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USMCsilver · 11 July 2007, 11:22 AM

Okay, wife and I are lost...

I buy a watch at my AD which is a fairly large chain store. This is in South Carolina. Then, I ship it out of state to not pay sales tax. Then, that person ships to me.

Say, I drive to North Carolina. If I were to buy a watch there, in person, would I have to pay sales tax if I wanted to take the watch home? I mean, I'm not a NC resident, I'm a SC resident. It does not make sense.

Could I go to, say, Walmart, and buy a something, then have it shipped to a state w/out a Walmart, and not pay sales tax?

Again, we're lost on this.

I am considering driving to Charlotte, NC this weekend to get a watch, but I'd rather take it home and not pay tax (obviously).

Robb · 11 July 2007, 11:30 AM

I just bought a new sub LV in Atlanta this weekend. I live in GA but have a friend just over the state line in TN. The AD I bought it from does not have a location in TN so I got away without paying the sales tax.

Check with the AD first, some of them will not do this.

Launch Mini · 11 July 2007, 11:32 AM

Taxation is based on the honour system.
When a business sells a product, they are required to collect the state tax, IF THE product is delivered in that state.
Where they ship the product to a customer outside the state ( and they do not have a location in the shipped to state) they business is not required to collect the tax.
HOWEVER, the individual is supposed to pay the state tax when they purchase goods without the tax or import a product into the state.
SO, you can avoid the tax initially, but you are supposed to self assess the tax & remit to your local tax authority.
This is just my understanding, consult your local accountant for complete details.

USMCsilver · 11 July 2007, 11:33 AM

Quote:

Originally Posted by Robb

I just bought a new sub LV in Atlanta this weekend. I live in GA ....

I understand this portion, but what if I am purchasing out of state and there is not a dealer in my state.

If I buy in NC, live in SC, and there's not the same named store in SC -- do I get to take my watch home and not pay NC sales tax, or would they have to ship to my house and me not pay NC sales tax.

How can this be legal? Buy a car outta state, get drilled at the DMV. Go on vacation, purchase all kinds of crap, and ya gotta pay that state's sales tax.

Does this have anything to do with the amount of the product; does anyone know how this "legally" works?

EDIT: That makes more sense; thanks Mini

ji603 · 11 July 2007, 11:34 AM

I'm a little confused by your question, but basically, your second example is correct...

If you were to travel to another state and make a big ticket purchase, you can have it sent to your home address by the retailer, and you would avoid paying point-of-sale sales tax.

You would not be able to buy the item in your home state, and ship it to a third party, who would then send it back to you, to avoid paying the tax. A retailer is required to collect sales tax on item sold to 'in state' residents.

Edited ... yikes! people are fast on this forum.

Anyhow, if you bought it in a different state and did not have it shipped (ie - the retailer delivered the product to you immediately) you'd pay that state's respective sales tax.

Vehicles are big ticket items, and I figure politicians closed the tax loopholes for those a long time ago...

Launch Mini · 11 July 2007, 11:35 AM

Doesn't legally work.
With items requiring "registrations" ( cars, boat, motorcycles etc) you get dinged upon registering.
Personal items are hard to track.
Business get nailed with these tax quite often, as they have a record of there purchase on the accounting records.
Personal items are not so easy to track.

Robb · 11 July 2007, 11:37 AM

Well buying a car is a completly different deal... Not sure legally why you can do this but you can!

No you will not be able to walk out of the store with the watch. They have to ship it to you. I hated it too but I should recieve mine tommorrow.

USMCsilver · 11 July 2007, 11:39 AM

Understood folks. Thanks!

vdave · 11 July 2007, 11:58 AM

however, there is a variation in tax % from a city to city within the state and even as you buy cars ..you can save money by picking the city with lower tax rate.

Gaijin · 11 July 2007, 12:03 PM

Just buy in Oregon. No state sales tax period.

USMCsilver · 11 July 2007, 12:11 PM

Quote:

Originally Posted by KansaiVet

Just buy in Oregon. No state sales tax period.

Pay for my ticket out there, and I'd be more than happy to do so. I've got a place to stay, but the plane trip is a bit more than $99 round trip.

leopardprey · 11 July 2007, 12:19 PM

Round trip plane ticket may still be less than the sales tax.

USMCsilver · 11 July 2007, 12:21 PM

Quote:

Originally Posted by leopardprey

Round trip plane ticket may still be less than the sales tax.

Doubt it; 7% here.

watchnut · 11 July 2007, 01:06 PM

Quote:

Originally Posted by Robb

Well buying a car is a completly different deal... Not sure legally why you can do this but you can!

No you will not be able to walk out of the store with the watch. They have to ship it to you. I hated it too but I should recieve mine tommorrow.

I had a dealer suggest that I could wear the watch out of the store and he would ship the BOX to me out of state. Thats really stretching the limits of legallity!

vh_bu98 · 11 July 2007, 01:16 PM

I goto Canada quite a bit and I get hit with the provincial sales tax and goods & service sales tax even though I'm a US citizen and resident. I can argue that I shouldn't have to pay those taxes, but the reality is that if you purchase a product and take possesion of it immediately, than you're liable for the taxes on the spot.

So if you buy a watch in NC and take possesion of it, you have to pay the tax. If they ship it to your SC home and they don't have a store in SC, than you don't have to pay the tax on the spot.

And $99 for a roundtrip is still a lot cheaper than sales tax. My LV was $5525 and at 8.25% sales tax, that was $455.81 in taxes. So I would still save over $300 and gotten a trip out of it.

USMCsilver · 11 July 2007, 01:18 PM

Quote:

Originally Posted by vh_bu98

And $99 for a roundtrip is still a lot cheaper than sales tax...

Of course it is; however, roundtrip from SC to OR is over a grand. No saving money there...

Mr_Pacman · 11 July 2007, 02:14 PM

Quote:

Originally Posted by vh_bu98

I goto Canada quite a bit and I get hit with the provincial sales tax and goods & service sales tax even though I'm a US citizen and resident. I can argue that I shouldn't have to pay those taxes, but the reality is that if you purchase a product and take possesion of it immediately, than you're liable for the taxes on the spot.
.

But....when you leave Canada, don't they give you a form to fill out so you can get a refund on the GST that you had to pay while you were in Canada?

I guess if it's only a few bucks, it's not worth the hassle of filling out the form, photocopying receipts and sending it out.

vh_bu98 · 11 July 2007, 02:25 PM

Quote:

Originally Posted by Mr_Pacman

But....when you leave Canada, don't they give you a form to fill out so you can get a refund on the GST that you had to pay while you were in Canada?

I guess if it's only a few bucks, it's not worth the hassle of filling out the form, photocopying receipts and sending it out.

Yes you get the GST back if the total purchase per receipt is over $50 and that your total purchase is over $250. And if the items are not excluded such as food, alcohol and etcetera. I was up there twice in the past month, spent thousands of dollars and still didn't qualify. Maybe I should have bought a Rolex while I was up there.

bearzod · 11 July 2007, 03:50 PM

Sales tax is typically based on the "ship to" address. If you take delivery in person, then the ship-to address is the address of the local store. If you have the AD ship to an address out-of-state, then that location becomes the ship-to address and typically you can avoid sales tax. FYI - most AD's will insist on actually shipping the watch as opposed to just going through the motions on paperwork.

Note that even if you designate the ship-to address as an out-of-state address, you only avoid sales tax if your AD does not have a location in the ship-to state. Having a physical location (i.e. a store) in a particular state establishes "nexus" in that state for that business, making them liable for the collection of sales tax.

Arturo · 11 July 2007, 04:26 PM

You get taxed where you consume the item. If you live in a no sales tax state like I do, you go elsewhere and have the item shipped to you. You then consume the item in the state where there is no tax. If you open it and use it in a state where there IS a sales tax, then you pay the tax. Better to be patient, not take possession or "consume" the item in the taxing state, and have it sent home where you can consume the item, and therefore not be taxed.

I do this all the time. I live in Oregon but buy my suits in San Francisco. Oregon has no sales tax but California does. I go to SF on business. I go to my tailor and get some suits cut and buy some shirts. If I take the shirts out of the store to wear in SF, I pay the California Sales Tax. If I have them shipped to Oregon, no tax is paid.

Sales taxes are consumption taxes so just think of where you "consume" or "convert" the item to your own. Wherever you take possession and control of the item and convert it to your own, that is where you consume it. If you are lucky enough to live in a state where there is no sales tax, have everything sent to you like I do.

Make sense? Yes you do pay for shipping the item home...no big deal....

Robb · 11 July 2007, 09:00 PM

Quote:

Originally Posted by watchnut

I had a dealer suggest that I could wear the watch out of the store and he would ship the BOX to me out of state. Thats really stretching the limits of legallity!

I tried to do this when I bought my LV last weekend. My AD would not do it for me!

Arturo · 12 July 2007, 12:04 AM

This option is violation of state tax laws, and could get him in trouble and you. Just have it shipped.

spaulhus · 12 July 2007, 12:26 AM

Quote:

Originally Posted by USMCsilver

Of course it is; however, roundtrip from SC to OR is over a grand. No saving money there...

I've posted this in other threads - best deal around, especially for the US-east coast it to fly to the Carribean for a long weekend.

Take advantage of lower Rolex Carribean pricing plus no sales tax. The savings can amount to >$800 versus US Rolex pricing and sales tax. Use the savings to fund a mini vacation (wife would love it

) and get a beautful, new watch.

USMCsilver · 12 July 2007, 12:34 AM

Quote:

Originally Posted by spaulhus

I've posted this in other threads - best deal around, especially for the US-east coast it to fly to the Carribean for a long weekend.

Take advantage of lower Rolex Carribean pricing plus no sales tax. The savings can amount to >$800 versus US Rolex pricing and sales tax. Use the savings to fund a mini vacation (wife would love it

) and get a beautful, new watch.

Gonna be in Punta Cana for 8 days in September. Wonder if there are any AD's down there.

Got back from Cancun in November and Bahamas in May. Don't recall prices due to the fact I wasn't in the market then. However, I know the place where I bought my Tissot as an AD. Too bad I won't be back there until next year...

spaulhus · 12 July 2007, 12:44 AM

Quote:

Originally Posted by USMCsilver

Gonna be in Punta Cana for 8 days in September. Wonder if there are any AD's down there.

Got back from Cancun in November and Bahamas in May. Don't recall prices due to the fact I wasn't in the market then. However, I know the place where I bought my Tissot as an AD. Too bad I won't be back there until next year...

From my experience, any port-of-call in the Caribbean has an AD - it's amazing to see when the cruise ships come in, the people are 3 and 4 deep in the AD - just don't shop then... Their volumes must be impressive - hence the lower pricing?

Anyway, something for you to consider

Arturo · 12 July 2007, 12:46 AM

Aren't there then customs costs though?

spaulhus · 12 July 2007, 12:48 AM

Quote:

Originally Posted by Arturo

Aren't there then customs costs though?

Where the watch home and ship the box and papers

GoldenBear · 12 July 2007, 02:24 AM

Wear it back and don't declare your purchase...(did I just say that?). I knew a guy that went to Canada and bought some tylenol w/ tiny amount of codeine. He was so honest that he declared them (fool!) and was hassled by U.S. customs for over an hour. They let him keep them and boy, after that, he needed them....LOL. Buy the watch, wear it back, pack the box and don 't look guilty (watch Midnight Express) at customs.

spaulhus · 12 July 2007, 02:50 AM

Buy the watch, wear it back, pack the box and don 't look guilty (watch Midnight Express) at customs.[/QUOTE]

11 July 2007, 11:22 AM	#1
USMCsilver "TRF" Member Join Date: Jul 2007 Real Name: Sterling Location: Middle of SC Watch: Anniv. GMT II Posts: 908	Explain This Shipping/No Tax Thing... Okay, wife and I are lost... I buy a watch at my AD which is a fairly large chain store. This is in South Carolina. Then, I ship it out of state to not pay sales tax. Then, that person ships to me. Say, I drive to North Carolina. If I were to buy a watch there, in person, would I have to pay sales tax if I wanted to take the watch home? I mean, I'm not a NC resident, I'm a SC resident. It does not make sense. Could I go to, say, Walmart, and buy a something, then have it shipped to a state w/out a Walmart, and not pay sales tax? Again, we're lost on this. I am considering driving to Charlotte, NC this weekend to get a watch, but I'd rather take it home and not pay tax (obviously).

11 July 2007, 11:32 AM	#3
Launch Mini "TRF" Member Join Date: Jan 2006 Real Name: John Location: Canada, eh Watch: can I? Posts: 6,240	Taxation is based on the honour system. When a business sells a product, they are required to collect the state tax, IF THE product is delivered in that state. Where they ship the product to a customer outside the state ( and they do not have a location in the shipped to state) they business is not required to collect the tax. HOWEVER, the individual is supposed to pay the state tax when they purchase goods without the tax or import a product into the state. SO, you can avoid the tax initially, but you are supposed to self assess the tax & remit to your local tax authority. This is just my understanding, consult your local accountant for complete details. __________________ Something witty to go here. Member # 293

11 July 2007, 11:35 AM	#6
Launch Mini "TRF" Member Join Date: Jan 2006 Real Name: John Location: Canada, eh Watch: can I? Posts: 6,240	Doesn't legally work. With items requiring "registrations" ( cars, boat, motorcycles etc) you get dinged upon registering. Personal items are hard to track. Business get nailed with these tax quite often, as they have a record of there purchase on the accounting records. Personal items are not so easy to track. __________________ Something witty to go here. Member # 293

11 July 2007, 11:30 AM	#2
Robb 2024 Pledge Member Join Date: Jun 2007 Real Name: Robb Location: USA Watch: BLNR Posts: 4,938	I just bought a new sub LV in Atlanta this weekend. I live in GA but have a friend just over the state line in TN. The AD I bought it from does not have a location in TN so I got away without paying the sales tax. Check with the AD first, some of them will not do this.

11 July 2007, 11:34 AM	#5
ji603 "TRF" Member Join Date: Apr 2006 Location: Phoenix, Arizona Watch: GMT Master II Posts: 95	I'm a little confused by your question, but basically, your second example is correct... If you were to travel to another state and make a big ticket purchase, you can have it sent to your home address by the retailer, and you would avoid paying point-of-sale sales tax. You would not be able to buy the item in your home state, and ship it to a third party, who would then send it back to you, to avoid paying the tax. A retailer is required to collect sales tax on item sold to 'in state' residents. Edited ... yikes! people are fast on this forum. Anyhow, if you bought it in a different state and did not have it shipped (ie - the retailer delivered the product to you immediately) you'd pay that state's respective sales tax. Vehicles are big ticket items, and I figure politicians closed the tax loopholes for those a long time ago...

11 July 2007, 11:37 AM	#7
Robb 2024 Pledge Member Join Date: Jun 2007 Real Name: Robb Location: USA Watch: BLNR Posts: 4,938	Well buying a car is a completly different deal... Not sure legally why you can do this but you can! No you will not be able to walk out of the store with the watch. They have to ship it to you. I hated it too but I should recieve mine tommorrow.

11 July 2007, 11:39 AM	#8
USMCsilver "TRF" Member Join Date: Jul 2007 Real Name: Sterling Location: Middle of SC Watch: Anniv. GMT II Posts: 908	Understood folks. Thanks!

11 July 2007, 11:58 AM	#9
vdave Member Join Date: Feb 2007 Real Name: Dave Location: Texas Watch: Oyster DT & GMT II Posts: 75	however, there is a variation in tax % from a city to city within the state and even as you buy cars ..you can save money by picking the city with lower tax rate.

11 July 2007, 12:03 PM	#10
Gaijin 2024 ROLEX DATEJUST41 Pledge Member Join Date: Feb 2007 Location: Japan Watch: ing your back. Posts: 16,179	Just buy in Oregon. No state sales tax period.

11 July 2007, 12:19 PM	#12
leopardprey Banned Join Date: Nov 2006 Real Name: Chad Location: Around the world Watch: Panerai 233 Posts: 4,204	Round trip plane ticket may still be less than the sales tax.

11 July 2007, 01:16 PM	#15
vh_bu98 "TRF" Member Join Date: Nov 2006 Real Name: Vu Location: Dallas area Watch: Platinum YM Posts: 2,646	I goto Canada quite a bit and I get hit with the provincial sales tax and goods & service sales tax even though I'm a US citizen and resident. I can argue that I shouldn't have to pay those taxes, but the reality is that if you purchase a product and take possesion of it immediately, than you're liable for the taxes on the spot. So if you buy a watch in NC and take possesion of it, you have to pay the tax. If they ship it to your SC home and they don't have a store in SC, than you don't have to pay the tax on the spot. And $99 for a roundtrip is still a lot cheaper than sales tax. My LV was $5525 and at 8.25% sales tax, that was $455.81 in taxes. So I would still save over $300 and gotten a trip out of it.

11 July 2007, 03:50 PM	#19
bearzod "TRF" Member Join Date: Jun 2007 Location: Texas Posts: 7	Sales tax is typically based on the "ship to" address. If you take delivery in person, then the ship-to address is the address of the local store. If you have the AD ship to an address out-of-state, then that location becomes the ship-to address and typically you can avoid sales tax. FYI - most AD's will insist on actually shipping the watch as opposed to just going through the motions on paperwork. Note that even if you designate the ship-to address as an out-of-state address, you only avoid sales tax if your AD does not have a location in the ship-to state. Having a physical location (i.e. a store) in a particular state establishes "nexus" in that state for that business, making them liable for the collection of sales tax.

11 July 2007, 04:26 PM	#20
Arturo "TRF" Member Join Date: May 2005 Real Name: Arturo Location: Pacific Northwest Watch: Black GMT ll Posts: 1,271	You get taxed where you consume the item. If you live in a no sales tax state like I do, you go elsewhere and have the item shipped to you. You then consume the item in the state where there is no tax. If you open it and use it in a state where there IS a sales tax, then you pay the tax. Better to be patient, not take possession or "consume" the item in the taxing state, and have it sent home where you can consume the item, and therefore not be taxed. I do this all the time. I live in Oregon but buy my suits in San Francisco. Oregon has no sales tax but California does. I go to SF on business. I go to my tailor and get some suits cut and buy some shirts. If I take the shirts out of the store to wear in SF, I pay the California Sales Tax. If I have them shipped to Oregon, no tax is paid. Sales taxes are consumption taxes so just think of where you "consume" or "convert" the item to your own. Wherever you take possession and control of the item and convert it to your own, that is where you consume it. If you are lucky enough to live in a state where there is no sales tax, have everything sent to you like I do. Make sense? Yes you do pay for shipping the item home...no big deal....

12 July 2007, 12:04 AM	#22
Arturo "TRF" Member Join Date: May 2005 Real Name: Arturo Location: Pacific Northwest Watch: Black GMT ll Posts: 1,271	This option is violation of state tax laws, and could get him in trouble and you. Just have it shipped.

12 July 2007, 12:46 AM	#26
Arturo "TRF" Member Join Date: May 2005 Real Name: Arturo Location: Pacific Northwest Watch: Black GMT ll Posts: 1,271	Aren't there then customs costs though?

12 July 2007, 02:24 AM	#28
GoldenBear "TRF" Member Join Date: Jun 2007 Location: San Francisco Watch: Submariner Posts: 2,480	Wear it back and don't declare your purchase...(did I just say that?). I knew a guy that went to Canada and bought some tylenol w/ tiny amount of codeine. He was so honest that he declared them (fool!) and was hassled by U.S. customs for over an hour. They let him keep them and boy, after that, he needed them....LOL. Buy the watch, wear it back, pack the box and don 't look guilty (watch Midnight Express) at customs.

12 July 2007, 02:50 AM	#29
spaulhus Member Join Date: Jun 2007 Location: FL - US Watch: T/T Sub - Blue Posts: 72	Buy the watch, wear it back, pack the box and don 't look guilty (watch Midnight Express) at customs.[/QUOTE]

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