RE: [Leica] Was Found a pre-owned MP already Now Tax stuff

["WOC" <woc2@earthlink.net>]

Austin,
  What I was trying to get across is, I go to Delaware which has no sales
tax.  I buy a fridge at Sears and they deliver it.  I still pay tax because
Sears has a presence here.  If I order something from the Sears catalog, or
from their web site, again I pay the tax.  But if I buy something from
Honest Clem's Fridge Emporium and Clem delivers it I do not pay the tax
because Clem's only store is in DE - or at least he does not have one in PA.
  But for all those items I purchased outside the boundaries of PA that I
paid no tax for, not matter if I picked it up myself, or it was delivered I
am expected to submit the tax payment to the state.  So if, for instance, I
buy the Leica Brass Binocs that I have been eyeing on Pat's list, I should
send PA 6% of the cost.  But if I go to Pat's store and buy them I'm off
the hook because he will have charged me the 6% NJ tax and it's a wash. Yes,
this is the law.  And yes, you can well imagine how often folks mail those
checks to the state.
  This little scam does not work with motor vehicles because when you
register the vehicle, PA applies the tax you paid to the state you purchased
it in and charges you the difference.
  The one area they get really tense about is alcohol and cigarettes.  In
our fair state, wine and above is sold via State Stores, run by the state.
As such there is no competition and the pricing reflects that.  During the
holidays folks are prone to making runs to DE and MD which has a free market
system and lower taxes.  As to cigarettes, PA just imposed a 1.00 tax per
pack over and above the other taxes thus a carton is at least $10.00 cheaper
in DE.  If they catch you entering the state with what they consider excess
amounts of either, you car is impounded along with a hefty fine if you are
found guilty.  Some years back Maryland got tired of the folks from the PA
govt sitting in the big booze supermarkets parking lots and radioing license
plates ahead to the state police so they used their state police to roust
them.  MD's theory was that this is a free economy country and if a state
decided to charge excessive amounts, than a person should be free to buy
where they wished.  Court cases were involved and PA lost so they can't
skulk around anymore, but folks still get caught and pay the price.


- -----Original Message-----
From: owner-leica-users@mejac.palo-alto.ca.us
[mailto:owner-leica-users@mejac.palo-alto.ca.us]On Behalf Of Austin
Franklin
Sent: Thursday, April 24, 2003 9:54 AM
To: leica-users@mejac.palo-alto.ca.us
Subject: RE: [Leica] Was Found a pre-owned MP already Now Tax stuff


Bill,

> Law here in PA is simple.  If the vendor has a brick and mortar
> operation in
> the state the consumer pays tax.  I.e., you buy something
> considered taxable
> from COMP-USA or Sears for example over the internet or thru the catalog,
> you pay sales tax on the item.

Agreed, IF the vendor has a "presence" IN the state you have the item
delivered to.

> If you go to a border state like Delaware
> that has no sales tax but have it delivered, like furniture, you pay the
> tax.

I'm not clear what the scenario you are citing here is.  If you buy in state
A, and IF the store OWNS the delivery vehicles, and you have it delivered to
state B, then yes, you do pay tax, but if it's delivered independently, and
the selling store has no "presence" in state B, no, you do not.

> On the other hand if I buy something from Kit or Pat, they are
> not obligated
> to charge me tax because neither Pat or Kit has a presence in PA.

Agreed.

> However,
> to follow the law, I should then calculate the tax and send it
> along to the
> state.

Is that really a "law"?

Austin


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