NewEgg NO MORE

[DrewZ]

Once more, you ALWAYS had to pay those taxes. If you weren't paying them, you were breaking the law.

By law, a consumer is only required to pay sales taxes if they live in a state where the business has a warehouse. Federal taxes are factored into the price already when the business purchases the product from the distributor. I sold computer parts for 2 years and did my own federal and state business taxes. So yeah.

Newegg for i7-5930k

Subtotal: $579.99
Sales Tax: $40.81
Shipping: $2.99 (Super Eggsaver shipping)

TOTAL = $623.79


NCIX for i7-5930k

Shipping: $11.99
Subtotal: $577.98
No Sales Tax (Outside California): $0.00
YOUR TOTAL: USD $577.98

$45.81 difference!

 

[jaymz9350]

Not sure about your state but many if not all still require you to pay your sates tax in online purchases (which almost no one does). The seller is only responsible to charge it if you live in the state it has a physical presence in. Kind of like income taxes, my employer doesn't have to withhold the local taxes for the city I live in just the one I work in, doesn't mean I don't have to pay it.


Here's Indians use tax http://www.in.gov/dor/4006.htm#use

 

[DrewZ]

Not sure about your state but many if not all still require you to pay your sates tax in online purchases (which almost no one does). The seller is only responsible to charge it if you live in the state it has a physical presence in. Kind of like income taxes, my employer doesn't have to withhold the local taxes for the city I live in just the one I work in, doesn't mean I don't have to pay it.


Here's Indians use tax http://www.in.gov/dor/4006.htm#use

Use tax is something different. It is not sales tax. Sales tax is only due if I go into the state of Illinois and purchase a processor from Micro Center while physically in the state OR if I purchase something online from a business that owns and operates a warehouse that is in the state I reside in.

On the same page you linked: What is Use Tax?

Use tax is due on property brought into Indiana for use, storage or consumption. Exceptions for this tax may be found in the Indiana Code (IC 6-2.5-5 and IC 6-2.5-3).

 

[jaymz9350]

The point is you still owe the same amount of tax wether it's sales or use tax regardless.

You don't save anything technically as the sales and use tax are the same rate

 

[DrewZ]

The consumer does not have to pay use tax, only sales tax. I know this because I still owe California Board of Equalization for use tax. I got the tax waived until the end of the year because I wanted to be more competitive on price in order to establish a decent customer base. By not collecting the tax from consumers and not paying for it through the distributor, I ended up owing a pretty penny! Newegg pays for every tax other than sales tax (just as I did) when purchasing the products from the distributor. Newegg is not required to collect use tax from consumers unless they have the tax waived until the end of the year like I did...which is very doubtful.

https://www.ftb.ca.gov/individuals/usetax.shtml

 

[jaymz9350]

I may be confusing you talking about purchasing for a business instead I personal, if not that us exactly what use tax is, sales tax for items purchased out of state by a consumer

 

[petteyg359]

The consumer does not have to pay use tax, only sales tax.

Yes they do. The third item on the linked Indiana site makes that pretty clear, where it refers to your individual tax return.

 

[DrewZ]

Ok, well think whatever you want but when have you known a computer parts reseller to EVER collect use tax from the consumer? Why is it that I can buy a processor for $40 something less from NCIX than from Newegg?

 

[jaymz9350]

They don't collect it, YOU are responsible to claim it on your tax form as specified on the link and pay it.

 

[Silver_Pharaoh]

By law, a consumer is only required to pay sales taxes if they live in a state where the business has a warehouse. Federal taxes are factored into the price already when the business purchases the product from the distributor. I sold computer parts for 2 years and did my own federal and state business taxes. So yeah.

Newegg for i7-5930k

Subtotal: $579.99
Sales Tax: $40.81
Shipping: $2.99 (Super Eggsaver shipping)

TOTAL = $623.79


NCIX for i7-5930k

Shipping: $11.99
Subtotal: $577.98
No Sales Tax (Outside California): $0.00
YOUR TOTAL: USD $577.98

$45.81 difference!

That tax is so cheap I wanna cry!


$91 in taxes!!

You got it lucky in the states with cheaper taxes you know that right?

 

[ShrimpBrime]

I love paying taxes.

it means I'm a legal citizen of the united states and doing my part.

If you don't pay taxes or don't want to.... You should leave my country because your not making things better.

IMHO of course.

 

[DrewZ]

Maybe the law has changed. I went out of business in 2012. As a business I was required to pay use taxes for out of state purchases at the end of the year, ONLY if the distributor had a warehouse where the customer resided which was mostly California because every distributor has a warehouse there.

 

[petteyg359]

That tax is so cheap I wanna cry!
View attachment 162037

$91 in taxes!!

You got it lucky in the states with cheaper taxes you know that right?

Yeah, we also get to pay out-of-pocket for health insurance (minus some tax subsidies), and if our employer's health plan is "too good", they get penalized by having to pay even higher taxes for offering that good health plan. Would be nice to have a stable tax rate to cover that and cut out the profiteering middlemen.

 

[DrewZ]

What state are you in?...jeesh!

 

[ATMINSIDE]

What state are you in?...jeesh!

You mean country? Silver is in Canada.

 

[DrewZ]

You mean country? Canada.

What about NCIX...worse?

 

[ATMINSIDE]

What about NCIX...worse?

Tax will still be the same...

 

[jaymz9350]

You are confusing tax as a business vs tax as a consumer I think. You keep mentioning your business which has different use tax laws

 

[DrewZ]

You are confusing tax as a business vs tax as a consumer I think. You keep mentioning your business which has different use tax laws

Right, I mostly had to pay use taxes for California residents at the end of the year. The consumer was not expected to have to pay a use tax, I was only required to charge sales tax to Indiana residents. Use tax was either already calculated into the purchase from the distributor, OR paid at the end of the year for states where the distributor had a warehouse. That was how it worked for me...then at least.

 

[jaymz9350]

I think that may be a Cali thing, I think New York is that way now because they were tired if no one paying it.