Summit Racing reporting tax info????
Thread Starter
Melting Slicks
Joined: Jun 2002
Posts: 2,844
Likes: 99
From: Orrtanna Pa.
Summit Racing reporting tax info????
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...….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: Mar 2001
Posts: 5,738
Likes: 644
From: Lincoln, CA
https://help.summitracing.com/app/an...es-%26-use-tax
Based on legal requirements enacted by Pennsylvania, any tax due must be reported and paid to the Commonwealth of Pennsylvania.
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.
The purchaser is required to file a use tax return if tax is due in connection with the purchase and delivery in the Commonwealth of Pennsylvania.
This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.
Do you collect sales tax in Pennsylvania?
We do not collect Pennsylvania Sales or Use Tax. However, your purchase may be taxable. It is not tax exempt just because you purchased over the internet or other remote means.Based on legal requirements enacted by Pennsylvania, any tax due must be reported and paid to the Commonwealth of Pennsylvania.
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.
The purchaser is required to file a use tax return if tax is due in connection with the purchase and delivery in the Commonwealth of Pennsylvania.
This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.
Last edited by ddawson; Feb 5, 2019 at 04:10 PM.
Thread Starter
Melting Slicks
Joined: Jun 2002
Posts: 2,844
Likes: 99
From: Orrtanna Pa.
https://help.summitracing.com/app/an...es-%26-use-tax
Based on legal requirements enacted by Pennsylvania, any tax due must be reported and paid to the Commonwealth of Pennsylvania.
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.
The purchaser is required to file a use tax return if tax is due in connection with the purchase and delivery in the Commonwealth of Pennsylvania.
This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.
Do you collect sales tax in Pennsylvania?
We do not collect Pennsylvania Sales or Use Tax. However, your purchase may be taxable. It is not tax exempt just because you purchased over the internet or other remote means.Based on legal requirements enacted by Pennsylvania, any tax due must be reported and paid to the Commonwealth of Pennsylvania.
Pennsylvania sales or use tax may be due in connection with the purchase and delivery of tangible personal property to Pennsylvania individuals and businesses.
The purchaser is required to file a use tax return if tax is due in connection with the purchase and delivery in the Commonwealth of Pennsylvania.
This notice is required pursuant to the provisions of the Tax Reform Code of 1971. 72 P.S. § 7213.2.
And,.....what about all the other places I order stuff from? Are they going to send me letters too? Never got any before
Le Mans Master
Joined: Aug 2017
Posts: 8,336
Likes: 2,810
From: Cool Northern Michigan
Summit has a list somewhere on their web site showing which states are taxable through internet sales. (Not sure if you use snailmail if you are taxed) likely thou.
This all started when big brother figured out that internet sales is a trillion dollar industry, tax free. So big brother says, " I want a piece of that pie".
No too many years ago when you filed for taxes the Govt wanted $20 a yr if you purchased items on The Net regardless of amount. Donny needs more than $20 now.
This all started when big brother figured out that internet sales is a trillion dollar industry, tax free. So big brother says, " I want a piece of that pie".
No too many years ago when you filed for taxes the Govt wanted $20 a yr if you purchased items on The Net regardless of amount. Donny needs more than $20 now.
Drifting
Joined: Nov 2016
Posts: 1,965
Likes: 579
From: Pittsburgh PA
Pa is trying to crack Down on lost tax revenue due to online says.
I’ve gotten a few letters. Ironically they all seem to be from Ohio based companies. So not sure if if some deal between Pa and Oh?
I plan to ignore all of those letters
I’ve gotten a few letters. Ironically they all seem to be from Ohio based companies. So not sure if if some deal between Pa and Oh?
I plan to ignore all of those letters
Last edited by Tiger Joe; Feb 5, 2019 at 04:29 PM.
Race Director
Joined: Oct 2000
Posts: 12,684
Likes: 3,137
From: Shamong, NJ
You got the notice because there was a lawsuit filed by one of the states (Minnesota?) a couple years ago, wanting mail order companies outside the state, to pay sales tax for things shipped into their state. I believe it went to the Supreme Court, and the Court ruled in favor of the State. It's my understanding, that the Court left it up to each state to decide if and how they wanted to handle the tax on items shipped into their state. PA is one of the first states to jump into this. I think Summit has chosen not to collect tax, but to report the sales, with the expectation that the customer will pay the use tax on their purchases.
As a business owner, I'm still trying to come to grips with this, but it looks like it's going to be a nightmare. I have a meeting with my accountant next week, to see how to deal with this situation, since it appears the law's going to be different in every state.
As a business owner, I'm still trying to come to grips with this, but it looks like it's going to be a nightmare. I have a meeting with my accountant next week, to see how to deal with this situation, since it appears the law's going to be different in every state.
Le Mans Master
Joined: Sep 2001
Posts: 7,739
Likes: 630
From: Unreconstructed, South Carolina
You got the notice because there was a lawsuit filed by one of the states (Minnesota?) a couple years ago, wanting mail order companies outside the state, to pay sales tax for things shipped into their state. I believe it went to the Supreme Court, and the Court ruled in favor of the State. It's my understanding, that the Court left it up to each state to decide if and how they wanted to handle the tax on items shipped into their state. PA is one of the first states to jump into this. I think Summit has chosen not to collect tax, but to report the sales, with the expectation that the customer will pay the use tax on their purchases.
As a business owner, I'm still trying to come to grips with this, but it looks like it's going to be a nightmare. I have a meeting with my accountant next week, to see how to deal with this situation, since it appears the law's going to be different in every state.
As a business owner, I'm still trying to come to grips with this, but it looks like it's going to be a nightmare. I have a meeting with my accountant next week, to see how to deal with this situation, since it appears the law's going to be different in every state.
Sad but quite TRUE! Maybe S Dakota. But recent US Supreme CT case in favor of States. It's complicated as it applied to businesses according to gross sales and it's phased in different schedules. Bottom line for buyers: party's over. All bigger companys are either collecting your state's sales tax or they are reporting Your purchase to Your Sate or Both. Party's over.
Le Mans Master
Joined: Mar 2001
Posts: 5,738
Likes: 644
From: Lincoln, CA
Yep, Supreme Court overturned the rule about having to have presence in the state.You have to pay tax on all internet orders now. States are still working out details.
https://www.forbes.com/sites/forbest.../#732878d668b2
https://www.forbes.com/sites/forbest.../#732878d668b2
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Joined: Jul 2000
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From: About 1100 miles from where I call home.
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...….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: May 2003
Posts: 8,877
Likes: 3,556
From: Fernandina Beach FL
2023 Restomod of the Year finalist
2020 C3 of the Year Winner - Modified
Since I'm in Georgia- Summit charges me tax-
BUT my zip code is used in two counties. The county that I don't live in is .9% MORE...Summit the last few times has been charging me at the higher sales tax rate.
So I can't imagine for the small business guy dealing with expense/complications of software to figure what is your actual rate is- when a giant like Summit can't even get it right!!!
BUT my zip code is used in two counties. The county that I don't live in is .9% MORE...Summit the last few times has been charging me at the higher sales tax rate.
So I can't imagine for the small business guy dealing with expense/complications of software to figure what is your actual rate is- when a giant like Summit can't even get it right!!!
Racer
Joined: Jun 2012
Posts: 325
Likes: 36
From: Colorado Springs Colorado
I received my letter yesterday from Summit about my purchases in 2018, now I am planning on buying from companies that give a discount so that I can offset the sales tax, Rockauto changes the sales tax but with the discount it is not so bad, I come out almost even.
Is my vette stock?? HAHA
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Amazon charges me tax on checkout. MA will probably be getting into this too. They love taxes here. Another reason to move to NH, sales tax free states
Racer
Joined: Feb 2014
Posts: 383
Likes: 16
From: SARNIA ONTARIO
I have been wondering about this for a few years now and the effects of online shopping are starting to really become apparent. Many sit home and do shopping on line everything from car parts to even groceries. The upside is the post office doesn't have to lay off but shipping has gone haywire the downside is retail is cutting back everywhere large malls sit half empty which means no sales reps etc. No rent no taxes no workers no taxes the cycle isn't going to change unless we do Just my thoughts Phil
Thread Starter
Melting Slicks
Joined: Jun 2002
Posts: 2,844
Likes: 99
From: Orrtanna Pa.
On the online shopping note. If I could find a local parts store that carried more than wax and car polish,......I'd be shopping there. My local options leave me no option but to shop online!
Last edited by The Money Pit; Feb 6, 2019 at 12:36 PM.
Racer
Joined: Jan 2008
Posts: 441
Likes: 22
From: Northeast OH
Amazon charges tax almost anywhere, because online orders are supposed to charge state tax if the website has a facility in that state, and Amazon has a facility everywhere now.
Race Director
Joined: Mar 2016
Posts: 14,407
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From: Napa Valley California
I worked out a great deal with the speed and machine shop I've been working with.
I find the best deal on parts on-line, usually at Summit, then I give him Summit's price.
If he can sell me the parts, including sales tax and his shipping costs for the same price as Summit or slightly more, then I purchase through him.
I save some and he still makes a profit.
There has only been one or two small cost items that he can't beat Summits price so he still makes a profit.
On those couple items, I'll still order through him but I'll pay the slight difference pursuant to our agreement
I'm not sure if it makes any difference, but I won't order anything on-line.
I'll find the parts on-line, call the company and order the parts over the phone.
I know last year, when we had our taxes prepared, the State of California asked if we purchased items on-line and if so what was our estimated on-line purchase amount for the year of 2017.
Last year we were not required to pay anything for on-line purchases.
We'll see what happens this year.
I find the best deal on parts on-line, usually at Summit, then I give him Summit's price.
If he can sell me the parts, including sales tax and his shipping costs for the same price as Summit or slightly more, then I purchase through him.
I save some and he still makes a profit.
There has only been one or two small cost items that he can't beat Summits price so he still makes a profit.
On those couple items, I'll still order through him but I'll pay the slight difference pursuant to our agreement
I'm not sure if it makes any difference, but I won't order anything on-line.
I'll find the parts on-line, call the company and order the parts over the phone.
I know last year, when we had our taxes prepared, the State of California asked if we purchased items on-line and if so what was our estimated on-line purchase amount for the year of 2017.
Last year we were not required to pay anything for on-line purchases.
We'll see what happens this year.
Senior Member
Joined: Jan 2008
Posts: 12,146
Likes: 2,038
From: Easton, PA
St. Jude Donor '10
I got the letter from Summit and I live in PA. My wife does taxes for a living and she said yep, she'll include it, Speedway motors did the same thing, so that is two thus far but I expect others to follow.
I don't mind paying the tax, just wish the vendor would collect it at checkout. Wanna play, gotta pay.
David
I don't mind paying the tax, just wish the vendor would collect it at checkout. Wanna play, gotta pay.
David
Last edited by AllC34Me; Feb 9, 2019 at 07:47 AM.