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  #9  
Old 11-30-2003, 02:18 AM
Barry Gold
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Posts: n/a
Default Re: Internet Tax

David <devaska[at]comcast.net> wrote:

- quote -

> Multipure does not tell you that they will be
> adding tax before or when you purchase products (water filters) from
> them. Instead they tell you that your credit card will be charged the
> applicable shipping fees plus the price of the merchandise! There is
> however no mention of any tax being added. Until you get your purchase
> confirmation in the e-mail a few days later.


Well, that alone is enough reason not to do any further
business with them. A good, customer-oriented company
always lets you know the full terms and conditions
(including whether tax will be charged) *before* you
complete the transaction.

In fact, you might have a case for returning the filters and
undoing the transaction *because* they didn't disclose
everything in advance. But it's probably not worth the
trouble.

--
I pledge allegiance to the Constitution of the United States
of America, and to the republic which it established, one
nation from many peoples, promising liberty and justice for
all.

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  #8  
Old 11-30-2003, 01:59 AM
Ernie Klein
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Posts: n/a
Default Re: Internet Tax

philmarti[at]aol.com (Phil Marti) wrote:
- quote -

> devaska[at]comcast.net (David) writes:

> > I recently made an online purchase for of a water filter
> > from a company (Multipure) based in Las Vegas, Nevada. I was
> > surprised to see in my purchase confirmation e-mail that I
> > was charged a 3.08$ tax on my purchase. Multipure does not
> > have a bricks-and-mortar store anywhere in my home state of
> > Minnesota. How is it that they can tax me on my purchase.


> Maybe they have an agreement with the state to collect the
> use tax that you no doubt owe on such a purchase. Or, you
> could just call and ask them.


And maybe, Multipure just wants an additional $3.08 profit
in the guise of a 'tax'.

How could anyone find out where the 'tax' money really went?
Nevada has no intrest in monitoring taxes collected for
another state. Minnesota probably has no way to track
Nevada companies that have no stores in Minnesota. Sounds
like easy money to me.

--
-Ernie-

"There are only two kinds of computer users -- those who have
suffered a catastrophic hard drive failure, and those who will."

Have you done your backup today?

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  #7  
Old 11-23-2003, 11:12 PM
David
Guest
 
Posts: n/a
Default Re: Internet Tax

bgold[at]nyx.net (Barry Gold) wrote:
- quote -

> David <devaska[at]comcast.net> wrote:

> > I recently made an online purchase for of a water filter
> > from a company (Multipure) based in Las Vegas, Nevada. I was
> > surprised to see in my purchase confirmation e-mail that I
> > was charged a 3.08$ tax on my purchase. Multipure does not
> > have a bricks-and-mortar store anywhere in my home state of
> > Minnesota. How is it that they can tax me on my purchase.


> AFAIK, a mail-order (or internet) company _may_ collect
> sales and use taxes on out-of-state purchases. It's just
> that they can't be _forced_ to.
> In theory you owe the tax regardless of how or where you
> make the purchase. If you buy from an in-state store, your
> state collects "sales tax" from the store. (And the store
> will usually add "sales tax" to your purchase, but that is
> actually a reimbursement to the store for the tax they pay
> the state.)
> If you buy from an out-of-state store, you owe "use tax"
> when you bring the (whatever) into your state and use it.
> This would apply if you had traveled out of state(*), if you
> bought the (whatever) by mail order, or if you bought it
> over the internet. It's just that there are practical
> difficulties to the state finding out about your
> out-of-state purchases so they can bill you for the use tax.
> So, from your state government's point of view, Multipure is
> "being a good guy" by collecting and (we hope) reporting and
> remitting the sales tax.
> The one thing that bothers me about this is that you should
> have been told about the sales tax during checkout. If this
> is a major factor in your decision to buy from Multipure,
> you might consider canceling the order. You always have the
> right to "vote" with your pocketbook, by buying from online
> stores that don't charge sales tax (or whatever you care
> about). For most people, the total price (including tax if
> any) is the main consideration.
> (*) If you bought it in another state and paid sales tax
> there, you would probably get credit for that against your
> use tax. I'm not aware of any rule requiring states to give
> such a credit, but I think most if not all do so.


> Thanks for all the information the whole issue is a little clearer to

me now. It still seems as if there is a lot of room for
misinterpretation of the laws surrounding the "Internet" tax. I am so
used to purchasing products on line and not paying the tax that this
appeared fishy to me. Multipure does not tell you that they will be
adding tax before or when you purchase products (water filters) from
them. Instead they tell you that your credit card will be charged the
applicable shipping fees plus the price of the merchandise! There is
however no mention of any tax being added. Until you get your purchase
confirmation in the e-mail a few days later. I appreciate all the
information this is a great forum.

Thanks All
david

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  #6  
Old 11-23-2003, 10:13 PM
Dick Weaver
Guest
 
Posts: n/a
Default Re: Internet Tax

Al Bundy wrote:

- quote -

> Dick Weaver <rweaver[at]ix.netcom.com> wrote in news:vrq136s9sarr22

> > [snip]...
> > Since the tax is paid, one way or another, why argue about
> > who should collect/pay it?


> Well, if I pay it at least my state should get the benefit
> of it.


> Ah, we made different assumptions about which state the collected

tax will be sent to. The news here (Silicon Valley) is about some
out-of-state mail order/internet vendors agreeing to collect sales
taxes. Thus my mindset was for the tax being remitted to your
state.

dick w

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  #5  
Old 11-22-2003, 12:38 AM
FF
Guest
 
Posts: n/a
Default Re: Internet Tax

"Frederick Jorden" <fejcpa[at]erols.com> wrote:

- quote -

> First , you are subject to your home state's sales or use
> tax no matter where the vendor is located. The vendor may be
> required to collect sales tax for your home state because
> they have employees, own or rent real property, or have
> inventory or employees in your home state. Additionally, a
> firm can volunteer to collect sales taxes for any state they
> wish. They would do this to save you the trouble of filling
> out the tax forms.


In our state, you simply fess up to the amount of sales tax
owed --applicable to all online purchases State retailer
locus or not -- on your state income tax return. One does
wonder, though, if State has any procedures in place as to
how process an entry there, theorizing they can wait for the
first t/p to make an entry in this line item. :-)

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  #4  
Old 11-22-2003, 12:38 AM
Al Bundy
Guest
 
Posts: n/a
Default Re: Internet Tax

Dick Weaver <rweaver[at]ix.netcom.com> wrote in news:vrq136s9sarr22
- quote -

> David wrote:

> > I recently made an online purchase for of a water filter
> > from a company (Multipure) based in Las Vegas, Nevada. I was
> > surprised to see in my purchase confirmation e-mail that I
> > was charged a 3.08$ tax on my purchase. Multipure does not
> > have a bricks-and-mortar store anywhere in my home state of
> > Minnesota. How is it that they can tax me on my purchase. I
> > am fully aware that if I were to purchase something from a
> > company online based in my state that I would then be liable
> > to pay the sales tax, but I think that Multipure is wrong in
> > this instance! What do you think?


> ... and you are fully aware that if Multipure did not collect
> sales tax you would owe a use tax to Minnesota. It would be
> wrong to not pay it.
> Since the tax is paid, one way or another, why argue about
> who should collect/pay it? Indeed, it saves you the effort
> of paying the use tax if Multipure collects sales tax; they
> are doing you a service.


> Since the tax is paid, one way or another, why argue about
> who should collect/pay it?


Well, if I pay it at least my state should get the benefit
of it.

I have always wondered about lesser known companies who
collect the tax. Do they ever send it to the state? Can you
ask them for something like a tax reporting ID number? There
must be some kind of number the receiving state assigns.

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  #3  
Old 11-21-2003, 11:59 PM
Barry Gold
Guest
 
Posts: n/a
Default Re: Internet Tax

David <devaska[at]comcast.net> wrote:

- quote -

> I recently made an online purchase for of a water filter
> from a company (Multipure) based in Las Vegas, Nevada. I was
> surprised to see in my purchase confirmation e-mail that I
> was charged a 3.08$ tax on my purchase. Multipure does not
> have a bricks-and-mortar store anywhere in my home state of
> Minnesota. How is it that they can tax me on my purchase.


AFAIK, a mail-order (or internet) company _may_ collect
sales and use taxes on out-of-state purchases. It's just
that they can't be _forced_ to.

In theory you owe the tax regardless of how or where you
make the purchase. If you buy from an in-state store, your
state collects "sales tax" from the store. (And the store
will usually add "sales tax" to your purchase, but that is
actually a reimbursement to the store for the tax they pay
the state.)

If you buy from an out-of-state store, you owe "use tax"
when you bring the (whatever) into your state and use it.
This would apply if you had traveled out of state(*), if you
bought the (whatever) by mail order, or if you bought it
over the internet. It's just that there are practical
difficulties to the state finding out about your
out-of-state purchases so they can bill you for the use tax.

So, from your state government's point of view, Multipure is
"being a good guy" by collecting and (we hope) reporting and
remitting the sales tax.

The one thing that bothers me about this is that you should
have been told about the sales tax during checkout. If this
is a major factor in your decision to buy from Multipure,
you might consider canceling the order. You always have the
right to "vote" with your pocketbook, by buying from online
stores that don't charge sales tax (or whatever you care
about). For most people, the total price (including tax if
any) is the main consideration.

(*) If you bought it in another state and paid sales tax
there, you would probably get credit for that against your
use tax. I'm not aware of any rule requiring states to give
such a credit, but I think most if not all do so.

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  #2  
Old 11-20-2003, 05:33 PM
Frederick Jorden
Guest
 
Posts: n/a
Default Re: Internet Tax

David wrote:

- quote -

> I recently made an online purchase for of a water filter
> from a company (Multipure) based in Las Vegas, Nevada. I was
> surprised to see in my purchase confirmation e-mail that I
> was charged a 3.08$ tax on my purchase. Multipure does not
> have a bricks-and-mortar store anywhere in my home state of
> Minnesota. How is it that they can tax me on my purchase. I
> am fully aware that if I were to purchase something from a
> company online based in my state that I would then be liable
> to pay the sales tax, but I think that Multipure is wrong in
> this instance! What do you think?


First , you are subject to your home state's sales or use
tax no matter where the vendor is located. The vendor may be
required to collect sales tax for your home state because
they have employees, own or rent real property, or have
inventory or employees in your home state. Additionally, a
firm can volunteer to collect sales taxes for any state they
wish. They would do this to save you the trouble of filling
out the tax forms.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247 EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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  #1  
Old 11-20-2003, 05:14 PM
Phil Marti
Guest
 
Posts: n/a
Default Re: Internet Tax

devaska[at]comcast.net (David) writes:

- quote -

> I recently made an online purchase for of a water filter
> from a company (Multipure) based in Las Vegas, Nevada. I was
> surprised to see in my purchase confirmation e-mail that I
> was charged a 3.08$ tax on my purchase. Multipure does not
> have a bricks-and-mortar store anywhere in my home state of
> Minnesota. How is it that they can tax me on my purchase.


Maybe they have an agreement with the state to collect the
use tax that you no doubt owe on such a purchase. Or, you
could just call and ask them.

Phil Marti
Topeka, KS

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Old 11-20-2003, 05:13 PM
Dick Weaver
Guest
 
Posts: n/a
Default Re: Internet Tax

David wrote:

- quote -

> I recently made an online purchase for of a water filter
> from a company (Multipure) based in Las Vegas, Nevada. I was
> surprised to see in my purchase confirmation e-mail that I
> was charged a 3.08$ tax on my purchase. Multipure does not
> have a bricks-and-mortar store anywhere in my home state of
> Minnesota. How is it that they can tax me on my purchase. I
> am fully aware that if I were to purchase something from a
> company online based in my state that I would then be liable
> to pay the sales tax, but I think that Multipure is wrong in
> this instance! What do you think?


.... and you are fully aware that if Multipure did not collect
sales tax you would owe a use tax to Minnesota. It would be
wrong to not pay it.

Since the tax is paid, one way or another, why argue about
who should collect/pay it? Indeed, it saves you the effort
of paying the use tax if Multipure collects sales tax; they
are doing you a service.

dick w

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  #-1  
Old 11-20-2003, 12:15 AM
David
Guest
 
Posts: n/a
Default Internet Tax

I recently made an online purchase for of a water filter
from a company (Multipure) based in Las Vegas, Nevada. I was
surprised to see in my purchase confirmation e-mail that I
was charged a 3.08$ tax on my purchase. Multipure does not
have a bricks-and-mortar store anywhere in my home state of
Minnesota. How is it that they can tax me on my purchase. I
am fully aware that if I were to purchase something from a
company online based in my state that I would then be liable
to pay the sales tax, but I think that Multipure is wrong in
this instance! What do you think?

Help

David

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