Taxes on out of state orders

P

pdc

Member
So I placed an order with Jegs, and was charged tax, I haven't dealt with Jegs in a few years but have ordered kart parts and haven't noticed any taxes added, this will suck if we have to pay tax for out of state orders, anyone else aware of this happening?
 
This is actually prohibited by Article 1 section 9 clause 5 and Article 1 section 8 clause 3 of the Constitution. Not that our elected tyrants or our sheep citizens care or know about this enlightened document.
 
From the "Accounting" side of things, the court case last year or the year before has caused a lot of stir. The presumption had been on out of state sales that one would pay "use" tax on the products if bought out of state depending on how each state viewed the wording of the sales tax laws, but no one did that because no one actually cared. However, now that the idea of being out of state is out the window so to say if the government says so, they want to collect anywhere and everywhere they can. So now if a company does enough e-commerce in a state to justify to the state that they basically have a physical presence in sales dollars while not having an actual physical sales counter then they are to "collect" sales tax as if they sold it to you in person. If they don't, you may get a notice similar to a 1099 from some of the larger e-commerce businesses as a means to show that they did not collect and therefor you as the end purchaser are to remit you duly owed sales tax to the state.

That's how I have been informed/made aware of/and otherwise deduced the reasoning behind it.

Cole
 
My interpretation of the internet sales tax law is this:
Each state has a threshold at which a company has to charge tax.
If i sell a few trinkets to you and a few other people in your state and i don't reach that threshold i don't charge tax.
Example: some states have a threshold of $10,000.00
Another state might have threshold of $100,000.00
A large company like Jegs meets the threshold for every state.
Maybe they don't but they charge tax just to make sure they don't get into trouble with the Donald or the IRS.

It would be impossible for me to know the tax for each county in each state.
 
pdc said:
So I placed an order with Jegs, and was charged tax, I haven't dealt with Jegs in a few years but have ordered kart parts and haven't noticed any taxes added, this will suck if we have to pay tax for out of state orders, anyone else aware of this happening?
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I keep track of things bought out of state and no tax was charged. That way when I'm asked on my state income tax return about out of state purchases I can send in the out of state sales tax I need to pay. I'm totally against the use of my tax money being under the table influenced by non elected persons and totally for the spending of my tax money being distributed to the most companies and individuals instead of the least. But we do need roads etc taken care of with our tax money. I pay my legislated share and if you don't pay your legislated share your cheating and stealing from ME and others who do. >>> after the hopefully enjoyable and thought provoking read notice the ... :)
 
This is an example why very large companies do not complain very much about onerous and unnecessary government regulation / taxation. It eliminates competition from those that are unable to devote the necessary resources to comply.
 
pdc said:
So I placed an order with Jegs, and was charged tax, I haven't dealt with Jegs in a few years but have ordered kart parts and haven't noticed any taxes added, this will suck if we have to pay tax for out of state orders, anyone else aware of this happening?
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Does Jegs have an outlet in your state?

I think if they do they pretty much have to charge you tax on your purchase. I think it's only when you purchase from a company who does not have any outlet or distribution center in your state that they don't add tax to the bill. Some companies list states for which they will collect tax. Walmart pretty much charges tax on everything they personally sell.

Their may be states who are tax havens for sales and distribution centers attracting companies to their state because they do not have to charge tax on sales.

I don't have to pay state taxes on red commie China purchases even though they use our USPS for delivery. Though the USPS delivers per international agreements, I think they should not accept packages for US delivery who's state tax has not been paid for the item contained in the package. Yes it would mean commie red China would have to add on each states tax on every sale and send the states the money but we all know nobody is going to get them to do that.
 
paulkish said:
Does Jegs have an outlet in your state?

I think if they do they pretty much have to charge you tax on your purchase. I think it's only when you purchase from a company who does not have any outlet or distribution center in your state that they don't add tax to the bill. Some companies list states for which they will collect tax. Walmart pretty much charges tax on everything they personally sell.

Their may be states who are tax havens for sales and distribution centers attracting companies to their state because they do not have to charge tax on sales.

I don't have to pay state taxes on red commie China purchases even though they use our USPS for delivery. Though the USPS delivers per international agreements, I think they should not accept packages for US delivery who's state tax has not been paid for the item contained in the package. Yes it would mean commie red China would have to add on each states tax on every sale and send the states the money but we all know nobody is going to get them to do that.
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According to the tracking information it came from Ohio, I'm in Texas,
 
Here what I found on the Jegs site: https://www.jegs.com/customercare/customercare.html

Interesting thing is included on the list are just 43 of 50 States. Way to hard for me to figure out which states won't get charged sales tax. It's probably only the states which do not have a state sales tax?

found it: Only five states do not have a sales tax: Alaska,Delaware, Montana, New Hampshire, and Oregon. But that just adds up to 48, not 50????

Sales Tax
Sales Tax Laws
I haven't been charged sales tax in the past. Why am I seeing this charge now?
The laws around charging sales tax for products have been evolving rapidly; due to a recent Supreme Court Decision, we must charge sales tax in your state. JEGS will collect sales/use tax only for invoices generated on and after October 1st 2018. All invoices from prior periods will not be affected.
States that are currently being charged Sales Tax are below. Click on any state below to view the tax-exempt forms for that state:



What is use tax?
Use tax is similar to sales tax. The difference is who pays the state.
When you are charged sales tax the merchant (JEGS) pays the sales tax to your state.
When you are not charged tax on a taxable purchase you may be responsible for paying the use tax to your state at the same rate your sales tax is collected.
For more information you should contact a Tax Professional or your states Department of Revenue.
How much sales tax am I being charged?
The tax rate varies by location, and is in accordance with your state and local laws.
 
I bought a starter from Jegs last year , a few months after the purchase I received a letter from Jegs that said I "may" be responsible for sales tax on the item I purchased …. I never heard another word form them so IDK
 
LynnRacing said:
I bought a starter from Jegs last year , a few months after the purchase I received a letter from Jegs that said I "may" be responsible for sales tax on the item I purchased …. I never heard another word form them so IDK
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you won't hear from Jeg's they did there legal part.
The feds are the ones to worry about , they will chase you down for a Dollar Fifty while millions get forgotten /shuffled /redirected into someone else's pocket.
 
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