I live in Oregon and we have no sales tax, I went to purchase some magazines from a gun store in Texas and she tried to charge me for sales tax. I said that we don't get charged sales taxes in Oregon. She said if I want the magazines she has to charge me sales tax ???


So who is right here ??

As long as your order is multiplied by 0, what's the problem?

Were you taking possession of the goods in Texas, or were they being shipped to you in Oregon? If it's the former, I think it's required to charge you the sales tax of the state in which the goods are purchased. If they are shipped to a state with no sales tax, they should not be charging you sales tax.

I’m pretty sure magazines and books are subject to Texas Sales Tax.

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EDIT: sorry, I guess I misread the OP and was thinking of printed magazines to read. My apologies.

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quote:

Originally posted by OKCGene:
I’m pretty sure magazines and books are subject to Texas Sales Tax.

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Mkay?
Sooo... Magazines like the kind you read? Or magazines like the kind you load and use in a firearm?

And how does that apply to sales across state lines?

Texas is an "origin based" tax issue.

Since the sale originates in Texas, taxed are collected at the time of sale.

If you purchased from Florida (online), you would not pay sales tax in Oregon. (as Florida is "destination based" tax issue.

quote:

Originally posted by XLT:
I live in Oregon and we have no sales tax, I went to purchase some magazines from a gun store in Texas and she tried to charge me for sales tax. I said that we don't get charged sales taxes in Oregon. She said if I want the magazines she has to charge me sales tax ???


So who is right here ??

She is wrong. Shipping an order out of state in TX is not subject to TX sales tax. I do ship out of state, report the out of sales as tax exempt on my quarterly sales tax return.

quote:

Originally posted by F_L:

quote:

Originally posted by XLT:
I live in Oregon and we have no sales tax, I went to purchase some magazines from a gun store in Texas and she tried to charge me for sales tax. I said that we don't get charged sales taxes in Oregon. She said if I want the magazines she has to charge me sales tax ???


So who is right here ??

She is wrong. Shipping an order out of state in TX is not subject to TX sales tax. I do ship out of state, report the out of sales as tax exempt on my quarterly sales tax return.

This, either she doesn't know the law or is too lazy to keep up with her exempt sales and report them as exempt.

At this point it doesn't matter anymore because I ordered my shield mags from the factory now that they are back in stock, I was put on a list from elite armory and they called this morning, kind of glad they made this mistake as they wanted 45.99 each 7 shipping and 20 for taxes.

Thanks for all the reply's, I have ordered all over the country and never had an issue, but if I would have paid the tax would they just pocketed the money it or would that be put into the sales tax fund?

quote:

Originally posted by sigmonkey:
Texas is an "origin based" tax issue.

Since the sale originates in Texas, taxed are collected at the time of sale.

If you purchased from Florida (online), you would not pay sales tax in Oregon. (as Florida is "destination based" tax issue.

So with this, would the buyer be responsible for taxes in Texas and the destination state?

Personally, I would prefer point of sale taxes because hopefully this god forsaken state of mine would sales until that reality hits them.

It is my understanding that for the states that use origin-based sales tax like Texas it only applies to intrastate sales. So if the seller was in Dallas, TX and the purchaser was located in San Antonio the sales tax rate for Dallas would be charged. Interstate sales are still based on the destination of the purchaser.

^^^

I had several businesses (and partners) during the mid 90s, one in Florida, one in Texas, Louisiana and one in Arizona.

FL and LA were "Destination" and Texas and Arizona were "Origin Based".

At the time (and as I was advised) the "tax nexus" (we had "tax presence" in those states), that we collect tax as is the person walked in the store and purchased. Even though they were from out of state, if they had driven to the state that collected tax (Texas and Arizona) we would collect tax at Point of Sale, and therefore should collect and remit to those states Revenue centers.

Florida and Louisiana, only were concerned with taking taxes in the state for state residents who purchased in the specific state that they resided in. (So FL resident purchases in Fl were taxed, and same for LA residents purchasing in LA, but not for those out of state).

And, being a "tax collector" was one of the greatest reasons I was willing to walk away from all of that and go to work for a private corporation.

(and another things was that some of the tax laws were so convoluted, that I could get different a different way of applying the taxing, depending on who I got on the phone when I called the Dept of Revenue(s). And that was after reading everything they provided (and they provided a bunh of reading material).

quote:

Originally posted by XLT:
... if I would have paid the tax would they just pocketed the money it or would that be put into the sales tax fund?

It was not clear from your first or follow up post if this was an online purchase, over the phone or in person. If it was in-person in Texas, you're paying sales tax.

If it was over the phone or if they have a small ecommerce website presence, it's possible they elected to collect the sales tax from everyone no matter what. Less work accounting wise. I would doubt they would pocket the money, but you never know. Technically, they should not require sales tax be collected.

The regulatory cost to manage and keep track of it, and explain to the state those particular sales were shipped out of state might not be worth the hassle. I've seen the state audit a small business. $10k in sales were shipped out of state out of a total of about $600k for the year. The state demanded to see the shipping records from UPS ... for about $600 in "uncollected" sales tax.