McMaster-Carr VA Sales Tax

gbyoung · Oct 26, 2018

Just found out today that my go to place for tool bits if I can't find them local, began adding in VA Sales Tax as of Oct. 1. A bummer for sure.

May be an across-the-board change for many online vendors. Guess we'll find out in time.

Finegrain · Oct 26, 2018

A recent court order enabled states to collect sales tax from shipments originating out-of-state without the requirement for the retailer have a physical presence in the delivery state.

Regards.

Mike

Booze Daily · Oct 26, 2018

If you're a real business just send them a tax exempt form.

Finegrain · Oct 26, 2018

Booze Daily said:
If you're a real business just send them a tax exempt form.

I'm a real business, but in WA the tax exemption is only for things that pass through to customers, like material, fasteners, etc. Consumables that don't leave my shop, like drill bits and endmills, are not tax exempt.

Regards.

Mike

gustafson · Oct 26, 2018

Finegrain said:
I'm a real business, but in WA the tax exemption is only for things that pass through to customers, like material, fasteners, etc. Consumables that don't leave my shop, like drill bits and endmills, are not tax exempt.

Regards.

Mike

Really, with Boeing and all.....

here in the people's republic there is a resale form and an exempt use form

items used directly in manufacturing are exempt.

pencils and paper are not, but I mostly buy that stuff from staples so get taxed on it

Finegrain · Oct 26, 2018

I can ask my guy again, but my understanding is that I can exempt anything that is resold, as well as specific pieces of machinery (like an air compressor), but not general consumables.

I'd be happy to be proven wrong ...

Regards.

Mike

Booze Daily · Oct 26, 2018

Yep, my understanding is anything used or consumed in manufacturing.

gustafson · Oct 26, 2018

I have drills and end mills that I have owned through 4 air compressors, so define consumable.

I don't go through compressors very fast, but one doesn't go through #6 drills very often, and my first tool supplier open account made me buy buy the package

gbyoung · Oct 27, 2018

Finegrain said:
A recent court order enabled states to collect sales tax from shipments originating out-of-state without the requirement for the retailer have a physical presence in the delivery state.

Regards.

Mike

So I just found out. With most of the states needing money these days, looks like tax-free online shopping is about to become extinct.

thermite · Oct 27, 2018

gbyoung said:
So I just found out. With most of the states needing money these days, looks like tax-free online shopping is about to become extinct.

Well, yah.. but it wasn't "tax free" to begin with.

Further, you OPENED by saying you went to MMC when you could not buy LOCAL. Surely "local" was already taxed, and the implication was that it was the first choice, thus largest share of your spend, anyway, no?

Virginia has for Donkey's Years already required that YOU file and pay sales tax on internet and other such purchases when the vendor has not collected. It's on your tax return. See "Consumer's use tax" if you have been missing that.

At least with vendors doing the collecting and reporting you can now avoid that extra nuisance record-keeping paperwork.

Same out-of-pocket. Less hassle. Looks like "win-Win" to me, and not a HUGE problem for the vendor, as they have to have IS/T tracking for AT LEAST one state in any case. Adding more is dead easy for computers. BTDTGTS, 153 bodies corporate, HQ + 3 each, lower 48 alone.

"Where's the beef?"

cg285 · Oct 27, 2018

Finegrain said:
I can ask my guy again, but my understanding is that I can exempt anything that is resold, as well as specific pieces of machinery (like an air compressor), but not general consumables.

I'd be happy to be proven wrong ...

Regards.

Mike

not in florida. consumables are taxed. it has to actually be attached to a part/vehicle...

i've been through a sales tax audit. it is not pleasant. they would not accept any of my arguments-only from a CPA (which costs). if they find a mistake they multiply it by a daily factor - their argument is you must do it all the time. in fl even if you buy it out of state fl still wants their money. my brother got caught on that.
oh and if they win they report you to whomever else they can.
this is florida - your state may vary but probably not

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