Internet hobby shopping is about to get a bit more expensive.

Joined: July 29th, 2006, 1:18 am

June 21st, 2018, 3:32 pm #1

The Supreme Court has ruled that ALL states may charge sales taxes on out-of-state online retailers and other remote sellers. Up to now, sales taxes could be charged only if the seller had a physical presence within the state where the customer resides.
Michael McMurtrey
IPMS-USA #1746
IPMS-Canada #1426
CAHS #5646
Carrollton, TX

Proud IPMS-USA Low Number Thumper!
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Joined: November 24th, 2007, 6:40 am

June 21st, 2018, 9:29 pm #2

..  same as Canada .. I have to charge and collect the varying taxes from clients in each province, and submit at the end of the year to the Feds, who disperse it using some magic formula !  ..  not so on clients in the US tho, and so far, no tariffs   !!    ..  Rob
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Joined: February 27th, 2005, 2:27 am

June 21st, 2018, 9:51 pm #3

Just saw that. Also it was reported in the U.S. that there seems to be a resurgence of shopping at brick and mortar locations. Guess more people are going to malls. I am wondering with the implication of sales taxes AFAIK just state not local  and the seemingly higher delivery costs via UPS/FedEx/etc. how this will effect internet based business vs. brick and mortar stores?  
The other day I ordered a 1/72 scale kit and ordered alone the shipping was about over 20% of the kits cost.
As an aside the Barnes and Nobles I frequent has in some cases beat Amazon prices even with free prime shipping
I think our hobby internet suppliers are still going to be in pretty good shape. The nearest brick and mortar store ( a very good one, I must say) is a 3 hour round trip.
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Joined: September 6th, 2005, 9:01 pm

June 21st, 2018, 9:52 pm #4

So, if my kit has to travel across thirteen states to get to me, how much sales tax will I have to pay?
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Joined: July 29th, 2006, 1:18 am

June 21st, 2018, 9:59 pm #5

begaultd wrote: So, if my kit has to travel across thirteen states to get to me, how much sales tax will I have to pay?
You'll only be charged sales tax for the state where you live. However, that may take some time, because states not now collecting it will have to pass legislation to allow it.
Michael McMurtrey
IPMS-USA #1746
IPMS-Canada #1426
CAHS #5646
Carrollton, TX

Proud IPMS-USA Low Number Thumper!
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Joined: February 25th, 2010, 11:34 pm

June 21st, 2018, 11:00 pm #6

Ha ha, got to pay for the wall(s) somehow.
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Joined: July 29th, 2006, 1:18 am

June 21st, 2018, 11:06 pm #7

halbcl2 wrote: Ha ha, got to pay for the wall(s) somehow.
That's a federal matter; there's no federal sales tax (yet).
Michael McMurtrey
IPMS-USA #1746
IPMS-Canada #1426
CAHS #5646
Carrollton, TX

Proud IPMS-USA Low Number Thumper!
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Joined: February 25th, 2010, 11:34 pm

June 21st, 2018, 11:21 pm #8

Oops, I was thinking along the lines of our federal GST
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Joined: July 12th, 2013, 4:18 pm

June 21st, 2018, 11:49 pm #9

When I once asked a representative of the California Franchise Tax Board about such things at a social event (hey, even Jesus associated with tax collectors!), I was told the expectation is that I will declare all out of state purchases for taxation, to include food bought, consumed and. er -... in Texas.
I suspect by the time all is done we will be asked to pay sales tax in the state where the sale was made (goods are usually not shipped from the physical location until payment is received there), and in the state where we live.
Stop giving them ideas about the states transited!
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Joined: November 17th, 2006, 1:18 pm

June 22nd, 2018, 7:32 am #10

As I see it, I'm a glass half filled kinda guy, it was a pretty good long run. Must have saved 1000s w/ the outta state 'no sales tax charged' deal. Hell, even goes back to pre-www w/ old school hobby mailorders shops like Auto World and of course Sq. 9-10+% sales taxes here in Calif! Ouch. Oh well.

Of course I didn't like it when Amz, Chewy, etc, started charging some sales taxes in the last few yrs. But those WWWs still manage to beat the prices of local bricks by a mile. I'm buying 50-100' elec extension cords, etc, from Amz instead of the local Ace/Home Depot now! And I have both within 5 miles of the house. Thinking of buying a Dyson vac soon. And I ain't gonna go to the local Macy's! Will shop for one on the www, prob in the middle of the nite, and get a price 30% off Macy's'.

Other than my local supermkts/mkts, I don't go to many bricks nowadays. Man, when Amz figs out a way to undercut my local supermkt, deliver it in a day or two, things fresh, ripe and bruise/wilt free, the same or better inventory of my local mkt, etc, bye bye supermkt! Even tho they have a big parking lot. I'll leave my wonderful house and neighborhood even less for those mundane time consuming shopping trips. Fine by me. My big 10-15 mpg SUV says thanks too. Hates all that stop and go stuff.

Thinking of swapping out my 30+yr old (SOFT water here in NorCal!) water heater soon. Does UPS/Fed Ex handle water heaters??? Washing machines, fridges, lumber, sacks of concrete, ladders, etc, too? Just bought a big screen Sony from the www recently. First time for that kinda purchase. 4 days from NYC to Calif and arrived in perfect shape. WHY would I go to the nearest Best Buy, 20-25 miles away? And pay more + sales tax!

Chewy pet food prices are about 30-40% lower than local pet shops and the supermkt. Plus they ship for 'free' to my ft door. I don't have to drive 5-10 miles using 4 buck gas, spend an hr's time, haul 20# bags of dry food and 10# boxes of canned to my car, etc. Don't have to worry about parking, parking tickets, speed traps, stupid/drunk/distracted drivers, etc, either.

And no, doubt it will in any way make me more likely to shop bricks. If shipping costs go way up, along w/ state sales tax, etc, I'll bet the 'to my door' prices will still beat local bricks. Not to mention the WWW's vast inventory.

AND too, out of country onlines, still great low prices, home mkt list or less, good shipping deals (at some still) and no tax charged. Well unless they start charging custom fees/taxes on incomings from Jpn, Hong Kong, the UK , Oz/NZ, etc. They're talking about new tariffs on 'toys' from the PRC. Well, even more of my biz going to HLJ I guess, and bye bye HobbyEasy and Lucky.

In the end, prob won't alter my model hobby purchases that much, if at all. Within the US WWWs (not many) or from abroad (MANY, mainly Jpn and Hong Kong).
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