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Paying CA sales tax when I live in WI

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I just ordered a set of OEM front brake pads for my 91 from Niello and they charged me CA sales tax. I have ordered parts from them lots of times before and they never charged me CA sales tax. Between the shipping and the tax it's almost not worth ordering from them even with my 25% NSXCA discount. Has any one else ordered parts from them and gotten hit with sales tax even though you were out of state.
 
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They shouldn't have, and I am not aware of a new law! Who did you place your order with? Call Chuck Towle [[email protected]], the Parts Manager, and explain him the situation, I am sure he will take care of it for you. If not, let me know please.
 
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Hrant

I am dealing with Chuck and I just got a email from him saying he thought it was exempt but his office manager told him it was not. He said he would double check with her on Monday and get back to me.

It's not a big problem, next time I will just go to Goodson or Gunn they have the same discount and shipping will be cheaper with them being closer to me.
 

NRG

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They should not charge you CA tax. I just ordered something from Acura in Augusta, and they did not charge me tax..only shipping.
 
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vtec888 said:
They should not charge you CA tax. I just ordered something from Acura in Augusta, and they did not charge me tax..only shipping.

Hopefully Chuck will get this strightened out on Monday, Niello has been good to me in the past and I would like to continue doing business with them. :smile:
 
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If you bought an item and had it shipped to a location in California it has to be charged tax. if you buy an item and it ships outside of California then there is no tax, regardless of where the customer lives.
 
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Sales tax is only required to be collected from a Wisconsin resident if Niello has "nexus" with the state of Wisconsin. Basically, Niello would need to have a place of business in Wisconsin. Even though our governor is an idiot, he hasn't done anything yet to change this law.

The reason you pay sales tax on some internet orders (Sears for example) is that some online retailers have nexus in your state and are required to collect sales tax. This was a big deal in the dot com boom. Some retailers set up separate subsidiaries (without nexus) to do their internet business. Others wanted their customers to be able to return online purchases to the local stores, creating nexus and requiring sales tax to be collected.

I've ordered from Niello before and don't remember ever paying sales tax. I'm sure it was simply an oversight.

By the way, if they were required to collect sales tax, it would be Wisconsin tax.
 
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Got the word from Chuck Towle and yes he will be charging me sales tax. :frown:

My Latin is bad but caveat emptor


Chuck's message:

"CONFIRMED WITH CONTROLLER TODAY THAT WE NEED TO CHARGE SALES TAX ON ALL PURCHASES. ONLY RESALE PURCHASES ARE NOT CHARGED SALES TAX. IF WE DID NOT CHARGE YOU BEFORE, WE WERE NOT COMPLIANT WITH OUR TAX LAWS. SORRY FOR ANY MISUNDERSTANDING."
 
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Briank said:
Got the word from Chuck Towle and yes he will be charging me sales tax. :frown:

My Latin is bad but caveat emptor


Chuck's message:

"CONFIRMED WITH CONTROLLER TODAY THAT WE NEED TO CHARGE SALES TAX ON ALL PURCHASES. ONLY RESALE PURCHASES ARE NOT CHARGED SALES TAX. IF WE DID NOT CHARGE YOU BEFORE, WE WERE NOT COMPLIANT WITH OUR TAX LAWS. SORRY FOR ANY MISUNDERSTANDING."

Strange... I have ordered many things from them and never have been charged sales tax. Start ordering from Ray Laks Acura same discount no shipping charge talk to Tim great guy.

888-729-5257
 
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That is strange. You shouldn't have to pay since you don't live in Cali....why pay sales tax to them? I've never paid sales tax on anything new that I've ordered online that came from another state.

Regards,
- Z
 
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They probably have a controller who doesn't know much about state and local tax. I do international tax consulting, but know enough to know that you shouldn't be charged California sales tax. I've ordered from them before but won't in the future.
 
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I have ordered there before also and not been charged sales tax. Something is not right. I think you should take the matter to a higher level instead of someone who doesn't know what they are doing. If you buy out of state and they do not have a store in your state, you do not pay tax. Simple as that.
 

KGP

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gobble said:
They probably have a controller who doesn't know much about state and local tax.
Or maybe he does know state tax, but has a new commission gig going. :biggrin:
 
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Maybe you can share with them Section 6396 of California's tax code:

6396. There are exempted from the computation of the amount of the
sales tax the gross receipts from the sale of tangible personal
property which, pursuant to the contract of sale, is required to be
shipped and is shipped to a point outside this state by the retailer
by means of: (a) facilities operated by the retailer, or (b)
delivery by the retailer to a carrier, customs broker or forwarding
agent, whether hired by the purchaser or not, for shipment to such
out-of-state point.
 
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KGP said:
Or maybe he does know state tax, but has a new commission gig going. :biggrin:

Therein lies the answer folks. They are skimming the taxes and linning their pockets with the extra change. I'd report them to the State Attorney's office.
 

NRG

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It's too bad they lost you as a customer, and probably many more to come as the words get out about their policy in charging tax outside of CA.

Briank said:
Since I/we have other places to buy with the same discount I am not going to spend any time arguing with Chuck/Niello. :smile:
 
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They just lost Brian K's business...and the hundreds of other NSX'ers who read this post. Like Brian says, there are a multitude of competitors out there to buy from.
 
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Too bad. Living in Hawaii online ordering is a big help since our dealer is expensive. Getting charged California tax compared to our 4% is not going to help at all. I guess Neilo is out and I have to look for another out of state dealer. Oh well, no big deal.
 
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News Flash

Just got an Email from Chuck at Niello saying that they looked into it futher and he should not have charged me sales tax. He did say he was concerned about the bad press Niello was getting here on Prime about this issue.

Thanks to everyone here and Niello for getting this straightened out :smile:
 
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It ain't over until the fat lady sings ........ :biggrin:

I called the controller yesterday after talking to Chuck, and sepcifically asked her in a voice mail to give me the tax code she was relying on. Never heard back :rolleyes:

And yes, we are all concerned about Niello's reputation :wink:
 
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