Amazon sales tax issue.

gaidin43

Member
Jan 30, 2012
73
0
66
I have used amazon through the years to order all sorts of parts, games, software, and many other things with free shipping, a great return policy, and of course zero sales tax. These new laws effecting sales tax is getting ridiculous. I order online versus buying in stores to save those hundreds and hundreds of dollars on that tax.

So my question is, how do I avoid, get around, or figure out a way to NOT have to pay this new sales tax being applied to my normal orders? There has to be a method to avoid this completely asinine issue.

This applies to NJ but also many other states across the country.
 
Nov 8, 2012
20,842
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Order from a different store.

Last I heard, the laws have remained the same so far - it's just that Amazon has expanded their warehouses to many different states hence now being taxed. Also, it was coming sooner or later, every year the % of people that ordered online for the holidays increases over brick and mortar holiday purchases. Taxes for all online orders are coming, get used to it. And to be honest - it is a lot of revenue that our government needs at the moment.
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
Order from a different store.

Last I heard, the laws have remained the same so far - it's just that Amazon has expanded their warehouses to many different states hence now being taxed. Also, it was coming sooner or later, every year the % of people that ordered online for the holidays increases over brick and mortar holiday purchases. Taxes for all online orders are coming, get used to it. And to be honest - it is a lot of revenue that our government needs at the moment.

Not to mention that most states that have sales taxes also have "use taxes" to cover items purchased out of state. Many (all? :p ) people, however, don't fill in the use tax forms and essentially cheat on their taxes.

NJ Use tax: http://www.ehow.com/info_7958973_new-jersey-use-tax-rules.html
 

Ryland

Platinum Member
Aug 9, 2001
2,810
13
81
RI also has a use tax and I am one of the few to track my internet purchases then actually put a non-zero number into the Use Tax location on my tax form.
 

Engineer

Elite Member
Oct 9, 1999
39,230
701
126
RI also has a use tax and I am one of the few to track my internet purchases then actually put a non-zero number into the Use Tax location on my tax form.

3rakdu.jpg
 

Jeffg010

Diamond Member
Feb 22, 2008
3,435
1
0
Order from a different store.

Last I heard, the laws have remained the same so far - it's just that Amazon has expanded their warehouses to many different states hence now being taxed. Also, it was coming sooner or later, every year the % of people that ordered online for the holidays increases over brick and mortar holiday purchases. Taxes for all online orders are coming, get used to it. And to be honest - it is a lot of revenue that our government waste at the moment.

fixed for you
 

highland145

Lifer
Oct 12, 2009
43,973
6,338
136
Not to mention that most states that have sales taxes also have "use taxes" to cover items purchased out of state. Many (all? :p ) people, however, don't fill in the use tax forms and essentially cheat on their taxes.

NJ Use tax: http://www.ehow.com/info_7958973_new-jersey-use-tax-rules.html
This.

Last year, Amazon was kind enough to send be a total of purchases so I could pay SC sales tax.D: Said they would not share this info with the state but not worth the chance, IMO, since Amazon is building a center in SC and has a sales tax agreement in place with them.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
Ship to a state that does not have sales tax agreement with Amazon.

Then pick it up from there or setup a drop box location out of state that will reship for you.

The cost of reshipping or driving may easily exceed the sales tax.
 

diesbudt

Diamond Member
Jun 1, 2012
3,393
0
0
RI also has a use tax and I am one of the few to track my internet purchases then actually put a non-zero number into the Use Tax location on my tax form.

This is the biggest issue. There is not a convient way to track this without having to record every transaction one does. Thus, unless amazon was to send me an annual "this is your use tax for year XXXX" file like the salary/wages form.

If they were to do that I would track it everytime. But to recall every online purchase I made... not happening.
 
Dec 10, 2005
29,028
14,371
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You're asking for help on a public forum on how to break the law?

Even with the taxes (something that I don't mind paying because governments aren't free), Amazon is still cheaper than going to some B&M store.

Not to mention that most states that have sales taxes also have "use taxes" to cover items purchased out of state. Many (all? ) people, however, don't fill in the use tax forms and essentially cheat on their taxes.

I know in NY, you should definitely put a number on your tax return for use-tax (even if it is 0). If you don't, the clock on statute of limitations doesn't kick in.
 
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brainhulk

Diamond Member
Sep 14, 2007
9,376
454
126
the only thing taxed is direct from amazon. anything "fulfilled by Amazon" or 3rd party is not taxed.

That's how it is for California anyway
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
This is the biggest issue. There is not a convienent way to track this without having to record every transaction one does. Thus, unless amazon was to send me an annual "this is your use tax for year XXXX" file like the salary/wages form.

If they were to do that I would track it everytime. But to recall every online purchase I made... not happening.

You use a credit card.
12 sets of PDFs for each credit card
Search for payments to Amazon
Copy and paste each into a spreadsheet. 10 seconds/transaction
 

diesbudt

Diamond Member
Jun 1, 2012
3,393
0
0
You use a credit card.
12 sets of PDFs for each credit card
Search for payments to Amazon
Copy and paste each into a spreadsheet. 10 seconds/transaction

If I used my credit card I barely used yes.

But the card I used, I consistantly use and consisntantly pay off, and thus there is probably so many transactions on it I would never find them all.

Plus Amazon is not the only online place I ordered.
 
Dec 10, 2005
29,028
14,371
136
If I used my credit card I barely used yes.

But the card I used, I consistantly use and consisntantly pay off, and thus there is probably so many transactions on it I would never find them all.

Plus Amazon is not the only online place I ordered.

Keep a master spreadsheet. Input data on a weekly/biweekly/monthly basis or whenever you buy something. Or save the order confirmation e-mails into a folder and sort through them later.
 

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
This is the biggest issue. There is not a convienent way to track this without having to record every transaction one does. Thus, unless amazon was to send me an annual "this is your use tax for year XXXX" file like the salary/wages form.

If they were to do that I would track it everytime. But to recall every online purchase I made... not happening.
You use a credit card.
12 sets of PDFs for each credit card
Search for payments to Amazon
Copy and paste each into a spreadsheet. 10 seconds/transaction

If I used my credit card I barely used yes.

But the card I used, I consistently use and consistently pay off, and thus there is probably so many transactions on it I would never find them all.

Plus Amazon is not the only online place I ordered.
Search for payments to Amazon
PDF viewers have a search function as well as a copy/paste.

So you need to do this will all your orders not jsut Amazon

Or as stated above by Brainonska511; keep a spreadsheet and update it everytime you order and/or receive your order.

The extra 10 seconds per order processing will not kill you.:\
 

olds

Elite Member
Mar 3, 2000
50,125
779
126
I have used amazon through the years to order all sorts of parts, games, software, and many other things with free shipping, a great return policy, and of course zero sales tax. These new laws effecting sales tax is getting ridiculous. I order online versus buying in stores to save those hundreds and hundreds of dollars on that tax.

So my question is, how do I avoid, get around, or figure out a way to NOT have to pay this new sales tax being applied to my normal orders? There has to be a method to avoid this completely asinine issue.

This applies to NJ but also many other states across the country.
Quoted for the IRS.
You are supposed to pay those taxes when you pay your taxes.
 

crashtestdummy

Platinum Member
Feb 18, 2010
2,893
0
0
I have used amazon through the years to order all sorts of parts, games, software, and many other things with free shipping, a great return policy, and of course zero sales tax. These new laws effecting sales tax is getting ridiculous. I order online versus buying in stores to save those hundreds and hundreds of dollars on that tax.

So my question is, how do I avoid, get around, or figure out a way to NOT have to pay this new sales tax being applied to my normal orders? There has to be a method to avoid this completely asinine issue.

This applies to NJ but also many other states across the country.

You were always supposed to pay that tax, now it's just that Amazon is collecting it for you so you don't have to go through the trouble of adding up the use tax and paying it later. You should be thrilled that they're being so kind!

Unless, of course, you were using your Amazon purchases to avoid paying state sales tax. :biggrin:
 

gaidin43

Member
Jan 30, 2012
73
0
66
Not asking to break the but find 3rd party options that allow a loophole to not have to pay it legally!!! If I don't have to pay 7% on a $1000 TV and do so legally I won't! Now big purchases I would have got through amazon ill just buy in a neighboring tax free state.

Plus when you buy parts for use by a business you are tax exempt to begin with! So with amazon taxes were always a moot point. Now with the new law it's going to be an issue. I'm not looking to break the law at all. I'm trying to find a legal loophole.

I love this county and all the good and bad about it, but sometimes things are so convoluted and complex it's impossible for the average person to figure out without legal consul! I was just asking for advise and if anyone else ran into this issue.
 
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crashtestdummy

Platinum Member
Feb 18, 2010
2,893
0
0
Not asking to break the but find 3rd party options that allow a loophole to not have to pay it legally!!! If I don't have to pay 7% on a $1000 TV and do so legally I won't! Now big purchases I would have got through amazon ill just buy in a neighboring tax free state.

You are, of course, breaking the law if you don't offer to pay the use tax for that TV you buy in a neighboring state as well.

It is illegal to not pay sales/use tax on items you buy. The law is difficult to enforce, but you are still breaking it nonetheless.
 
Oct 20, 2005
10,978
44
91
Not asking to break the but find 3rd party options that allow a loophole to not have to pay it legally!!! If I don't have to pay 7% on a $1000 TV and do so legally I won't! Now big purchases I would have got through amazon ill just buy in a neighboring tax free state.

Plus when you buy parts for use by a business you are tax exempt to begin with! So with amazon taxes were always a moot point. Now with the new law it's going to be an issue. I'm not looking to break the law at all. I'm trying to find a legal loophole.

I love this county and all the good and bad about it, but sometimes things are so convoluted and complex it's impossible for the average person to figure out without legal consul! I was just asking for advise and if anyone else ran into this issue.

Why do so many people have trouble with the words advise and advice? I swear it's always used the wrong way. If someone meant "advice", they write "advise", and vice versa.

And you already know what the "loophole" is. Just buy from another store/site that doesn't charge you tax. It's so simple.
 
Dec 10, 2005
29,028
14,371
136
Not asking to break the but find 3rd party options that allow a loophole to not have to pay it legally!!! If I don't have to pay 7% on a $1000 TV and do so legally I won't!

You always have to pay it, unless you had some legal exemption. The issue at hand is whether Amazon (or some other company) collects it for you and remits it to the state on your behalf or whether you pay it directly to the state on your own.
Plus when you buy parts for use by a business you are tax exempt to begin with! So with amazon taxes were always a moot point. Now with the new law it's going to be an issue. I'm not looking to break the law at all. I'm trying to find a legal loophole.
Yeah... that tv in the living room is really for 'business' purposes. I'm sure state auditors will wholeheartedly agree.

I love this county and all the good and bad about it, but sometimes things are so convoluted and complex it's impossible for the average person to figure out without legal consul! I was just asking for advise and if anyone else ran into this issue.

Sales tax is not difficult to figure out for the average person.
The simple way to do it:
Did you buy something and pay sales tax? If no -> add sales tax percent to item and report that amount on tax return.
 
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