Sales tax question

H&H

H&H

Dutch in the USA
O.G.
Apr 24, 2007
4,722
10
#1
I was just reading in another thread that the 4% local sales tax on footwear and clothes will disappear in NYC. That's great news..

My question: I bought some goodies a little while ago in NYC, I live however in Virginia. I see I did pay salestaxes. I always thought as an out of stater you didn't need to pay the local saletax? Is this true? Sorry for asking, but as an Dutch person I'm not always aware of these tax issues
 
#3
I think you have to pay that states salestax regardless of where you reside. In other words, if a state your buying in has salestax, you have to pay it.
 
#4
Thank you lulilu and edsbgrl Oh I see... It would have been easier that way too, my suitcase was pretty full :P.
So it isn't like in Europe that you can go to a VAT refund booth or something?
 
#5
if you live in a state where H does not have a store, and you have your purchase shipped to that state, then they do not charge you sales tax. that is all i know...other merchants make up their own rules i think...never seems guaranteed.
 
#6
Haute Couturess said:
if you live in a state where H does not have a store, and you have your purchase shipped to that state, then they do not charge you sales tax. that is all i know...other merchants make up their own rules i think...never seems guaranteed.
Click to expand...

I was trying to remember is I paid CA saletax when I had a something shipped to me.

I'm gathering that there's really no standard policy on the salestax and different states?
 
#7
So if I understand correctly it is store policy? so not state policy?
theoretically if you buy from the store online and it is shipped to you and there is no store in your state, they couldn't add the sales tax?
 
#8
Yes, legally, stores have to collect (then pay) the state where they operate in (or have stores in). If you live in a state where the store does not have a branch/facility/storefront, they legally cannot collect the tax from you. For example, I order from Bergdorf Goodman all the time and since they only have a store in NY, there's never sales tax to ship to me. HTH!

H&H said:
So if I understand correctly it is store policy? so not state policy?
theoretically if you buy from the store online and it is shipped to you and there is no store in your state, they couldn't add the sales tax?
Click to expand...
 
#9
^^ And if you take delivery in a state that has certain sales tax exemptions for particular items (the clothing exemption in NJ for example) you should not be assessed sales tax, regardless of whether there is an Hermes facility in that state.

[edit] If you know that such exemptions exist for your state, be sure to check your invoice anyway. The Corporate Office at Hermes is not necessarily up to date on all such state laws and you may need to ask for a refund from the store that charged you the sales tax.
 
#10
The rule is if you buy in person, you pay that state's sales tax, if any, regardless of where you live. If you have it shipped, you will be charged according to the tax of state in which you take delivery. However, in the case of items being shipped, if a chain does not have a store in your state, then no sales tax will be charged. Lawfully however, YOU are responsible of reporting the purchase and pay the sales tax to your state yourself, of course.

Besides NJ, as Gina pointed out, PA is another state that does not tax clothing. So to save on sales tax, either you live there or can have packages shipped there, or go to a store in NJ (soon there will be one) or PA and buy there.
 
#11
CindyYZ said:
Yes, legally, stores have to collect (then pay) the state where they operate in (or have stores in). If you live in a state where the store does not have a branch/facility/storefront, they legally cannot collect the tax from you. For example, I order from Bergdorf Goodman all the time and since they only have a store in NY, there's never sales tax to ship to me. HTH!
Click to expand...

Absolutely true on the legally they can not collect tax from you part, but don't advertise too loudly :nogood:.. as legally you are still responsible for reporting the purchase to your state. If your state charges tax on whatever you are buying, you still do owe tax. Of course, very very few people ever really do that..
 
#12
Thank you Cindy, gina and tods for explaining thoroughly. On large sales it would really help (so you can buy an extra scarf or something :graucho:)
 
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