Charge-send/sales tax questions.

rachieface

rachieface

ilikeike!
Nov 18, 2007
6,101
1
#1
So I FINALLY got my Botkier Sophie (*yayyyy) that I did a charge-send on from Texas sent to New Jersey.

Am I supposed to pay the sales tax if I am out of state? Because I know from online retailers you don't pay the sales tax unless you live in the state it is being delivered.

Thanks for anyone's insight!
 
#2
Yay, Congrats on your Sophie! My understanding is, if there is a brick and mortar store in your state (i.e. if you order from Nordstrom or Neiman Marcus) you will be charged your home state's sales tax. If it's an online store like Active Endeavors or Shopbop, you will not be charged tax, since they don't have a presence in NJ.

Where did you end up ordering it?
 
#4
it doesnt go to the home state. it goes to the end user state. for example, if you ordered from saks in texas and sent it to saks in ny, you would get charged ny sales tax. however if you sent it to a state that does not have a saks brick and mortor store, you would not get charged tax.
 
#5
Hmm weird. I ordered it from Texas but live in New Jersey (where there is a 7% sales tax. It seems I was taxed on the shipping and how much the bag was BEFORE I used my Nordstrom giftcard of $50. I am really confused.
 
#6
^^^

You have to pay sales tax on the total price of the item regardless of whether you use a gift card or not, but should not have to pay tax on shipping, only on merchandise. :yes:
 
#7
as far as i knew, shipping fees can be taxable as well since it is viewed as a service. but as you mentioned, method of payment doesnt matter. the price you should have been charged was price of bag + shipping times 7% sales tax. If it makes you feel any better, at nordstrom its all automated so chances are it was done right :smile: sales tax charges can get messy
 
#9
No, because they are taxing the entire amount of the purchase regardless of how it's paid for. If the bag was $400 say, and you used a $200 gift card, they would still charge tax on $400 since that was the purchase total, not just the $200 you actually paid out of your own pocket.
rachieface said:
^^^ but shouldn't they have charged the sales tax AFTER the $50 from the giftcard was taken off?
Click to expand...
 
#10
Wow, I definitely did NOT know that. Thanks for all the clarification, ladies. You guys always answer my questions BEFORE I make a fool out of myself calling and asking dumb questions on the phone!
 
#11
^^ a little fyi, the reason this is so is because a gift card is a method of payment, any coupons, discount codes, etc being taken off the price of the bags shouldnt be taxed
 
#14
Yes, some states do tax shipping. I moved from NJ last year and there were some sales tax changes. Not only was there a sales tax increase from 6% to 7% but certain goods and services were changed to taxable, including shipping charges. This is only if the item purchased is taxable. For example, clothing is not taxed so shipping charges should be tax exempt when purchasing clothing.
 
#15
I was :cursing: when NJ raised the tax to 7%, but it's still better than NY's tax which is like 8% plus, depending on where you are. And I love that clothes and shoes are exempt.
 
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