Sales Tax

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Sleepydoc

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So BRS has to send money to each state that is collected from each purchase? Seems like a nightmare. Why aren't the other online retailers doing this? They just hoping to not get caught, or?
I can't say if everyone is, but other sites already are.
 

Frogger

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It's amazing these laws took so long to come into play. It's been at least 10 years since Canada starting charging sales tax on online orders placed out of province. Of course there are a lot less provinces then states but online shopping is much more common in the US. In the past I loved that BRS charged Canadian taxes / brokerage fees so the packages would come straight to our doors without any added fees. Nowadays though I live very close to the border so I just have my orders sent to MI. Just placed a small order for $46 and the sales tax was only $2.76 - not really much to complain about...
Actually in Canada this is not true. If you buy from out of province you only pay the federal tax not the provincial tax for other provinces. So there is no extra work for the mail order company. It would be an accounting nightmare if all small business had to start charging provincial sales tax. As a small business I already spend way too much of my time calculating out my local taxes, the last thing I want to do is have to calculate out the taxes for other provinces and send them payment every month.

This is going to be an accounting nightmare for mail order companies in the US that will now have to calculate out the sales tax for 28 different states (some states are 5% some are 8.5% etc etc.) and send the money to each these states every month. The only people that are going to benefit from this are the accountants that get paid by the hour. I could see some mail order companies saying we don't ship to your state to avoid the hassle if they do not have many customers from that state.
 

Frogger

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I thought Nevada and Washington don't have sales tax.

Washington charges I believe 8% sales tax. They have been doing it for mail orders for quite some time. I got a wake up call when I made a purchase from BRS for 10% off the whole order in September only to have them charge me and 8% Washington sales tax. I have a Post Office Box in Washington. The next order I made I had them send it direct to Canada, it was almost cheaper in the end they only charge 17% tax on Canadian orders.
 

Frogger

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Frogger is tax always that high or only when you buy from companies in The United States?

BRS charges Canadians a flat rate 17% to cover brokerage fees and duties (Canadian Taxes) thru UPS each company is different and most companies do not ship to Canada. Which is why I have a US post office box in Washington State. Theoretically I should be paying Canadian Taxes (BC taxes at 12%) at the border when I bring goods in, however if it is less then a couple hundred dollars the Canadian customs usually doesn't bother.

This is why the extra 8% for taxes shipped to Washington tagged on to the 12% at the border makes it cheaper to just ship straight to Canada especially when spending more than a couple hundred dollars.
 

Reef Box

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So for CA our BRS points won't even cover our taxes. Thats a serious bummer! for us and for BRS
 

Sleepydoc

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BRS charges Canadians a flat rate 17% to cover brokerage fees and duties (Canadian Taxes) thru UPS each company is different and most companies do not ship to Canada. Which is why I have a US post office box in Washington State. Theoretically I should be paying Canadian Taxes (BC taxes at 12%) at the border when I bring goods in, however if it is less then a couple hundred dollars the Canadian customs usually doesn't bother.

This is why the extra 8% for taxes shipped to Washington tagged on to the 12% at the border makes it cheaper to just ship straight to Canada especially when spending more than a couple hundred dollars.

So for CA our BRS points won't even cover our taxes. Thats a serious bummer! for us and for BRS

The thing you need to remember is that when you bring new goods into a country, you're required to report them. Private individuals can usually get by with a small amount of stuff, but a company does not have that luxury. They have to play by the rules 100% of the time or face big penalties. On top of that, shipping internationally and dealing with customs is a pain (and an expense,) which is why many companies don't do it at all.
 

Billldg

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For people that r paying taxes on website orders dont feel bad, it's coming for everyone else. I am known as a @Bulk Reef Supply fanboy, pretty much bought everything from there. Then they started to charge taxes for the state of GA, so I switched to Marine depot. Well, roughly 2 to 3 weeks later they also started to charged taxes. Point is that the states see a way to make money, and they WILL get their share of the money. It will happen to every state eventually.
 

Reefer_Rob

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No sales tax in CA yet...just placed a BRS order. When is this supposed to start?

Additionally, as a consumer, Im always looking for the no tax, free shipping deals online. I do find that alot of shops, be it LFS or any other shop, will waive the tax if you come off as a chill person and pay cash.
 

Reef Box

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No sales tax in CA yet...just placed a BRS order. When is this supposed to start?

Additionally, as a consumer, Im always looking for the no tax, free shipping deals online. I do find that alot of shops, be it LFS or any other shop, will waive the tax if you come off as a chill person and pay cash.

I just put an ATO in my cart last night and when I started to check out I noticed tax was added
 

SplitBumper-70

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I order alot of parts for the hot rods online and was shocked on Ebay when one company charged me sales tax. I called them and they explained to me the new rules and my satate was on the list
 

Frogger

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The thing you need to remember is that when you bring new goods into a country, you're required to report them. Private individuals can usually get by with a small amount of stuff, but a company does not have that luxury. They have to play by the rules 100% of the time or face big penalties. On top of that, shipping internationally and dealing with customs is a pain (and an expense,) which is why many companies don't do it at all.
That is the nice thing about BRS they do all the legal work and all the taxes/duties are included in the 17% when they ship to Canada. They still charge shipping (free shipping does not apply) which you also have to take into consideration. I have a postal box in Blaine Washington. However BRS charges I believe 8 or 9% state tax on all shipments. And then I still have to deal with Canada Customs. If I do not buy a lot they are usually good.
 

hatfielj

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Unfortunately that's going to hurt online retailers then. For me, overall lower cost is the reason to purchase online. I'd love to purchase solely from my LFS, but when it comes to a new setup or any time you're spending big money on a lot of items, depending on where you live, adding on up to another 9.75% on top of your purchase is just enough to make you look elsewhere. If I'm spending 10k on a new system, I'm not overjoyed spending an addition 975 bucks for it when I don't have to.

The argument can be made that even though you're paying retail plus taxes, the often used free shipping drops it right at your door. Well that I can live without if it means I can pay the same thing from my LFS, see the condition of what I'm getting and have their direct customer service after I take it home.

This is the same reason I never buy from Amazon anymore. Years ago they had a pricing algorithm that would scour large online retailers for pricing to ensure they were at the lowest price. Then they changed it so it would only scour when someone clicked on an item so they could find the highest price from their competitors. Now they just flat out charge full boat retail on everything. And now I no longer use Amazon, and buy locally.

Being honest, if I'm paying retail plus tax anyway, I'm buying local. Lower price competition is what the internet is all about, paying retail is what you go to your local fish store for. So in the end if I'm paying full boat, I'm buying from my LFS even if they have to order it. Good for my local economy, regardless of what the government wants. If state governments weren't being run into the ground financially by their own politicians they would never have even considered rewording existing laws to ensure they get more cash pumped into them.
I think you're right. I will certainly just buy locally now. Why wait for an online order to arrive if I could just drive up to my LFS and buy? I guess this law has an unintended consequence that will be good for the LFS but bad for online retailers?
 

Titleist

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Always worth supporting the LFS especially if you're paying the same since you get the personal service and there's an investment in your purchase by the retailer in terms of that service.

On the other hand, once you get going with BRS the reward system puts you pretty close in cost in my case as sales tax here is 5.5% The difference being an extra .5% from BRS, and that you have to wait for delivery although again, I'm close so I get everything in 2 or less days.

And I can't ignore all the valuable videos I've watched and used to expand and update my knowledge of reefing. I know they make a better buck with volume buying that my LFS doesn't get and that's another reason to go LFS, to keep them employed and keep a local resource.

One way or the other, I'm still spending money.
 

WWIII

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I think you're right. I will certainly just buy locally now. Why wait for an online order to arrive if I could just drive up to my LFS and buy? I guess this law has an unintended consequence that will be good for the LFS but bad for online retailers?

I haven't made a purchase from BRS since the tax has been collected. I think most sites will just release coupons and discount codes to offset the tax, if they ever decide to follow the law.

I feel bad for all the online retailers. It has to be a pain in the you know what to pay all those states individual sales taxes every year.
 
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CJS80

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I feel bad for all the online retailers. It has to be a pain in the you know what to pay all those states individual sales taxes every year.

It is going to be bad for individuals too. The stores that don't charge tax will have to send statements to individuals so that they can pay tax on it themselves.
 

smartwater101

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For me, overall lower cost is the reason to purchase online.

To be fair, you were supposed to be keeping track and paying those taxes at the end of the year. No one really does this though, wich is why more and more companies will be required to collect.

We all got away with ignoring the requirement for a looooooong time so it's not suprising we're finally having to pay up.
 

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