The Money Pit

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?

ddawson

https://help.summitracing.com/app/an...es-%26-use-tax

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.

The Money Pit

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

HeadsU.P.

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.

Tiger Joe

gbvette62

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.

jackson

ddawson

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

vettebuyer6369

For many, many years, most every state in the union has had a "use tax" which takes the place of sales tax not collected when a person make a retail purchase. In most every case, if you buy something at retail and fail to pay sales tax because that state doesn't collect it from an out of state resident, you owe it to your home state. People have howled over this as they have discovered it, but catalog, Internet, etc sales are taxable... a lot of people think they are not. Many states shock their residents with tax bills generated from retail purchases made in other states years later.

Richard454

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!!!

jose7740

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.

jose7740

I meant to say that Rockauto charges the sales tax not changes the sales tax😔

Rescue Rogers

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

Bikespace

I was done with Summit when I realized I couldn't buy an EGR block-off plate from them. Of course they are coming after you. But they are just the first.

PHIL 68

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

The Money Pit

Wonder if we could get a NH member to get us a PO Box and when we order from Summit, change the ship to address to our own location...…..

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!

Backstop

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.

OldCarBum

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.

cheapta

I live in MASS, made a large ($$$) purchase from Summit by phone last Friday and was charged tax when I checked out. First time that ever happened.

AllC34Me

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