newegg charging tax..

[Korndog]

hey guys, i usually order from newegg because they live so close to me (i live in california.. about 6 hours away from newegg), it'll usually take a one or two days to ship, so i don't mind paying tax. recently i've been making orders and they're shipping from new jersey.. and yet they're still charging me tax.. isn't tax suppose to be charged only when purchasing from the same state you live in? its taking the full 3 days now to ship, which makes it kind of pointless to buy from newegg..

 

[vixro]

They have warehouses in California, New Jersey, and Tennessee. If you live in any of those states you will be charged sales tax. It does not matter if it ships from the state you live in, just where Newegg has the warehouses.

Just bad luck I guess, they don't dedicate one warehouse to a location. Whatever warehouse can ship whatever you order will be the one that sends it.

 

[Korndog]

that sucks.. looks like i won't be buying from newegg as often then, cuz i need stuff quick sometimes to keep customers happy

 

[Big Mike]

Have you considered getting a vendors license or do you have one? You say the parts are for customers, if you have a vendors license typically you don't have to pay sales tax, your customers pay it when you bill them and then you turn it over to the state.

 

[aaronjb]

Many states have a "Use Tax" now. The use tax requires you to submit receipts and claim purchases on all (out-of-state) online orders and pay taxes on those purchases.

FYI, of course.

 

[Big Mike]

I think pretty much all states you're still supposed to pay the tax, its just recently that a lot of states are cracking down on "use tax" collection (ohio and indiana have both started pushing this)

 

[Korndog]

i use to have a vendor license, but not anymore. its not really the cost of the tax, but the shipping time. for the amount of tax thats charged i could get it somewhere else and pay for 2day or overnight shipping or something

 

[RangerXLT8]

I have found ZZF cheaper when purchasing large components like a video card. I live in New Jersey so Newegg gets me with that tax.

 

[Pandam00nium]

that sucks.. looks like i won't be buying from newegg as often then, cuz i need stuff quick sometimes to keep customers happy

You should check out www.mwave.com They're located in Southern California, and I believe thats where they ship as well. Everytime I place an order I do a Willcall and just pick it up since I live so close. I haven't actually ordered anything and have it shipped to me, but i'm sure you wouldn't have to worry too much about shipments out of state from them.

 

[SteveLord]

how the heck do they have stuff in the NJ warehouse, compared to not having it in the main HQ in cali?

 

[Enablingwolf]

For an online store to charge sales tax. All it has to have, is a front in the state.

Like Fry's for example. There is no stores here. It does have a warehouse. So I get taxed ordering from outpost. Even if the item is not shipped from the Ohio warehouse. There is a sqaut here, so it has to charge me tax.

Finding a store that does not have any fronts in the state can get around the pesky sales tax. For states that have a high tax, this can actually save more then trying to find the lowest price at one store. Sometimes you have to factor in tax and shipping to find the actual lowest price. Not just the listed price.

 

[dudleycpa]

In most states having a physical presence is enough to trigger sales tax. It is called a "Nexus". If you want more of an in depth explanation (and it is confusing even to tax professionals) look here:
http://www.statetaxcentral.com/cache/praguide.htm#nexusiss

 

[vixro]

For an online store to charge sales tax. All it has to have, is a front in the state.

Like Fry's for example. There is no stores here. It does have a warehouse. So I get taxed ordering from outpost. Even if the item is not shipped from the Ohio warehouse. There is a sqaut here, so it has to charge me tax.

Finding a store that does not have any fronts in the state can get around the pesky sales tax. For states that have a high tax, this can actually save more then trying to find the lowest price at one store. Sometimes you have to factor in tax and shipping to find the actual lowest price. Not just the listed price.

Technically speaking all purchases online are supposed to have tax. You're even supposed to report it when you do your tax forms about all your online purchases that you didn't pay tax on.

Circumventing it is technically illegal, though there aren't any methods really of tracking every person that makes an online purchase and making them pay sales tax for it. Eventually this will change, but as of right now not paying tax is a luxury not an inconvenience.

 

[dudleycpa]

Technically speaking all purchases online are supposed to have tax. You're even supposed to report it when you do your tax forms about all your online purchases that you didn't pay tax on.

Circumventing it is technically illegal, though there aren't any methods really of tracking every person that makes an online purchase and making them pay sales tax for it. Eventually this will change, but as of right now not paying tax is a luxury not an inconvenience.

QFT!

 

[Newegg Support]

hey guys, i usually order from newegg because they live so close to me (i live in california.. about 6 hours away from newegg), it'll usually take a one or two days to ship, so i don't mind paying tax. recently i've been making orders and they're shipping from new jersey.. and yet they're still charging me tax.. isn't tax suppose to be charged only when purchasing from the same state you live in? its taking the full 3 days now to ship, which makes it kind of pointless to buy from newegg..

Hey Korndog,

Thanks for taking the time to post your informative review. We greatly apologize for any inconvenience you have experienced due to your situation. Newegg now operates from three different states and various locations within the U.S. Consequently it is possible that your order may ship from California, New Jersey, Tennessee or any combination of the three. We will do our very best to ship your merchandise from the warehouse location nearest your ship-to address pending stock and availability. However, shipment from the location closest to you cannot be guaranteed due to the aforementioned circumstances. We thank you in advance for your understanding.

If you should need further assistance, please contact Alex @[email protected], Thank you