B&H to start collecting taxes in NJ... Was good while it lasted...

[Jemlnlx]

One of the perks of living/shipping to NJ now gone...


Important Message to New Jersey Customers
Dear customer,

B&H is expanding its distribution network to better serve our customers and will soon operate a fulfillment center in the state of New Jersey.

Our new facility will allow us to process and ship your orders faster; it also means that we will begin collecting sales tax on orders shipped to New Jersey addresses, starting on February 1st.

We wanted you to be among the first to know, since our records indicate that you’ve used a NJ shipping address in the past.

If you have any questions about taxes, or if you are a tax exempt entity and would like to set up your tax exemption with us, please contact our tax department:

B&H Photo Tax Department
[email protected]
(212) 444 5031 or
(800) 259 8941

 

[slclick]

Most states have had or will have ballot initiatives to make this commonplace very soon. "Oh sure, I pay my internet use tax on my State forms... "

 

[privatebydesign]

Most states have had or will have ballot initiatives to make this commonplace very soon. "Oh sure, I pay my internet use tax on my State forms... "

That's not what this is about, it is not about 'use tax', it is about collecting the relevant sales tax in the State the item was sold in if it is delivered to an address within that State.

Any business with a physical presence in a State is liable to collect sales tax for that State, it just means B&H have opened a new facility in NJ, or the one they have has been reclassified so they are considered to have a physical presence there.

'Use tax' will still be the responsibility of all honest tax payers for all the other States.

 

[slclick]

Most states have had or will have ballot initiatives to make this commonplace very soon. "Oh sure, I pay my internet use tax on my State forms... "

That's not what this is about, it is not about 'use tax', it is about collecting the relevant sales tax in the State the item was sold in if it is delivered to an address within that State.

Any business with a physical presence in a State is liable to collect sales tax for that State, it just means B&H have opened a new facility in NJ, or the one they have has been reclassified so they are considered to have a physical presence there.

'Use tax' will still be the responsibility of all honest tax payers for all the other States.

Regardless, it comes down to the same thing, (thus my response was in part due to the 'Was good while it lasted' headline) people not shopping somewhere because they have to pay tax or not (when they should or should not is another discussion) How many times do we see it here where folks won't buy refurbs due to sales tax?

 

[privatebydesign]

My point was 'it's still lasting', for everybody but for residents of NJ. B&H are not doing an Amazon, collecting sales tax for all States, they are only collecting sales tax for residents of NJ and NY.

What are you suggesting has come to an end (yet)? If you are a NJ resident just order from Adorama, the price will be the same and they don't have a NJ base so don't collect sales tax for NJ residents.

Sure there will come a time when businesses have to collect the relevant sales tax for all States, but as has been pointed out in the discussions around the rules, it isn't an easy thing to implement. First off collating the different rates for each and every State and County is a logistical nightmare and could only ever be applied to the largest of retailers due to the cost and complexity. And the other huge hole in the concept would be the proliferation of mail forwarding services based in no sales tax States. It might come to an end one day, but not soon.........

 

[unfocused]

...If you are a NJ resident just order from Adorama, the price will be the same and they don't have a NJ base so don't collect sales tax for NJ residents.

I may be mistaken, but I believe Adorama also has a New Jersey shipping center. Perhaps someone from New Jersey can clarify.

Sure there will come a time when businesses have to collect the relevant sales tax for all States, but as has been pointed out in the discussions around the rules, it isn't an easy thing to implement.First off collating the different rates for each and every State and County is a logistical nightmare and could only ever be applied to the largest of retailers due to the cost and complexity. And the other huge hole in the concept would be the proliferation of mail forwarding services based in no sales tax States. It might come to an end one day, but not soon.........

You are mistaken on the difficulty. Simple programs are available to do all the calculations. In fact a quick Google search shows dozens of WordPress (which now represents the majority of php-based websites) plugins that automatically calculate the sales tax for businesses. With Amazon now on board, the biggest roadblock has been removed. Small businesses that operate only in one state may never be impacted, but sooner or later large retailers like Adorama and B&H will be collecting sales taxes.

 

[DJL329]

...If you are a NJ resident just order from Adorama, the price will be the same and they don't have a NJ base so don't collect sales tax for NJ residents.

I may be mistaken, but I believe Adorama also has a New Jersey shipping center. Perhaps someone from New Jersey can clarify.

You are correct, Adorama does have a fulfillment center in NJ, so they do indeed collect NJ sales tax.

 

[privatebydesign]

...If you are a NJ resident just order from Adorama, the price will be the same and they don't have a NJ base so don't collect sales tax for NJ residents.

I may be mistaken, but I believe Adorama also has a New Jersey shipping center. Perhaps someone from New Jersey can clarify.

Sure there will come a time when businesses have to collect the relevant sales tax for all States, but as has been pointed out in the discussions around the rules, it isn't an easy thing to implement.First off collating the different rates for each and every State and County is a logistical nightmare and could only ever be applied to the largest of retailers due to the cost and complexity. And the other huge hole in the concept would be the proliferation of mail forwarding services based in no sales tax States. It might come to an end one day, but not soon.........

You are mistaken on the difficulty. Simple programs are available to do all the calculations. In fact a quick Google search shows dozens of WordPress (which now represents the majority of php-based websites) plugins that automatically calculate the sales tax for businesses. With Amazon now on board, the biggest roadblock has been removed. Small businesses that operate only in one state may never be impacted, but sooner or later large retailers like Adorama and B&H will be collecting sales taxes.

On the first part, way to miss the point, order from Samy's if you live in NJ and want to avoid sales tax. Just don't bitch when there are potholes in the roads and the schools suck

On the second part, it isn't the working it out that is the timely and expensive bit. I sell prints to every State in the country, a very modest amount to be sure, but I would have to cut a cheque and mail the sales tax for each and every print to each city, county and state. My wife sells pottery countrywide from Florida, if she sells a $20 mug to Valentine City, Cherry County, Nebraska how much time and money should she need to invest to get the 5.5% ($1.10) to Nebraska, report the sale but 0% tax to Cherry County, and get that 1.5% City sales tax (30c) to the elders of Valentine?

As I said, there are way too many hurdles for the sales tax loopholes to be closed soon. I already said one day the sales tax anomaly will be closed for the bigger retailers, but there will be work arounds even then.

 

[bsbeamer]

One of the perks of living/shipping to NJ now gone...

I received the email from B&H yesterday and was kinda bummed about this. Hopefully some other vendor in Delaware will pop up soon, or else I'll be driving down there more often for larger electronics purchases. B&H shipping was always next day to NJ from Manhattan or Brooklyn, so this has nothing to do with offering faster shipping. All likely to do with better shipping rates from UPS being closer to Newark...


And yes, Adorama is based in NJ (or shipping depot is) and they do collect NJ sales tax for shipping to NJ addresses.

 

[dabsond]

One of the best reasons to live in Delaware! As a Delaware resident, no sales tax!

 

[LDS]

As I said, there are way too many hurdles for the sales tax loopholes to be closed soon. I already said one day the sales tax anomaly will be closed for the bigger retailers, but there will be work arounds even then.

Don't worry, there are simpler solution, like the nationwide 22% VAT we pay here.... And still lots of potholes, don't worry.

And no exemption for online resellers, even if they're abroad.

It's kinda funny reading about people complaining for a 5.5% one...

 

[Old Sarge]

As I travel around the country I always find the tax structure interesting. In Montana and Wyoming, one state has a state sales tax and no state income tax while the other is the opposite (IIRC) so folks on the border will often shop in the state without the state sales tax (there still might be a municipal sales tax). And some states seem to have a variable sales tax depending upon the item/service. Sometimes it is difficult to figure out. I once studied various places to live based on tax load (sales tax, property tax rate, state income tax, etc.) and found it was just about a wash around the country as far as my financial situation was concerned.

I still use Amazon after they started charging a sales tax in my state (Texas) but lean toward B&H or Adorama on major purchases because of the lack of sales tax.

 

[privatebydesign]

As I said, there are way too many hurdles for the sales tax loopholes to be closed soon. I already said one day the sales tax anomaly will be closed for the bigger retailers, but there will be work arounds even then.

Don't worry, there are simpler solution, like the nationwide 22% VAT we pay here.... And still lots of potholes, don't worry.

And no exemption for online resellers, even if they're abroad.

It's kinda funny reading about people complaining for a 5.5% one...

You get a hell of a lot for your 22% though, healthcare being a prime example. We don't get social benefits like most of the developed world yet still get much of the taxes.