Calculate Your Sales Tax BEFORE Checkout When Ordering Online

I live in California where sales tax is charged. What I don’t understand is how or why some vendors in other states charge me sales tax, supposedly because my order is being shipped to a state that charges sales tax. Then I go to a different vendor, buy a $2000 air gun and they don’t charge sales tax for on line orders also being shipped to California. I’ve asked about it over and over when I’m charged sales tax and the vendor always tells me a law was passed and they are liable for the sales tax in my state. How is it that other vendors are not liable for the sales tax? Certainly if these vendors were really liable, the IRS would be all over them. 9.25% on a $2150 air gun is almost $200! It makes me wonder if the vendors charging sales tax are really paying it to the state or keeping it for themselves. I’m not making accusations! I simply don’t understand why some charge sales tax and others don’t. Not charging sales tax is an unfair advantage for some retailers and why I almost alway order expensive items from out of state by those that don’t charge it.

Anybody know why some vendors are supposedly liable and others are not or how that actually works?

Have a great weekend!

Stoti
Companies are required to charge sales tax to out of state customers based on either the number of sales to that state or a certain total dollar amount that people from whatever a state have spent. So for companies who maybe don’t sell to a lot of Californians, and when whatever they DO sell falls below a certain threshold, then they aren’t required to collect sales tax. Sorry, I’ve long forgotten the numbers, but I’m sure that they’re easily found.

Personally, I’ll always search out a company that doesn’t charge me California’s usurious sales tax. An extra $200 tacked onto a $2000 purchase is not something I look forward to spending. If I can avoid paying taxes for social programs I don’t support, then by God I will.

And just so you know, you can thank Wayfair for this.
 
I live in California where sales tax is charged. What I don’t understand is how or why some vendors in other states charge me sales tax, supposedly because my order is being shipped to a state that charges sales tax. Then I go to a different vendor, buy a $2000 air gun and they don’t charge sales tax for on line orders also being shipped to California. I’ve asked about it over and over when I’m charged sales tax and the vendor always tells me a law was passed and they are liable for the sales tax in my state. How is it that other vendors are not liable for the sales tax? Certainly if these vendors were really liable, the IRS would be all over them. 9.25% on a $2150 air gun is almost $200! It makes me wonder if the vendors charging sales tax are really paying it to the state or keeping it for themselves. I’m not making accusations! I simply don’t understand why some charge sales tax and others don’t. Not charging sales tax is an unfair advantage for some retailers and why I almost alway order expensive items from out of state by those that don’t charge it.

Anybody know why some vendors are supposedly liable and others are not or how that actually works? Small company can slide under the radar even if they don't comply I would think.

Have a great weekend!

Stoti
Sales over $100,000 in your state activates the sales tax is my understanding.
 
I'm not sure how it works because some webs sites charge me for MN taxes and then once in awhile I'll buy something or the same thing from a different company and I won't get charged tax at all so I don't know if it's only certain states charging taxes or what's going on and I also noticed some times it's more some times it's less of tax charge ????
 
UPDATE:

Two years after I created this thread I am happy to say that the company whose practice brought this issue to my attention, Optics Planet/DVOR, may finally have resolved the issue. I won’t know without input from other AGN members. My most recent order was taxed correctly for the first time without asking.

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Backstory:

Since I began shopping with Optics Planet/DVOR I had been taxed at a rate of 8%. Where I live we only have a sales tax rate of 6.25%. It turns out that 8% was what Optics Planet/DVOR called “an alternative” tax rate that their billing software uses as opposed to billing customers (as stipulated by law as I understand it) according to the zip code where the items are to be delivered. In the past I had to call customer service after each order before it had been shipped to request a refund for the difference of the sales tax overage. Sometimes I did not have time to do this.it may not sound like much, but when you spend thousands of dollars within a year with a company, unchecked overages add up.

I recently purchased some gear that I was not satisfied with. I returned the gear and was very specific and honest about the issues, namely receiving a used item that was advertised as new and was defective. The customer service agent that responded to my email was not too helpful in resolving the issue. In addition to that, she also refused to refund the difference in the tax overage. She insisted that her company’s tax policy was correct. She even went as far as to refer me to someone that was supposed to be a part of their Operation Support Team. This representative’s response was:

“Please note that the single local use tax rate for remote sellers in Texas of 1.75% is an alternative option for you to use instead of having to determine the local tax rate for each customer you ship to.”
An alternative to what, a lower and legal sales tax rate? I was pretty hot about this, but at the time I was more concerned about my return. So I re-read my state law and a part of federal court decision and concluded that I had an accurate understanding of the law.

I then wrote a polite letter to DVOR that was received well. All of what I requested was granted despite the written company policy and I received an apology. I was told that they take these matter seriously and they would retrain the employee I had an issue with. I typed an additional letter regarding the tax issue, but didn’t mail it before checking to see if they’d done anything to correct the issue of over taxing orders. I believe that when a supervisor went through our email correspondence about my return, they also saw my questions (and the responses I received) regarding refunding the sales tax overage. A recent order confirms that something has been done. I don’t know if this is a system-wide change or if my account has been flagged specifically for this issue. I was very close to leaving these companies alone. I am happy to be able to return to this thread with a good report on this issue…with these companies.

I have had this issue with other companies and have spoken with various managers. In my experience they usually don’t know much about the tax rates or the systems assessing them for online orders.whomever keeps the books and pays the bills should. Don’t let businesses or their employees overcharge you and brush you off when you ask for what is rightfully your money. If any AGN members order from Optics Planet/DVOR (or any online vendors that collect sales tax) please take a look at the rate you are taxed to confirm that it matches the sales tax rate where you live.