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Dell tax?
- Thread starter OC101
- Start date
- Joined
- Mar 6, 2006
Online retailers charge tax when they have an actual presence in your state.
Simple rule - if they have an address in your state, you got tax.
Since Dell has their random kiosks in malls all over the place, they have an actual presence in many states, and thus charge tax.
FYI, Newegg has warehouses in at least CA, NJ, TN, and those states have to pay tax.
Also note that tax is determined by the shipping address, not location you ordered from.
Simple rule - if they have an address in your state, you got tax.
Since Dell has their random kiosks in malls all over the place, they have an actual presence in many states, and thus charge tax.
FYI, Newegg has warehouses in at least CA, NJ, TN, and those states have to pay tax.
Also note that tax is determined by the shipping address, not location you ordered from.
- Joined
- Nov 1, 2001
- Location
- New Iberia, LA
Right. Actually, Dell is closing out all their kiosks, but since they are sold in Walmart and other chain stores nowadays, you are going to pay tax on anything you purchase from them.
- Joined
- Dec 20, 2000
- Location
- Albany, NY
Some vendors actually reached agreements with some states to charge the current tax rates applicable, even though not required. I believe this was to avoid later hassles, although to this point, most states haven't really gone after taxes as much as I thought they would. You can still read many, many, articles about states getting fired up about lost taxes to the Internet, so the issue isn't going away. This is actually going to be a very big issue for ecommerce in the future.
- Joined
- Oct 23, 2003
I always thought that you only pay tax if the specific company has registered an address at that particular state (e.g. a warehouse...etc), not because they are selling at walmart, target, bestbuy.
Sony has presence in every state. If I buy from newegg, I dont pay tax. I'm from Illinois.
Sony has presence in every state. If I buy from newegg, I dont pay tax. I'm from Illinois.
- Joined
- Mar 8, 2004
You are buying from newegg not from sony. Go to sony website and order laptop and you will be taxed.
Dell is not like newegg. Though they sell items through their web-site dell provides services, which might be the reason for taxes.
As goes for being taxed, your are not tax exempt when you buy out of state. You are not paying sales tax but you should have figure your use tax.
- Joined
- Oct 23, 2003
That's the point i'm making. I'm buying from newegg, not Sony.
Since he is buying from Dell directly and being charged for tax. I'm assuming that is because Dell has a physical location registered in the State. Not because Dell is selling at Walmart. In this case, he is buying from Dell, not Walmart.
Actually that won't count since they're simply selling to a reseller who in turn collects the tax and pays it to the state. The Dell kiosks were owned by Dell as opposed to Walmart which is Walmart.
