Sales tax is coming to a state near you.

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Sales tax is coming to a state near you.

Post by ChefKnivesToGo »

Sorry folks, sales tax is coming for you.

Right now we’re trying to wrap our brains around doing sales tax for many states now that the Supreme Court ruled that internet retailers are required to pay. At the moment we think we’ll be charging sales tax for 15 states based on our sales level and their specific requirements. It’s going to be a big lift for us to account and comply with all these different filing requirements but it’s the law so we’ve got to do it. Fortunately Lacy likes to do this stuff and our accountant can also help us out. I’ll post the list shortly and I’m certain it will grow as time goes on. It’s going to be stressful for us to add this to all the work we have running the store and I’m sure most of you won’t like it either since you’re the ones that are paying it.
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Re: Sales tax is coming to a state near you.

Post by ChefKnivesToGo »

Here are the states we have economic nexus in at the moment and we’ve hit their criteria for needing to collect sales tax.

Alabama
Connecticut
Georgia
Hawaii
Illinois
Louisiana
Michigan
Minnesota
North Carolina
New Jersey
South Carolina
Tennessee
Utah
Washington
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Re: Sales tax is coming to a state near you.

Post by nevrknow »

Good thing all of my buddy superintendents work in other states! :)........I'm good so far!
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Re: Sales tax is coming to a state near you.

Post by datster »

I think the writing was on the wall back when Amazon just started charging everybody sales tax. It had to come, the government wants their cut. Since I live in in the same state as CKTG I'm used to the tax but I feel for a lot of you guys, anytime there's a 5% or better increase in cost it sucks. I've been finding less and less online retailers that don't charge tax anymore.
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Re: Sales tax is coming to a state near you.

Post by Radar53 »

Hi There Mark. Yeah like you, for my business, I hate acting as the tax agent for our government. Can you confirm my hope that this "sales tax" would not apply to international customers??????

Thanks Grant
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Re: Sales tax is coming to a state near you.

Post by Bensbites »

Looks like I will have to look into this myself. Last year I had one in state sale and owed Mass $3 in sales tax.
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Re: Sales tax is coming to a state near you.

Post by Bluenoser87 »

A little relieved to see California not on the list. At least something is cheaper about living here
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Re: Sales tax is coming to a state near you.

Post by Ut_ron »

Bluenoser87 wrote: Sat Sep 08, 2018 8:45 pm A little relieved to see California not on the list. At least something is cheaper about living here
Not for long as they need the tax dollars 😬
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Re: Sales tax is coming to a state near you.

Post by pd7077 »

Bluenoser87 wrote: Sat Sep 08, 2018 8:45 pm A little relieved to see California not on the list. At least something is cheaper about living here
Haha...I was thinking the exact same thing! What part of the Bat Area are you in?
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Re: Sales tax is coming to a state near you.

Post by Bluenoser87 »

pd7077 wrote: Sat Sep 08, 2018 9:09 pm
Bluenoser87 wrote: Sat Sep 08, 2018 8:45 pm A little relieved to see California not on the list. At least something is cheaper about living here
Haha...I was thinking the exact same thing! What part of the Bat Area are you in?
San Jose. I read this week San Jose has the most unaffordable housing in the whole country. So, if I can save a little tax on a knife I’ll take it haha :)
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Re: Sales tax is coming to a state near you.

Post by HectorFuego »

I feel your pain, Mark. I spent about 20 of the last 25 years of my accounting career dealing with sales tax from the perspective of multi-state vendors. :ugeek:

What most people think when they see their bill from ChefKnivesToGo with sales tax added is, "Oh, darn. Now I gotta pay sales tax." What they don't realize that nearly every state, county, and city has its own sales tax and they are combined to show what's on the bill. But, because it's a combination of several taxes, the guy across the street may pay a different tax rate because he overlaps with a different combination of state/county/city rates. There was one little pocket in the Atlanta, GA area where any one of 3 different tax rates could apply.

The vendor is responsible for sorting all this out, charging the correct rate, reporting and remitting the tax in a manner that breaks it all down so every taxing jurisdiction gets their piece of the pie. No two tax forms are the same, and there is no consistent paradigm for coding the various taxing jurisdictions. This is a huge administrative burden for the vendor, and this is why on-line vendors have fought it - successfully I might add - for decades. Nevertheless, with the demise of brick and mortar stores and the increase of on-line sales, states were losing a fortune each year, so it was only a matter of time before vendors like ChefKnivesToGo would be required to charge sales tax.

Glad I'm retired. I hated tax preparation.

One more thing, Mark. Be glad you aren't a construction materials supplier and have to sort out project exemptions for Federal/State/Local building construction. That will cause you to wake up screaming in the middle of the night. Been there. Done that.

Hector
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Re: Sales tax is coming to a state near you.

Post by Jeff B »

Still good here in the Bluegrass state for now. We were one of the first states hit by Amazon's sales tax because they built a distribution center here years ago.
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Re: Sales tax is coming to a state near you.

Post by rayl1234 »

Keeping up with changes is the hardest part. Even a company as big as Lenovo incorrectly charged me sales tax during a state wide tax holiday weekend. Had to open a formal complaint with the AG to get a refund. You’d think surely someone would sell a subscription database and software...
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Re: Sales tax is coming to a state near you.

Post by gladius »

rayl1234 wrote: Sun Sep 09, 2018 3:15 pm Keeping up with changes is the hardest part...You’d think surely someone would sell a subscription database and software...
—-
One is called Vertex. We use it but even then mistakes can happen. On August 1 I updated the monthly subscription but it didn’t load completely so we failed to collect tax for several hours than morning. We had to generate $195k in separate invoices to try and collect! Hopefully we eventually do.
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Re: Sales tax is coming to a state near you.

Post by nakneker »

It’s been if the reason I shop the internet as much as I can, besides finding great prices, it’s been tax free. It’s hard to believe there was no tax once upon on time, I think it started somewhere around 1913. Thankfully Arizona is not on the list but I won’t hold my breathe.
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Re: Sales tax is coming to a state near you.

Post by lsboogy »

Won't stop me or even slow me down. I pay sales tax in Minnesota - and Korin is in NY (the charge sales tax on everything) and so do the Phoenix knife house and most places. I shop here for most of my knives because Mark/Ken/Chris listen to us home users who just wish we could play with the pros - most of my experiences outside of here have centered on how much I want to spend - not what I want in a blade
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Re: Sales tax is coming to a state near you.

Post by Kit Craft »

Not on the list but it is what it is. I could not buy 99% of the stuff that I shop for online, even if I were to drive hours away from my home. If it cost a few dollars more, so be it. At least it is not Vat(GST) and imports! Been there and done that, ouch! Add in international shipping and you pay about 3/4 extra for something.
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Re: Sales tax is coming to a state near you.

Post by timos »

does that mean also that for every state you ship to you now need a permit (to legally charge taxes) to sell in that state?
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Re: Sales tax is coming to a state near you.

Post by salemj »

Radar53 wrote: Sat Sep 08, 2018 7:32 pm Hi There Mark. Yeah like you, for my business, I hate acting as the tax agent for our government. Can you confirm my hope that this "sales tax" would not apply to international customers??????

Thanks Grant
I've never checked, but I assume customs includes regional and not just federal taxes; if it doesn't then I suspect international payers will be charged Wisconsin tax on the purchase and still pay customs.
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Re: Sales tax is coming to a state near you.

Post by lsboogy »

When is it scheduled to start?
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