Online purchase sales tax

[dieselrealtor]

I noticed a month or 2 ago, an online gun shop was charging tax in Indiana when others were not.

PSA now does as well, not sure when they started but fairly recent.

 

[VUPDblue]

They likely have distribution points in Indiana which would require them to collect taxes in the state.

 

[d.kaufman]

All online purchases will sooner rather than later be charging sales tax since the supreme court ruled on this last year. Not sure if there is a specific date for when all online sales will require it, but its coming for sure

Edit. Heres an article on the supremes decision.

https://www.forbes.com/sites/greats...g-supreme-courts-internet-sales-tax-decision/

 

[CampingJosh]

Yeah, it's coming.

Indiana says that we've been supposed to be paying use tax the whole time, but I don't think many people did.

 

[T-DOGG]

I noticed a month or 2 ago, an online gun shop was charging tax in Indiana when others were not.

PSA now does as well, not sure when they started but fairly recent.

Just ordered an AR Pistol kit from PSA on New Years Eve, no tax.
Midway USA - no tax.

Primary Arms - tax
Brownells - tax, this was just recently within the last few weeks or so
Amazon - tax (think that's been for awhile though on products "shipped and sold" by Amazon
Ebay - some vendors charge tax, obviously private individuals don't

 

[jy951]

I believe if the business does 100k in sales to in or 200 transactions, they must collect sales tax. They no longer need a presence to be required to collect in sales tax.

 

[T-DOGG]

I believe if the business does 100k in sales to in or 200 transactions, they must collect sales tax. They no longer need a presence to be required to collect in sales tax.

Interesting. Source?

 

[wtburnette]

I can confirm that GrabaGun now charges tax where they didn't in the past.

 

[Astro91]

I believe if the business does 100k in sales to in or 200 transactions, they must collect sales tax. They no longer need a presence to be required to collect in sales tax.

Is that true? I’ve bought from businesses that do over 100k in sales and over 200 transaction easily and not charged sales tax. I haven’t been up to date on my federal/state tax laws though.

 

[Gaffer]

Interesting. Source?

https://www.wishtv.com/news/indiana-news/hoosiers-to-pay-online-sales-tax-starting-monday/1488706241

It seems not everyone that should be charging taxes in Indiana have caught up yet.

Ron

 

[sugarcreekbrass]

I think PSA started collecting tax on Jan 1. I ordered an AR kit on Dec 30 and no tax was charged. I ordered lowers on Jan 1 and was charged tax.

 

[shootersix]

sig sauer's been collecting tax for my purchases for over a year

about 3 years ago, I bought an ar upper from Anderson, I bought it online, with my Indiana address for my account, but when I tried to have it shipped to my work address (in Kentucky) they added sales tax, so I ended up shipping it to my home and saved 20 bucks

 

[jy951]

Is that true? I’ve bought from businesses that do over 100k in sales and over 200 transaction easily and not charged sales tax. I haven’t been up to date on my federal/state tax laws though.

This is the new rule. The old rule stated the business needed to have a business presence or "nexus" in the State. The new rule doesn't require nexus.

 

[WebSnyper]

I can confirm that GrabaGun now charges tax where they didn't in the past.

That's a bummer. GrabaGun and Brownells have been a couple of my favorites.

This is the new rule. The old rule stated the business needed to have a business presence or "nexus" in the State. The new rule doesn't require nexus.

That was my understanding as well, that it is now based on how much business the entity does in/with residents of a state rather than presence. Just wasn't sure what the limits were.

 

[HoughMade]

This is the new rule. The old rule stated the business needed to have a business presence or "nexus" in the State. The new rule doesn't require nexus.

In South Dakota.

This is a state law issue. Each state will have its own laws about how this is implemented and when it will take effect, assuming it does in each state....which is a virtual certainty. What the exemptions will be in each state, if any, is determined by state law.

 

[jgressley2003]

Government needs more money to waste.

 

[dieselrealtor]

In South Dakota.

This is a state law issue. Each state will have its own laws about how this is implemented and when it will take effect, assuming it does in each state....which is a virtual certainty. What the exemptions will be in each state, if any, is determined by state law.

This will likely increase their costs by having to keep up with each state, costs which will likely be passed on in addition to the sales tax.

 

[doubleeagle4]

Just ordered an AR Pistol kit from PSA on New Years Eve, no tax.
Midway USA - no tax.

Primary Arms - tax
Brownells - tax, this was just recently within the last few weeks or so
Amazon - tax (think that's been for awhile though on products "shipped and sold" by Amazon
Ebay - some vendors charge tax, obviously private individuals don't

Midway USA charged me tax on an order I placed yesterday.

 

[bwframe]

Taxed Enough Already...

 

[mmpsteve]

This will likely increase their costs by having to keep up with each state, costs which will likely be passed on in addition to the sales tax.

I can't imagine the headaches involved with setting up a system to withhold and reimburse sales taxes for each state a large online retailer does business in. You'd need tax accounts with each state's Dept of Revenue, computer systems to keep it all straight, digital systems to pay each state, etc ... The biggest players will have no problems (albeit they'll have to pass on the costs), but the medium-sized companies will be at a disadvantage.

I've been expecting this for some time. There was a huge amount of online economic activity not being taxed. Can't have that - it's unAmerican!!

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