Summit Racing reporting tax info????
Team Owner
Joined: Aug 2000
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From: Massillon,Ohio USA
2020 C3 of the Year Finalist - Unmodified
Cruise-In VI Veteran
St. Jude Donor '08-'09-'10-'11-'12
...the PA Tax man is why I stopped vending @ Corvettes@Carlisle. To be taxed on selling used Corvettes parts is pure BS.
Le Mans Master
Joined: May 2003
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From: Fernandina Beach FL
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Melting Slicks
Joined: Sep 2004
Posts: 3,227
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From: Northeast
Rhode Island has been doing this for years and there is a section on the state income tax form to list what is due. There are two options, on the honor system.
1. Total up your purchases for which you paid no tax. Multi x the state income tax rate and post it to your tax liability. ie $500 x 5%= $25
2. There is a income schedule if you haven't been keeping track. Get your adjusted income from the federal forum and find the range on the income schedule. ie. adjusted earnings $50,000 = $40, you add to your tax liability.
I assume there are people who never make out of state or online purchases and will not have to report any taxes due.
1. Total up your purchases for which you paid no tax. Multi x the state income tax rate and post it to your tax liability. ie $500 x 5%= $25
2. There is a income schedule if you haven't been keeping track. Get your adjusted income from the federal forum and find the range on the income schedule. ie. adjusted earnings $50,000 = $40, you add to your tax liability.
I assume there are people who never make out of state or online purchases and will not have to report any taxes due.
2nd Gear
Joined: Nov 2019
Posts: 2
Likes: 0
From: 6530 Trask Terrace Alexandria, VA 22315
best tax consultant near me
The other night I get home and in the mail was a letter from Summit Racing reporting the state tax I did not pay in Pa. Since I order online, they do not charge tax...….best tax consultant near me url site...so I guess now I have to pay it to Pa.?
Been ordering from Summit,....and others, for decades, and this is the first time I'd ever seen something like this.
Anyone else?
Been ordering from Summit,....and others, for decades, and this is the first time I'd ever seen something like this.
Anyone else?
Le Mans Master
Joined: Sep 2001
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From: Unreconstructed, South Carolina
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Le Mans Master
Joined: Sep 2001
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From: Unreconstructed, South Carolina
An exception is direct buy from a very small seller whose gross sales are below Your state's threshold and who does Not have a physical footprint in Your state.
It takes time and perseverance to correctly identify such sellers ... how much is Your time worth? ... they gotcha! ... suggest assume the position & pay.
It takes time and perseverance to correctly identify such sellers ... how much is Your time worth? ... they gotcha! ... suggest assume the position & pay.
Had a 1976 L-82, 4-sp
Joined: Mar 2011
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From: Some days your the dog and some days your the hydrant.
Royal Canadian Navy
On a recent road trip to the US I purchased about US$3000 and paid all applicable state taxes. Came back across the border and declared my purchases to Canada Customs deducting the state taxes. Not so, Resdoggie. You must pay Canada taxes on the state taxes. "Welcome back to Canada!!!"
Race Director
Joined: Mar 2018
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From: Golden Colorado
In a related question I recently sold an item on e bay and see on the invoice they sent the buyer they charged him a sales tax on the purchase. How is this gonna affect me at tax time? 
Safety Car
Joined: Jun 2017
Posts: 4,786
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From: North Georgia, USA
This was stated in the letter I got. My point was that this is the first time ever I've gotten a letter such as this, and I've been ordering from Summit for decades. I am not trying to get out of paying the tax, but just am questioning why now.
And,.....what about all the other places I order stuff from? Are they going to send me letters too? Never got any before
And,.....what about all the other places I order stuff from? Are they going to send me letters too? Never got any before
Prior to 2018, Pennsylvania relied on voluntary compliance by residents. For 2018, Pennsylvania changed this position and required out-of-state retailers who had more than $10,000 in sales to Pennsylvania residents to report this information to the Pennsylvania Department of Revenue and the Pennsylvania resident purchaser.
Taxpayers who receive this letter should provide a copy to their tax preparer. Do not ignore this letter. This letter has important tax information the tax preparer will need to prepare a tax return.
In some situations, the letters are addressed to both an Individual Taxpayer and a Business Taxpayer. In these cases, Pennsylvania has indicated the appropriate reporter of these purchases is the Business.
Individual Taxpayers should review the items purchased and determine if they are taxable purchases. If they agree the purchases should have been taxed, record use tax due as a result of out-of-state purchases on line 25 of the 2018 PA 40 and pay the balance due with the 2018 PA 40.
Taxpayers who receive this letter should provide a copy to their tax preparer. Do not ignore this letter. This letter has important tax information the tax preparer will need to prepare a tax return.
In some situations, the letters are addressed to both an Individual Taxpayer and a Business Taxpayer. In these cases, Pennsylvania has indicated the appropriate reporter of these purchases is the Business.
Individual Taxpayers should review the items purchased and determine if they are taxable purchases. If they agree the purchases should have been taxed, record use tax due as a result of out-of-state purchases on line 25 of the 2018 PA 40 and pay the balance due with the 2018 PA 40.
It sounds like Pennsylvania, like many other states, is trying to collect taxes on Internet sales that were previously untaxed due to non-reporting and evasion/avoidance of "use tax" by their state residents.
Le Mans Master
Joined: May 2003
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From: Fernandina Beach FL
2023 Restomod of the Year finalist
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HAHAHA I buy gas with my after tax money- then pay the state another 31.02 cents per gallon and the feds take 18.4 cents per gallon...
You DO pay tax on taxes!!!!
Summit Racing charges me 8.9% state /county/city sales tax- yet where I live it's only 8%. I spoke with the guy at Summit and its a state system- they have no control...even talked to our mayor- all to deaf ears.
You DO pay tax on taxes!!!!
Summit Racing charges me 8.9% state /county/city sales tax- yet where I live it's only 8%. I spoke with the guy at Summit and its a state system- they have no control...even talked to our mayor- all to deaf ears.
Last edited by Richard454; Nov 14, 2019 at 02:00 PM.
Safety Car
Joined: Jun 2017
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From: North Georgia, USA
I live in Georgia, and that's another state that changed their laws recently. In Georgia, any Internet seller must collect Georgia Sales tax on anything shipped to Georgia. The sales tax is due on the total amount of the invoice, including shipping/handling and any other charges that are paid by the customer. There is an Internet based sales tax calculator which is provided by the state to get the correct tax amount that sellers are supposed to use. I've never seen that tax calculator use the wrong rate. I think maybe you're seeing the tax on the shipping charges and attributing that as the additional 0.9% tax on the amount for the merchandise.
Racer
Joined: Mar 2019
Posts: 327
Likes: 75
From: west mi. / ms. gulf coast
I just this evening looked at a few items in the Summit catalog , then went to e-bay and found the similar items at less than half the price. No tax [ YET ] on e-bay plus free shipping. The Items were not of need of quality . Probably both vendors selling made in China goods or should I say bads. I also was surprised when I was charged tax on a previous order from Summit.
Le Mans Master
Joined: Aug 2017
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From: Cool Northern Michigan
If there is a parts fitment issue the tech guys at Summit can walk you through the problem.
If there is a parts fitment issue no tech guys at EBay, they just take your money and walk.
Although most eBay sales are not taxed, sooner or later Uncle Sam will catch up with not only the seller, but the buyer.
Some eBay sellers don't want to get involved with merchant tax forms and leave a paper trail behind. Its just easier to turn a blind-eye.
If there is a parts fitment issue no tech guys at EBay, they just take your money and walk.
Although most eBay sales are not taxed, sooner or later Uncle Sam will catch up with not only the seller, but the buyer.
Some eBay sellers don't want to get involved with merchant tax forms and leave a paper trail behind. Its just easier to turn a blind-eye.
Last edited by HeadsU.P.; Nov 14, 2019 at 06:53 PM.
Race Director
Joined: Mar 2018
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From: Golden Colorado
I just this evening looked at a few items in the Summit catalog , then went to e-bay and found the similar items at less than half the price. No tax [ YET ] on e-bay plus free shipping. The Items were not of need of quality . Probably both vendors selling made in China goods or should I say bads. I also was surprised when I was charged tax on a previous order from Summit.
Le Mans Master
Joined: May 2003
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From: Fernandina Beach FL
2023 Restomod of the Year finalist
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Are you sure they charged 8.9% sales tax?
I live in Georgia, and that's another state that changed their laws recently. In Georgia, any Internet seller must collect Georgia Sales tax on anything shipped to Georgia. The sales tax is due on the total amount of the invoice, including shipping/handling and any other charges that are paid by the customer. There is an Internet based sales tax calculator which is provided by the state to get the correct tax amount that sellers are supposed to use. I've never seen that tax calculator use the wrong rate. I think maybe you're seeing the tax on the shipping charges and attributing that as the additional 0.9% tax on the amount for the merchandise.
I live in Georgia, and that's another state that changed their laws recently. In Georgia, any Internet seller must collect Georgia Sales tax on anything shipped to Georgia. The sales tax is due on the total amount of the invoice, including shipping/handling and any other charges that are paid by the customer. There is an Internet based sales tax calculator which is provided by the state to get the correct tax amount that sellers are supposed to use. I've never seen that tax calculator use the wrong rate. I think maybe you're seeing the tax on the shipping charges and attributing that as the additional 0.9% tax on the amount for the merchandise.
$629.55 + 9.99 = $639.54
639.54 x .089% = $56.91 so $56 92 -they of course round up AND charge tax on the additional shipping charge!!!
At 8% it should be $51.08
My zip code is used in two counties- they use the HIGHEST tax in the zip code.
The city next to me- Sandy Springs is 7.7%- they are getting charged 8.9 % too- even the Home Depot and IIRC the Target were charging the higher rate...
I can not imagine the extra money this is generating- reminds me of the movie Office Space!!!
