mathjak107
Well-known member
we charge everything we can for the points .
we haven’t paid a penny in interest in decades
Amazon v B&HPhoto Tax Discrepancy
- Thread starter Rainforest
- Start date
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we haven’t paid a penny in interest in decades
One time I happened to notice that my Credit Score was a bit lower, and I inquired about it and was told it was because I paid off my cards each month and didn't have any other loans.
As it is, I have a very high score and if I do take out a loan for anything, I typically get the best rates offered. These days, I only take out a loan for something if I get a zero percent offer for a 6-24 month loan. And even then, I mostly pay the loan off early. If the interest on my savings drops again, I'm likely to just pay cash for everything I can afford. And if I can't do that, I'll just pass on the purchase.
As for the difference indicated by the OP, some locations have local sales tax additions, which may be substantial. I believe that I saw up to 2.5% or 3% above the state sales tax rate in one location during my travels.
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kanonka
Active member
Just buy from a store that doesn't charge tax for your state - problem solved.
Exactly correct!
I live in NJ and prefer to order camera gear from B&H using the PayBoo card. When I order ANYTHING through Amazon, I am charged the .06625 % NJ sales tax.
If the balance is paid off in full by the due date, there is ZERO % interest. The 35.99% applies if one carries a balance.
PayBoo is a discount on merchandise that bypasses Price Fixing by companies like Nikon.
I never carry a balance on any card so interest rates don't matter.
I never carry a balance on any card so interest rates don't matter.
I don't know what state you live in, but in NJ, shipping charges ARE taxable IF the item being delivered is taxable. It is illegal not to charge the tax if it is applicable.
Very well put - retired tax accountant here!
Is there local sales tax (city or county). Amazon may have to charge and pay all levels of sales while B&H only pays state, not local, sales taxes.
Also you can get a B&H PayBoo card and not pay the sales tax. Some one, B&H and the issuer of the PayBoo card, pay the tax for you. They make money by charging super fees so don't miss a payment and make sure you pay in full every month. Also skip their protection plan (in case you get laid off).
SerenityScenes
New member
Sales tax is calculated using the origin location.
mathjak107
Well-known member
sales tax when we ship from the company i work for is based on where it’s going .
only pick ups are based on our location
Evcarter82
Member
Either way, just fyi, if you use B&H boopay card you pay zero tax
Eric W
New member
Looking at the sales tax rates in Missouri, there are logs of variations depending on where in the city or county you are shipping to. The Amazon rate is 9.24% and the B&H rate is 7%. I was going to try to find these rates on the state's sales tax chart, but it's very complicated because of the number of cities in the county and the number of tax jurisdictions within the cities. So someone is making a mistake, but I can't figure out who is correct.
kbklarry
New member
In my opinion, and I could be wrong, PayBoo is a gimmick in that it is just a store credit card and B&H is primarily passing on its profit from one's using its credit card back to the buyer. Of course, with states that have high sales taxes, some of your savings is coming out their profit.
I buy from B&H which is always trustworthy and Amazon where I only buy products sold AND shipped by Amazon. I have purchased many, many thousands of dollars of new Nikon equipmemt through them and never had a problem. I get 5% back on my purchases and ship it 6 miles from my house to an Amazon locker in a tax free state. I thus save 5% on my purchases. You can't do that with a PayBoo card since it just covers taxes. I bought my Z8 and several Z lenses from Amazon. All my Nikon products from them are USA versions. Amazon is a Nikon Authorized Dealer. That's all you need to know if they are SELLER - which is key.
I buy from B&H which is always trustworthy and Amazon where I only buy products sold AND shipped by Amazon. I have purchased many, many thousands of dollars of new Nikon equipmemt through them and never had a problem. I get 5% back on my purchases and ship it 6 miles from my house to an Amazon locker in a tax free state. I thus save 5% on my purchases. You can't do that with a PayBoo card since it just covers taxes. I bought my Z8 and several Z lenses from Amazon. All my Nikon products from them are USA versions. Amazon is a Nikon Authorized Dealer. That's all you need to know if they are SELLER - which is key.
Sorry Sir, you owe use tax in your home state on those Amazon purchases. You have zero chance of winning that based on the facts presented. Call me MadMikeTwo as I think @MadMikeOne will agree with me.
So now you have two cray cary MadMike former tax accountants trying to get people to understand - PAYBOO is the only legal way of avoiding both the sales tax and complimentary use tax, because BH pays it for you and they have a deal with the CC co which makes it work with the high interest rates and fees.
He's using an address in a tax free state to avoid paying taxes.
Does NOT work. The use tax is complimentary to the sales tax. All states with sales taxes have use taxes.
In simple terms, he is USING it in his home state with a tax.
If he were to leave the lens and use it in a no tax state for an extended period of time, he could avoid tax but that isn't happening.
This is the collective years of experience, and I am guessing over 60, of the two MadMikes.
kbklarry
New member
Thanks for the clarification guys
Before Use Tax it was illegal to charge tax for interstate sales except for the purpose of weighing and inspection. Federal Law.
Social Engineering by Greedy States made Use Tax possible.
kbklarry
New member
You got that right!
9
As much as I hate to admit it, I have pretty close to 50 years of experience.
That's how I understand the tax codes of most states. Hence the term "use tax". It is certainly the case in NJ. When completing a NJ 1040 Resident Income Tax return, there is actually a line item for adding the use tax to the total tax liability. Line 51, to be exact.
As much as I hate to admit it, I have pretty close to 50 years of experience.
Use Tax came early on with Sales Tax in around 1930.
What changed was a US Supreme Court case South Dakota V Wayfair in 2018 which overturned National Bella Hess allowing states to collect from out of state sellers.
AI - Amazon.com originally collected sales tax only from five states as of 2011, but as of April 2017 collected sales taxes from customers in all 45 states that have a state sales tax and in Washington, D.C.
Amazon put distribution centers in states and avoided a fight over back taxes.
You might think retroactive taxes are illegal but the states have pushed the limits quite far at times. There is a major fight in CA over a Microsoft case that the Legislature has said was a clarification and has pushed back decades.
Woody Meristem
Well-known member
Yes indeed. A few years ago a friend of mine bought a Nikon camera (I eventually forgave him
) by mail order and didn't pay any sales tax, 18 months later he got a nastygram from the state reminding him to pay the USE tax (it's not just "sales" tax -- it's sales and use tax). He ignored the letter for a while and then got a follow-up letter from the office of either the state's Attorney General or Auditor General (I don't remember which), they were nice and didn't assess a penalty, so he paid up.
Thanks Woody; it does happen sometimes, and with electronic audits I expect it to happen more.Yes indeed. A few years ago a friend of mine bought a Nikon camera (I eventually forgave him
Did you know fact - don't leave the use tax line blank. Put in an amount and after 3 years (most states) they can't audit you.