Is it normal for a Cali vendor to charge sales tax for a part delivered to another state?

Search is your Friend - I think this is someone to stay away from!

i purchased some expensive parts and was charged sales tax even though it was on line out of state- i buy parts from other vendors in Cal but never got charged sales tax. -

Did you contact them and ask that question?

I'm pretty sure it's illegal to charge sales tax unless your actually paying it to the government. I doubt they are. They run by many different names and are well known scammers.

http://www.boe.ca.gov/lawguides/business/c.../sutr/1620.html

If they are giving you any grief tell them you're phoning the tax man, they will change their tune PDQ.

Call the state of CA sales tax division and ask them about it. I'd lay money they never got it. And if you apply to the state for a refund for a tax collected, it might get interesting.

Isn't it just easier to be honest?

I did question them and they said they have to collect sales tax from state they are shipping to- They also put a premium on top of actual shipping costs even though they dont tell you that. I thought things had changed there since that is what i was promised. I really wanted this to be a good experience as it would be nice give them or anyone a second chance. Tax thing is odd though? I buy alot of parts from a very well known Porsche supplier in Cali and they dont charge tax.

a biz practice sourced from another well know vendor with regards to any handling fee tacked on to the shipping total. actual shipping costs and quoted costs can differ with an account a seller might have with a carrier.

Why buy from an overpriced scammer when you can place a WTB on this site and have reputable and honest members to buy from.

Collecting sales tax when you are out-of-state is only required if that business
has a presence in your state. They would know this, they are just liars.

Everyone please take a look at this:

http://www.boe.ca.gov/formspubs/pub109/

We are just trying to follow CA LAW. I'm not a tax expert, but maybe this will shed some light.

This was an internet sale.

"If your business is located in California, your Internet sales of physical products are generally taxable unless they qualify for a specific tax exemption or exclusion (see Non Taxable Sales). Internet sales are treated just like sales you make at retail stores or other outlets, through sales representatives, over the telephone, or by mail order. "


We are not trying to scam anyone! You got a real 914-6 rear valance just as shown in pictures. Tracking number provided. Fast shipping and open communication the entire transaction.

I don't understand the hatred or angry. I quoted item cost, shipping and tax before sale was made. I did my best using the Greyhound shipping cost estimator ahead of time to get shipping quote. Yes, I did add handling, I have to cover cost of box, materials, drive time to and from greyhound station, and waiting in line at station.

Thanks,

Kent

Note that I have no knowledge of your business, I am only interested in this
thread from the sales tax point of view. I'm not a tax attorney either, but I
never get charged sales tax by pelican parts. I looked this up online:

From CA PUB 61 (on page 23):
INTERSTATE AND FOREIGN COMMERCE—Sales of property which, pursuant to the contract of sale,
are shipped by the retailer to a point outside this state are exempt from tax. Generally, no exemption
applies if the property is delivered to the purchaser or purchaser’s representative in this state, even if
the purchaser subsequently removes the property from this state.

I think the guidelines you list are purposely written to try to get the most money,
and also they probably want to emphasize the case of somebody inside CA
ordering over the internet from a CA business.

Mark S.

I have worked several ecommerce sites. Tax is charged when the selling company has a presence in the buyer's state.

So if the buyer is in Utah and the seller has an office in Utah ; Cal tax is charged.

If no affiliate office in Utah....no tax.

That's it plain and simple. By the looks of it here the seller is small and local and should not be charging on sales delivered out of Cal.

They just need a good tax accountant to address out of state sales.

I just sent a Datsun intake to ExtrudeHone in SoCal. They told me if I had it shipped to my California address they had to charge tax, if my Nevada address, nada...

That's what reputable businesses do.

You need to read the whole Publication. On the Non Taxable Sales tab it states:

Some Internet sales are not taxable
Common exempt transactions

Some of your Internet sales—including sales for resale, sales of cold food products, and sales delivered outside of California—may not be subject to California sales or use tax. Common exemptions are described in publication 73, Your California Seller’s Permit. More detailed information is found in publication 61, Sales and Use Taxes: Exemptions and Exclusions.

I'm sure they know that. I have no problem with handling charges if you know about them up front and you agree.

Sales tax is a different matter.....this bears further investigation

Team effort here for sure! Carrera or flat six (same company) have issued a credit and apologized for their mistake. So hopefully they will keep integrity as number one business ethic.

As 'Lostreasure' stated, we have resolved the tax. After talking more than once to CA BOE on the phone to clarify, IT WAS OUR MISTAKE. I'm very sorry for this error. It should never happen again. Only folks in CA get taxed. I have changed our webstore checkout to reflect.

Best,

Kent

sorry for calling you guys liars, hope you understand this is a case where we
think 'everybody knows ...' sales taxes

It's the Nexus rule. The laws are changing folks, but in general, if you ship to a state you have no physical operating office in, you do not charge tax.

However, individuals need not be concerned, but corporations (the purchasing entity) technically are then required to file the purrxhase tax with their home state. Rules vary state to state. Then you get to file property tax each year on the same equipment. Don't we love the government.

But the vendor should not be charging tax to an individual in another state.

This is unconstitutional. But it seems tax collection is more important.

Helps if you actually read the entire the entire publication -

Publication 101, Sales Delivered Outside California
March 2014


Sales tax generally does not apply to your transaction when you sell a product and ship it directly to the purchaser at an out-of-state location, for use outside California. Your sale is not taxable if you:

Ship the product directly to the purchaser, using your own delivery vehicle or another means of transport that you own; or

Ship the product by delivering it to a common carrier (including the U.S. Postal Service), contract carrier, customs broker, export packer, or forwarding agent (see Note, below); or,

Sell items that will be used in other countries, deliver the product in a way that meets the special delivery conditions explained below; or

Sell new, noncommercial vehicles to foreign residents, deliver the vehicle in a way that meets specific conditions explained in Regulation 1620, Interstate and Foreign Commerce.

In most cases, if a purchaser or their representative takes possession of an item in California—even temporarily—your sale does not qualify for this particular sales tax exemption. The sale is taxable even though the fabricator may later ship the property out of state according to its contract with the customer. In addition, if you deliver an item to a California resident at an out-of-state location, you should apply tax unless the purchaser states, in writing, that the item was purchased for use outside California. For additional information, please see publication 34, Motor Vehicle Dealers, and Regulation 1620, Interstate and Foreign Commerce, also available by calling our Customer Service Center at 800-400-7115.

Note: An individual or firm does not qualify as a carrier, forwarding agent, export packer, or customs broker simply because a purchaser designates them to receive and ship goods to a point outside the state. They must be regularly engaged in the shipping or transporting business.

Note: This publication summarizes the law and applicable regulations in effect when the publication was written, as noted above. However, changes in the law or in regulations may have occurred since that time. If there is a conflict between the text in this publication and the law, decisions will be based on the law and not on this publication.

I held a California sales tax permit for 40 years, and the law pertaining to sales to an out of state address hasn't changed. Granted, there may be a supplement that applies to shipping to an address in a state where you have an office, but that isn't the case here. Sold here, delivered out of state, there is NO sales tax to be collected. The seller needs to get a clue, and that clue is available over the phone to his closest State Board of Equalization office. They're pretty helpful, and they have all the right answers. The OP has a valid point.

The Cap'n