This Was A First (for me)

[jcm71]

I recently took advantage of PSI's 20% off sale and ordered $600 plus worth of pen kits. Total discount came to about $125. Imagine my surprise when I hit the next button, they added about $50 in sales tax. I have been buying from PSI off and on for over ten years, and this is the first time they have charged me sales tax. I guess PSI and Tennessee reached a deal. I am licensed as a small business in Tennessee and do charge my customers sales tax, which I remit to the state monthly, which means TN will get a double dip on the materials I use that have been purchased from PSI. i looked to see if I could set up my PSI account as a business. No such feature exists that I could find.

 

[Canoeroller]

All states having been changing their nexus laws so they can collect sales tax from online sellers. It would be worth the effort to see if you can talk to someone at Penn State to see if they would be able to set you up as a reseller. I would surprised if they do not.

 

[montmill]

Shouldn't have to pay sales tax twice. As William says you should be able to establish yourself as a business with your suppliers and pay sales tax once. Suppliers usually have forms to fill out.

 

[TellicoTurning]

Most likely the sales tax was for PA, not TN.... more and more states are charging sales tax for online orders.

Nothing is certain except death and taxes.

 

[MRDucks2]

Didn't used to have to pay sales tax on line in Indiana unless the business was in Indiana. The new legislation is that if a company does $300,000 or more of business it must collect Indiana sales tax.

In my edit I changed the word "charge" to "collect". As we have tried a few shows this year I found out that legally, in Indiana, the seller cannot "pay" the sales tax for the buyer. The buyer is legally required to pay all sales tax and the seller is actually prohibited from paying it for the buyer. As such, sales in which tax is not specifically added to the purchase price have to show, in the end, that a 7% discount was given and sales tax was actually "collected" from the buyer. Otherwise you are technically breaking the law.

 

[EricRN]

Most likely the sales tax was for PA, not TN.... more and more states are charging sales tax for online orders.

Nothing is certain except death and taxes.

Yeah. Used to be that states could only collect sales tax from individuals who live in states where the business has a brick and mortar presence. Then a Supreme Court case a few years back did away with that prohibition. So now states can require out of state sellers to collect sales tax on purchases made by residents of the state.

TN sales tax is brutal. I lived there 15 years ago.

 

[wmillman]

I wish the sale tax here was the same as TN at the moment, where I am here in Canada I pay 15% sale tax on just about everything I purchase. And the tax on gas and other fuels is crazy, it's so bad they try and hide it from you.

 

[jcm71]

Yeah. Used to be that states could only collect sales tax from individuals who live in states where the business has a brick and mortar presence. Then a Supreme Court case a few years back did away with that prohibition. So now states can require out of state sellers to collect sales tax on purchases made by residents of the state.

TN sales tax is brutal. I lived there 15 years ago.

Not so bad, especially when you consider TN has no state income tax. I pay tax on only what I consume. Everything else I keep. I wish my federal tax was that way.

 

[sorcerertd]

There's a threshold for businesses that sell online. I forget what it is, but if their sales are above that threshold, they are required to collect state sales taxes and remit them to the individual states. The threshold is not per state, but an overall sales amount. You should be able to register with PSI for tax exempt status. I hadn't really thought about it until now, but I should do that myself.

 

[TonyL]

Believe it or not, almost all US end-consumers are legally obligated to pay sales tax (assuming goods are not for resale and some churches and NFPs may be exempt) if the state of delivery charges sales tax on tangible personal property (whether bought inside or outside of the state). Each state defines what TPP is. Texas and others defines TPP as anything that can be perceived by any of the 5 senses. This how many states collecting tax on downloaded software, music etc..

So if goods are delivered to TN, one can use this form to report and pay sales tax (also know as Use Tax if not collected on sale by seller).

TN Sales and Use Tax Form or this Internet Purchases

I can see long lines for folks waiting to get their hands on this form .