Being charged tax on an online computer purchase?

Discussion in 'Computers' started by Dave Miller, Jul 30, 2004.

  1. Dave Miller

    Dave Miller Supporting Actor

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    I'm hoping someone will know the answer to this question. Our computer is literally dying. Not sure how long we have. I was looking at Dell today and saved my cart and then it said my final total included tax. I thought the rule was you were charged tax on online orders only if there is a brick and motar store in your area.

    Do you have any idea why Dell (in Texas) would charge me (in Florida) tax?


    Peace,

    DM
     
  2. SethH

    SethH Cinematographer

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    Do you get any type of discount from Dell? For instance, I'm a student so I get a 5%-10% discount through my university. But because of the discount agreement I have to pay tax. If you're just ordering normally, you shouldn't have to pay tax.
     
  3. Michael Harris

    Michael Harris Screenwriter

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    A quick search at Dell.com shows they have about 15 retail stores in Florida.
     
  4. Parker Clack

    Parker Clack Schizophrenic Man
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    Dave:

    It is possible that your state collects for sales tax even for online orders. Some states do. I know that Missouri does for example. Some states don't. I do know that more and more states are hitting up online retailers to collect for out of state taxes. Larger sites like Dell just happen to collect for your state taxes. A number of sites should but don't.
     
  5. Dave Miller

    Dave Miller Supporting Actor

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    Nope, no discount. Just trying to make a regular purchase.

    I went back and looked at the past couple of online purchases to compare.
    • Amazon did not charge tax.
    • DVDEmpire did not charge tax.
    • Bestbuy.com did charge tax.

    In addition, I found this.

    So I'm still confused. I guess it has nothing to do with the Dell stores being in Florida, but the state just collects on online purchases period. (or is supposed to)

    Your thoughts...

    Peace,

    DM
     
  6. Michael Reuben

    Michael Reuben Studio Mogul

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    OK, here's how this works:

    A "use tax" and a "sales tax" are effectively the same thing. The tax is on you, the Florida resident, and technically you're responsible for paying it to the state on all your purchases. For obvious reasons, that's not the best enforcement mechanism; so the state requires any vendor subject to its jurisdiction to collect the tax from you at the time of purchase.


    The state is supposed to collect on all of your purchases of goods subject to sales/use tax. (Every state is a bit different on what items are taxed.) If the vendor doesn't collect, you are supposed to pay it to the state. Obviously, most people don't do that, and states have no practical way to check on you -- which is why so many states have been lobbying hard for some sort of uniform tax on internet sales, regardless of where the vendor is located.

    M.
     
  7. Wayne Bundrick

    Wayne Bundrick Cinematographer

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    Any physical presence in the state obligates the company to collect sales tax in that state. Dell probably has a presence in all 50 states.

    Otherwise, out-of-state companies aren't required to add your state's sales tax, nor is the state able to collect it from the companies. The U.S. Constitution says Congress has the authority to regulate interstate commerce, not the states. Some states have tried several times over the years, and each time the U.S. Supreme Court has smacked it down.
     
  8. Michael Reuben

    Michael Reuben Studio Mogul

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    According to the moderator of their online forum, Dell collects sales tax in Wisconsin, Texas, Tennessee, California, Missouri, Kentucky, Nevada, Florida, North Carolina, Idaho, Ohio, Illinois, Virginia, and Pennsylvania.

    http://forums.us.dell.com/supportfor...l=en&s=gen&cs=

    M.
     
  9. Dave Miller

    Dave Miller Supporting Actor

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    I would like to retract all previous statements about not having been charged taxes for online purchases. [​IMG]

    Wow, you guys are so helpful. I love the HTF.

    Thanks guys.

    Peace,

    DM
     

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