Nexus sales tax at MBV

[fishj]

I was preparing to purchase some items at Mt.Baker vapor and noticed I was being charged a sales tax. I inquired from the on line operator about this and she said my state (Illinois) requires them to collect tax. There are a few other states that are being charged this Nexus tax, as well. This is the first I have heard of this. Anyone else being charged taxes on their purchases? Thanks in advance.

 

[fishj]

Anyone?

 

[JC Okie]

I live in Oklahoma and if I buy from an Oklahoma vendor I am charged sales tax. It depends on the state.

 

[2buildawall]

There are states that share in pact to collect taxes for member states. It is called nexus and it is voluntary until you are audited. I am in WA state and am paying six years in retro corporate income tax to Nebraska. We do no business in Nebraska but our trucks drive on Nebraska highways giving us nexus per Nebraska state tax code. We pay a federal over the road tax but states can charge taxes as they see fit.

MBV is correct in collecting the tax. They will then submit the collected tax to your home state. I do not believe Arizona shares in this agreement and may possibly be another incentive for MBV's move there.

Some states, such as, New York are even harsher and charge corpate tax if you have an out of state employee even step foot in the state. This has cost New York dearly in convention revenues.

There are many more examples but basically yes it is legitimate.

 

[fishj]

Thanks, 2buildawall. I had never heard of this tax and wanted some clarification. I am just concerned about Illinois collecting more of my state taxes. IL already double taxes people who live in Il but work in Indiana. Gambling jackpots work the same way. You pay another state's tax and IL makes you pay its tax as well. My accountant insists its illegal but there's nothing he or anyone can do. Just a polite rant. Sorry.

 

[2buildawall]

Fish you are not ranting. It is a very good question you ask. Very few people are aware of this "tax".

BTW, you want to hear a rant? You should hear me dealing with it every day.

It is so illegal (extortion) that only the government can do it! You know how the government hates competition.

Oh!!! and did I mention it is legitimate.

No need for an apology my friend. I feel your pain and frustration.

I could go on for hours with some very frightening stories.

 

[hoogie76]

Some if not all of this stems from the Amazon case where they had privately owned companies with Amazon signs for distribution centers. Amazon argued that since they were not the owner of the distribution centers that they should not be have to pay sales tax in that state but unfortunately lost in court.

This ruling has created a cash grab by states where if you have a retail location, have done a trade show, have an affiliate program and a host of other things, it can cause you to be liable to collect sales tax in that state.

More and more states are changing the Nexus laws so they can reap the benefit of sales taxes to their states.

This is just one scenario and just the tip of the iceberg to the complex nexus laws. I think we'll be seeing sales tax being collected online for many states by online vendors where the company appears to have no physical presence in that state but is associated due to a trade show or affiliate.

hoog

 

[thomas l]

thanks for the info .i've never heard of it. always figured something like that would happen with all the online stuff

 

[2buildawall]

Hoog exactly right about Amazon and online retailers. It is a big tax grab by states taking advantage of interstate commerce. I have seen cases of straight up extortion by state revenue auditors. I am seeing more of it every day.

I file quarterly taxes to 10+ different states every quarter. This started about eight years ago and is getting worse. States do not care to factor in that they are driving business revenue away.

There are companies that have policies to not attend conventions held in the state of New York. Attending a convention there means the employee has been in the state on business establishing Nexus to the out of state employer. It was great for the state until everyone caught on.

It will be interesting to see how this either holds up in court or alters the way states treat interstate commerce. I am waiting to see how states will enforce internet commerce.

One last thought. We have state revenue auditors who no longer do audits within the state. They travel all over the country to audit out of state companies and enforce Nexus compliance.

 

[Frenchfry1942]

I live in Arizona. I have not bought on-line in awhile. I will have to watch.

Thanks

 

[hoogie76]

Hoog exactly right about Amazon and online retailers. It is a big tax grab by states taking advantage of interstate commerce. I have seen cases of straight up extortion by state revenue auditors. I am seeing more of it every day.

I file quarterly taxes to 10+ different states every quarter. This started about eight years ago and is getting worse. States do not care to factor in that they are driving business revenue away.

There are companies that have policies to not attend conventions held in the state of New York. Attending a convention there means the employee has been in the state on business establishing Nexus to the out of state employer. It was great for the state until everyone caught on.

It will be interesting to see how this either holds up in court or alters the way states treat interstate commerce. I am waiting to see how states will enforce internet commerce.

One last thought. We have state revenue auditors who no longer do audits within the state. They travel all over the country to audit out of state companies and enforce Nexus compliance.

It's really getting tough to manage so we use avalara and taxjar to make sure we're compliant which adds yet another 'fee' to everything else the government jams up our vapestack

hoog