OFFICIAL Columbia House SALES TAX Thread, UPDATE HERE
11-22-04, 03:55 PM
#78
DVD Talk Gold Edition
Join Date: Jun 2000
Posts: 2,813
Likes: 0
Received 0 Likes
on
0 Posts
I think the info for Texas needs to be updated - or at least show an asterisk.
Back when CH started charging tax in TX, my 1st orders were at the state rate of 6.25%. In the last few months, that has changed to whatever (apparently) the sales tax is for the zip code it is being shipped to - in my cases 7.75% up to 8.25% (depending on which address/account I use).
Just FYI.
Back when CH started charging tax in TX, my 1st orders were at the state rate of 6.25%. In the last few months, that has changed to whatever (apparently) the sales tax is for the zip code it is being shipped to - in my cases 7.75% up to 8.25% (depending on which address/account I use).
Just FYI.
12-06-04, 03:21 PM
#80
Cool New Member
Join Date: Aug 2003
Location: Florida
Posts: 39
Likes: 0
Received 0 Likes
on
0 Posts
I was just looking at making a funcash purchase, when I looked at the math.
$18 dollars funcash available. Purchasing Apocalypse Now.
$1.95 for the DVD
2.99 shipping
.30 tax
for a total of $5.24
I live in a Florida county with 6% sales tax.
Is CH supposed to be charging sales tax on their shipping charges?
$18 dollars funcash available. Purchasing Apocalypse Now.
$1.95 for the DVD
2.99 shipping
.30 tax
for a total of $5.24
I live in a Florida county with 6% sales tax.
Is CH supposed to be charging sales tax on their shipping charges?
04-28-09, 07:51 PM
#82
DVD Talk Gold Edition
Join Date: Jun 2000
Posts: 2,813
Likes: 0
Received 0 Likes
on
0 Posts
Re: OFFICIAL Columbia House SALES TAX Thread, UPDATE HERE
I know this is like beating a dead dog(4yrs since last post), but I finally was able to get a state emp. to quantify why CH charges tax in TX. Not that I agree with his email response, but here it is -
In October 1998 the U.S. Congress passed the Internet Tax Freedom Act providing a three-year moratorium on all new sales and use taxes on the Internet, and on Internet transactions that were not already imposed and actually enforced prior to October 1, 1998. Congress has subsequently continued to extend the moratorium.
The Act prohibited sales taxes that discriminated against e-commerce transactions conducted over the Internet including the sale, lease, license, offer, or delivery of property, goods, services or information. Finally, the Act prohibited sales taxes imposed by one state on an e-commerce transaction that is also subject to a sales tax imposed by another state.
While the Act prohibited the imposition of new taxes, the Act also contained a grandfather clause that allowed a state or local government to continue to levy sales taxes. The grandfather clause permitted the District of Columbia and eleven states, including Texas that had already enacted taxes on Internet sales prior to October 1, 1998 to be excluded from the moratorium. Moreover, the Act did not prohibit states from imposing a sales tax on the sale of goods provided the same taxes were applied similarly to mail-order and retail transactions. Thus, the moratorium did not prohibit taxation of Internet transactions. Rather, it preserved the status quo and prevented state taxing authorities from asserting that a physical presence in the state was created from certain Internet-related contacts with the state.
A seller (Internet retailer or typical “brick-and-mortar” place of business) who is engaged in business in Texas is required to collect Texas state use tax on all goods shipped to Texas addresses. Similarly, a seller is required to collect local use taxes for jurisdictions in which the seller is engaged in business. The guidelines for determining if a seller is engaged in business in a particular local jurisdiction are the same as the guidelines for determining doing business in the state.
The following language as defined in Texas Administrative Code Rule 3.286 (a) (1), I am including for your reference:
(1) Engaged in business--A retailer is engaged in business in Texas if the retailer:
(A) maintains, occupies, or uses, permanently or temporarily, directly or indirectly, or through an agent, by whatever name called, an office, place of distribution, sales or sample room, warehouse or storage place, or other place of business;
(B) has any representative, agent, salesperson, canvasser, or solicitor who operates in this state under the authority of the seller to sell, deliver, or take orders for any taxable items;
(C) promotes a flea market, trade day, or other event that involves sales of taxable items;
(D) uses independent salespersons in direct sales of taxable items;
(E) derives receipts from a rental or lease of tangible personal property that is located in this state;
(F) allows a franchisee or licensee to operate under its trade name if the franchisee or licensee is required to collect Texas sales or use tax; or
(G) conducts business in this state through employees, agents, or independent contractors.
In addition, be aware, if BMG/Columbia House is not “engaged in business” and does not voluntarily collect Texas use tax on the sale of a taxable item brought or shipped to this state, then the Texas customer owes use tax. The liability may be satisfied by payment of the Texas use tax directly to the Texas Comptroller of Public Accounts using tax form, 01-156 Texas Occasional Use Tax Return .
Maybe other collecting states - w/out CH 'presence' - are 'grandfathered' also?
Good thing Amazon doesn't know it should be collecting taxes also? ;-)
In October 1998 the U.S. Congress passed the Internet Tax Freedom Act providing a three-year moratorium on all new sales and use taxes on the Internet, and on Internet transactions that were not already imposed and actually enforced prior to October 1, 1998. Congress has subsequently continued to extend the moratorium.
The Act prohibited sales taxes that discriminated against e-commerce transactions conducted over the Internet including the sale, lease, license, offer, or delivery of property, goods, services or information. Finally, the Act prohibited sales taxes imposed by one state on an e-commerce transaction that is also subject to a sales tax imposed by another state.
While the Act prohibited the imposition of new taxes, the Act also contained a grandfather clause that allowed a state or local government to continue to levy sales taxes. The grandfather clause permitted the District of Columbia and eleven states, including Texas that had already enacted taxes on Internet sales prior to October 1, 1998 to be excluded from the moratorium. Moreover, the Act did not prohibit states from imposing a sales tax on the sale of goods provided the same taxes were applied similarly to mail-order and retail transactions. Thus, the moratorium did not prohibit taxation of Internet transactions. Rather, it preserved the status quo and prevented state taxing authorities from asserting that a physical presence in the state was created from certain Internet-related contacts with the state.
A seller (Internet retailer or typical “brick-and-mortar” place of business) who is engaged in business in Texas is required to collect Texas state use tax on all goods shipped to Texas addresses. Similarly, a seller is required to collect local use taxes for jurisdictions in which the seller is engaged in business. The guidelines for determining if a seller is engaged in business in a particular local jurisdiction are the same as the guidelines for determining doing business in the state.
The following language as defined in Texas Administrative Code Rule 3.286 (a) (1), I am including for your reference:
(1) Engaged in business--A retailer is engaged in business in Texas if the retailer:
(A) maintains, occupies, or uses, permanently or temporarily, directly or indirectly, or through an agent, by whatever name called, an office, place of distribution, sales or sample room, warehouse or storage place, or other place of business;
(B) has any representative, agent, salesperson, canvasser, or solicitor who operates in this state under the authority of the seller to sell, deliver, or take orders for any taxable items;
(C) promotes a flea market, trade day, or other event that involves sales of taxable items;
(D) uses independent salespersons in direct sales of taxable items;
(E) derives receipts from a rental or lease of tangible personal property that is located in this state;
(F) allows a franchisee or licensee to operate under its trade name if the franchisee or licensee is required to collect Texas sales or use tax; or
(G) conducts business in this state through employees, agents, or independent contractors.
In addition, be aware, if BMG/Columbia House is not “engaged in business” and does not voluntarily collect Texas use tax on the sale of a taxable item brought or shipped to this state, then the Texas customer owes use tax. The liability may be satisfied by payment of the Texas use tax directly to the Texas Comptroller of Public Accounts using tax form, 01-156 Texas Occasional Use Tax Return .
Maybe other collecting states - w/out CH 'presence' - are 'grandfathered' also?
Good thing Amazon doesn't know it should be collecting taxes also? ;-)
05-01-09, 10:57 PM
#83
Senior Member
Join Date: May 2005
Posts: 389
Likes: 0
Received 0 Likes
on
0 Posts
Re: OFFICIAL Columbia House SALES TAX Thread, UPDATE HERE
I'm sure if Amazon was supposed to be collecting taxes from Texas - Texas would let them know.
Technically, (from what i understand, at least) your state is 'supposed' to get sales taxes from you in one form or another no matter where you buy something from. Either it be from the store where you buy your junk, or from you directly in the form of use tax. Obviously the latter rarely happens, because 1. Most people have no idea about this, 2. It would be a nightmare to enforce.
Technically, (from what i understand, at least) your state is 'supposed' to get sales taxes from you in one form or another no matter where you buy something from. Either it be from the store where you buy your junk, or from you directly in the form of use tax. Obviously the latter rarely happens, because 1. Most people have no idea about this, 2. It would be a nightmare to enforce.
05-16-09, 12:46 AM
#84
DVD Talk Special Edition
Re: OFFICIAL Columbia House SALES TAX Thread, UPDATE HERE
They started charging sales tax to ARIZONA sometime last year. I forget specifically when, but after being a member for 7-8 years, I finally quit their DVD club last year (combo sales tax & shrinking selection). Consequentially, I haven't made nearly as many impulse purchases of stuff I never watch. 
