wierd sales tax from crucible out of state

kungfumo

kungfumo

Joined
Aug 21, 2006
Messages
533
I just ordered a bit of cpm154 from crucible and was charged sales tax here in Washington, I asked the lady if they had a plant in WA and if that was why and she said that their managment told them that all orders need to be taxed unless you were tax exempt.

I looked on google and came up with this:
US Supreme Court ruled in Quill Corp. v. North Dakota (1992) that mail order businesses don't need to collect sales taxes except in states where they have a physical presence. A company is required to collect sales tax only for its own state (unless the organization has a site, office, or store in another state also).

However, Streamlined Sales Tax (SST) legislation is gradually being


Why are they charging tax then? Sorry I just thought every one should see this. Not that they are a bad company at all but every penny counts and I would rather not pay a tax to the guberment when I dont need to.
 
In california the would recommend we collect and pay taxes for out of state sales but the really know it is not required. There is some pressure to report income from out of state sales.
 
To be exact, YOU are supposed to report the out of state purchases to your states tax dept. and pay the taxes. Now Crucible know you aren't likely do it, so they collect it for their state. That way Crucible does not have a problem with a sales tax audit. No business license and tax exempt status - pay the tax.

The other thing that has made some big corporations do this is the fact that they DO have a VIRTUAL presence in your state, since a good part of their business is done by internet. The fine line in the tax codes is being looked at closely, what with millions of uncollected tax dollars floating in the cyberspace. Think what would happen if all sales were done on the internet. No sales taxes being collected would cause an increase in general taxes to everyone, not just the actual purchasers. So you could end up paying a portion of some millionaires new jet that he ordered on line.
Stacy
 
bladsmth said:
To be exact, YOU are supposed to report the out of state purchases to your states tax dept. and pay the taxes. Now Crucible know you aren't likely do it, so they collect it for their state. That way Crucible does not have a problem with a sales tax audit. No business license and tax exempt status - pay the tax.

The other thing that has made some big corporations do this is the fact that they DO have a VIRTUAL presence in your state, since a good part of their business is done by internet. The fine line in the tax codes is being looked at closely, what with millions of uncollected tax dollars floating in the cyberspace. Think what would happen if all sales were done on the internet. No sales taxes being collected would cause an increase in general taxes to everyone, not just the actual purchasers. So you could end up paying a portion of some millionaires new jet that he ordered on line.
Stacy
Click to expand...

I see you point, but the problem is the fact that Quill Corp. v. North Dakota (1992) took all of that out of the equasion. Unless there has been some other law enacted, no one should have to pay out of state sales taxes period.
 
MSC and Enco both charge sales tax for California orders. It made it a little easier for me as all the tax's were paid and i did not have to send Ca a check for "use tax". now that i live in Or I don't have to worry about it.
 
In a lot of states a "physical presence" can mean sending people to a trade show or having sales reps go into a state to solicit orders. I know a big mail order company that does not send anyone to California because that would be enough to establish nexus there. California and Washington are two of the most aggressive when it comes to sales tax enforcement. If they find a company is doing business in their state and they can establish nexus they will go after that company and audit them. I would not be surprised if Crucible has Nexus in Washington.

Stacy is right about out of state purchases. In most states you are supposed to pay “use tax” if the company didn’t collect your states sales tax.
 
Yup MSC and Enco owned by the same people. Only difference is price and delivery times. I ordered from Enco once. I got it in and had to take a second look. It had an MSC Inventory tag on it. Sometimes if you have an enco price MSC will honor it and still give you the next day shipping.
 
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