No Chanel Boutique in your State = No Sales Tax???

[ccbaggirl89]

In know this is an old thread but for an update...if you do not have a Chanel boutique or presence in your state does a Chanel boutique still charge you your state tax?

Do they charge shipping?

Thanks for 2016 clarification!

if your state does not charge sales tax then no store can charge you sales tax. chanel boutiques will charge tax to all but 4 states: Oregon, Delaware, New Hampshire and Montana. if you can buy chanel from a place like bergdorf or jeffrey (both just east coast stores), you'd be better off because they can only charge tax to residents of NY and nowhere else. this is because bergdorf and jeffrey only exist in the east coast and do not have a national presence. because chanel exists nationwide its boutiques can collect tax in every state, regardless of whether you have a boutique in your state or not. the only exception are those 4 states, which pay tax on nothing, ever. i was charged shipping at jeffrey in nyc for my chanel stuff, but no other chanel order from a boutique or dept store has ever collected shipping, it's always been free (ground, not expedited). just my experience. i think you should check to be sure before making a purchase

 

[Mama doodle]

That's really interesting! I wonder why it varies with each department store/case. I used to live in Wisconsin for a few years and I never got charged with sales tax when I purchased things ONLINE from Bloomingdale's, Nordstrom (before they opened one in Wauwatosa), and Louis Vuitton. I've never tried phone ordering anything while living there so maybe they have different policies for phone orders?

Well, we were visiting MN & the Nordstroms store, so it wasn't just a phone order.... I recall complaining about it to the SA. I think that the local states have been cracking down on the sales tax exemptions. The Nordstroms SA said that Chanel wasn't exempt because Chanel cosmetics were sold in our state (even though not purses).

& the Neimans SA mentioned that Neimans didn't lease the Chanel items. These were actually owned by Neimans so maybe that's the difference? It's a technicality because the items are not Chanel. The items are "Neimans" merchandise.

10 years ago, I went on a Vegas trip & bought purses from the LV, Chanel,
Fendi, & Dior boutiques & didn't pay tax. So I do know that there has been a much stricter interpretation of the sales tax laws in recent years.

But definitely check out some of the east coast retailers & states that don't have sales tax at all. It can't hurt to make a few phone calls

 

[Cloudburst2000]

Well, we were visiting MN & the Nordstroms store, so it wasn't just a phone order.... I recall complaining about it to the SA. I think that the local states have been cracking down on the sales tax exemptions. The Nordstroms SA said that Chanel wasn't exempt because Chanel cosmetics were sold in our state (even though not purses).

& the Neimans SA mentioned that Neimans didn't lease the Chanel items. These were actually owned by Neimans so maybe that's the difference? It's a technicality because the items are not Chanel. The items are "Neimans" merchandise.

10 years ago, I went on a Vegas trip & bought purses from the LV, Chanel,
Fendi, & Dior boutiques & didn't pay tax. So I do know that there has been a much stricter interpretation of the sales tax laws in recent years.

But definitely check out some of the east coast retailers & states that don't have sales tax at all. It can't hurt to make a few phone calls

The states are just getting smarter. Technically, everyone owes those taxes (unless you live in a state with no sales tax). On your tax return, you are supposed to list all purchases made outside your state that you did not pay tax for. People rarely (except businesses) list their out-of-state purchases. So the states are starting to crack down somewhat to get their tax money. How they are doing this is not by going after the consumer, but by trying to make sure that retailers charge tax for whatever state you live in.

 

[Mousy]

I recently went to Nordstrom in Seattle to check out the Chanel bags for the first time. Nordstrom is the only place in the Seattle area to get a Chanel bag. I was hoping to have a nice experience there, but ended up feeling like crap thanks to their sales associates. When I walked in, they looked at me and didn't even say hi and just pretended like they were too busy to notice or care. I just stood there looking at the bags, totally mesmerized by them. After a few minutes I asked one of the SA's at the counter if they had any black jumbo caviar bags in stock and she said they were all sold out. She showed me a black jumbo in lambskin instead but a guy SA overheard our conversation and said that they WERE NOT sold out of the caviar one and asked if I preferred the gold or silver h/w. I said that I wasn't sure about which one I wanted. At that point, I didn't know if I should've been happy that he told me the truth or have been pissed off that the girl SA lied to me. I don't know if the girl SA lied to me on purpose or because she really was clueless, but anyways I don't care. The girl SA brought out a black jumbo caviar bag with silver h/w (gold was sold out) and I took a look at it and wasn't really impressed by the bag. Maybe it's because the silver h/w doesn't look as luxurious as the gold h/w. I told the SAs that I will go to Vegas in a week and that I'll probably buy a bag there instead. I said thanks and as I was about to leave the guy SA said he has something to tell me but he needs to take the phone first. I was like no, I have to go, bye. I had enough of their customer service. There was no "Hi, how can I help you?" or "do you have any questions" or "what are you looking for?" Here I am a serious buyer ready to shell out some serious cash and they act like I walked into their house and totally annoyed that they have to help me. After that, I went to the sunglasses department and as I was trying some on, the guy SA from Chanel shows up to talk to another SA and recognizes me and tells me that if I buy a Chanel bag in Vegas to tell them (the SAs in Vegas) to send the bag to my house so that I won't have to pay taxes because there is no Chanel boutique in Washington State. Is this for real? Has anyone done this before or know anything about this?

Newman Marcus in Bellevue, Washington has a handbag boutique.

Oregon residents (and visitors to Oregon) are tax exempt, even though Portland's Nordstrom has a Chanel handbag department. Residents pay state income tax, so there is no sales tax. If you live in Washington, I suggest you flee to Portland to purchase, so no sales tax will be accrued. The drive is worth it depending on the bag's price tag. You can phone from Washington, purchase and have the store hold your purchase until you can get there. If they send it to you, tax will be added. Oregon residents can also purchase anything from any state tax free.

If you live in a state with a Chanel boutique presence, even if it's a pop up in a Neimans, Nordstrom, Saks, Bergdorf, stand alone,... sales tax is (or is supposed to be) added to your purchase. Every Chanel presence is co-owned (for lack of a better word) by the landlord (dept. store) and Chanel. The department store settings have better return policies and payment options (you can use the department store charge card and get their "points"), but if you purchase from one kind of store, you can only return or exchange to that same brand of store. Nordstrom Chanel handbag purchases in Portland can be returned to any Nordstrom, but cannot be returned to a stand alone boutique or a Neiman's boutique. Every chain of boutiques has their own buyers, so it gives customers a variety of styles and colors, too. All Chanel boutiques take any bag in for repair, regardless of the state or store it was purchased.

I have purchased (by phone) from several states and have always paid my state's sales tax. I have also purchased from luxury boutiques that have no presence in my state and not paid the tax when an item has been sent to my home.

Last, but not least, the Chanel boutique in Seattle. Ummmmm,...one word....yikes!?!?!? I've experienced associates texting, in lieu of asking to help me. Other times, they are clamoring for my sale. I've heard the "no classic flap" line. I just pull the "Pretty Woman" routine- go to Bellevue, Portland, SF or SoCal to purchase and wear my recent purchases into the Seattle store, and think the Julia Roberts' line, "big mistake...huge".

The guy in Seattle's store is really nice and the tall blonde has always been pleasant, but I feel the rest ruin the vibe. When in Seattle, I just don't buy at Nordstrom.

 

[Mousy]

I just talked to my hubby, who specializes in international corporate tax. Basically, stores (even without a presence) should be charging tax as a courtesy to the state where the residents live. Most don't because it would require them to set up a department in their corporate offices to remit the tax money to every state for every purchase, made by that state's residents. It would cost companies a lot of money and time. There is no way the states can keep tabs on purchases, unless through a personal audit. So, with no ties to certain states because of no physical presence, the companies just don't worry about tax.

 

[kimariew]

When I bought a So Black classic flap jumbo from Chanel in Chicago and had it shipped i was charged my local tax which is like 5.1% or something. It was better than paying the Chicago rate. I've bought from Neiman Marcus and not charged tax. Louis Vuitton I have never been charged tax, just shipping.

 

[**Ann**]

Sounds like what I thought...Chanel boutiques now charge tax whether you have a boutique in your state or not. Thanks for all your responses!

 

[LV.]

Currently residing in Seattle but I usually purchase my Chanel bags, accessories and shoes over the phone with SA's from New York and Las Vegas to avoids the 9.5 sales tax. Oregon does offer no sales tax if I drive down there however, although the state has no sales tax, if they ship to another state they will charge sales tax of the receiving state.
When I am in Las Vegas, I go to the boutiques and have them ship it back to Seattle. I don't have to carry anything back with me and I get the curve the sales tax of Nevada. Hope this helps.