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Newegg Charging Tennessee Sales Tax

Z

Z80

Senior member
I know this is the wrong forum for this but I also know alot of people in Tennessee watch this forum and buy from Newegg.

I was finishing up some last minute Christmas shopping at Newegg the other night when upon checking-out I noticed a sales tax charge of approximately 10% or about $40 on a $400 order. I couldn't believe it!! Newegg opened a warehouse here in Tennessee. Buy.com operated here in Tennessee and they use to charge sales tax but stopped over a year ago. I sent Newegg an email advising them of this but all I got back was a standard reply email "serving me better .... yada yada yada ...". I really hate that I'll be shopping elsewhere now because Newegg was such great place to shop!!!
 
for those who lives in CA, we've had to deal with tax since the beginning. it's not that bad. if they move to TN and leave CA, that'd be great for us!

//krunk (^_^x)
 
Get used to it... It's not Neewegg... it's your local politicians. If the states could have their way, you would be charged all the time by everybody.
 
I really, really would like to know how buy.com would get around charging sales tax *and* still have a presence in TN. Are you sure they didn't move to Delaware or something? They can't just "not charge sales tax", because then they'd have to pay it for you.
 
Originally posted by: weepul
for those who lives in CA, we've had to deal with tax since the beginning. it's not that bad. if they move to TN and leave CA, that'd be great for us!

//krunk (^_^x)
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I agree ... damn silicon valley! I guess it has it plus and minuses...
 
Tennessee is "the" US state. In all seriousness, this newegg tax deal really sucks. I was just ready to pull the pin on a new P4 from newegg. Time to look for a new place to purchase from.
 
Seems like Newegg will lose money on this deal. They will have to pay to have the warehouse in TN and they lose customers from TN. The only reason I can think of to open a warehouse in TN is to ship faster, maybe by a day. Doesn't make much sense to me.
 
Originally posted by: tooltime
i think if they have a physical presence in a state they have to collect and remit sales tax
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You are correct. Also this is from Newegg's website:

What states must pay sales tax?
Orders shipping to California, Tennessee and New Jersey must be charged sales tax based on the county's rate. Newegg.com now operates business from locations in CA, TN and NJ to better service our customers across the United States.

Actually, living in the West I wish they only had their CA warehouse. My last order was shipped from NJ and took an extra 3 days to get here. I'm not sure if I want to play warehouse roulette with Newegg if I need to know when I'll receive something.
 
This is a shame, I use newegg on a lot of stuff, but I'm not paying sales tax. First buy.com, then dell and now this.
 
Originally posted by: SgtZulu
Thanks for spamming the forum moron
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For the love of God, STOP POSTING. I'm sure about anyone else, but your constant trolling in this forum is getting rather tiresome. You've more than demonstrated by your previous posts in this forum that you're an ass - we get the idea; there's no need to prove it any longer.
 
Originally posted by: Lanyap
Seems like Newegg will lose money on this deal. They will have to pay to have the warehouse in TN and they lose customers from TN. The only reason I can think of to open a warehouse in TN is to ship faster, maybe by a day. Doesn't make much sense to me.
Click to expand...

Fedex's world headquarters is in TN, and this will enable them to easily ship their goods and it may also cut costs considerably.
 
Tennessee's sales tax is high but at least we don't have any state income tax. Regarding Buy.com, not sure why they quit charging sales tax in Tennessee. I called them about a year ago when they quit and the sales rep I spoke to confirmed it but didn't know why they had stopped. Tennessee resident's also get charged sales tax by Dell and HP. Dell opened a manufacturing plant here about 3 years ago. Oh, and the job market here is smokin!
 
Originally posted by: Z80
Tennessee's sales tax is high but at least we don't have any state income tax. ... Oh, and the job market here is smokin!
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Job markets are usually pretty good in tax-free environments 🙂
 
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