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  #1  
Old 04-13-2019, 5:36 PM
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Default Midway USA collecting Kali sales tax

Placed an order today with Midway USA.....received a confirmation a few hours later, and a charge for sales tax was included.....when did they become an arm of the state?
I have done a lot of business with them in the past, and appreciate the $$ they have raised for the NRA, but this has gone too far. Which other internet sellers are now collecting this tax, and who still does not?
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  #2  
Old 04-13-2019, 5:40 PM
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Yup. I just saw that. I cancelled most of the order and answered a survey, letting them know I’d only buy from them what I couldn’t get from other vendors. CA has gone after all of the big ones after that Supreme Court case. Now it will be mostly the smaller ones that don’t charge sales tax. It’s bull**** but now CA calls shipping a nexus or some such nonsense that allows them to collect sales tax. Our state truly is the “vampire squid”.

Last edited by FISHNFRANK; 04-13-2019 at 5:43 PM..
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  #3  
Old 04-13-2019, 5:41 PM
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https://en.wikipedia.org/wiki/South_...._Wayfair,_Inc.
South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018), was a United States Supreme Court case in which the court held by a 5-4 majority that states may charge tax on purchases made from out-of-state sellers, even if the seller does not have a physical presence in the taxing state. The decision overturned Quill Corp. v. North Dakota (1992), which had held that the Dormant Commerce Clause barred states from compelling retailers to collect sales or use taxes in connection with mail order or Internet sales made to their residents unless those retailers have a physical presence in the taxing state.



https://abajianlaw.com/news-events/c...ect-april-1st/

If you’re an online retailer who’s doing business with California customers, starting April 1st 2019 you’ll need to collect sales tax no matter where your business is located. That change is due to a decision made by the California Department of Tax and Fee Administration (CDTFA) to bring the state in line with similar determinations made by more than half of America’s other states.

The idea is simple: if your online business does more than $100,000 in gross sales and 200 or more transactions each year, you need to collect California use taxes. Previously, if your online store or business was physically located in another state, there was no requirement to collect taxes on sales made to California customers. This stands in contrast to brick-and-mortar laws, which have required CA use tax collection for years and years.


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Old 04-13-2019, 5:44 PM
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Not their fault, and absolutely nothing they can do about it.
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Old 04-13-2019, 6:00 PM
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Welcome to our tax and spend state...now requiring all internet sales to be taxed...must be collected and remitted to state by vendors who sell here...
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  #6  
Old 04-13-2019, 6:02 PM
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I've ditched other companies in the past over this; time to find another supplier. Between shipping and tax, often it isn't worth it. Problem is that finding what you need often isn't local enough.
Thank the Lord that all the ammunition stockpiled over the years from the various internet sellers went through.
Thankfully with retirement coming very soon, I'll be gone.
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  #7  
Old 04-13-2019, 6:31 PM
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Quote:
Originally Posted by splithoof View Post
I've ditched other companies in the past over this; time to find another supplier. Between shipping and tax, often it isn't worth it. Problem is that finding what you need often isn't local enough.
Thank the Lord that all the ammunition stockpiled over the years from the various internet sellers went through.
Thankfully with retirement coming very soon, I'll be gone.
As already noted, as of April 1 2019, ALL OF THE RETAILERS are affected by CA's decision - no place to go if you are buying from CA.

ETA Here's the Dec 11, 2018 announcement from CDTFA - http://www.cdtfa.ca.gov/news/18-59.htm
Quote:
The California Department of Tax and Fee Administration (CDTFA) announced today that beginning April 1, 2019, out-of-state retailers selling above certain thresholds into California will be required to collect California use taxes on their sales into California. Today 's Special Notices also impact in-state and out-of-state retailers' obligations to collect and remit district use taxes adopted by California localities.

"Today 's announcement does not increase or create any tax," said CDTFA Director Nick Maduros. "Rather, California will now require more out-of-state retailers to collect and remit taxes just as brick-and-mortar retailers have done for decades. With the Supreme Court 's decision in Wayfair, California is able to help level the playing field for California businesses."
More detailed requirements, if you can stand to read them, at http://www.cdtfa.ca.gov/industry/wayfair.htm
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Last edited by Librarian; 04-17-2019 at 10:22 PM..
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  #8  
Old 04-13-2019, 6:37 PM
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There are few places to hide from these taxes now, unless you move to a state that has no general sales tax (like Montana)
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  #9  
Old 04-13-2019, 9:41 PM
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California also just announced that they plan to add additional tax to your water bill, and tire purchases.

I'm not making this up!

There's also a bill to increase dros fee from $25 to $63.
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  #10  
Old 04-13-2019, 9:58 PM
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you pay tax when you earn the money, then you pay tax again when you spend the money which has been taxed already.
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Old 04-13-2019, 10:55 PM
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After the SC case, there will most likely be sales tax charged to buyers in EVERY state that has sales tax.

Had a sale on ebay (used item, no less). I noticed when sending the invoice, that ebay automatically added (and collected) the applicable state tax where the buyer resided...
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  #12  
Old 04-13-2019, 10:56 PM
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I hope/wish all 49-state businesses refuse to sell anything to CA. Piss off enough people to get the blood suckers in Sacramento sweating.
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  #13  
Old 04-14-2019, 7:56 AM
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Quote:
Originally Posted by SkyHawk View Post
There are few places to hide from these taxes now, unless you move to a state that has no general sales tax (like Montana)
And Oregon

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  #14  
Old 04-14-2019, 8:03 AM
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Just ordered (and have received) tires and wheels from TireRack in Indiana, by way of their Nevada warehouse facility.

I paid a significant sum in the form of California sales tax as part of the total cost.

I am not happy about it. :-|
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  #15  
Old 04-14-2019, 8:03 AM
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Originally Posted by Illumi Naughty View Post
I hope/wish all 49-state businesses refuse to sell anything to CA. Piss off enough people to get the blood suckers in Sacramento sweating.
You do realize that this isn't a California thing, yes?
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  #16  
Old 04-14-2019, 8:03 AM
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Don’t burn MidwayUSA because CA has its finger up everyone’s poop chute, any vendor sending anything to CA has to pony up now.
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  #17  
Old 04-14-2019, 8:19 AM
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Optic planet also start charging sales tax.
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  #18  
Old 04-14-2019, 8:52 AM
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Yes I was going to make a purchase this morning and didn't.
I will wait until next month when were at our idaho home.
Calif. keep screwing the tax payer and these idiots keep voting them in.
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  #19  
Old 04-14-2019, 9:03 PM
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Anyone got a free shipping code for Midway?

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  #20  
Old 04-14-2019, 9:40 PM
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https://smallbiztrends.com/2019/01/l...sales-tax.html

heres the list of all states that will require sales tax collection by all internet retailers.

so good luck finding a state that doesn't want some of that missing tax money. oh and also blame all your local businesses for this too. they are the ones that complained that they can't compete with internet stores and helped push for this.
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Old 04-14-2019, 9:58 PM
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Originally Posted by Scratch705 View Post
https://smallbiztrends.com/2019/01/l...sales-tax.html

oh and also blame all your local businesses for this too. they are the ones that complained that they can't compete with internet stores and helped push for this.
The local businesses had a right to complain. Too often they were used as showrooms for online stores. Guys would go in, waste a clerks time getting the right size shoe or whatever then order it online.
Same thing happened to gun shops. Spend a bunch of shopkeeper time learning about a scope or holster, then skip out and buy it online.

I don't blame local shops one bit for the sales tax issue
Hell, the states were going to get it regardless.
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  #22  
Old 04-15-2019, 9:05 AM
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I placed an order with Brownells a couple of days ago. No sales tax.

Quote:
Too often they were used as showrooms for online stores. Guys would go in, waste a clerks time getting the right size shoe or whatever then order it online.
This something I will not do. I have seen this happen more than once, while I waited patiently for the counterperson to help me.

Most times, I will see if the shop can order the item for me, and they will usually do so. I make the effort to support local shops as much as I can.

In some cases, the item I want is only available from a non-local source, so I do order online. If they charge sales tax, I am OK with it. I look for high quality items at a fair price and good customer service, whether local or not.
-p
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  #23  
Old 04-15-2019, 9:39 AM
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Quote:
Originally Posted by GW View Post
The local businesses had a right to complain. Too often they were used as showrooms for online stores. Guys would go in, waste a clerks time getting the right size shoe or whatever then order it online.
Same thing happened to gun shops. Spend a bunch of shopkeeper time learning about a scope or holster, then skip out and buy it online.

I don't blame local shops one bit for the sales tax issue
Hell, the states were going to get it regardless.
Retail businesses need to adapt to the changing marketplace and more informed shoppers. They often complain about people using their stores for showrooms.

I think its patently crazy to think you have someone in your store that is holding something they intend to buy and you can't figure out how to sell it to them. Is it a matter of price matching? Does the product have MAP pricing? Then pay the tax or bundle it with something else. Does your return policy suck?

You decide what is worse, making 20% instead of 40% or making 0%.
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Old 04-15-2019, 7:35 PM
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If I order online now I will wait for free shipping and or a significant discount code to offset the state tax.
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Old 04-15-2019, 7:37 PM
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Quote:
Originally Posted by Preston-CLB View Post
I placed an order with Brownells a couple of days ago. No sales tax.
-p
I order frequently from Brownell's, Place an order a couple of days ago and no sales tax.
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Old 04-15-2019, 7:38 PM
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What's a Kali?
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Old 04-15-2019, 8:46 PM
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Midway was one of the companies that refused to recognize the MillionMag Benitez deadline. Don’t buy anything from them. Go to Brownells


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  #28  
Old 04-15-2019, 9:48 PM
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What's a Kali?
A goddess of destruction.
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Old 04-15-2019, 10:08 PM
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Quote:
Originally Posted by Dirk Tungsten View Post
Quote:
Originally Posted by rudigan View Post
What's a Kali?
A goddess of destruction.
Also, the name of a city in India.
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Old 04-15-2019, 10:13 PM
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Quote:
Originally Posted by Blacktail 8541 View Post
I order frequently from Brownell's, Place an order a couple of days ago and no sales tax.
Brownells and the CA Tax Board have not come to an agreement yet.

Currenty, Brownells collects sales tax for orders from the following States:
Iowa, Washington, North Carolina, Kentucky, Minnesota, Wisconsin, Illinois, Michigan, Indiana, North Dakota, Alabama, South Dakota, New Jersey, Connecticut, South Carolina, Colorado, Nebraska, and West Virginia.
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Old 04-15-2019, 11:10 PM
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Given that we're phucked on sales tax, if I'm going to have to pay it, I will support my local ma & pa gun shop.
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Old 04-15-2019, 11:25 PM
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Quote:
Originally Posted by Spyder View Post
You do realize that this isn't a California thing, yes?
It is and isn't. Supreme court said they could and California said hell yes.
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  #33  
Old 04-15-2019, 11:55 PM
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Hello. I am an online vendor. This is very troublesome for us.

Before the supreme court ruling, we only collected sales tax from CA. It is very difficult, we have to collect CA taxes and any other county/city tax. So we have to calculate zipcode by zipcode.

After the supreme court ruling, states are requiring online retailers to collect sales tax. It is not all states, maybe 30 or so I am not sure, there’s a chart somewhere. So now we have to collect sales tax for the other states and any other county/city sales tax as well.
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Old 04-16-2019, 7:40 AM
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Paid tax to Palmetto State during MAG-APALOOZA.
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Old 04-16-2019, 8:03 AM
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Just bought a $750 lens on Amazon. No tax.
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  #36  
Old 04-16-2019, 8:28 PM
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Quote:
Originally Posted by tonyxcom View Post
Retail businesses need to adapt to the changing marketplace and more informed shoppers. They often complain about people using their stores for showrooms.

I think its patently crazy to think you have someone in your store that is holding something they intend to buy and you can't figure out how to sell it to them. Is it a matter of price matching? Does the product have MAP pricing? Then pay the tax or bundle it with something else. Does your return policy suck?

You decide what is worse, making 20% instead of 40% or making 0%.
You tell me: Is losing money on a deal better than not making the deal?
Does the concept of overhead enter into your reasoning? How about economies of scale?
Rent, wages, utilities and California taxes eat into that 40% markup and where Brownells can easily order 100,000 magazines and pay one price, the shop that buys 50 will pay a significantly higher price. And Brownell's, Amazon, Midway and the rest get tax breaks and other incentives that make their cost per unit sold a lot lower.
And on top of that, the local gun shop had to charge sales tax.
Now everyone has to.
Blame state and local governments for having sales taxes in the first place. Many states seem to get by without them.
And I don't know of a single shop owner who likes collecting taxes or dealing with the entities who demand them. (Which, by the way, also costs them money)


eta: I remember that Palmetto sent postcards to folks in Washington saying (I paraphrase) We notified the state of Washington that you spent XX dollars with us and you now owe the state YY dollars.

Hooboy that pissed off a lot of Washingtonians.
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Last edited by GW; 04-16-2019 at 8:34 PM..
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  #37  
Old 04-16-2019, 8:40 PM
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CA sux ***. Apparently our income tax and gas tax is not enough. F this *** sucking state
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Old 04-16-2019, 8:55 PM
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Quote:
Originally Posted by GW View Post
You tell me: Is losing money on a deal better than not making the deal?
Does the concept of overhead enter into your reasoning? How about economies of scale?
I understand the concept quite well actually. I've deployed and maintain 5 different e-commerce platforms that have a combined revenue of about 6-8m per year. About 60% of that is wholesale to a dealer network.

Selling 95% of inventory at a 20% margin > selling 20% of inventory at 40% margin.

Yes, b&m have overhead and employees. You think online stores inventory is floating in the cloud. Yeah online stores have overhead and employees too, ask me how I know. The point is if you don't sell anything because you think you are entitled to charge more, because of your 'brick and mortar overhead', it doesn't matter what your margin is if your sales are zero.
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Old 04-16-2019, 9:23 PM
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Yeah, I was just going to make a $300 purchase.
The extra $30 for CA tax has me waiting for some kind of sale before I pull the trigger.
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Old 04-16-2019, 9:25 PM
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Well, I guess the issue is entitled to or need to.
If that 20% mark up doesn't make your nut then you need to charge more.
But then the local B&M is coerced to add insult to injury by adding 9.25% sales tax. And, at least IMO, that puts your local shop at an even greater disadvantage. At least now the Amazons and PSAs and the rest get stuck with the same PITA as the local store, worse actually because they have to figure taxes for every city and county they sell to.
I reiterate, though, the local gun, car parts or hobby shop et al are NOT the villains here. It is the state and local governments that are demanding these taxes in the 1st place who are the real culprits here.
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