OT: Colorado buyers saved from Amazon tax

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"A federal court has thrown out a 2010 Colorado law meant to spur online retailers like Amazon to collect state sales tax. The law had already been temporarily blocked in federal court last year, but U.S. District Judge Robert Blackburn's ruling Friday permanently handcuffs it."
Federal court tosses Colorado's Amazon tax - The Denver Post http://www.denverpost.com/breakingnews/ci_20316979/federal-court-tosses-colorados-amazon-tax#ixzz1r6rWI6Zz
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The article said that on-line purchases still had to have the tax paid. Does anyone know how it's done ?
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Most states have a "use tax" for such purchases. In CT and MA, when you do the state income tax return you are asked if any purchases are made that were not taxed. You just fill in the amount and pay the tax. There may also be a form you can get from the DOR, but I never checked into it.
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On 04/06/12 05:43 am, Ed Pawlowski wrote:

In MI, it's similar, but we get credit for any lesser amount of tax (i.e., less than Michigan's 6%) that was paid in another state. We can enter the amount if we have records, or we can let them estimate an amount based on our income; TurboTax figures it all out for us.
BTW, many retailers here are saying that the absence of sales tax on Internet purchases is hurting them, but many items I buy online are still far cheaper than local retail even after paying the "use tax." I might even get them more quickly than waiting for a local retailer to order them if they are not in stock. One local store I went to recently to buy an item they showed on their Web page, but they said neither they nor "head office" kept it on stock: I would have to order it online and pay shipping costs and tax; Yeah, right!
Perce
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On Fri, 06 Apr 2012 07:29:57 -0400, "Percival P. Cassidy"
tax:

That old retailer's argument has not been true for a long time. As you observe, Internet merchant prices are so competitive, that even with sales tax, they are still cheaper delivered to your door than a trip to the local store; which probably doesn't have what you want anyway.
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A long time is right! It even predates the Internet. I was buying from the likes of 47th St. Photo forty years ago.
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Caesar,

There are a variety of reasons I shop online instead of local retailers.
1. Selection. Local retailers usually just stock a few popular brands, and often just a limited selection from each brand. More often than not, I've gone looking for a specific model and couldn't find one at any local retailer. A couple examples:
I needed a new corded drill with low speed and high torque to use with large self-feeding auger bits. Everything sold in local stores was the typical high speed, low power drill. I ordered a Dewalt model from Amazon.com and had it in three days.
I recently did some electrical work at my in-laws. The inspector said I needed lockout devices on a few of the breakers. Despite being a national code requirement since 2008, not a single home center or local electrical supply stocked them. Ordered online and they showed up a couple days later.
2. Knowledge. Anytime I go to a retail store, I almost always know more about the merchandise than the employee does. Doesn't matter if it's electronic devices, computers, or building materials. If I have a question I'm usually on my own to figure it out. When I shop online I can see the full specifications of the device, link to the manufacturers web site for more information, and find reviews if I want to know how it worked out for others.
3. Convenience. I can shop online at 5am in my pajamas on a Sunday morning if I wish. I don't have to get dressed, wait till the store opens, drive to town (10 miles each way using $4/gallon gas, pumping exhaust into the air, putting wear and tear on my vehicle), and hope they have what I need. Shopping online I can check out 4 or 5 different stores in a few minutes, instead of wasting the afternoon driving from store to store.
4. Price. In most cases, I can find items online cheaper than I can find them locally.
The best exceptions are retail stores with the local inventory listed online. For example, I can research the product I want online, then check HomeDepot.com, Walmart.com, etc. to see if the local retail store has that item in stock. If they do, I am more likely to drive down and pick it up that day than wait for the item to be shipped, even if it costs a little more.
Anthony
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On 04/07/12 12:28 pm, HerHusband wrote:
<snip>

Keep in mind that the online inventory display is not always up to date. Some stores do updates only overnight. Sometimes an item that is shown as in stock walked out of the door without saying "Goodbye."
Perce
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On Sat, 7 Apr 2012 16:28:21 +0000 (UTC), HerHusband
tax:

Excellent description of why on-line retailing is beating the heck out of B&M retailers. It has nothing to do with sales tax or even shipping costs. It's all about selection, convenience and delivered (to the door) cost. In all three of those criteria, on-line retailers have mostly IMO taken the lead.
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On 4/8/2012 10:25 AM, Caesar Romano wrote:

But it is still unreasonable that a local brick and mortar merchant MUST be a tax collector and a online merchant doesn't.
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But the likes of Best Buy are a good place to take a peek at the merchandise before buying. A number of smart phone apps even make this comparison easy. BB has noticed, too.

The online merchant does have to be a tax collector for all jurisdictions he operates in. Why should he be a tax collector for jurisdictions he doesn't do business in? The purchaser is required to pay the use tax. Is it the merchant's fault the buyer is a tax cheat?
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wrote:

No, the both do the same thing, just a different scale. If the internet retailer has a "presence" in your state, they will collect salves tax on all sales shipped to that state. If your local B&M stores ships a product out of state, he is not obligated to collect any tax for anyone.
The internet store will collect tax on products sold in the state they are set up in and any other state they may have an office or warehouse.
Same rules apply to both. One of my favorite took stores is Coastal Tool here in CT. If I order on line, I pay the tax. Even with tax, they are a better buy than most every other place.
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This isn't anything, new either. We'd buy stuff in other states and have it shipped back w/o sales tax at least since the mid-80s
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On 04/06/12 07:29 am, I wrote:

IOW, I would pay them full price, plus shipping and tax, and it would be shipped to me directly from the manufacturer or distributor. The "retailer" would collect a profit (an undeserved profit) on an item on which they had never even set eyes.
Perce
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On Fri, 06 Apr 2012 12:57:59 -0400, "Percival P. Cassidy"

Why is the profit undeserved? They placed the item for sale, hosted the web site, paid for the database work, promoted it, handled the paperwork, charged your credit cart, and passed it in bulk to the manufacturer or his warehouse. Most middlemen perform a needed service.
Next time you need a roll of toilet paper, call Proctor & Gamble and see if you can buy direct.
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On 04/06/12 05:12 pm, Ed Pawlowski wrote:

A retailer earns its profit by having the item in stock (taking up space) and on display for examination and perhaps even demonstration. Amazon and many other online "sellers," for far less than the retailer's typical markup, collect my payment and forward my order to Ingram Micro or some other distributor who ships it to me.
Perce
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On Sat, 07 Apr 2012 10:09:26 -0400, "Percival P. Cassidy"

That is why Amazon can sell cheaper. They still offer you goods and perform a service and are entitled to be paid for that service. They have costs in making the transaction possible for you.
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On 04/07/12 10:41 am, Ed Pawlowski wrote:

But the retailer in the case I mentioned was only going to do the same thing: take my order and forward it to the distributor or manufacturer but collect a far larger markup than Amazon does.
I do not begrudge Amazon its small markup, but I do begrudge a "retailer" its large markup for doing the same thing.
BTW, as I mentioned here a while back, "trade" ("buy low, sell high") was considered unethical until comparatively recently.
Perce
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On Sat, 07 Apr 2012 10:50:15 -0400, "Percival P. Cassidy"

OK, gotcha. Yes, that is one reason local retail shops are going away. They have higher overhead and generally charge higher prices even if they don't have to. It is also possible that with his volume, he is paying a higher price than the internet retailer too.
Major appliances have changed over the years. Local stores could not compete with the big box retailers. Now, most belong to co-ops and buy at lower prices and can be very competitive. If I'm buying a $2000 refrigerator, I'd be happy to pay $50 more from the guy up the street that I know will give me a good delivery experience and long term service. I'm not willing to pay hundreds more though.

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Just had a $3,400 refrigerator delivered today. We bought it from a large chain store that had the same price as everyone else (fair traded) but they had it "in stock" locally. Even Lowes would have taken 3-4 weeks (they took that long last time we bought one - same model). The delivery crew was excellent. A "local" couldn't have done better.
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