Is there sales tax with educational discount

[stuuke]

My wife is a teacher and is going to purchase a powerbook through the apple store. Is there sales tax on this purchase? I get to the place order page and it doesn't list anything.

[joseph_68]

Hi,

I have purchased machines throught the Apple Store for Education. Once the machine is ordered, the estimated tax is added to the total.

[Le Big Mac]

My wife is a teacher and is going to purchase a powerbook through the apple store. Is there sales tax on this purchase? I get to the place order page and it doesn't list anything.

The sales tax rate of your state will be applied. As the previous poster notes, they don't add it right away, but it will be on your receipt.

The only way to avoid applicable sales tax is to have some tax-exempt status that you would send (or whatever) to apple.

[thrillz3]

The sales tax rate of your state will be applied. As the previous poster notes, they don't add it right away, but it will be on your receipt.

The only way to avoid applicable sales tax is to have some tax-exempt status that you would send (or whatever) to apple.

Wait, let me get this straight- I live in NJ, mom is a teacher here. Even if we order it online, we'll get taxed 6% (NJ tax)? But not if we order it through the regular online store?

[thehuncamunca]

you will get tax both by ordering thru the apple web site and thru the apple stores in NJ no way to avoid it

would be nice if apple opened a store in deleware could just pop down to DC for the weekend and then pick up a new computer and save a hundred or so on the way back (no tax in deleware)

Wait, let me get this straight- I live in NJ, mom is a teacher here. Even if we order it online, we'll get taxed 6% (NJ tax)? But not if we order it through the regular online store?

[thrillz3]

I guess we might as well get it at the store in Menlo Mall and check for dead pixels before we buy.

[stuuke]

I don't understand why you have to submit the order before you see the final price. I get shipping charges and the price of the computer and submit my credit card before they tack on a another couple hundred. I say BS.

[Chip NoVaMac]

I guess we might as well get it at the store in Menlo Mall and check for dead pixels before we buy.

Just a word. You can't get a BTO at the retail store. Also my experience was that you really didn't have the option to open the box and check it be fore purchase when I bought mine.

[Elbeano]

I talked to some guy in the apple store in PA about this. If you have an apple store in your state, you are charged tax, regardless of whether or not you order online. If you live in a state with no apple store, and you order online, you do not have to pay sales tax. I'm not certain what happens if you go to another state with either lower or no sales tax. They receive enough information about where you live, so they may still apply your home sales tax.

[DGFan]

I talked to some guy in the apple store in PA about this. If you have an apple store in your state, you are charged tax, regardless of whether or not you order online. If you live in a state with no apple store, and you order online, you do not have to pay sales tax. I'm not certain what happens if you go to another state with either lower or no sales tax. They receive enough information about where you live, so they may still apply your home sales tax.

Companies are only required to charge sales tax if they have a physical presence (store, distribution center, etc..) in your state (the one they are shipping to). Some companies (I believe Amazon may have agreed to do this - not sure) are now voluntarily collecting sales tax for all states (assuming they have one) regardless of physical presence.

[stuuke]

Don't you think they should at least make you aware of the exact situation for your state on the website?

[Billicus]

My assumption was that Apple had a presence in each state in one form or another. I could be wrong... :confused:

[Chip NoVaMac]

Companies are only required to charge sales tax if they have a physical presence (store, distribution center, etc..) in your state (the one they are shipping to). Some companies (I believe Amazon may have agreed to do this - not sure) are now voluntarily collecting sales tax for all states (assuming they have one) regardless of physical presence.

It is the thorny issue of "NEXIS, meaning that if you have a viable businesses enitity, then th compay has the obiligation to collect the taxes.

Th only way to avoid taxes on educational purchases if your state allows for such purchases to be tax exempt. The only recourse for those states that collect sales tax when they should not is to file a a claim for the excess withholding.

[solvs]

Don't you think they should at least make you aware of the exact situation for your state on the website?

That's why it says Subtotal Please note that your subtotal does not include sales tax or rebates. Several times, in fact.

Most places aren't going to give you the exact amount until you're actually at checkout. Even then it can change.

[stuuke]

I've never dealt with any place that didn't give you a total until you had already made the purchase. Imagine walking into a store, taking an item to the counter and then you have to hand them a wad of cash before you can find out how much it will cost. Sorry if you disagree but it seems strange to me.

[Chip NoVaMac]

Keep in mind one should be aware of the tax situation when they order.

Not to mention the same people that complain about the sale tax also complain about the lack of state services....

[IndyGopher]

I've never dealt with any place that didn't give you a total until you had already made the purchase. Imagine walking into a store, taking an item to the counter and then you have to hand them a wad of cash before you can find out how much it will cost. Sorry if you disagree but it seems strange to me.
And you still HAVEN'T dealt with any place that didn't give you a total before you made a purchase. The purchase happens when you submit the order, and you already have the total at that point. You are implying that typing in your credit card number means you made the purchase, and that is not the case, any more than taking your clothes off in front of some one means you had sex. You are in no way obligated to make the purchase without knowing the total.

[jxyama]

I've never dealt with any place that didn't give you a total until you had already made the purchase. Imagine walking into a store, taking an item to the counter and then you have to hand them a wad of cash before you can find out how much it will cost. Sorry if you disagree but it seems strange to me.

i agree - a lot of online vendors do give estimated total, inclusive of shipping and taxes before you have to submit the credit card number.

apple does state that the subtotal doesn't include taxes, etc., but if they know the amount, why not display it to begin with? (typing in credit card number doesn't add any information as to what your tax should be... so it's not like apple can't figure out what the estimated tax will be before that.)

it's a bit of an annoyance, that's all. i don't think they are trying to be deceptive or anything (i mean, we all know what the tax rate is in our home state, etc.) but it's still a bit strange.

[tamara6]

I live in Arkansas (9.25% sales tax), but I bought my powerbook in Virginia (4.5% sales tax) at an Apple Store. I got the EDU discount (I had to show my Arkansas faculty card to prove I deserve it), but I only had to pay VA tax, since I was buying it there. It worked out to something like an $80 savings.

In Arkansas I usually forgo the EDU discount because once they add on tax it costs more than paying full price (and getting exta perks like free ram or a printer) from someplace like MacMall. I guess the EDU discount really only works for people in states with low sales tax rates.

Frankly, I'm not sure how Apple does any business at all, since (for non-EDU purchases) they charge the same as all the other vendors, but they also charge tax. MacMall and MacZone and places like that often throw in stuff for "free" and don't charge tax, but may charge shipping. If you are not buying BTO, why buy from Apple themselves? I don't get it.

[jxyama]

Frankly, I'm not sure how Apple does any business at all, since (for non-EDU purchases) they charge the same as all the other vendors, but they also charge tax. MacMall and MacZone and places like that often throw in stuff for "free" and don't charge tax, but may charge shipping. If you are not buying BTO, why buy from Apple themselves? I don't get it.

i don't think apple has much choice. it would be far more damaging for them to forgo their nationwide presence in order to avoid collecting sales taxes from anywhere but California.

[goodwill]

2 things that are certain:

Taxes and Death. Not Death and Taxes, because Taxes happen more often than death.

I got bliztzed with the final price of my powerbook because of taxes. They're inescapable. No matter what you are going to be taxed unless you are exempt for some annointed reason. Even on my ipod.......taxed. This post in the future will probably be..........taxed. Not to sound bitter, but to be bitter, I like how my tax money went to buy weapons for Osama Bin Laden or even better, the ex-mayor of Houston's personal chef that was paid $40,000 dollar a year with tax payers money. I would bet apple wouldn't have a problem not taxing the consumer if they didnt have to. Their prices are elite as is. I just think you get what you pay for. And with the high demand for apple products, thats not going to dip anytime soon. Take the Record Labels desire for a hike in music prices, its because apple offers a service that is huge like a plague. Why not exploit the consumers dollar. Whats great is, we're even taxed on iTunes music. ha

[jxyama]

2 things that are certain:

Taxes and Death. Not Death and Taxes, because Taxes happen more often than death.

I got bliztzed with the final price of my powerbook because of taxes. They're inescapable. No matter what you are going to be taxed unless you are exempt for some annointed reason. Even on my ipod.......taxed. This post in the future will probably be..........taxed. Not to sound bitter, but to be bitter, I like how my tax money went to buy weapons for Osama Bin Laden or even better, the ex-mayor of Houston's personal chef that was paid $40,000 dollar a year with tax payers money. I would bet apple wouldn't have a problem not taxing the consumer if they didnt have to. Their prices are elite as is. I just think you get what you pay for. And with the high demand for apple products, thats not going to dip anytime soon. Take the Record Labels desire for a hike in music prices, its because apple offers a service that is huge like a plague. Why not exploit the consumers dollar. Whats great is, we're even taxed on iTunes music. ha

there's a simple solution to all that ranting... just like practically everywhere else in the world, we should require prices to include taxes. plain and simple.

[Chip NoVaMac]

there's a simple solution to all that ranting... just like practically everywhere else in the world, we should require prices to include taxes. plain and simple.

Or better yet get involved in the political process.

Complain about taxes all you want. Unless you make your voice heard both in the halls and in the ballot box, don't sniffle here.

[Kwyjibo]

there should be a sticky thread that outlines whats taxed and not, and how there is no way to get an EDu discount without paying sales tax.

[jxyama]

there should be a sticky thread that outlines whats taxed and not, and how there is no way to get an EDu discount without paying sales tax.

not quite... there's no way to get apple edu. discount without paying taxes. some resellers have their own edu. discounts...

[papersushi]

I am so tired of seeing same tax question every day. Someone need to put a post on the top of this form about Tax policy! One more time!

No matter how do you order your computer through Apple, online, local store, phone etc. No matter what discount you get, such as educational individual purchase, You have to pay the local sales tax of the shipping address. except for 5 states that have no sales tax such as Oregon, Alaska etc.

If you are buying for a business and your business is tax exampt, you have to submit tax exempt certificate to avoid the tax.

There is no such a law as "if order online, there is no sales tax", "Apple has no retail store in my state, so no sales tax" Apple has physcial presence in all 50 states, so they are obligated to collect local sales tax.

End of the story!

[jxyama]

No matter how do you order your computer through Apple, online, local store, phone etc. No matter what discount you get, such as educational individual purchase, You have to pay the local sales tax of the shipping address. except for 5 states that have no sales tax such as Oregon, Alaska etc.

[snip]

There is no such a law as "if order online, there is no sales tax", "Apple has no retail store in my state, so no sales tax" Apple has physcial presence in all 50 states, so they are obligated to collect local sales tax.

End of the story!

not quite... there are some states with "use tax." Michigan is one of them and up to this point, it seems quite voluntary. i am not sure what the full legal implications of interstate taxation is. i read somewhere, probably not 100% reliable, that interstate taxation is not permitted in the U.S. but if your tax state doesn't have "use tax," then you do not pay sales tax on purchases made outside of your state.

if i drove from ann arbor, MI to toledo, OH to purchase something, michigan does not see the sales tax. buying online from a vendor with no in-state presence is no different, except that no state sees the sales tax.

apple is obligated to collect local taxes, no doubt, because of nationwide presence. but buyers having to pay sales tax on online purchases made out of state is still being debated, i believe...

anyone here a tax lawyer?

[papersushi]

You can debate this for years. And here is the policy through Apple. If you want to have a law suit or debate agaist Apple to win your $12.95 tax back. Good luck! I am sure Apple has a team of tax lawers and I am sure its not like Apple is making money from charging you sales tax.

[jxyama]

You can debate this for years. And here is the policy through Apple. If you want to have a law suit or debate agaist Apple to win your $12.95 tax back. Good luck! I am sure Apple has a team of tax lawers and I am sure its not like Apple is making money from charging you sales tax.

i'm not disputing that apple should not collect the appropriate state taxes. that's not what i said at all.

what i said was that it's debatable whether or not you owe sales tax if you purchase a Mac over the internet from a vendor with no in-state presence. (esp. if your state has no "use tax" provision i mentioned.)

anyway, your post before the last was a bit hard to read. so i take back my "not quite" part if you were offended or something. i'm not disputing your point, afterall.

[papersushi]

Apple has in-state presence in EVERY single state! Either through retail store, or local regional education, government sales office.

[tamara6]

not quite... there's no way to get apple edu. discount without paying taxes. some resellers have their own edu. discounts...

EDU discounts on Apple products from resellers? Who? I've been able to get EDU discounts on software from resellers, but none of the 4 or 5 that I've contacted would give me a discount on Apple hardware.

[jxyama]

EDU discounts on Apple products from resellers? Who? I've been able to get EDU discounts on software from resellers, but none of the 4 or 5 that I've contacted would give me a discount on Apple hardware.

i got $50 off my PB from J&R. i also heard that if i went to a compusa a bit far out, they'd give me an edu. discount. (i was told i cannot get one from the local one because it's mostly up to each store's manager to decide whether or not to offer edu. discount.)

papersushi: i'm talking about non-Apple Mac resellers that do not have presence in every state.

[DGFan]

I am so tired of seeing same tax question every day. Someone need to put a post on the top of this form about Tax policy! One more time!

No matter how do you order your computer through Apple, online, local store, phone etc. No matter what discount you get, such as educational individual purchase, You have to pay the local sales tax of the shipping address. except for 5 states that have no sales tax such as Oregon, Alaska etc.

If you are buying for a business and your business is tax exampt, you have to submit tax exempt certificate to avoid the tax.

There is no such a law as "if order online, there is no sales tax", "Apple has no retail store in my state, so no sales tax" Apple has physcial presence in all 50 states, so they are obligated to collect local sales tax.

End of the story!

The law in question is the Constitution of the United States which forbids states from regulating interstate commerce. If a company does not have a physical presence in the state they cannot be forced to collect sales tax for that state. This has been an issue for decades with respect to mail order purchases. It is no different for internet purchases.

That's the law.

Now, as someone else already responded, some states like Michigan try to get around the restriction by including Use Tax as part of the income tax form. There are many who consider this tax unconstitutional. I do not know if it has been challenged in federal court.

[jxyama]

Next time you try to "correct" people, make sure your statements are clear and actually correct.

actually, i think papersushi's posts are correct for the domain he's talking about. the problem is, it's very easy to mis-read his original post. the problem is this sentence, i think...


No matter how do you order your computer through Apple, online, local store, phone etc.

what he means is "no matter how you order your Mac through Apple (online, local retail, phone, etc.)..." he's only talking about ordering Macs through Apple, and in that context, he's absolutely correct. apple will collect the applicable state tax.

he's not talking about non-Apple Mac resellers.

[DGFan]

actually, i think papersushi's posts are correct for the domain he's talking about. the problem is, it's very easy to mis-read his original post. the problem is this sentence, i think...

Yeah, I re-read his post (and some later posts in the thread) and removed that bit. Still, I think his post was a little misleading. It seemed like he was trying to correct misconceptions which I hadn't seen posted in this thread. That was unclear to me.

[papersushi]

I was refereing to Apple direct sales(Apple retail, www.apple.com, 1-800-MYAPPLE), not any other Apple re-sellers.