Tax on Out-Of-State Purchases

[Riverman]

I live in Texas and recently placed orders with both GigaParts and DX Engineering. GigaParts charged me 8% for tax. (Texas has a state sales tax rate of 6.5%.) When I contacted them I was told, “Texas requires all out-of-state shippers to collect a flat sales tax rate of 8% for purchases.”

Am curious about that because DX Engineering only charged me 6.5%.

Has anyone else had a similar experience?

 

[543_Dallas]

Yep. It's been this way for a while now. A couple of years I think.

 

[Eldorado828]

I live in Texas and recently placed orders with both GigaParts and DX Engineering. GigaParts charged me 8% for tax. (Texas has a state sales tax rate of 6.5%.) When I contacted them I was told, “Texas requires all out-of-state shippers to collect a flat sales tax rate of 8% for purchases.”

Am curious about that because DX Engineering only charged me 6.5%.

Has anyone else had a similar experience?

Looks like you're buying gear again!

 

[Eldorado828]

 

[Riverman]

Looks like you're buying gear again!

Hi, Ed.
My planned excursion into the astronomy hobby fizzled out. I was simply unable to purchase the telescope(s) I wanted. The popular models are backordered with no available fill date in site. Seems the problem is twofold.
a. More and more people have taken up the hobby since Covid hit because it is one that can be enjoyed without leaving home.
b. The major manufacturers have been hit hard by the virus.

Am surprised that neither CB nor Ham radio have been adversely affected for the same two reasons.

Glad they haven’t.

 

[Tokin]

I would contact your state and confirm the amount of sales tax to be collected. If giga is taking more id contact their state and my state to let them know whats happening so they can fix the problem.
These fools are taxing used items that were already taxed once. Im pretty pissed about this shit.

 

[BJ radionut]

Published October 1, 2018:
Online sales taxes take effect in these states | Fox Business

Origin-based vs destination-based sales tax states
When it comes to determining tax rates, most states fall into one of two major buckets: “origin-based” sales tax states and “destination-based” sales tax states.

In layperson’s terms, this means that some states require in-state sellers to collect sales tax at the rate effective at the point of “origin” (i.e. your office or place of business) while most states require in-state sellers to collect sales tax at the rate of the “destination” (your buyer’s address).

Internet Sales Tax: A Guide to State Laws | Nolo

Online Sales Taxes: Will Every State Tax Out-of-State Sellers By End of 2019? | CPA Practice Advisor

The Supreme Court and Wayfair were used as and excuse.
Reality was this was pushed through the courts due to present administration was PO at Amazon (owner of Washington Post).
Though Indiana was one for the States mouning about how much money they were loosing by all these out of State sales, and no-one claiming to pay Sales Taxes on their Indiana State tax returns. (Indiana has 2+ BILLION DOLLARS in the bank.)
Geez who was Former Gov. of Indiana?...
OK enough, we all will live with this from now on.!

As to WHY? some Taxes collected are Higher, than your State rate(?)
Reading the "fine print" of this like 200+ page decision.
States are allowed to "add administrative costs" for collecting "Other States Taxes" for them.
(my understanding as a laymen and not a Lawyer)

 

[Tokin]

Published October 1, 2018:
Online sales taxes take effect in these states | Fox Business

Origin-based vs destination-based sales tax states
When it comes to determining tax rates, most states fall into one of two major buckets: “origin-based” sales tax states and “destination-based” sales tax states.

In layperson’s terms, this means that some states require in-state sellers to collect sales tax at the rate effective at the point of “origin” (i.e. your office or place of business) while most states require in-state sellers to collect sales tax at the rate of the “destination” (your buyer’s address).

Internet Sales Tax: A Guide to State Laws | Nolo

Online Sales Taxes: Will Every State Tax Out-of-State Sellers By End of 2019? | CPA Practice Advisor

The Supreme Court and Wayfair were used as and excuse.
Reality was this was pushed through the courts due to present administration was PO at Amazon (owner of Washington Post).
Though Indiana was one for the States mouning about how much money they were loosing by all these out of State sales, and no-one claiming to pay Sales Taxes on their Indiana State tax returns. (Indiana has 2+ BILLION DOLLARS in the bank.)
Geez who was Former Gov. of Indiana?...
OK enough, we all will live with this from now on.!

As to WHY? some Taxes collected are Higher, than your State rate(?)
Reading the "fine print" of this like 200+ page decision.
States are allowed to "add administrative costs" for collecting "Other States Taxes" for them.
(my understanding as a laymen and not a Lawyer)

Well, looks like ill further curtail my buying online

 

[snippits75]

Maybe one taxed the shipping, and the other did not?

The legal case that BJ referenced was a win for brick and mortar businesses.

 

[Riverman]

Maybe one taxed the shipping, and the other did not?

The legal case that BJ referenced was a win for brick and mortar businesses.

Both orders including free shipping.
Texas sales tax rate is 6.5%.
Both businesses are in Ohio.
Re-checked the numbers. GP charged 8% tax. DX charged 6.5%.

Has anyone else ordered from either recently?

 

[WECSOG]

Well, looks like ill further curtail my buying online

Not me. This unconstitutional ruling was pushed by large brick and mortar institutions as a way of punishing us for buying elsewhere. They want to force smaller sellers out of business and narrow the field so they can charge higher prices with impunity.

I'm not knuckling under to that. It makes me want to buy online even more. I might have to pay sales tax, but at least I don't have to use my fuel and time to go to a B&M store and pay whatever price they want to charge me for the "convenience."
Besides which, you guys already know how I feel about my local radio seller.

 

[Tokin]

Not me. This unconstitutional ruling was pushed by large brick and mortar institutions as a way of punishing us for buying elsewhere. They want to force smaller sellers out of business and narrow the field so they can charge higher prices with impunity.

I'm not knuckling under to that. It makes me want to buy online even more. I might have to pay sales tax, but at least I don't have to use my fuel and time to go to a B&M store and pay whatever price they want to charge me for the "convenience."
Besides which, you guys already know how I feel about my local radio seller.

For my used goods ill stick to offerup and craigslist. Otherwise everything else is within 10 miles. Some things i have to buy online and im keeping that to a minimum.

 

[W4KVW]

I live in Texas and recently placed orders with both GigaParts and DX Engineering. GigaParts charged me 8% for tax. (Texas has a state sales tax rate of 6.5%.) When I contacted them I was told, “Texas requires all out-of-state shippers to collect a flat sales tax rate of 8% for purchases.”

Am curious about that because DX Engineering only charged me 6.5%.

Has anyone else had a similar experience?

I live in Florida & I know that HRO does not charge me sales tax on any purchases.I have never paid attention to my DX Engineering purchases & I don't buy from GigaParts since the one thing I ordered was never shipped.

SIX-SHOOTER

 

[Riverman]

I live in Florida & I know that HRO does not charge me sales tax on any purchases.I have never paid attention to my DX Engineering purchases & I don't buy from GigaParts since the one thing I ordered was never shipped.

SIX-SHOOTER

Let’s see . . . Nice weather, no sales tax on out-of-state online purchases, a good NFL team, lots of great golf courses . . . Maybe I should move to Florida!

Wait a minute. I forgot about hurricanes. Guess I’ll stay put.

 

[snippits75]

This unconstitutional ruling was pushed by large brick and mortar institutions as a way of punishing us for buying elsewhere.

Hopefully, you don't think this ruling just effected big brick and mortar. It effected all brick and mortar all the way to home town hardware stores.