The New Internet Scam

Geico266

Geico266

Touchdown! Greaser!
Joined
Jun 15, 2008
Messages
19,136
Location
Husker Nation, NE
Display Name
Geico
Home Airfield
KCEK
Ever check the calculated sales tax for online pucrchases? I have been tracking them for a few months now and they vary from swebsite to website. Nebraska is 5.5% state sales tax and 7% if you live inside the city. Clearly, my address is outside of the city. :dunno:

So I called the Nebraska Department of Revenue and talked to the legal department. They said that was illegal and the prosicute cases like that. :rofl:

So I looked at a few more web sites and sure enough several charge MORE than 7%!

So while they might offer free shipping the sales taxes collected are over what is allowed by law.
 
Why are they charging at all unless they have a physical presence in your state?
 
LDJones said:
I wonder how many collect with no obligation to and pocket the extra 7%?
Click to expand...

and then the state comes to you for the Use Tax and you claim you paid sales tax - the merchant never remits it - you likely have to pay it again - and then the merchant gets arrested for tax fraud if they set foot in Nebraska . . .

if only it was that easy.
 
What I can't undestand is the people working in the revenue department don't buy things on line? They don't check the sales tax amount on their own purchases? :mad2:
 
comanchepilot said:
and then the state comes to you for the Use Tax and you claim you paid sales tax - the merchant never remits it - you likely have to pay it again - and then the merchant gets arrested for tax fraud if they set foot in Nebraska . . .

if only it was that easy.
Click to expand...

I decided to pay California use tax on my out of state purchases last year, and was pleasantly surprised that they have a formula based on income that resulted in a much smaller tax than I would have paid if I had added up all the purchases.
 
yea kansas just has a flat fee every year, which is pretty low, to cover online purchases
 
comanchepilot said:
and then the state comes to you for the Use Tax and you claim you paid sales tax - the merchant never remits it - you likely have to pay it again - and then the merchant gets arrested for tax fraud if they set foot in Nebraska . . .

if only it was that easy.
Click to expand...

If you have invoices from companies that clearly show they charged you state sales tax then you cannot be held responsible to pay those again.. That is tax FRAUD and those companies are going to get prosecuted like no tomorrow...

Moral of the story............. keep ALL receipts...:yes:
 
Your suspicions, although of good intention are, most likely, not a scam. I don't know if you're specifically talking about Nebraska, or nationwide. If a nationwide concern, then:

Most online stores charge a flat sales tax. However, most "sales" tax is not ONLY a state sales tax. There are many municipal sales tax, and county taxes as well. Most stores are not going to break all of those down, they just call it a sales tax. There are online formulas that help set the appropriate percentage to charge that covers all the tax required, pertinent to the purchase for a proprietor. Additionally, most of those online formula generators are maintained by the gov't.

Now, mostly, this only applies if you live within the state you are purchasing from. Otherwise you don't pay any local sales tax online unless that state requires it. I won't get into the details of all the tax law malarkey, but the point is, that you don't know if they do require it. Most of the time, it varies by volume and / or revenue. Furthermore, some states require - as an out-of-state vendor - to pay the host state additional taxes for selling to their residents without having a brick and mortar shop in their state.

So be cautious in accusing online stores of illegal activity without having all the information before hand. We work very hard to keep our integrity and run our online shops the right way. Unfortunately we have to pay lots of money to attorneys and accountants to protect us as well, so that always helps with the product pricing and profit margins... Kind of like, why our taxes keep going up...

I hope that clears up your paranoia about online stores and how their sales taxes are charged. There may be a small percentage of "shady" vendors, but just like any other group, 99.9% of us are legitimate and charging appropriately.

We don't want people to be afraid to purchase online, so hopefully that helps.
 
Last edited:
Beware low purchase prices on e-bay, look at the shipping costs, many times they make up the difference.
 
Archammer said:
Your suspicions, although of good intention are, most likely, not a scam. I don't know if you're specifically talking about Nebraska, or nationwide. If a nationwide concern, then:

Most online stores charge a flat sales tax. However, most "sales" tax is not ONLY a state sales tax. There are many municipal sales tax, and county taxes as well. Most stores are not going to break all of those down, they just call it a sales tax. There are online formulas that help set the appropriate percentage to charge that covers all the tax required, pertinent to the purchase for a proprietor. Additionally, most of those online formula generators are maintained by the gov't.

Now, mostly, this only applies if you live within the state you are purchasing from. Otherwise you don't pay any local sales tax online unless that state requires it. I won't get into the details of all the tax law malarkey, but the point is, that you don't know if they do require it. Most of the time, it varies by volume and / or revenue. Furthermore, some states require - as an out-of-state vendor - to pay the host state additional taxes for selling to their residents without having a brick and mortar shop in their state.

So be cautious in accusing online stores of illegal activity without having all the information before hand. We work very hard to keep our integrity and run our online shops the right way. Unfortunately we have to pay lots of money to attorneys and accountants to protect us as well, so that always helps with the product pricing and profit margins... Kind of like, why our taxes keep going up...

I hope that clears up your paranoia about online stores and how their sales taxes are charged. There may be a small percentage of "shady" vendors, but just like any other group, 99.9% of us are legitimate and charging appropriately.

We don't want people to be afraid to purchase online, so hopefully that helps.
Click to expand...


Complete utter BS. All taxes are levied by law and know to the public. Just be cause you don't know what your tax rate is you leave it up to the on line vender to be honest? :rofl::rofl::rofl:
 
Last edited:
The king of the molehills strikes again.

Geico266 said:
Complete utter BS. All taxes are levied by law and know to the public. Just be cause you don't know what your tax rate is you leave it up to the on line vender to be honest? :rofl::rofl::rofl:

Seriously, don't have kids. :no:
Click to expand...
 
So be cautious in accusing online stores of illegal activity without having all the information before hand. We work very hard to keep our integrity and run our online shops the right way. Unfortunately we have to pay lots of money to attorneys and accountants to protect us as well, so that always helps with the product pricing and profit margins... Kind of like, why our taxes keep going up...





Geico266 said:
Complete utter BS. All taxes are levied by law and know to the public. Just be cause you don't know what your tax rate is you leave it up to the on line vender to be honest? :rofl::rofl::rofl:

Seriously, don't have kids. :no:
Click to expand...



Agreed.... 100% ...Bull *****.......

A simple software program will tell any vendor of their tax exposure to their clients based on shipping zip codes....... This guy needs to fire the attorneys and accountants who are milking him dry...:yes::redface:
 
wabower said:
The king of the molehills strikes again.
Click to expand...

The king of not seeing a problem for what it is strikes again.

Microsoft, Lenovo, Intuit, and Office Max (companies I did business with today) collecting 2% extra on all of their internet purchases and pocketing it is a mole hill? :rofl:

You can run a calculator right? Your good at running a keyboard and mouthing off, try putting a dollar figure to that and write a check for it. big spender. :rofl::rofl::rofl:
 
Last edited:
Stop bitching about it and buy your stuff somewhere else if you don't like it.
Geico266 said:
The king of not seeing a problem for what it is strikes again.

Office Max collecting 2% extra on all of their internet purchases and pocketing it is a mole hill? :rofl:
Click to expand...
 
wabower said:
Stop bitching about it and buy your stuff somewhere else if you don't like it.
Click to expand...


Like I would take advise from a "go along to get along" like you. No, I complained to the correct agency and they are opening an investigation just like the one I opened on the FAA. If they don't follow up I will file suit in Federal court to get them to comply. AFTER several million $$$ is fines. Ever heard of class action law suits?

Collecting a $.01 over what is due in sales taxes is ILLEGAL in all 50 states. Period.
 
Last edited:
Archammer said:
Your suspicions, although of good intention are, most likely, not a scam. I don't know if you're specifically talking about Nebraska, or nationwide. If a nationwide concern, then:

Most online stores charge a flat sales tax. However, most "sales" tax is not ONLY a state sales tax. There are many municipal sales tax, and county taxes as well. Most stores are not going to break all of those down, they just call it a sales tax. There are online formulas that help set the appropriate percentage to charge that covers all the tax required, pertinent to the purchase for a proprietor. Additionally, most of those online formula generators are maintained by the gov't.
Click to expand...

How can any company charge any tax other than what is allowed by law? A internet store cannot levi a tax! Your understanding of taxing authority is non existant.


Now, mostly, this only applies if you live within the state you are purchasing from. Otherwise you don't pay any local sales tax online unless that state requires it. I won't get into the details of all the tax law malarkey, but the point is, that you don't know if they do require it. Most of the time, it varies by volume and / or revenue. Furthermore, some states require - as an out-of-state vendor - to pay the host state additional taxes for selling to their residents without having a brick and mortar shop in their state.
Click to expand...

Taxes are public knowledge and cannot be hidden. They are based on where your house is localed, the point of sale. Period.

So be cautious in accusing online stores of illegal activity without having all the information before hand. We work very hard to keep our integrity and run our online shops the right way. Unfortunately we have to pay lots of money to attorneys and accountants to protect us as well, so that always helps with the product pricing and profit margins... Kind of like, why our taxes keep going up...
Click to expand...

We don't want people to be afraid to purchase online, so hopefully that helps.
Click to expand...

Then charge the correct amount due.


The largest violators of sales taxes is internet stores that collect the tax but do not remit it to the states where they collected it from. This is a HUGE and growing problem.
 
Geico266 said:
How can any company charge any tax other than what is allowed by law? A internet store cannot levi a tax! Your understanding of taxing authority is non existant.




Taxes are public knowledge and cannot be hidden. They are based on where your house is localed, the point of sale. Period.





Then charge the correct amount due.


The largest violators of sales taxes is internet stores that collect the tax but do not remit it to the states where they collected it from. This is a HUGE and growing problem.
Click to expand...

Google "Amazon Tax"
 
Some of them are about the same size, so care is required.;)

wsuffa said:
I knew that cow tipping was a sport in Texas, I didn't know that waitress tipping was also a sport... :nono::rofl:
Click to expand...
 
wabower said:
Do you tip waitresses?
Click to expand...

receipt-pastor-lg.jpg
 
You must log in or register to reply here.
Back
Top