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From: mcmahan@netcom.UUCP (Dave Mc Mahan)
Newsgroups: comp.sys.amiga
Subject: Re: Sales Tax issues
Message-ID: <13343@netcom.UUCP>
Date: 14 Jun 90 03:04:31 GMT
References: <4313@darkstar.ucsc.edu> <137142@sun.Eng.Sun.COM> <4346@darkstar.ucsc.edu>
Distribution: usa
Organization: Dave McMahan @ NetCom Services
Lines: 68


 In a previous article, davids@ucscb.UCSC.EDU (Dave Schreiber) writes:
>
>In article <137142@sun.Eng.Sun.COM> cmcmanis@stpeter.Eng.Sun.COM (Chuck McManis) writes:
>>Why would Commodore know anything about whether or not someone would
>>have to pay sales tax? That isn't their problem, period. Call your
>
>Excuse me?  Commodore collects the sales taxes;  it is very much their
>problem.

I think chuck is right.  C= does not collect sales tax unless they sell
directly to the end user.  Sales tax is collected only once, from the last
seller directly from the end user who will not re-sell the machine.  This
saves tax being collected in PA (where the machines are made) and in New York
(where the machines are sold via mail order) and then again in California 
(where the end user buys it and takes possession).  At each step, when the
product changes hands, the proper paperwork must be filed with the state
franchise tax board (or whatever you call it in your state) and the resale
number of the buyer is collected in lieu of the tax.  This number and the
amount of the purchase are then recorded with the state authority, who checks
periodically to ensure that you have either paid the tax, collected yet
another re-sale number from another person or company who intends to re-sell
it, or have the product still in inventory.  There is no other place for the
product to be.  Getting a re-sale permit is easy and free (in california).
If you get caught using it improperly (and it's VERY easy to get caught, the
whole system is computerized) then you pay big fines and/or go to jail.

If the end user buys a product via mailorder, the sales tax is still supposed
to be collected, even if the product crosses tax boundaries (like state lines).
The end user is responsible for paying the tax to the local authority.   Most
don't, but there is a theoretical amount due for such mailorders.  Sales made
by a mail-order house within the same tax district are subject to sales tax.
That's why you always see the little 'Mass. residents please add 6% sales tax'
on the bottom of the order form if the mail-order business is located in
Mass.  California is now cracking down on mail-order places that do business
in California, trying to shift the burden of paying the tax (and collecting it
from the end user) to the mail-order place.

Unless you buy direct from C= (or anyplace else) and are the end user, you
don't have to pay tax.  I'm not sure, but I doubt if C= would sell direct
to the end-user (maybe with the educational discount, but even then I think
they go through the local school book store and avoid the tax issue).  I
would think that C= is responsible for collecting tax on employee sales, as
in that case they ARE selling directly to the end-user.  That would be the
only case I could think of, unless a huge company wanted to purchase lots
of machines and C= dealt with them directly.  Then, C= would have to collect
the proper tax or obtain the resale number of the buyer.


>>Anyway, the answer is "Commodore can't give you a definitive answer
>>because they don't know." You're local office of the State Board of
>>Equalization will tell you what is legally required.
>
>Again, since Commodore has taken responsibility for collecting the
>sales taxes, they have to know who they need to charge.  I'd just
>like to know what they know...

I doubt that C= knows or keeps track of all the little tax jurisdictions that
abound.  They don't need to, so they don't.  They just collect all the little
resale numbers of the distributors and dealers, and then they are safe from
having to pay sales tax.

>>--Chuck McManis					    Sun Microsystems

>Dave Schreiber                        The blue leprechaun

 
   -dave