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Retail sales tax question
Posted: Wed Feb 24, 2010 1:22 pm
by collin
Sorry if this is a lame question......but you all might know the answer!
I'm buying a guitar from a Guitar Center that is in another state, and having it shipped to me.
They are trying to charge me Texas state sales tax because "Guitar Center is a chain, and there are locations where you live in California."
Is that correct?
I thought sales tax was only collected if you purchased said item in that state, and had nothing to do with chain stores etc...?
Sadly, I only ask because GC has a history of flubbing the correct details, and we're talking hundreds of dollars here.

Re: Retail sales tax question
Posted: Wed Feb 24, 2010 1:40 pm
by doctorwho
Not lame at all, Collin. The answer is yes, sellers that have outlets/stores in the buyer's state are obligated by law to charge sales tax. I've seen both ways: they charge the buyer's state sales tax, or the seller's state sales tax. This holds true on eBay sales as well (I learned the hard way ...).
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 1:46 pm
by cjj
And, in many states, if you buy something mail order from out of state and don't pay your state's sales tax, you are supposed to pay it yourself to your state...
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 5:29 pm
by collin
Thanks guys (and big thanks to JH too).
I guess ya learn something every day!
Not a big deal to play by the rules, so long as I know I'm not paying something I don't have to....
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 6:51 pm
by bails
I thought it was called the 'United' States, not the States who fight over differing tax law...
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 6:57 pm
by cjj
You'd be surprised at how much we fight amongst ourselves... especially when it comes to tax money...
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 7:04 pm
by ajish4
Guitar Center explained to me that IF they have a STORE in the state YOU live in, they have to charge sales tax.
They got me good on my first purchase!

Re: Retail sales tax question
Posted: Wed Feb 24, 2010 8:16 pm
by collin
ajish4 wrote:Guitar Center explained to me that IF they have a STORE in the state YOU live in, they have to charge sales tax.
They got me good on my first purchase!

Yup, and GC has a store in most states (unless you're in Montana......lucky you, CJ !)
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 8:17 pm
by collin
bails wrote:I thought it was called the 'United' States, not the States who fight over differing tax law...
Just another example of differing States standing up for their indepent State rights (ie.....united, but seperate).

Re: Retail sales tax question
Posted: Wed Feb 24, 2010 9:49 pm
by BAD RONBO, KiLLeR DWaRfS
one oddity my buddy went thru ordering his set of taurus III pedals. the music store wanted 50% down but charged sales tax on the entire sale !!! i would figure no sales tax 'til it came in or 50% sales tax until it came in.
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 9:56 pm
by cjj
collin wrote:ajish4 wrote:Guitar Center explained to me that IF they have a STORE in the state YOU live in, they have to charge sales tax.
They got me good on my first purchase!

Yup, and GC has a store in most states (unless you're in Montana......lucky you, CJ !)
Of course, Montana has no sales tax, so it wouldn't make a difference anyway...

Re: Retail sales tax question
Posted: Wed Feb 24, 2010 10:02 pm
by jps
Re: Retail sales tax question
Posted: Wed Feb 24, 2010 10:08 pm
by cjj
Hey, there's gotta be
some compensation for living in this frozen wasteland...
By the way, 0F last night, all the way up to 16F today...

Re: Retail sales tax question
Posted: Thu Feb 25, 2010 12:25 am
by nukebass
The "use" tax seems sketchy to me. You buy something in another state, but your state wants you to pay sales tax on it because you use it in that state, even though the government had nothing to do with the sale. At the same time (at least in NC), you can deduct any sales tax you paid in the other state. In my opinion, this violates the interstate trade clause in the Constitution, but it would certainly cost more than any sales tax I'd pay to fight it in court!!
Musician's Friend doesn't charge sales tax unless you are in Kansas, I think, but Guitar Center does. I guess that's because they are treated as different entities even though they are owned by the same parent company. This all gets too confusing.
Re: Retail sales tax question
Posted: Thu Feb 25, 2010 9:45 am
by ken_j
The tax is supposed to be based and paid to the state you live in not where it was shipped from.