Sales Tax...

tuartboy

macrumors 6502a
Original poster
May 10, 2005
750
13
Ok, here's the deal:

I'm used to buying at newegg and other such retailers which do not charge tax in my state (indiana) for internet sales. I am very soon buying a PB but I was wondering why Apple is going to charge me an extra $80 for sales tax. What is up with this? Is Apple right and others wrong or is this just a grey area apple is on the whiter side of?

I don't know about purchasing from other retailers because I am going to be using the edu discount...
 

topgunn

macrumors 65816
Nov 5, 2004
1,454
1,236
Houston
tuartboy said:
Ok, here's the deal:

I'm used to buying at newegg and other such retailers which do not charge tax in my state (indiana) for internet sales. I am very soon buying a PB but I was wondering why Apple is going to charge me an extra $80 for sales tax. What is up with this? Is Apple right and others wrong or is this just a grey area apple is on the whiter side of?

I don't know about purchasing from other retailers because I am going to be using the edu discount...
From Apple's online store FAQ:
Will I have to pay sales tax?
Yes. Because it has a physical presence in all 50 states, Apple is required by law to collect applicable sales tax on all orders from the Apple Store.
 

jsw

Moderator emeritus
Mar 16, 2004
22,819
41
Andover, MA
sk8erboy said:
reason number zero zero zero zero zero zero one why i hate apple.
You hate them because they are in all 50 states or because they obey the law (due to the fact that they have a presence in those states)?
 

topgunn

macrumors 65816
Nov 5, 2004
1,454
1,236
Houston
If you want the educational discount, you have to pay sales tax unless you are a resident in a state that doesn't charge sales tax. You can buy from Amazon and not pay tax but you lose the ability to build-to-order and use an educational discount. Otherwise, you could travel to a state that doesn't have sales tax but you would likely spend many times more in gas.
 

tuartboy

macrumors 6502a
Original poster
May 10, 2005
750
13
Thanks topgunn. I guess I'll just buckle up and give caesar his due.

Kindof a bum deal though...
 

bit density

macrumors 6502
Mar 5, 2004
398
2
Seattle
tuartboy said:
I'm used to buying at newegg and other such retailers which do not charge tax in my state (indiana) for internet sales. I am very soon buying a PB but I was wondering why Apple is going to charge me an extra $80 for sales tax. What is up with this? Is Apple right and others wrong or is this just a grey area apple is on the whiter side of?
..
You do, of course, realize that even though the store does not collect the sales tax, you still *owe* the state the tax?

Nobody may be looking, but you legally still owe the tax.
 

HasanDaddy

macrumors 6502a
Jul 16, 2002
582
0
Los Angeles
bit density said:
You hate them because they are in all 50 states or because they obey the law (due to the fact that they have a presence in those states)?QUOTE]

no - he doesn't 'owe' anyone his tax money

no internet orders are subject to sales tax by law

the only time sales tax is a requirement is when its purchased in person

internet orders have ZERO federal laws attached to them --- leaving it up to the manufacturer to 'decide' whether they want to charge sales tax or not

Apple should take off that reasoning of having 50 stores and stuff ---- in reality, they have CHOSEN to charge sales tax
 

CanadaRAM

macrumors G5
HasanDaddy said:
bit density said:
You hate them because they are in all 50 states or because they obey the law (due to the fact that they have a presence in those states)?QUOTE]

no - he doesn't 'owe' anyone his tax money

no internet orders are subject to sales tax by law

the only time sales tax is a requirement is when its purchased in person

internet orders have ZERO federal laws attached to them --- leaving it up to the manufacturer to 'decide' whether they want to charge sales tax or not

Apple should take off that reasoning of having 50 stores and stuff ---- in reality, they have CHOSEN to charge sales tax
Wrong, on all counts with the exception that you are in California.

Every state that I know of, including California, obligates a company to charge state tax on an import from out of state if the organization has any presence in the state. This is not a "choice" by the vendor.

State tax is payable on mail orders within the state: the "in person" statement is not correct.

"No Federal tax" is a red herring. We are talking about state law, not federal law or some mythical "internet tax". Many states and provinces have had in their sales tax statutes for decades the provision that if a resident imports goods (in person or by mail or pony express) then they are expected to report the purchase and remit the tax to the state. Here is the applicable rule in my province

http://www.rev.gov.bc.ca/ctb/publications/bulletins/sst_043.pdf

California appears to not have this import provision (but definitely has the "agent or representative in this state" provision):
http://www.boe.ca.gov/pdf/reg1620.pdf

Indiana does charge on import, however, and this applies to the OP: http://www.state.in.us/sic/owners/ib.html

"Indiana Use Tax: Under Indiana law, use tax is imposed upon the use, storage, or consumption of tangible personal property in Indiana where the property was acquired in a retail transaction and sales tax was not paid at the point of purchase. The Indiana use tax rate is 6% as of December 1st 2002.

Common examples of items subject to Indiana use tax include magazine subscriptions, office supplies, property used or consumed outside the scope of production, and property purchased from out of state vendors. Indiana use tax applies to all residents of Indiana and is not limited to business entities... Individuals must report and pay the use tax due on their individual income tax return (IT-40). Forms: ST-103, ST-115, (ST-115) . "
 

LimeLite

macrumors 6502a
Mar 20, 2003
650
0
Los Angeles, Ca
HasanDaddy said:
bit density said:
You hate them because they are in all 50 states or because they obey the law (due to the fact that they have a presence in those states)?QUOTE]

no - he doesn't 'owe' anyone his tax money

no internet orders are subject to sales tax by law

the only time sales tax is a requirement is when its purchased in person

internet orders have ZERO federal laws attached to them --- leaving it up to the manufacturer to 'decide' whether they want to charge sales tax or not

Apple should take off that reasoning of having 50 stores and stuff ---- in reality, they have CHOSEN to charge sales tax
That is not correct. It is, in fact, a law that if the company has a physical presence in a state, that it must charge sales tax for that state. I guarantee you that whatever state Newegg is based out of, they charge sales tax to residents of that state.

Why would Apple choose to charge the consumers money that they don't even get if they could avoid it?
 

skubish

macrumors 68030
Feb 2, 2005
2,669
0
Ann Arbor, Michigan
In Michigan you suppose to pay sales tax for internet purchases regardless of whether the store and a physical presence in the state or not. Whether people do or not is another matter but it is the law.
 

sk8erboy

macrumors regular
Apr 25, 2005
135
0
jsw said:
You hate them because they are in all 50 states or because they obey the law (due to the fact that they have a presence in those states)?
.... Neither ?????
 

CanadaRAM

macrumors G5
hammackj said:
I just got hit with a $218 tax. ****ing horrible =\
Hmmm...

You may wish to reconsider that position as you drive down a state highway on your way to a state funded school or hospital, or use any of the other services that your state and local taxes pay for.

Then say a prayer of thanks you don't live in Canada (14%-15% tax in most provinces) United Kingdom (17.5%) Netherlands (19%), France (19.6%), Austria & Bulgaria (20%) Belgium (21%) Denmark, Norway, Sweden or Hungary (25%)

http://www.deloitte.com/dtt/article/0,1002,sid%3D2959%26cid%3D5028,00.html
 

jsw

Moderator emeritus
Mar 16, 2004
22,819
41
Andover, MA
CanadaRAM said:
Hmmm...

You may wish to reconsider that position as you drive down a state highway on your way to a state funded school or hospital, or use any of the other services that your state and local taxes pay for.

Then say a prayer of thanks you don't live in Canada (14%-15% tax in most provinces) United Kingdom (17.5%) Netherlands (19%), France (19.6%), Austria & Bulgaria (20%) Belgium (21%) Denmark, Norway, Sweden or Hungary (25%)

http://www.deloitte.com/dtt/article/0,1002,sid%3D2959%26cid%3D5028,00.html
Although you all do get that social medicine deal... which would be nice down here.
 

Stinkythe1

macrumors regular
Mar 30, 2005
208
0
Will I have to pay sales tax?
Yes. Because it has a physical presence in all 50 states, Apple is required by law to collect applicable sales tax on all orders from the Apple Store.
Mississippi doesn't have an apple store, so do I have to pay sales tax?
 

wdlove

macrumors P6
Oct 20, 2002
16,570
0
Stinkythe1 said:
Mississippi doesn't have an apple store, so do I have to pay sales tax?
Yes, as mentioned above Apple has a presence in all 50 states. It's often a corporate office.
 

Chip NoVaMac

macrumors G3
Dec 25, 2003
8,889
25
Northern Virginia
bit density said:
You do, of course, realize that even though the store does not collect the sales tax, you still *owe* the state the tax?

Nobody may be looking, but you legally still owe the tax.
That is if the state has something like a Use Tax (like I know DC and VA have). It requires you to pay sales taxes on the difference of any taxes you paid (if lower than the state you reside), of the full state sales tax if you paid none.

With mail-order is possible for states to request shipping records to see which residents have been receiving goods and failing to pay the Use Tax.
 

Chip NoVaMac

macrumors G3
Dec 25, 2003
8,889
25
Northern Virginia
LimeLite said:
HasanDaddy said:
That is not correct. It is, in fact, a law that if the company has a physical presence in a state, that it must charge sales tax for that state. I guarantee you that whatever state Newegg is based out of, they charge sales tax to residents of that state.
Actually some companies get around this by setting up their internet business "officially" in a state that has no sales tax. Or they may choose to pay the sales tax on the behalf of the customer.
 

HasanDaddy

macrumors 6502a
Jul 16, 2002
582
0
Los Angeles
Chip NoVaMac said:
LimeLite said:
Actually some companies get around this by setting up their internet business "officially" in a state that has no sales tax. Or they may choose to pay the sales tax on the behalf of the customer.
okay - there ya go

I stand corrected then

I almost ordered my latest PB off of Amazon.com, but oddly enough, the education discount outdoes the sales tax by 3%

anyhoo - I paid the State of Nevada around $250 today ---- I hope they spend it well
 

Jschultz

macrumors 6502a
Mar 14, 2005
878
12
Chicago, IL
mcarnes said:
I'm in Oregon and in 35 years I have NEVER had to pay sales tax for anything! :D

(sorry, had to rub it in)
wait a second...so you just walk in, and if something costs 40 bucks, you just give them 40 bucks?? Too weird!
 

spinne1

macrumors 6502a
But what do you pay in other forms of tax in Oregon? No way you are getting a free ride.

For example, here is Tennessee we have no state income tax. Great, right? Well, no, because the sales tax is 9.25%. The property tax will also get you. Not to mention all the hidden taxes in all the things we do in life. The amount of tax burden we all bear really is ridiculous. Before FDR's new deal, federal income tax was like 3% from what I hear. Now THAT is more like it.