Omg Thought I Found An On Line Deal Until I Was Told We Have To Charge You Sales Tax

Discussion in 'Bike buying advice' started by dshardpolerwas, Jul 1, 2015.

  1. dshardpolerwas

    dshardpolerwas New Member

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    As Gomer Pyle USMC would say SURPRISE SURPRISE. Found a Road Frame I wanted (past tenths) until I found out the State whre the frame is located want to ding me 7.5%.

    Anyone else have any horror stories about hidden internets sale charges?
     
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  2. MotownBikeBoy

    MotownBikeBoy Active Member

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    If a business has a brick and mortar presence in a state it generally is required to charge sales or use tax on its sales even to out of state customers. Most states are scraping the revenue barrel so are getting tougher about it. All kinds of creative taxation scenarios now crop up.
     
  3. Totalarmordestine

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    In Virginia if you buy something online and the seller does not collect Virginia sales tax you are supposed to pay it when you file your state income tax.
     
  4. tarverten

    tarverten New Member

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    Must have been a tenths situation.

    Internet retailers will charge tax to anyone living in the state in which they have a physical presence. If the retailer does not have a presence in your state, they are not obligated to do so, but the customer is obligated to declare the purchase and pay sales tax to their home state.
     
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  5. blastguardgear

    blastguardgear New Member

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    Florida does not require businesses selling online to collect sales tax from buyers in other states unless the business has a physical presence in that state. That presence can be any number of things, including a brick & mortar store, a warehouse, or an office. If the business does collect sales tax, it will be on behalf of the buyer's state, not the seller's. (In other words, if the business was going to charge you Florida sales tax, they were doing so mistakenly.)

    Since your location states "the Sonoran desert", it's probably safe to assume you're in Arizona or California. Both of those states require payment of a "use tax" on purchases from out-of-state vendors that don't collect sales tax. So in this case, you shouldn't have been charged Florida sales tax, but you would be legally obligated to pay an equivalent use tax to your own state, likely to be noted on your annual income tax return.
     
  6. shadowsupernature

    shadowsupernature New Member

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    UK its 20%, but that funds the NHS.

    Oregon ups the Taxes on Income to compensate for not charging sales tax.
     
  7. thepieeatingjay

    thepieeatingjay New Member

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    I don't have such a "horror story". But that's because I like to buy my bikes in person. Let this be a lesson to you about online bike buying. It's better in person anyway so you KNOW what you're getting without question
     
  8. BikeBikeBikeBike

    BikeBikeBikeBike Well-Known Member

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    That's tax not a hidden interest charge (whatever that means.)
    You have to look up how the laws work in your area, you might be able to claim the sales tax against your income tax. But doing that you might have to pay your own states sales tax.

    Business don't charge tax, the government does. The price that the told you at first is what the business is charging you, then the government add's their cut. Business are required to collect these taxes on behalf of the government.
    If they didn't add the tax then they would have to take a 7.5% decrease on their profit.

    It's like when people complain about not having the tax added on the retail price. The retail price is what the store is charging you, the store is NOT charging you tax the government is.
     
  9. PennyS

    PennyS Member

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    I just wish everyone would post their real prices, tax inclusive on the shop floor, and online. Very few of them are selling under a tax-variable situation so leaving it off really is just to try and look cheaper. It makes comparison and budget-based shopping a lot harder when you have to try and guess what the final price will be.
     
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  10. MotownBikeBoy

    MotownBikeBoy Active Member

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    50 U.S. States = 50 different tax rates,some have no sales tax at all. Some areas/cities etc also add on a local sales tax, that might be a factor. For online merchants it would be a challenge to display a price with tax for US customers when it depends on where you are.
     
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  11. BikeBikeBikeBike

    BikeBikeBikeBike Well-Known Member

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    Sure it would make it easier, but technically the tax is not a "price" it's more of a fee the government charges you for the privileges of being a consumer.
    If the tax was included on the display price it would make it look like the item costs that much, when it doesn't actually.
    Retailers display the price THEY are asking for an item, then they are obligated under threat of fines to collect the taxes.
    I agree it would make things easier, but I understand why the system is the way it is.
    Plus MBB is right about the variables in taxation.
     
  12. joshposh

    joshposh Banned

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    I wouldn't get worked up if it only way $7 to $14 dollars in extra taxes. That's nothing to really to get bent out of shape for. I always ask when buy things if the asking price is the final price for purchase.
     
  13. Corzhens

    Corzhens Well-Known Member

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    I haven't bought a bike online but I have lots of experience in online shopping although that hidden charge is really frustrating. That's why before I order, I always check for the total amount that I need to pay particularly if there is a delivery charge. With buying a bike, which I am now in the process of, I prefer real shops where I can see and feel the bike. I have already gone to about 5 shops and have prospects already but I'm still evaluating carefully... and also waiting for permission from my doctor.
     
  14. Froze

    Froze Well-Known Member

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    Hidden charge? Taxes hidden? I don't think so. You knew when you went to the site that some online places have to charge tax and some don't, it wasn't hidden, then when you place your order the tax if any is shown before you finalize the sale so again it wasn't hidden not any more than shipping charges are. Grow up.
     
  15. Susimi

    Susimi Well-Known Member

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    You're always gonna get roped into paying a tax on top, no matter where you go or what you buy. It's just the way it is.

    If you don't want to pay tax then get friendly with somewhere and hope they will accept cash in hand and knock off the tax, but I have my doubts.
     
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