those in the off topic area.

Dismiss this message to confirm your acceptance of this additional forum term of use.
You must be 16 or over to participate in the Brickset Forum. Please read the announcements and rules before you join.

Sales Tax Applied - First Time

piratemania7piratemania7 New EnglandMember Posts: 1,905
Fellow Bricksetters:

Trying to get to the bottom of something that has been puzzling me. Last night I went to make a purchase on [email protected] and I noticed that sales tax had been applied to my order.

Now I live in a state where there is no brick and mortar store, and I have never paid sales tax before on online orders. I have asked at a store previously and been told that snide they had no presence in my state that they didn't have to charge me sales tax.

For a long time that has been the case when I order from amazon.com as well.

So has anyone else noticed this lately? Perhaps federal and/or state laws have changed? Perhaps lego is just catching up?

Comments

  • Farmer_JohnFarmer_John USA - 4,035 Miles from 62 West Wallaby St., Wigan, Lancashire, UKMember Posts: 2,375
    edited April 2014
    In Tennessee, they started the sales tax several months before the store actually opened. Additionally, some states work deals (cajole) with certain companies to collect sales tax on their behalf (Amazon comes to mind). Tennessee went from not having a sales tax to having a sales tax (when the distribution center was in TN) to not having a sales tax (when the distribution center moved to MS) to having a sales tax (when a B&M opened in Nashville).
  • canon03canon03 USAMember Posts: 308
    edited April 2014
    Maybe they will open a BAM store soon in the state? In any event, welcome to the tax paying club.

    Amazon has received more business from me for this very reason.
  • NellyNelly Member Posts: 76
    This was the case for me in Nevada. Used to be no sales tax, but one is opening in Las Vegas soon and all my 'tax savings' have gone to heck.
  • BrickarmorBrickarmor Member Posts: 1,248
    Same here in SC. And I don't think any stores are coming here, rather just closing the net commerce tax-free loophole.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    As far as I know The Marketplace Fairness Act has not been passed, although states can choose to impose tax on online purchases if they wish, even if the entity is not in their state. Some states do, some do not.
  • MommaLaMommaLa Member Posts: 21
    I was coming to ask about this, I have a tower of orthanc in my cart and low and behold sales tax. I'm also in SC.
  • AFFOL_Shellz_BellzAFFOL_Shellz_Bellz Member Posts: 1,263
    California began requiring internet businesses to charge taxes on anything shipped to CA on 1/1/14 if I recall accurately. I don't mind paying taxes as those taxes fund a lot of worthwhile programs.
  • dougtsdougts Oregon, USAMember Posts: 4,112
    ^ and in the case of CA, a whole lot of waste too...
    1265Pitfall69AFFOL_Shellz_BellzDevastatorpharmjod
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    ^I heard that over 51% of the state is on some sort of government program :(
  • jediami65jediami65 United StatesMember Posts: 474
    Same in NJ, Amazon, opted to put a distribution center here as a compromise with the state. Lego store have been here for a while so there has been tax charge in [email protected] orders as long as I have been buying from them
  • klatu003klatu003 Hobbiton, Shire, Middle EarthMember Posts: 711
    @dougts and @Pitfall69
    Since in the USA there is so much divide about politics and so much lying about the facts, do we really want to clutter up our nice Lego forum with the inevitable BS? I know that AFFOL_Shellz_Bellz started it with a positive comment about her contributions in her state. But if I've read between the lines correctly, neither of you live in California and Pitfall is too high on plastic pony pheromones to do math.
  • TheBigLegoskiTheBigLegoski Member Posts: 1,209
    I don't live in the USA, I don't know if I am correct in assuming sales tax is the same thing as VAT (value added tax)? Or is sales tax something else, besides evidently being tax bumping up the price for consumer goods. I have only bought some Lego a couple of times from someone in the USA on bricklink, otherwise I hardly ever buy anything from a company in the USA directly. I am not sure if I (as a foreigner) was charged sales tax for those purchases?
    ps.
    I could not help but LMAO almost ROF when I read what @klatu003‌ wrote: "and Pitfall is too high on plastic pony pheromones to do math". I am still laughing, I am such a sucker sometimes for flame-wars. Bring the polemic on!
    klatu003
  • binaryeyebinaryeye USMember Posts: 1,732
    edited April 2014

    I don't live in the USA, I don't know if I am correct in assuming sales tax is the same thing as VAT (value added tax)? Or is sales tax something else, besides evidently being tax bumping up the price for consumer goods.

    As I understand it, the main difference is that VAT in the UK is included in the advertised price of a good. In the US, sales tax is not included in the advertised price.

    Also, in the US tax rates vary from state to state and from city to city within a state. For example, sales tax is about 9% where I live, so if I were to buy a LEGO set advertised for $99.99, I would pay about $109 when checking out. If I were to buy that set, at the same advertised price, in Oregon, I would pay $100 when checking out because Oregon doesn't have a sales tax.

    Another aspect is that in the US, it may not be required for a business selling goods to collect sales tax from buyers outside states they have a presence in. If I buy something from Amazon, for example, I don't pay sales tax at time of purchase but am expected to track such purchases and pay a "use tax" for them.

    I have only bought some Lego a couple of times from someone in the USA on bricklink, otherwise I hardly ever buy anything from a company in the USA directly. I am not sure if I (as a foreigner) was charged sales tax for those purchases?

    Most likely, you were not charged sales tax.
    Pitfall69TheBigLegoski
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    edited April 2014
    Paying "use" or "sales" tax for online purchases is not enforced, but should be kept track of and paid at the end of the year except states that don't have sales tax. I live in Michigan (Not California, but I have plenty of friends that do :)) Here, they require you to pay sales tax for online purchases. They even have a chart on the Michigan 1040 to "help" you figure out how much sales tax you should pay. Apparently, they used data to detirmine how many purchases people make based on their income.

    Again, they have no way to enforce it. Either you believe you should pay it or you can choose not to.

  • TheBigLegoskiTheBigLegoski Member Posts: 1,209
    edited April 2014
    @binaryeye‌
    Thanks for the info.
    Do all articles in shops in areas where sales tax is imposed have two prices? Like for instace in a Cash and Carry / whole sale store (e.g. Makro here in The Netherlands part of the Metro Group) one price excl. and a price tag incl. tax.

    Here in The Netherlands VAT is 21% (up untill 2013 it had allways been 19%) on everything except food, non-alcoholic beverages (milk, fruitjuices, softdrinks etc.), and books; for those items VAT is 6%.
    Personally I think 21% is outrageous, especially since there are already so many forms and levels of taxation on everything only to have that added on top of everything else makes life so expensive, but alas.
    ps.
    9% makes me think of this game I loved and used to play a lot in the past; Simcity2000.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    edited April 2014
    ^No, there is only one price. If you have a tax ID number, you are exempt from paying sales tax. This, of course, is if you are buying wholesale for items to be sold in your business.

    I buy hair products tax free from a wholesale shop and don't have to pay the tax until the item is sold.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    @klatu003

    "What if I want to muddy up this thread?"
    klatu003TheLoneTensorTheBigLegoski
  • binaryeyebinaryeye USMember Posts: 1,732
    Pitfall69 said:

    ^No, there is only one price. If you have a tax ID number, you are exempt from paying sales tax. This, of course, is if you are buying wholesale for items to be sold in your business.

    Just to clarify a bit: Generally, the only advertised price is the price before sales tax is applied. The cases where this may not be true are things like farmer's markets, craft fairs, etc., where businesses might advertise a price that already includes sales tax (just to make the sale price an even amount, I assume to make it easier to pay with cash).
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    ^ Yes, I didn't have time to edit my post :)
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    Sales tax is a tricky thing here in the US. I don't know how it is in Great Britain or elsewhere, but items like an automobile can be taxed indefinitely. I buy a new car, I pay sales tax. I sell it to someone, they pay sales tax and so on until the car blows up :)
  • oldtodd33oldtodd33 Denver 4800 miles to BillundMember Posts: 2,061
    ^ Don't forget yearly registration fees for the car/truck. When I bought my F-250, I paid sales tax then I got to pay for my tags. Those were $900.
    Pitfall69
  • klatu003klatu003 Hobbiton, Shire, Middle EarthMember Posts: 711
    @Pitfall69 Muddy Waters is awesome. Hauled this album around for close to fifty years until selling it just recently.
    @TheBigLegoski We can't have a flame war involving Pitfall, the plastic pony fumes would ignite and burn a whole in the forum. Besides he knows I'm harmless after biting me in the shark tank.

    image
    Pitfall69TheBigLegoski
  • tamamahmtamamahm Member Posts: 1,855
    As others have said, perhaps a new store.

    We have seen this phenomenon with American Girl stores. Sometimes even before a store is announced, but it is now a 'go', taxes for online sales are collected.
    That would always be my first guess if taxes were suddenly there.
  • MommaLaMommaLa Member Posts: 21
    I would love a store, sadly I live in a capital that is treated like a back water rest stop. So if there was a store it would be 2-4 hours away, Greenville, Charleston, Myrtle Beach, all get stores before the capital of SC. /shrug.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    @klatu003‌ I knew you would like my post :) Sadly, most people don't see the humor.

    @piratemania7 I guess TLG found your state a good choice for a Lego store. Now you won't be known "Mainly" for fishing :)
    piratemania7
  • theLEGOmantheLEGOman UKMember Posts: 1,444
    edited April 2014
    Pitfall69 said:

    Sales tax is a tricky thing here in the US. I don't know how it is in Great Britain or elsewhere, but items like an automobile can be taxed indefinitely. I buy a new car, I pay sales tax. I sell it to someone, they pay sales tax and so on until the car blows up :)

    If a business makes over £77k a year (the amount changes yearly) then they need to be VAT registered.

    When you are the first owner of a (private not company) car you pay 20% VAT (at the moment, has been less in the past) when you buy the car, when you sell it you charge no vat weather to a business or private buyer.

    If the private seller sells, again no VAT, if the company sells I believe they pay VAT on anything over the purchase price they paid for the car.

  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    edited April 2014
    That is why talking about tax is so confusing. The US tax laws are bad enough; throw in other countries and it is madness.

    Go to NYC and buy a hamburger it is $12 USD. I can buy the same size hamburger here for $7.00.
  • theLEGOmantheLEGOman UKMember Posts: 1,444
    Usually stuff in the UK is usually the same in £ as you pay in $.

    Don't get started on Petrol though.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    ^Oh God no. Quick!!! Change the subject or this will go real bad in a hurry.
  • oldtodd33oldtodd33 Denver 4800 miles to BillundMember Posts: 2,061
    ^^ My truck gets started on petrol every time:)
    Pitfall69DanGP
  • jlbbluejlbblue Member Posts: 54
    I have tax applied now and no store in the state. This happened once before and then it was reversed. Can only hope that it is taken away again.
  • Bosstone100Bosstone100 USAMember Posts: 1,317
    Bought something from Amazon for my niece in California (I'm in Florida) and was charged SOME tax. I then placed a second order for the new Less Than Jake CD and was not charged tax.
  • CCCCCC UKMember Posts: 16,083
    Pitfall69 said:



    Go to NYC and buy a hamburger it is $12 USD. I can buy the same size hamburger here for $7.00.

    Does the $7 one include shipping from NYC?
  • legogallegogal USMember Posts: 755
    Y'all are seriously lopsided as in quite a bit ok kilter and very entertaining!

    Amazon announced a few months ago that they would be charging sales tax on just about everything sold through them, so now it is unusual to receive their orders without sales tax. Before ...most of there shipments did not have a sales tax unless the seller had a facility of some sort in the buyer's state. It can still be very complicated, but just assume you will have to pay a sales tax of five to ten per cent.

    This tax is about a third of the VAT paid in the EU, so we are getting off rather lightly. (Let's avoid a discussion of what we get for our taxes as this is not the place for that, okay?)
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    I don't mind paying tax. It saves me from saving all my receipts and paying it at the end of the year.
    SirKevbags
  • dougtsdougts Oregon, USAMember Posts: 4,112
    legogal said:


    This tax is about a third of the VAT paid in the EU, so we are getting off rather lightly.

    (Let's avoid a discussion of what we get for our taxes as this is not the place for that, okay?)

    Hardly reasonable to write that first sentence, and then ask no one to debate you on it with the next sentence...

  • dougtsdougts Oregon, USAMember Posts: 4,112
    edited April 2014
    I wouldn't object to paying taxes at all if their was any semblance of budget or accountability or even serious consideration about where money is being spent. The waste and unnecessary spending is just disgusting. That goes for federal, state, and local, and any government anywhere in the world. Spend our money wisely, and I'm happy to keep sending it in. Spend it on ridiculous pet projects, boondoggles, wasteful and unncessary travel, paid cars/fuel, and unncessary studies and consultative services, and thousands of other things, and yeah, I get kind of annoyed. Note I'm not talking about picking and choosing programs that are political favorites of one side or the other- I'm talking about the kind of waste and abuse that is rampant in every program, even ones that are universally supported.

    My local school district just sent 8 people to China for two weeks. Supposedly to study their education system there. What amounts to mostly a drummed up vacation on the taxpayer dime under the guise that someone they are going to bring back some methods or something to apply to our system. Dubious at best. And all this while schools are constantly saying they don't have enough money.
  • beegeedeebeegeedee Galway, IrelandMember Posts: 380
    edited April 2014
    Ach, you're all complaining over nothing. I got a bonus at Christmas and paid 53% in taxes on the bonus. If I then took the the remaining amount and spent it on Lego I'd be charged another 23% in tax as well. I don't know what exactly the final percentage in tax is, probably the 65% mark but if you paid 5-7% sales tax then so what...

    As for gas/petrol, there's a thing on BBC website that said US pays around 69c (Euro) a litre on petrol on average...we pay 1.53EUR or thereabouts at the moment. I liked Venezuela's price - 7c...I want that. Would cost me 2 Euro to fill my car.

    Just to be clear, I don't earn that much - a middle of the road income which is supporting a family of 4.

    Then again, I have a friend in the states who has a morgtage that is about 1/4 of mine and is actually paying out about the same as I am. It sort of all balances out in the end
  • piratemania7piratemania7 New EnglandMember Posts: 1,905
    I am now fully engrossed in researching whether or not a B&M is coming to my state. Not sure if the market would be a feasible one for them to really make a profit in, but logistics for many here in Northern New England would make it quite popular I am sure.

    I'll admit, when I first saw the sales tax applied I was at the same time mad this was happening and excited about what prospects might follow.
  • oldtodd33oldtodd33 Denver 4800 miles to BillundMember Posts: 2,061
    @legogal I checked my Amazon order from 2 days ago, 115.00 and zero tax. Am wondering if you have an Amazon shipping warehouse in your state.
  • timinchicagotiminchicago USAMember Posts: 239
    Just placed an order this morning for an Akro-Mils organizer at Amazon and no sales tax was added.
  • cody6268cody6268 Member Posts: 229
    edited April 2014
    I normally complain about paying sales tax, especially when my county decided to start charging an additional 5% sales tax on restaurants in addition to the 5% the state of Virginia is already charging.

    I've had to pay the 5% sales tax on stuff I've ordered through Amazon, but none on what I've ordered through the third parties.

    But at least I don't live in Europe, where the federal sales tax is 20 to 30% or more.
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    I don't mind the discussions about how tax is different from county to country. Any tax talk that deviates too far from that and it gets people's tempers flared...then, it has nothing to do about the OT.

    With that said, I love a spirited debate, but not in this thread.

    As I said before, I pay my "use" and "sales" tax at the end of the year. I don't mind paying the tax with my purchases. It saves me a lot of headaches at the end of the year :)

  • AleyditaAleydita BelgiumMember Posts: 637
    Tax is out of control in the UK. It has been used as a political football for so long, and the system is now so complicated that the cost of running HM Revenue & Customs is approximately £5bn annually. That's about £90 per head just to run the system. Millions of people don't even pay £90 in tax in any given year. It's sheer madness. Admittedly, some of the budget is spent on customs control and some is spent on administering benefits, but most is spent on tax collection.

    The thing is, those who don't earn very much don't pay anything. That's good. But those who earn a fortune don't pay much either. There are so many exploited loopholes they've recently had to introduce a general anti-avoidance rule. The problem is that government after government brings in big accountancy firms such as PWC and KPMG to advise on new tax legislation. The same firms then go out and sell packages that advise individuals and companies how to get around the very same legislation. It's perverse.

    Most people in the UK aren't concerned about tax, it's simply deducted from their wages or paid at source when they purchase something. But if you're anything other than a basic employee, or if you have investments or assets to sell, the tax system will cause you headaches like you wouldn't believe. An example. The law says that everyone's allowed to earn a certain amount of income before you begin to pay tax. Pensioners are allowed a little more, but the rules that govern how many of these extra allowances any one individual is entitled to is so complicated that it can only be determined by a convoluted set of calculations. This means most pensioners have to complete tax returns. When I worked at the tax office I often fielded calls from pensioners who were in tears because they found the forms next to impossible to deal with. The allowances aren't worth enough to justify paying an accountant to do it for them. These allowances are gradually being removed, and my guess is that a majority of pensioners will be happy about that!

  • oldtodd33oldtodd33 Denver 4800 miles to BillundMember Posts: 2,061
    This sounds a lot like the American way of taxation. The way of doing it is different but, in the end it's all the same. We have more in common than we think!
    Pitfall69
  • bluedragonbluedragon United StatesMember Posts: 453
    The big difference is that in the UK you don't have to file a tax return by default, if your income is mainly from wages, whereas in the US everyone does.
  • piratemania7piratemania7 New EnglandMember Posts: 1,905
    Let's focus on what's important here ladies and gentlemen. I. Now. Pay. Tax. : (
    Pitfall69MommaLa
  • MommaLaMommaLa Member Posts: 21
    piratemania7‌ we can drown our sorrow in good cheese and wine, if you don't drink soda.
    I ordered my Tower of Orthanc complete with 16 in tax.
    piratemania7
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,446
    I will play the violin :)
Sign In or Register to comment.
Recent discussions Categories Privacy Policy