posted on November 28, 2000 12:57:04 PM newluculent: I am from Oregon too and I understand your situation. What most people do not know is that with my Oregon Driver's License, I can go into any retail establishment in any other state and not pay sales taxes. All I do is show the ID, then there is a small form to fill out with name, address, ID number, and the amount of the sale. Being in Portland, Oregon, the city of Vancouver, Washington is just accross the Columbia river and this happens a lot.
What all Sellers need to do is to ask their local governement office that does the licensing for businsses and ask for a pad of forms. Then, when a customer tells you that they are from Oregon, fax the form or e-mail a scanned copy, have them fill it out and mail it back to you along with their payment. It's that simple.
posted on November 28, 2000 01:27:30 PM new
Shoshona, no offence at all....
Borillar, believe me man, I put up with veeeery little! I have a sign in my office that I made for myself that says "The Customer Is Always Right....Unless They're an @$$hole". That being said, I have to pay attention lest I slide down to that end of the scale myself. I'm sure I've had to scramble back up the pole on occaision, but I guess I deserved anything I got while I was down there.
posted on November 28, 2000 01:33:06 PM new
KatyD is right. I must pay CA state tax and county tax too, and probably a city tax as well. I've checked with the Board of Equalization twice and both times they told me the amount is 8.25%.
When a customer stiffs me for sales tax, if it's a large amount I politely remind them that I can't ship the item until it's been paid for in full. For inexpensive items, I usually send a note requesting the tax, and ship the item immediately.
From my experience, yes I think there are people who will intentionally stiff a seller for $.82 cents. Hey, my own self-respect is worth more than that. Apparently not so for everyone.
posted on November 28, 2000 01:52:37 PM new
borillar-
I can go into any retail establishment in any other state and not pay sales taxes.
Are you sure? I have a seller's permit for Idaho, and the sales tax exemtion form has no provision for sales to residents of other states that have no sales tax. Also, although it's been a number of years since I had a seller's permit there, I don't remember anything like that in California, either.
posted on November 28, 2000 04:21:06 PM new
Life-long Oregonian here, too. I was under the impression that whether or not we didn't have to pay sales taxes in other states depended on whether that other state had an "agreement" with Oregon regarding sales taxes. I know that Washington does have an agreement with us. (I believe that all of the states that border us do have those reciprical agreements -- but I don't have proof of that.) When I travel I usually don't try to avoid the taxes, as it's not worth the hassle since most stores/sellers don't seem to know how to deal with an Oregonian's tax-free transaction. I just buy as little as possible and write it off as part of the cost of living. I did buy in one store where the clerk noticed my state from my drivers license and automatically deducted the sales tax from my total. (Not sure, but think it might have been North Carolina.)
Back to the original question... how about quoting a total that includes the sales tax and stating that if they are not a resident of xx (your state), then you will adjust the total downward when you receive their mailing address?
Violetta
(Not known by this nickname anywhere but here.)
posted on November 28, 2000 04:35:02 PM new
For those of you from Oregon or other states that don't charge sales tax: when you purchase in my state, you will be charged sales tax unless you have a valid state sales tax certificate and are purchasing for purpose of resale.
Just because you don't pay sales tax in your state, when you are here, unless you have a sales tax license and are reselling the item, you will pay sales tax.
"when in Rome, you do as the Romans do."
According to my state law, a driver's license is not a valid state sales tax certificate.
I believe that if you go to a grocery store here in my state, you will pay sales tax. The checkout people would think you were crazy if you tried to say "no sales tax."
We are the same if you are buying for yourself and not for resale AND have no valid State Certificate.
posted on November 28, 2000 04:50:47 PM new
I wouldn't suggest pulling a buyer's contact info for the purpose of computing an invoice. I think some people would bristle at that.
How about if, after you've emailed the buyer for his address & he fails to supply it, you just go ahead and charge him the sales tax:
Hi buyer - your invoice total with shipping and sales tax added is $13.80.
If you are not a resident of (my home state), you may deduct the 60 cent charge for sales tax for a total of $13.20.
I've been a buyer only, and it seems very reasonable for a seller not to ship until he is paid in full, even if it's only a few cents. If I make an error when sending payment, it's up to me to correct it, not expect the seller to pick up the slack.
posted on November 28, 2000 05:23:09 PM new
If you are in California and charging 8.25% sales tax you are riping people off.
The statewide rate is 7.25%
If you are in LA county then you can charge 8.25% to LA county residents only. Someone in a different county gets the Statewide rate of 7.25% (soon to be lowered to 7.00%) regardless of what thier local rate is.
-------------
Buyers frequenlty do not pay sales tax. I don't send thier merchandise until they do, and I add a $1 fee to the amount due.
posted on November 28, 2000 05:32:04 PM new
Luculent - If "Rome" has a law that allows "non-Romans" to not pay sales tax...then they don't have to. Which state are you selling from, specifically? I would like to research this issue further, for my own interest. There may be exceptions, or ways to process transactions of Oregonians and residents of other no-sales-tax states, that you aren't aware of. The best way to get the "real" facts is to go to the source -- the states' laws.
(And it's not like we're getting "special treatment" over the rest of the Nation because we have no sales tax here, either. We have to make up the difference for no sales tax by our other taxes.)
Violetta
(Not known by this nickname anywhere but here.)
posted on November 28, 2000 05:42:16 PM newunknown that is untrue. Different counties in California have different sales tax rates, according to what that particular county has assessed. In my county (San Diego) the sales tax is 7.75%. Effective January 1, 2001, this rate will decrease to 7.50. I just received a notice from the State Board of Equalization that lists all the counties whose sales tax will decrease. In Alameda County, where my in-laws live the sales tax will decrease to 8.00% from 8.25%. San Francisco County will decrease to 8.25%. I'm not sure which county Twinsoft is in, but I know it's up north. You do a great disservice by suggesting Californians who must charge more than 7.25% are "ripping people off". It simply is not true. If you would like a copy of the tax rate chart for the whole state and counties visit www.boe.ca.gov/streimsched.htm
posted on November 28, 2000 06:37:59 PM new
Violetta
I'm from Iowa. And the onus is on me, the retailer, to charge sales tax for items that are not purchased for resale. Our state law puts that burden on me. Everyone who claims a sales tax number has to fill out a form and sign it. You are signing that you are purchasing for resale. If you are not purchasing for resale, you pay sales tax, no matter what state you are from.
If you come in my shop and purchase a vase to add to your collection, you will be charged sales tax. If you go to the grocery store and purchase Kleenex, you will be charged sales tax.
That's like saying that we will all only be charged what ever the prevailing rate per gallon for gas is in our state. If I'm in Oregon, can I expect to pay our $1.32 or will I have to pay the rate at the station in Oregon?
And I also realize that even though you might not pay sales tax in your state, you pay for state services in other taxes collected.
posted on November 28, 2000 07:10:44 PM new
Triplesnack, I think were getting close to a reasonable solution. Perhaps I might add to my EOA something like ....If you do not supply us with a shipping address in your reply, sales tax may be automatically added to your total.
This could get sticky though as I have previously had many address delinquents that were not from my state.
posted on November 28, 2000 07:26:41 PM new
KatyD
I was overly broad.
What I was talking about is the tactic of collecting a tax and not forwarding it the Goverment. Not giving a receipt avoids a "paper trail".
The act of collecting a sales tax gives "evidence" that the person collecting it, is at least, purportedly engaged in the "business" of intrastate sales.
Although sales tax collection varies from State to State, the tax you pay on your business income will likely be viewed rather closely by the IRS, and tax information (such as receipts) is often shared from the State to the Federal level.
In other words, people who don't turn in money collected for the applicable sales tax are most often also not reporting the income on the sale.
I know this is all hypothetical, cause everybody always pays what taxes they owe.
posted on November 29, 2000 03:33:21 AM new
Lucy - Thanks for your reply. Some states do make exceptions and don't charge sales tax to Oregon residents if they provide proof of address (-- which is nice of them, and only fair since we residents are paying taxes for the services that visitors to Oregon use). But I don't think that information is always provided to the retailers, and I'm sure you have to fill out forms in order to not charge it. I will see if I can find whether Iowa exempts Oregon residents or not. I don't really expect that they do. I think it's mainly bordering states which do that. Long ago I believe that Oregon residents used to be able to get a tax exemption card. Here is what I found out last night:
"Sales tax exempt certificate
Oregon does not have such a certificate.
If you are an Oregon resident working or shopping in a state with a sales tax and want information about that state’s sales tax policy regarding nonresidents, consult that state’s tax agency. For information about the State of Washington’s policy, see http://dor.wa.gov/eta/316.pdf?noframes "
(Found at http://www.dor.state.or.us/salestax.html)
On looking up Washington's policy I find that (as of 1993) they only exempt items that are being taken back home to Oregon. Food and lodging and such are not exempt. I believe this is different from how it was 30 years ago when I went to college in Washington.
(Sorry for "hi-jacking" your thread, Kurt. These other comments just got my curiosity up.)
Violetta
(Not known by this nickname anywhere but here.)
posted on November 29, 2000 04:05:39 PM new
I set up my end of auctions the same way that you do, requesting their address. For the ones who do not send it, if I don't need it for shipping, I include the following:
Bid Amount: $x.xx
Shipping Amount: x.xx
Total: $x.xx - if you are a resident of X state, please add x% to this total due for sales tax.
Now if they don't send it, you can email them and tell them they forgot to include the sales tax and you will be happy to forward their item once it is paid in full.
I would also indicate in my Terms on the auction page, that SALES TAX is mandatory for in state residents and that there are NO EXCEPTIONS and that the auction is not paid in full unless sales tax is paid.
Yes San Diego has a higher rate. But it only applies when both the buyer and seller are in San Diego. If the seller is in San Diego, and the Buyer is anywhere else, then the statewide rate applies.
Some states do make exceptions and don't charge sales tax to Oregon residents if they provide proof of address (-- which is nice of them, and only fair since we residents are paying taxes for the services that visitors to Oregon use). But I don't think that information is always provided to the retailers, and I'm sure you have to fill out forms in order to not charge it. I will see if I can find whether Iowa exempts Oregon residents or not. I don't really expect that they do. I think it's mainly bordering states which do that. Long ago I believe that Oregon residents used to be able to get a tax exemption card. Here is what I found out last night: