cmcmanis@stpeter.Eng.Sun.COM (Chuck McManis) (06/13/90)
In article <28075@eerie.acsu.Buffalo.EDU> (gregory b molik) writes: > The dealer near me called Commodore and Commodore said that people > out-of-state do not have to pay the sales tax. In article <4313@darkstar.ucsc.edu> (Dave Schreiber) writes: > I just called my dealer, and he said that you _do_ have to pay sales > tax. When I told him about the above message, he was surprised and > said he would call Commodore. Can someone from Commodore please post > the official policy on this? Thanks. Why would Commodore know anything about whether or not someone would have to pay sales tax? That isn't their problem, period. Call your state board of equalization to figure out whether or not you have to pay sales tax. Originally, any sale going *OUT OF STATE* was exempt from *STATE SALES TAX* because the transaction crossed the state boundary taking it effectively out of the jurisdiction of either state. However, since states are desparate for more tax money and their citizens have denied them such they are looking for loop holes and this is one of them. The state of CALIFORNIA is attempting to collect sales tax on any transaction that starts or ends in CALIFORNIA. The state of WISCONSIN is attempting to collect sales and liquor taxes on beverages served in airplanes flying over the state of WISCONSIN. The state of MASSACHUSETTS is looking to collect sales tax on any sales made by a company anywhere that is incorporated in MASSACHUSETTS. Anyway, the answer is "Commodore can't give you a definitive answer because they don't know." You're local office of the State Board of Equalization will tell you what is legally required. -- --Chuck McManis Sun Microsystems uucp: {anywhere}!sun!cmcmanis BIX: <none> Internet: cmcmanis@Eng.Sun.COM These opinions are my own and no one elses, but you knew that didn't you. "I tell you this parrot is bleeding deceased!"
davids@ucscb.UCSC.EDU (Dave Schreiber) (06/13/90)
In article <137142@sun.Eng.Sun.COM> cmcmanis@stpeter.Eng.Sun.COM (Chuck McManis) writes: >Why would Commodore know anything about whether or not someone would >have to pay sales tax? That isn't their problem, period. Call your Excuse me? Commodore collects the sales taxes; it is very much their problem. >state board of equalization to figure out whether or not you have to >pay sales tax. [...] >Anyway, the answer is "Commodore can't give you a definitive answer >because they don't know." You're local office of the State Board of >Equalization will tell you what is legally required. Again, since Commodore has taken responsibility for collecting the sales taxes, they have to know who they need to charge. I'd just like to know what they know... >--Chuck McManis Sun Microsystems -- Dave Schreiber The blue leprechaun at davids@slugmail.ucsc.edu (prefered but flakey) or (not both) davids@ucscb.ucsc.edu "Coffee, Darling?"
mcmahan@netcom.UUCP (Dave Mc Mahan) (06/14/90)
In a previous article, davids@ucscb.UCSC.EDU (Dave Schreiber) writes: > >In article <137142@sun.Eng.Sun.COM> cmcmanis@stpeter.Eng.Sun.COM (Chuck McManis) writes: >>Why would Commodore know anything about whether or not someone would >>have to pay sales tax? That isn't their problem, period. Call your > >Excuse me? Commodore collects the sales taxes; it is very much their >problem. I think chuck is right. C= does not collect sales tax unless they sell directly to the end user. Sales tax is collected only once, from the last seller directly from the end user who will not re-sell the machine. This saves tax being collected in PA (where the machines are made) and in New York (where the machines are sold via mail order) and then again in California (where the end user buys it and takes possession). At each step, when the product changes hands, the proper paperwork must be filed with the state franchise tax board (or whatever you call it in your state) and the resale number of the buyer is collected in lieu of the tax. This number and the amount of the purchase are then recorded with the state authority, who checks periodically to ensure that you have either paid the tax, collected yet another re-sale number from another person or company who intends to re-sell it, or have the product still in inventory. There is no other place for the product to be. Getting a re-sale permit is easy and free (in california). If you get caught using it improperly (and it's VERY easy to get caught, the whole system is computerized) then you pay big fines and/or go to jail. If the end user buys a product via mailorder, the sales tax is still supposed to be collected, even if the product crosses tax boundaries (like state lines). The end user is responsible for paying the tax to the local authority. Most don't, but there is a theoretical amount due for such mailorders. Sales made by a mail-order house within the same tax district are subject to sales tax. That's why you always see the little 'Mass. residents please add 6% sales tax' on the bottom of the order form if the mail-order business is located in Mass. California is now cracking down on mail-order places that do business in California, trying to shift the burden of paying the tax (and collecting it from the end user) to the mail-order place. Unless you buy direct from C= (or anyplace else) and are the end user, you don't have to pay tax. I'm not sure, but I doubt if C= would sell direct to the end-user (maybe with the educational discount, but even then I think they go through the local school book store and avoid the tax issue). I would think that C= is responsible for collecting tax on employee sales, as in that case they ARE selling directly to the end-user. That would be the only case I could think of, unless a huge company wanted to purchase lots of machines and C= dealt with them directly. Then, C= would have to collect the proper tax or obtain the resale number of the buyer. >>Anyway, the answer is "Commodore can't give you a definitive answer >>because they don't know." You're local office of the State Board of >>Equalization will tell you what is legally required. > >Again, since Commodore has taken responsibility for collecting the >sales taxes, they have to know who they need to charge. I'd just >like to know what they know... I doubt that C= knows or keeps track of all the little tax jurisdictions that abound. They don't need to, so they don't. They just collect all the little resale numbers of the distributors and dealers, and then they are safe from having to pay sales tax. >>--Chuck McManis Sun Microsystems >Dave Schreiber The blue leprechaun -dave
davids@ucscb.UCSC.EDU (Dave Schreiber) (06/14/90)
In article <13343@netcom.UUCP> mcmahan@netcom.UUCP (Dave Mc Mahan) writes: > > In a previous article, davids@ucscb.UCSC.EDU (Dave Schreiber) writes: >> >>In article <137142@sun.Eng.Sun.COM> cmcmanis@stpeter.Eng.Sun.COM (Chuck McManis) writes: >>>Why would Commodore know anything about whether or not someone would >>>have to pay sales tax? That isn't their problem, period. Call your >> >>Excuse me? Commodore collects the sales taxes; it is very much their >>problem. [...] >If the end user buys a product via mailorder, the sales tax is still supposed >to be collected, even if the product crosses tax boundaries (like state lines). Or even if the product was bought while travelling overseas two years ago. (Sorry, had to get that bit of Calif. politics in. :-) ). [...] >Unless you buy direct from C= (or anyplace else) and are the end user, you >don't have to pay tax. I'm not sure, but I doubt if C= would sell direct >to the end-user (maybe with the educational discount, but even then I think >they go through the local school book store and avoid the tax issue). I Well, the with the educational discount plan, all the dealer does is send the order form & certified check, and then holds the computer for the customer once it arrives. He doesn't really sell anything. I agree that sales tax isn't Commodore's problem when someone buys a computer through the normal procedure, but that isn't what started this discussion; it started over the question "does one pay sales tax on an educationally discounted machine when the dealer isn't in Pennsylvania?" The answer, it turned out, is yes if the dealer is in Georgia, Virginia, Illinois, or California (sob, whine). Otherwise, no. >would think that C= is responsible for collecting tax on employee sales, as >in that case they ARE selling directly to the end-user. That would be the >only case I could think of, unless a huge company wanted to purchase lots >of machines and C= dealt with them directly. Then, C= would have to collect >the proper tax or obtain the resale number of the buyer. [...] >>>--Chuck McManis Sun Microsystems >>Dave Schreiber The blue leprechaun > -dave -- Dave Schreiber The blue leprechaun at davids@slugmail.ucsc.edu (prefered but flakey) or (not both) davids@ucscb.ucsc.edu "Coffee, Darling?"
ericb@athertn.Atherton.COM (Eric Black) (06/16/90)
In article <13343@netcom.UUCP> mcmahan@netcom.UUCP (Dave Mc Mahan) writes: >Unless you buy direct from C= (or anyplace else) and are the end user, you >don't have to pay tax. I'm not sure, but I doubt if C= would sell direct >to the end-user (maybe with the educational discount, but even then I think >they go through the local school book store and avoid the tax issue). Interesting that the educational discount program requires a certified check made out to Commodore, not to the dealer. I'm sure the various tax agencies would look at that and say that Commodore was selling directly to the end user, therefore tax is due and must be collected. The situation in CA with the state trying to collect sales tax on everything is up in the air right now. But look for it everywhere in the near future. Sigh. -- Eric Black "Garbage in, Gospel out" Atherton Technology, 1333 Bordeaux Dr., Sunnyvale, CA, 94089 Email: ericb@Atherton.COM Voice: +1 408 734 9822
xanthian@zorch.SF-Bay.ORG (Kent Paul Dolan) (06/18/90)
It won't make a bit of difference in the short time that the educational discounts have to run, if I understand rightly, but this might be of interest anyway. Mail order houses _detest_ collecting sales taxes for out of state sales. Not because they care all that much about the money they pass from customer to taxing authority (though it does decrease somewhat a price advantage they have over the local shops), but because it forces them to understand and correctly apply the incompatible (and frequently incomprehensible) taxing rules of so many jurisdictions, a nuisance that can cost big bucks for a big mail order house. As a result, a couple of the larger houses (I seem to remember Land's End) are taking the states trying to tax imported mail order from other states to court to have their taxing power nullified. Personally, since the constitution forbids tarrifs between the states, I think the taxing states don't have a leg to stand upon, but I respect the reality that courts can strain at gnats, and interpret the most clear English in the most amazing manner. Kent, the man from xanth. <xanthian@Zorch.SF-Bay.ORG> <xanthian@well.sf.ca.us> -- ... and don't worry about your deposits; they're insured to the HILT by Republic Savings and Loan of Lubock, Texas -- Garrison Keilor, American Radio Company of the Air, Season Finale, "Prairie Home Companion Fourth Annual Revival", 16 June 1990.