skizzi99
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posted on May 11, 2004 05:21:33 PM new
I do, but sometimes I wish I didn't.
It is noted in my auctions for CA buyers but half the time they balk about it. It seems that most sellers don't collect it, as they are just doing personal sales . I've got a buyer right now that is making me nutty - wants exemption for resale but has no resale number. I've been diplomatic so far but I'm about to crack. Do you guys just waive it or do you hold out? This is for 16.00 in tax on 200.00 item.
The best part of this is - I think he's an attorney! First he asked for media rate, now he wants to avoid tax... hmmmm
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dorrie
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posted on May 11, 2004 05:23:43 PM new
He needs to pay the sales tax as it is stated in your ad.
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iareateacher
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posted on May 11, 2004 05:39:20 PM new
I collect it but every now and again the state confiscates my collection.
Not very satisfying.
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sparkz
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posted on May 11, 2004 06:11:00 PM new
Tell him in very polite terms that all California sellers are required to collect sales tax. He certainly doesn't expect us to pay our liquor bills out of our OWN pockets, does he?
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
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davebraun
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posted on May 11, 2004 06:18:23 PM new
If you are a business located in California and ship to a California address you must collect sales tax and report to the Board of Eq either quarterly, semi annually or annually depending on your volume of sales.
On tiny amounts I bring it to the attention of the buyer and usually take it out of my pocket. On larger sales I generally will reverse a PayPal payment and inform them of the correct amount.
I have been audited by the State and find it's easy to deal with an impolite or irate customer than deal with a pissed off state agency.
Friends don't let friends vote Republican!
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sanmar
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posted on May 11, 2004 06:28:00 PM new
I do collect Sales Tax on CA residents & have had no problems so far. Let me point out that you are not required to collect Sales Tax, however you are required to pay it to the state. Many businesses often have weekend sales that proclaim "No Sales Tax" A good gimmick to bring in customers. In Santa Barbara county it is 7.75%, some counties are even higher.
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mycoolstuff
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posted on May 11, 2004 06:29:05 PM new
I do not collect it, but I do file and just pay it out of my profits. I don't have alot of sales to my own state, so it hasn't been too bad. But if I stated in my auction that I charged, I would stick to my guns.
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skizzi99
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posted on May 11, 2004 06:40:03 PM new
thanks folks!
I'll keep being polite with him. I guess what is really bugging me is that both the shipping amount and the sales tax were stated in the auction. He is only coming up with all this after the auction ends and is dragging out the payment.
I did offer him some extras of similar items at no charge as a kind of "diffuser" for bad feelings. Haven't heard back.
I kind of like the idea of not collecting but paying out of profits. Not many items ship within the state so not a bad idea.
Audit! Oh my!
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stonecold613
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posted on May 11, 2004 09:33:34 PM new
Collect the tax!! What on earth are you doing even considering paying it out of your own pocket. That is a plan to be out of business in a hurry.
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Damariscotta
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posted on May 12, 2004 03:20:45 AM new
In some, if not all of the states I have (or have had) resale registrations for, you were required to COLLECT the tax. "Absorbing" the tax was expressly prohibited. In other words, you couldn't tell the customer "I'll take care of the tax" and pay it yourself. I imagine this was simply done to help ensure compliance.
I am sure that "no sales tax" promotions probably have fine print somewhere that they are giving you a rebate equal to the amount of sales tax. Some states are also having "tax holidays" to boost business at certain times.
As for resale customers, I have learned over the years at B&M location, unless they customer immediately volunteers that they have a resale number, write it up with the tax; it is easier to re-do to remove tax, than to have the friction of asking for additional money and explaining that they need a legitimate resale number in order to avoid tax.
At one show, a woman purchasing an item asked "what do I have to do to avoid paying sales tax". I said "Get a resale number and do the paperwork with the state every quarter." Her husband couldn't stop laughing, and said that it was time someone told her that.
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agitprop
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posted on May 12, 2004 03:46:34 PM new
We run an export-only operation for a very good reason - we don't have to collect sales tax, plus we get a refund of domestic sales tax on all exported items, along with generous export subsidies through the small business unit. 
If we sold domestically, we would have to register to collect sales tax and do a tonne of paperwork to administer it.
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