When buying in person some staes have sales tax which is a percent of the purchase price. I live in michigan and we have a sales tax of 6%. however, if you buy online it is a different game. the rule is the seller has to have a physical store in the state that you live in, in order for that state to charge you their sales tax..
Example, ritz photo has stores in michigan; if I buy online from ritz I will be charged sales tax. if a buy online from b&h photo in new york or adorama in new york I willnot be charged sales tax. neith b&h or adorama has a physical store in michigan...
Ah thats cool.
Thanks for the reply, might splash out on a few lenses as well then..
Hmmm....
A business is required to have "nexus" in a state, not a physical store, to be required to charge sales tax. A presence of some sort..
I also wouldn't be surprised if Illinois doesn't have a law stating that you have to declare any out of state purchases made via mail or Internet, and pay sales tax on those purchases..
I have yet to hear of such a law being enforced, but it *could* cause problems for somebody. It'll be interesting when, and if, the first few cases of "tax evasion" go to court....
Crime Scene PhotographyA small gallery of personal work: http://picasaweb.google.com/PID885..
Grumble:.
Contact each of the dealers you are considering by phone and ask them where they are required to charge tax. Some dealers have tax info on their websites, showing in which states they are required to charge tax..
'If they're not screaming at you to get out of the way, you're not close enough' http://www.ChuckLantz.com..
Yeah Texas has a similar law that you are *supposed* to "declare" items purchased by mail or the internet and pay the sales tax. I'm sure most states have something in the books regarding this as most states/government entities like to get their hands on tax revenue. As for it being enforced, I've never heard of a case where this has been enforced. If the states get down to enforcing it, I would imagine they would focus attention on big buyers, not on you and me buying cameras and lenses here and there..
So, in short, OP shouldn't worry about paying the sales tax if he orders online. If the store is collecting it, fine, but if not, oh well. My recommendation is to order it online, however, sometimes any savings on taxes will be made up in shipping costs. I use Amazon Prime so shipping is free, no sales tax, so that makes it easy.Just trying to learn.
Blog: http://novicephotog.blogspot.com/Flickr: http://www.flickr.com/photos/9778447@N07/..
To avoid the sales tax you could probably get it from b&h and have it sent to your friends (in your name). Illinois would not be able to track you down to collect the "use tax" (the part you are supposed to pay in good faith) being from the UK..
NY has a spot to pay it on the income tax forms. They also have an amount you can use if you didn't keep track which would be about $300 worth of online purchases. One lens blows through it quickly, so I just pay the $20 or whatever it is so I don't have to worry..
To those that don't remember it being enforced: Dennis Koslowski (sp?) of Tyco scandal fame. He had empty boxes shipped to NH to avoid paying sales tax on about 10,000,000 of artwork. Different league than we are talking, but it does happen..
Mike..
Mike - I totally forgot about Dennis. hahahaha. But you are right, they did enforce it with him. Although it was just another charge to tack on and his abuse was pretty flagrant. But you are right, it was enforced in his case. Amazing what a multi-millionaire will do to save a little bit of money.Just trying to learn.
Blog: http://novicephotog.blogspot.com/Flickr: http://www.flickr.com/photos/9778447@N07/..