Internet sales tax- what the...

[Uffdaphil]

I bought a couple of knives and a sharpening set from CRKT online. Enough to qualify for free shipping. Now I see on the invoice a sales tax charge of $13.80. I'm in Mn and the company is in OR. Do they have a state law forcing sales tax on internet sales? I don't think CRKT has a physical presence in MN.

[UWone77]

I've only run into this with Surefire, who doesn't have a physical location here, but still collects sales tax.

EDIT: Also Vortex Optics, I've had to pay tax on orders directly from them.

[fledge]

AAC recently charged me sales tax to CO. I figured Remington must have a physical presence here. Many of these companies have parent companies they don't reveal with a presence in different states. That could be part of it.

[Stone]

In general any internet company can choose to charge or not charge sales tax. Most choose not to unless your in the same state then they don't have a choice.

[BoilerUp]

EDIT: Also Vortex Optics, I've had to pay tax on orders directly from them.

Was that through Experticity? They are in WA, so I think that is why.

[UWone77]

Was that through Experticity? They are in WA, so I think that is why.

Never paid attention to where Experticity is located... but their prices generally suck.

[alamo5000]

I bought a couple of knives and a sharpening set from CRKT online. Enough to qualify for free shipping. Now I see on the invoice a sales tax charge of $13.80. I'm in Mn and the company is in OR. Do they have a state law forcing sales tax on internet sales? I don't think CRKT has a physical presence in MN.

Look at the box and see where it was sent from. The post mark.

Odds are they have a dealership network and the TOS of that require fulfillment from a dealer in that region or something like that. Basically so they don't compete with their dealerships or whatnot.

Who knows.

[SINNER]

Had 3 triggers ready to purchase from DPMS the other day and between the bullshit tax they were charging and shipping it was almost $60. Needless to say I didn't purchase the triggers.

[alamo5000]

"Collecting Sales Tax Online

If you run a business with a physical storefront, collecting sales tax is straightforward. You charge your customers the sales tax required by the jurisdiction where your business is located. For example, if you operate a retail store in Nashville, Tenn., you collect both state and local sales taxes from customers buying merchandise at your store.

But suppose you start selling your products online. Does that mean you charge customers the same sales taxes that you do to those who are coming into your store? It depends.

When to Collect Sales Tax Online

If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes.

In legal terms, this physical presence is known as a "nexus." Each state defines nexus differently, but all agree that if you have a store or office of some sort, a nexus exists. If you are uncertain whether or not your business qualifies as a physical presence, contact your state's revenue agency. If you do not have a physical presence in a state, you are not required to collect sales taxes from customers in that state.

This rule is based on a 1992 Supreme Court ruling in which the justices ruled that states cannot require mail-order businesses, and by extension, online retailers to collect sales tax unless they have a physical presence in the state."

Source below:

https://www.sba.gov/starting-business/learn-about-business-laws/online-business-law/collecting-sales-tax-online


"If you are selling goods or products online and some of your customers are located in Minnesota, you need to be aware of the state’s Internet sales tax rules. Keep in mind that collection of sales tax on Internet sales has been a matter of ongoing debate both within individual states and at the federal level. Minnesota is one of a number of states that has enacted special legislation (known as Amazon laws) that effectively forces larger, out-of-state Internet retailers to collect and pay sales tax.

The General Rule: Physical Presence in the State

The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a physical presence. The physical presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail order businesses to collect sales tax on out-of-state sales; the decision has been extended to include online retailers. Generally speaking, physical presence means having:
a warehouse in the state
a store in the state
an office in the state, or
a sales representative in the state.
The corollary to the physical presence rule is that, if you do not have a physical presence in the state, you are not required to collect sales tax for an Internet-based sale to someone in that state. However, Michigan has special rules that apply to certain larger Internet retailers that make them subject to sales tax laws even without a physical presence in the state (see Michigan’s Amazon law, below)."

See more at the link below.

http://www.nolo.com/legal-encyclopedia/minnesota-internet-sales-tax.html

[alamo5000]

And from the looks of it they have some sort of dealer network in your state... so I would guess that's it.

[UWone77]

And from the looks of it they have some sort of dealer network in your state... so I would guess that's it.

I buy 90% of my stuff from Rainier and Weapon Outfitters, so I know all about sales tax... all 10.1% and it's Glory here!!![BD]

[SINNER]

And I bitch about 6%. But tax free is 45 minutes away so any significant purchases are worth the run.

[UWone77]

And I bitch about 6%. But tax free is 45 minutes away so any significant purchases are worth the run.

My discount is usually worth staying off the internet to avoid sales tax, but 10.1% does eat away at your savings.

[alamo5000]

I buy 90% of my stuff from Rainier and Weapon Outfitters, so I know all about sales tax... all 10.1% and it's Glory here!!![BD]

Here it's 8.25% and no income taxes. But when I shop online it really sucks when you find some killer deal, especially it being Texas and all, and then you have to start tacking on tax and shipping until the deal ain't a deal no more. I've abandoned more than a few shopping carts because of this. $35+tax+shipping is often more expensive than $45 with free shipping from somewhere else.

[alamo5000]

https://www.youtube.com/watch?v=g-pYjARzp2w

[SINNER]

10% is no joke. Certainly reduces even a significant discount.

[mustangfreek]

10% is no joke. Certainly reduces even a significant discount.

Ya they like their taxes here....[crazy]

[DISCOM]

Please correct me if I am wrong but, does this not fall under a "USE TAX"?

[KW900A]

In Virginia, they want you to declare how much you spent online from out of state retailers that did not charge sales tax. Then they hit you with a 2% usage tax.

[fledge]

In Virginia, they want you to declare how much you spent online from out of state retailers that did not charge sales tax. Then they hit you with a 2% usage tax.


Colorado does the same. I understand it's a violation of federal law though. I've not seen it contested in court.