TexasCHLforum.com

srothstein wrote:

gljjt wrote:That is not quite correct. If the seller doesn't collect sales tax they are suppose to collect, you are not responsible to pay sales or use tax for their mistake. That is explicitly spelled out in the tax code. You are responsible to pay use tax in most other circumstances, but you do not have to make up their failure to meet their responsibility.

Could you tell me which section of code you are referring to, please? The way I read section 151.102 of the Tax Code, you are responsible for the use tax unless it is collected by the retailer. I could easily be wrong on this since I have never yet paid a use tax or really worried about it.

It is in the TAC, not the TC. Sorry.

I re-read what I think I read before, and my memory must be failing as I could only find non-applicability for payment (when the seller fails to collect) if it is a Texas seller. But wouldn't anyone with Nexus in Texas, be a Texas seller? Idk!!!! Also, I was mistaken, you still have liability, but only if the State comes after you. The reference and a quoted snippet are below. I may not have been completely correct previously. Also, this may contradict the TC, I admit, I did not read the TC in entirety. This why internet advice is worth what you pay for said advice. Makes for good discussion though.

Texas Administrative Code
TITLE 34 PUBLIC FINANCE
PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3 TAX ADMINISTRATION
SUBCHAPTER O STATE SALES AND USE TAX
RULE §3.346 Use Tax

(1) Use tax is not applicable if the purchaser of a taxable item paid sales tax to a Texas seller or owes sales tax to a Texas seller who failed to collect it. The comptroller may proceed against the seller or the purchaser for the sales tax owed by either.

June 8, 2014 was the invoice date. The invoice also has product from two other companies that are marketplace. But I figured it out! Dietary supplement = nontaxable!!! Now you have look up taxable status as well for potential use tax items! But it strengthens my point, these laws are too cumbersome for consumers to easily manage. Or could at least be made easier. The actual charge against my card was a single charge that encompasses both Amazon.com LLC and Amazon Marketplace. I never looked that close and assumed if Amazon took my money in a single transaction, they were the seller/reseller with drop ship. I guess not. Again, cumbersome. However, if you only make a couple of transactions a year, for high dollar guns let's say, no sales/use tax may be due if the seller has no nexus in Texas, under the occasional use exemption. From my bank statement:

CHECK CRD PURCHASE 06/06 AMAZON MKTPLACE PM AMZN.COM/BILL WA 432386XXXXXXXXXX 464154563214197 ?MCC=5942

Thanks for the sparring, I learned a lot!

them wrote:

gljjt wrote: A good example is Amazon.com. They have a physical presence in Texas, therefore they are required by the TC to collect sales tax. I am pretty sure my Amazon purchases have not charged sales tax (I'll have to check).

Guarantee they have. Amazon lost a huge amount of business when they gave up the Texas Nexus fight and started collecting sales tax here. Ø

You may be thinking of "Amazon Marketplace" items, which are not sold "by Amazon" but "through Amazon". E.g. you can buy an Aimpoint sight through Amazon, but the company actually selling you the product is Optics Planet. Optics Planet may not have a nexus in Texas...if they don't, no sales tax will be collected. This is legal...if it wasn't, Texas would be after them like they were after Amazon for having a distribution center in Fort Worth but claiming not to have a nexus here.

All I can do is try to do what's right with a cumbersome system. I did confirm that we have an order " sold by Amazon.com LLC" (stated on the invoice, no other company name on invoice) that did not collect sales tax. Probably a shell company of Amazon's put in place for that purpose, the shell having no nexus in Texas. This thread has been educationalif nothing else!!!!

gljjt wrote:

graham cracker wrote: All you have to know is if they collected tax. Every online purchase I ever made showed that. If they didn't collect sales tax, it's your responsibility to pay use tax.

That is not quite correct. If the seller doesn't collect sales tax they are suppose to collect, you are not responsible to pay sales or use tax for their mistake. That is explicitly spelled out in the tax code. You are responsible to pay use tax in most other circumstances, but you do not have to make up their failure to meet their responsibility. A good example is Amazon.com. They have a physical presence in Texas, therefore they are required by the TC to collect sales tax. I am pretty sure my Amazon purchases have not charged sales tax (I'll have to check). Per the code, if they failed to collect, it is not my problem. And there is the occasional use exemption as well. Occasional purchasers as defined in the code pay no use tax. This thread piqued my interest, I looked it up!!

And thanks for the link to the form, I'll take a look. I agree we should pay what we are required to pay, but most peopled don't know what the requirement is. The law is too complex. Also, if the purchase is less than about $6, the postage to pay the tax costs more than the tax!

This form has to be filed with payment monthly when tax is accrued? Did I understand that correctly?

graham cracker wrote: All you have to know is if they collected tax. Every online purchase I ever made showed that. If they didn't collect sales tax, it's your responsibility to pay use tax.

That is not quite correct. If the seller doesn't collect sales tax they are suppose to collect, you are not responsible to pay sales or use tax for their mistake. That is explicitly spelled out in the tax code. You are responsible to pay use tax in most other circumstances, but you do not have to make up their failure to meet their responsibility. A good example is Amazon.com. They have a physical presence in Texas, therefore they are required by the TC to collect sales tax. I am pretty sure my Amazon purchases have not charged sales tax (I'll have to check). Per the code, if they failed to collect, it is not my problem. And there is the occasional use exemption as well. Occasional purchasers as defined in the code pay no use tax. This thread piqued my interest, I looked it up!!

And thanks for the link to the form, I'll take a look. I agree we should pay what we are required to pay, but most peopled don't know what the requirement is. The law is too complex. Also, if the purchase is less than about $6, the postage to pay the tax costs more than the tax!

Ânthony wrote:I think being a tax cheat is lots worse than "just browsing" and buying somewhere cheaper.

I don't disagree, but there is something wrong with a system that no one knows about, that requires you to know intimate details about the sellers operations (both whether they have a physical presence or have EVER mailed a catalog into the state (it makes a difference)) and that takes hours of your time to figure out how to pay what could be a dollar or two in taxes. It is NOT a simple, you bought it, you pay the tax. I'll bet not 1% of the members of this forum who have bought online paid a use tax because they didn't know and if they did they didn't know how. I sure don't and I have lived in Texas my entire life. To call them tax cheats is wrong. I assume that you have paid sales tax via the seller or use tax directly yourself for all internet purchases you have made? If not, by your definition, you are a tax cheat. If that is the case, the SWAT team will be by shortly.

I define a crook as someone who knowingly breaks the law. Otherwise it is likely we are all crooks to some degree!

george wrote:

gljjt wrote:I have never bought a gun online because I have never found what I wanted cheaper than a local purchase. Not saying it can't be done but for my main line purchases, Glock/AR/.38-.357 revolver, I couldn't get it cheaper than Academy and Sportsmans Warehouse (when they were still here). With that said, I see the following advantages/disadvantages for local purchase at a retail store vs online purchase.

Sales tax for local, none for online if the seller is out of state --- advantage INTERNET
No FFL fee or Shipping charge for local --- Advantage LOCAL
Touch and feel --- Advantage LOCAL
Q&A --- Advantage LOCAL
Selection, especially for rare/unique/short supply items --- Advantage INTERNET
Instant gratification --- Advantage LOCAL
Support your local community --- Advantage LOCAL FAMILY OWNED GUN STORE
Possible great deal or no 4473 required --- Advantage FTF SALE
Probable best purchase place --- THE PLACE WITH YOUR GIFT CARD NAME ON IT!!!

You still have to pay sales tax for internet purchases, unless you are a crook, at least in South Carolina.

I think crook is pretty strong term for an occasional purchaser who doesn't know the complex sales tax and use tax laws for internet sales and unknowingly makes a purchase that requires them to pay a tax. This person may still owe a use tax (Texas), but lack of knowledge and lack of criminal intent in my opinion doesn't make them a "crook", which is not a legal term. I'll bet 99% of internet buyers have no idea of their responsibilities regarding their payment of a use tax.

Depending on physical presence and nexus of a seller in Texas is what determines whether they collect a sales tax or the if buyer pays a use tax. There is also an exemption for the "occasional" internet buyer, with "occasional" defined in the tax code.

A personal question. Have you ever purchased over the internet and did you directly pay a sales/use tax and how is that done in SC?

I have never bought a gun online because I have never found what I wanted cheaper than a local purchase. Not saying it can't be done but for my main line purchases, Glock/AR/.38-.357 revolver, I couldn't get it cheaper than Academy and Sportsmans Warehouse (when they were still here). With that said, I see the following advantages/disadvantages for local purchase at a retail store vs online purchase.

Sales tax for local, none for online if the seller is out of state --- advantage INTERNET
No FFL fee or Shipping charge for local --- Advantage LOCAL
Touch and feel --- Advantage LOCAL
Q&A --- Advantage LOCAL
Selection, especially for rare/unique/short supply items --- Advantage INTERNET
Instant gratification --- Advantage LOCAL
Support your local community --- Advantage LOCAL FAMILY OWNED GUN STORE
Possible great deal or no 4473 required --- Advantage FTF SALE
Probable best purchase place --- THE PLACE WITH YOUR GIFT CARD NAME ON IT!!!