Re: ADI vs. Internet Pricing

["Bob La Londe" <nospam@xxxxxxxxx>]

"Rapid" <nosp@xxxxx> wrote in message
news:mBuog.33154$EX2.31294@xxxxxxxxxxxxxxxxxxxxxxxxx
> Bob Worthy wrote:
>> "Rapid" <nosp@xxxxx> wrote in message
>> news:4Ikog.4$Oc5.1@xxxxxxxxxxxxxxxxxxxxxxxxx
>>
>>
>>>I too have noticed this.  ADI is losing business.  Plus if ordered over
>>>the internet from a different state.... no sales tax, woohoo.  Adds up
>>>quick.
>>
>>
>> I was led to believe this as well from one of the DIY on line sales
>> companys
>> that participates on this NG. After looking into it, Florida's Dept of
>> Revenue has a different view about this. It is all about the money, you
>> know. I would check each state prior to simply ignoring your tax
>> obligation
>> because you heard it somewhere. It is the penalties and interest that
>> adds
>> up quick.
>>
>>
>
> Mr Bass wouldn't have misled the unwashed dumb masses would he?:)
> Seriously, I'll check into that.  Just assumed that since tax wasn't
> charged, there was none.  That's the way it is with stuff purchased over
> the internet, I had read, no sales tax.  And because everything I have
> purchased over the internet has been tax free for years now.

There are some Federal regulations that prohibit states to enact any regs
which inhibit interstate trade.  In general this prohibits the charging and
collection of sales taxes on interstate sales.  However states find
innovative ways to try and get around that.  One Arizona tries is to charge
a "USE" tax and make the buyer responsible for it.  Many things are
impossible for them to colelct on, but for something that is registered like
a boat or car they make you show the original sales receipt.  If you did not
pay sales tax where you bought it they make you pay use tax when you
register it.  Personally I think its a deliberate attempt by the state to
circumvent Federal regs, but hey they are getting away with it.

Another thing Az does is call their sales tax a "transaction priveledge
tax."  Where this becomes an issue is in selling to federal agencies.
Federal agencies are exempt by federal law from state and local sales taxes.
Arizona doesn't charge a "sales" tax and makes the seller responsible for
all transaction taxes regardless.  Due to competitive pressure they finally
did allow an exemption so that sellers only have to pay half the sales tax
on "transaction priveledge tax" to federal agencies.  Still, somebody
selling to a local fed agency from out of state has a built in 3%-5%(apx)
pricing advantage over a local business.

Taxes suck.  "Its about plucking the maximum number of featehrs from the
goose with a minimum of squaking."  (Hamilton I think)

Its no big surprise that Arizona is a rogue state.  We started out that way
from our very 1st admission into the union.  We can remove any elected
offical by popular refferendum.  This includes judges.  The fed objected to
this in our constitution so we removed it, joined the union, and then put it
right back in.  Yes, a judge who makes an unpopular decision could possibley
be removed by popular vote in Arizona.


--
Bob La Londe
Fishing Arizona & The Colorado River
Fishing Forums & Contests
http://www.YumaBassMan.com



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