As of today, $1,819.97 at Amazon.com, no tax, free shipping. My guess is that the price hits the lower 1700's in the last two weeks of the rebate (ends mid-July). 18 hundred bucks for a FF sensor. Wow.
Well technically, you're still supposed to pay your state sales tax (in most states anyway), but it's a use tax, since you're the one responsible (as opposed to the seller). You DO pay sales tax owed on internet purchases when you file your yearly state return, don't you?
LOL! Actually, I asked a financial consultant about that, and his answer was: you are required to pay tax on internet purchases when the business has a presence in the state you are filing. So if you live in Ohio and buy from JCPenney.com, you pay tax because there's also a JC Penney store in Ohio. But Amazon only has a presence in Kentucky and Washington as far as I know, so you aren't required to report it according to the finance fella I spoke to (non-binding disclaimer there).
Most websites are set up like that now, to collect depending on your state. For instance, I always pay tax on my Dell Computer purchases because they have a huge warehouse about 10 miles from where I live.
And this may shock you, but I have actually reported and paid sales tax on my Federal Return for items where the website didn't collect appropriately. I can think of 2,873 things I'd rather do than that, believe me, but I'll do what's right. That's one thing I miss about living in Oregon, being able to laugh around sales tax. But then the 9% State Income Tax beat you up, so it all comes out in the wash I guess.
Paul - As far as I know (and I may go do some googling after this) the law about states where the business has a presence applies to the business being required to collect sales tax from you. It doesn't mean you don't owe tax to your own state in other cases. Of course, you don't owe sales tax, you owe a use tax.
Sorry to drag this off-topic...it's a great price on a 5D.
Good info. I'd like to know more about the difference between sales tax and use tax. If you hit a site with a good explanation, by all means, reply and post it. I'm the only one who gets spammed with emails on replies.
Here's a pretty good link on it Paul. Of course, as the article mentions, most states won't bother to try to collect sales tax, since it would cost them so much to audit every person in the state. They will try to collect on big ticket items, or those that you have to register with the state - like boats and cars.
But more states may soon try to find ways to collect the taxes, I would guess for two reasons : 1) collectively, it's a huge amount of money, even if it's not much per person, and 2) it would theoretically help local "brick-and-mortar" stores compete better by eliminating one difference between them and the online stores.
(I wonder if there's any way we could get all the messages except the first one moved into a new topic?)
Good article. Maybe a moderator will repost this elsewhere? Not sure how that works.
It is complicated now that we have the Internet. An item purchased at LL Bean is tax free because the of the 1992 law. But the state you live in wants its revenue for "purchases made in your state's borders". But LL Bean isn't in your state, so does your state have the right to tax it? OK, if I drove to LL Bean, I'd pay the sales tax. But what if I buy something on the internet from Oregon? No sales tax there. Does my state still have the right to collect? Gets complicated.
One last thought to add: it all evens out anyway, because the states that charge sales tax at times do so unconstitutionally. Here's why: we are never to be double-taxed, correct? So if I buy a new car, I'm taxed on the whole selling price. Then in 2 years I trade it in. The next fella buys my old car from the dealer. Taxed again. Wait a minute, that manufactured item was already taxed for its full value. Why tax it again? That car may get sold 4 more times, taxed each time. Is that double-taxing? Or am I not understanding that? So it's complicated.
Just for clarification, I have no issues with having to "Render to Caesar the things that are Caesar’s"... even Jesus paid His taxes (seriously). It just needs to stay fair.
Personally, I think the solution for me to keep me honest is simple: move back to Oregon. It's really nice when a $14.99 item actually costs you that. The State Income Tax there keeps your wallet empty enough.
And I thought I diverged off topic....you've gotten away a bit from the online sales tax argument in the last few paragraphs there Paul.
We are never to be double-taxed, correct?
I've actually never heard that. I assumed it was the state's prerogative to tax all transactions or income, regardless of source - for instance, taxing interest earned on already taxed income. After all, the used car sale is taxable income for the car dealer, the second time around (or at least the profit is taxable I would think).
Back to the internet sales tax issue - I would have thought this would have been settled long ago, as you essentially have the same issue with mail order items. I think mail-order was just such a small portion of sales that it never really got settled. With internet sales growing exponentially, it's become more important. Which state has rights or duty to collect sales tax on interstate transactions (which is what most internet sales are)? What about purchases from international retailers? Is there then a federal import/sales tax on those items?
My guess would be that you'll have to pay sales tax on internet purchases in all cases sometime in the near future (next few years), since they aren't really supposed to be tax free right now.
Finally, maybe you could just change the topic to "5D Price Dropped, and totally off the wall Internet sales tax discussion"
LOL! Whoops! I guess I did veer a little. You were dead on when you said:
"I think mail-order was just such a small portion of sales that it never really got settled. With internet sales growing exponentially, it's become more important."
Discussion
10 repliesWell technically, you're still supposed to pay your state sales tax (in most states anyway), but it's a use tax, since you're the one responsible (as opposed to the seller). You DO pay sales tax owed on internet purchases when you file your yearly state return, don't you?
Most websites are set up like that now, to collect depending on your state. For instance, I always pay tax on my Dell Computer purchases because they have a huge warehouse about 10 miles from where I live.
And this may shock you, but I have actually reported and paid sales tax on my Federal Return for items where the website didn't collect appropriately. I can think of 2,873 things I'd rather do than that, believe me, but I'll do what's right. That's one thing I miss about living in Oregon, being able to laugh around sales tax. But then the 9% State Income Tax beat you up, so it all comes out in the wash I guess.
Sorry to drag this off-topic...it's a great price on a 5D.
But more states may soon try to find ways to collect the taxes, I would guess for two reasons : 1) collectively, it's a huge amount of money, even if it's not much per person, and 2) it would theoretically help local "brick-and-mortar" stores compete better by eliminating one difference between them and the online stores.
(I wonder if there's any way we could get all the messages except the first one moved into a new topic?)
It is complicated now that we have the Internet. An item purchased at LL Bean is tax free because the of the 1992 law. But the state you live in wants its revenue for "purchases made in your state's borders". But LL Bean isn't in your state, so does your state have the right to tax it? OK, if I drove to LL Bean, I'd pay the sales tax. But what if I buy something on the internet from Oregon? No sales tax there. Does my state still have the right to collect? Gets complicated.
One last thought to add: it all evens out anyway, because the states that charge sales tax at times do so unconstitutionally. Here's why: we are never to be double-taxed, correct? So if I buy a new car, I'm taxed on the whole selling price. Then in 2 years I trade it in. The next fella buys my old car from the dealer. Taxed again. Wait a minute, that manufactured item was already taxed for its full value. Why tax it again? That car may get sold 4 more times, taxed each time. Is that double-taxing? Or am I not understanding that? So it's complicated.
Just for clarification, I have no issues with having to "Render to Caesar the things that are Caesar’s"... even Jesus paid His taxes (seriously). It just needs to stay fair.
Personally, I think the solution for me to keep me honest is simple: move back to Oregon. It's really nice when a $14.99 item actually costs you that.
I've actually never heard that. I assumed it was the state's prerogative to tax all transactions or income, regardless of source - for instance, taxing interest earned on already taxed income. After all, the used car sale is taxable income for the car dealer, the second time around (or at least the profit is taxable I would think).
Back to the internet sales tax issue - I would have thought this would have been settled long ago, as you essentially have the same issue with mail order items. I think mail-order was just such a small portion of sales that it never really got settled. With internet sales growing exponentially, it's become more important. Which state has rights or duty to collect sales tax on interstate transactions (which is what most internet sales are)? What about purchases from international retailers? Is there then a federal import/sales tax on those items?
My guess would be that you'll have to pay sales tax on internet purchases in all cases sometime in the near future (next few years), since they aren't really supposed to be tax free right now.
Finally, maybe you could just change the topic to "5D Price Dropped, and totally off the wall Internet sales tax discussion"
"I think mail-order was just such a small portion of sales that it never really got settled. With internet sales growing exponentially, it's become more important."
We'll see where this all goes.
In the meantime, 5Ds are stupid cheap!