Have you ever bought a bag tax exempt?

[purly]

if there is a Chanel boutique in your state, you will pay tax even if ordered from a boutique out of state.

Yes, because the business exists in your state then the sale counts as happening within your state.

Also, some businesses will charge the sales tax for their state anyways. There are provisions for allowing this when you fill your taxes out every quarter.

 

[queenvictoria2]

That's good to know. Because there's no Chanel in IL Saks, right?

I don't know if that IS why for sure but it could be

I Do know I would try and make all future Chanel purchases from Damian at Sak's tho!

 

[EMMY]

I've ordered from Saks at Michigan & Bal Cynwyd Pa....no tax, no shipping...which soooo makes a difference!!!

 

[astar]

I don't know if that IS why for sure but it could be

I Do know I would try and make all future Chanel purchases from Damian at Sak's tho!

How much is the shipping cost?

 

[iqaganda]

I always buy without tax! Why? HK is tax free.

 

[chigirl]

I will chime in as I am a tax attorney and used to do a lot of sales and use tax work (including advising many of the large retailers on this issue). If you buy something from out of state, a store will not charge you tax if the store has no nexus (physical presence) in the state (per a Supreme Court case called Quill). I have heard that Chanel and Saks sometimes do not charge tax when they send out of state and that is plain wrong if there is a store in the destination state.

All this being said, know that if you are in a state that has a sales/use tax, you are still required to report and remit use tax in an amount equal to what the sales tax would have been had you purchased it from a retailer in the state. This effectively levels the playing field for the brick and mortars. Now all that being said, the states have not been enforcing this law so most people don't follow it.

There is a movement called the Streamlined Sales Tax Project (SSTP) which would require all out of state retailers to collect tax regardless of whether they have a physical presence/nexus with a state. This will occur when all the states streamline their sales tax to make it less complex to comply with because, as it stands now, the sales/use tax is so varied from jurisdiction to jurisdiction that it is a burden (under the interstate commerce clause of the Constitution) on out of state retailers.

Probably a little too much info but hope that helps.

 

[chigirl]

There is a thread with a post from a tax attorney (I think) who explains it - my recollection is that if there is a Chanel boutique in your state, you will pay tax even if ordered from a boutique out of state. Same with Neiman Marcus - unless it can be designated as a gift - perhaps different addressee than the credit card holder. With Saks, it is different because they are owned differently than NM - so if there is not a Saks near you (I don't know the exact distance - mine is 90 miles away), if you order it from out of state, there is no tax. (This is how I always try to buy my bags - I also love Damian in PA).

A bit confusing but worth the effort to figure it out as on these bags >1K, tax can really add up!!

That may have been me. Yes, in the case of a gift, it is possible to have it truly tax free even if sent from a state where there is a store to another state where there is a store.