Sales tax on purchases internet verses shop

[cencerrita]

Hi
Being a European we are not used to having the tax added at the end and not on the as seen price of an article. Coming to the states this year to buy an RV and looking at all the extras we will need on line at the moment!
On line shops (Amazon etc) do not seem to add sales tax. Does this mean that buying at Camping World / harborfreight etc the prices are different on line to going in the shop?
Thanks
Alan

[myredracer]

If buying RV parts or accessories, there are something like 8 or so popular online RV vendors in the US such as tweetys.com, RVupgradestore.com and makariosRV.com which for the majority of our purchases, have been cheaper, and sometimes by quite a bit compared to Amazon, ebay and CW. If you have a particular item in mind, do a google search and do comparison pricing of item cost + shipping + taxes. It can save you a bundle of $$. Prices for RV items can vary substantially online. As mentioned above, some vendors are required to collect tax and some aren't. I thought Amazon always includes "estimated taxes" on their invoices.

We have bought a lot of things online in the US and get it shipped to a mailbox in Washington. One thing that has become commonplace with online shopping in recent years is "free shipping". Nothing is ever "free" of course but some vendors include free shipping in the item cost (sometimes only above a certain amount) and some do not, so you have to check carefully. If it's "free" shipping, it has to be buried in the item price. And if shipping is included, if you have to pay tax, it will be on the item + shipping cost which could have more of an impact if it's a bulky or heavy item. That's what ebay takes advantage of when you are "forced" to pay via paypal.

Also check a vendor's return policy. I have never had any problems whatsoever with the online RV vendors I mentioned above, but have with Amazon and ebay.

I think you'll generally find that buying RV items online will on average cost significantly less than in a store because they have overhead costs that online vendors won't have. Some online vendors "drop ship" items and will have an item sent to you directly from a manufacturer which saves the costs of warehousing inventory in the supply chain.

There's also the option of moving to one of the 5 tax-free states in the US. 🙂

[frankdamp]

Washington State has sales tax that runs around 8.4%, depending on a tenth or two for county/city share. They just changed the rules to require the tax on out-of-state purchases by mail order or on-line. I regularly buy veterinary supplies from Drs Foster & Smith and the order I placed last week was the first time there as a line item for "WA State Tax".

[Bumpyroad]

Dtank wrote:

Bumpyroad wrote:
I think your VAT is much more than our sales taxes which run about 6-8%??? On a RV, we don't pay a standard sales tax, it is a fee added to register/license/title it and varies with the state you title/license it.

bumpy

In SD it's called excise tax (about 3%) on vehicles and RVs.
Both added when you register the vehicle.

.

that is exactly what my point was. what is sales tax in SD? over 3%???
just googled SD sales tax. evidently 4 to 6 % so you are not charged "sales tax" on vehicles.
bumpy

[down_home]

Johno02 wrote:
Tennessee doesn't have state income tax, but they want you to file a sales tax form and pay up. Right!!

Every state with a sales tax "requires" that.
We're supposed to take our receipts and pay the difference in tax from the state we bought whatever in.
On larger items like lawn mowers the seller is supposed to report it to your state ie Tn. The Retailer reports it to your state or is supposed to.
Some opt to not pay sales tax, in say GA and take their receipt, to county court house, in whatever state and pay the 9.75% or whatever the tax is, in that county and city.
We don't have a sales tax. We have a Buyer's Tax.
Though very young I remember when it was 1%. They said it was going to be temporary. People believed them.

[stickdog]

In Illinois they ding you for internet or catalog purchases even if you never had any, a line on the income tax form requires you put in an amount with a minimum which they decide on based on your income.

[Dtank]

Bumpyroad wrote:
I think your VAT is much more than our sales taxes which run about 6-8%??? On a RV, we don't pay a standard sales tax, it is a fee added to register/license/title it and varies with the state you title/license it.

bumpy

Sales tax is usually added to the purchase of "things".
There are 5 states with *no* sales tax.
Alaska, Hew Hampshire, Montana, Delaware, Oregon.

In states *with* a sales tax, most want their revenue and will try to get it - including sales tax on Internet (mail order) purchases.

A 'standard' question now by income tax preparers in some states where sales tax is due, is:
Have you purchased mail order items without paying sales tax?

You're supposed to tell them how much you spent, and sales tax is then due with your tax return.

Bumpy may be correct for his state, but others DO collect *sales tax* on vehicles and RVs, and yes - they usually call it sales tax, but sometimes 'sales tax' by a different name, LOL!

Ex: CA = sales tax (about 9%) on price of new or used vehicles and RVs.
In SD it's called excise tax (about 3%) on vehicles and RVs.
Both added when you register the vehicle.

BTW - in CA you can (the "90 day rule") purchase an RV, take possession out of state, (it must be used out of state, and remain out of state for 1 year) - then register and title it and pay *no* sales tax.
(A savings of 9% sales tax. There's no change in registration/title fees)

.

[Bumpyroad]

another "out" is if you buy an item in one state and have it delivered to another, the merchant in the state where the sale occurred does not collect sales tax, if you know the law and fuss about it.
bumpy

[shakyjay]

As it has already been explained sales tax for the most part is only collected by the merchant if the business is based or has a presence in the state where you are located. Some states have enacted internet tax laws more commonly referred to as "Amazon Laws" that can require larger online retailers to collect sales tax even though they do not have an actual physical presence. Here is a link that does provide some information for each individual state nolo.com.

Technically you are still required to pay sales tax, it is actually a use tax, in your state by declaring these purchases on your tax returns. The reality is that people don't and enforcement is almost impossible. Because of this tax avoidance states are beginning to look at ways to collect this lost revenue. I expect that in the very near future the tax laws will see some major changes in this area.

[Robin1953]

Johno02 wrote:
Depends on what state you are in. If the online store does not have a physical presence in a state, then no tax is paid. Tennessee had no tax on stuff from Amazon until they put a DC in the state.

In WV Amazon charges tax due to a DC in state now. HOWEVER when you report your income tax you are supposed to declare online purchases that no tax has been paid.

[cencerrita]

Hi
Thanks for all the replies. I will have a Florida address and expect to pay the 6% tax on the RV purchase and the registration will be there.
Most of my initial purchase for extra items will be in Florida so I think the following has answered my question 🙂

Posted By: Water-Bug on 02/16/15 09:03pm


In most instances, if the business has a presence in the state the state sales tax is applied. Camper World and Harbor Freight are everywhere, so you can count on having sales tax added. Amazon is all internet, so is only taxible in states where they have a distribution or order center. This is all going to change if the legislators have their way.

[accsys]

Allworth wrote:
I'll throw in another twist..

In Florida there is no State Income Tax. State sales tax is six percent and counties can add up to another one percent for schools, infrastructure, emergency management, etc.

Food, drugs, professional services and a bunch of odd stuff are exempt. (He who makes the campaign contributions gets the exemptions!)

HOWEVER.. On major purchases (RVs, motor vehicles, boats) only the first $5,000 is taxable.

Then there are a bunch of other rules.

The 5,000 taxable limit only applies to the added county tax. The State rate (currently 6%) is applied to the whole purchase. For instance if you purchase a car, etc for 30,000 there will be 1,800 in state sales tax and 50 in county tax (if the county rate is 1%) for a total of 1850 in sales tax.

[Allworth]

I'll throw in another twist..

In Florida there is no State Income Tax. State sales tax is six percent and counties can add up to another one percent for schools, infrastructure, emergency management, etc.

Food, drugs, professional services and a bunch of odd stuff are exempt. (He who makes the campaign contributions gets the exemptions!)

HOWEVER.. On major purchases (RVs, motor vehicles, boats) only the first $5,000 is taxable.

Then there are a bunch of other rules.

[mileshuff]

bukhrn wrote:
Are you saying AZ pays a Federal sales tax ? I've never heard of a federal sales tax, or are they hiding it under a different name? :h :?

You are correct. I was thinking of the local city taxes which are on top of the state tax of 5.6%. Theres also county sales taxes. There are federal whole sale taxes for interstate transactions but these are buried into the retail price a consumer would pay.

[teejaywhy]

mileshuff wrote:

Bumpyroad wrote:
I think your VAT is much more than our sales taxes which run about 6-8%??? On a RV, we don't pay a standard sales tax, it is a fee added to register/license/title it and varies with the state you title/license it.
bumpy

What state are you in? Every state I've bought a car or RV has charged sales tax along with a license and registration fee. There are a few states that do not have a state sales tax but federal still wants their cut!

You are right "sales tax" is a state collected tax that varies state to state and is a one time tax paid at time of purchase. Some cities even collect sales tax.

States also charge license and registration fees and some charge an additional "property tax" collected annually. In Arizona, it's called a "vehicle license tax." This also varies by state.

But I think you are misunderstanding something as there is no federal sales or property tax.