Posts Tagged ‘Sales tax’


State Sales Tax Holidays

In Accounting & Finances,Business,Culture,Family,Taxes on August 10, 2012 by Sufen Wang Tagged: , , , , , ,

Almost Better than Christmas…

A lot of people accept the fact there’s sales tax on most products and they pay it without complaint. Other people accept the fact that there’s sales tax, and they pay it, but grumble every time they do so. And then there are the people who order everything online so they don’t have to pay sales tax, or if they can’t find an item online, they drive around from city to city, looking for the one with the lowest sales tax rate. And finally, there are the die-hard-no-sales-tax believers, who have moved to Alaska, Delaware, Montana, New Hampshire, or Oregon by now, so they don’t have to worry at all about a state sales tax.  

Now is the perfect time for anyone in those last three groups to take an end-of-summer trip across the United States. Many states have an annual, back-to-school State Sales Tax Holiday where consumers can buy certain items without paying sales tax. For example, from August 10-11 in Georgia, you can purchase school supplies worth up to $20 each, clothing items up to $100 each, and computers worth up to $1,000 each, without having to pay – you guessed it – sales tax.

In Connecticut, you have from August 19-25 to update your wardrobe – tax-free – on any clothing and footwear items under $300 each. While you missed your chance to buy a tax-free Energy Star air conditioner in Texas on Memorial Day weekend, you can still purchase tax-free clothing, backpacks, and school supplies ($100 max. cost each item) from August 17-19. Or you could just head over to Virginia anytime from October 5-8 to get your Energy Star products with no sales tax, at a maximum cost of $2,500.  Louisiana had the best offer in the first days of August with all tangible personal property (pretty much any item you can think of under $2,500) tax-free.

Unfortunately, there seems to be an absence of sales tax holidays on the west coast – perhaps that’s the price of good weather year-round.  However, Georgia just got on the State Sales Tax Holiday bandwagon in 2012, so it’s likely that other states will participate in the near future.  Texas, Connecticut, and the Carolinas have been doing this for over a decade, so if you missed the holiday this year, you can be pretty sure it will be back next year. That gives all of those “frugal” individuals out there time to look for the cheapest deals on flights and hotels. 

Happy Shopping, Sufen Wang, Wang Solutions

Articles Gets Two California Addresses…

In Accounting & Finances,Business,Culture,Taxes on June 14, 2012 by Sufen Wang Tagged: , , , , , , ,

with a Big Share of the Sales Tax….

Amazon could soon be your next-door neighbor. The online retailer already has plans to build fulfillment centers in San Bernardino and Patterson, CA. While these huge brick and mortar warehouses won’t attract tourists, they will generate much-needed local jobs and, even better, about $8 million for each city.

That’s because Amazon agreed to start collecting sales tax starting Sept. 15. Since all Amazon purchases by California customers will “originate” from San Bernardino and Patterson, those two cities will earn 100% of the city portion of the state-wide, standard sales tax that will be charged by the online merchant.

Except the cities won’t be keeping the full 100% – after all, Amazon needs a housewarming gift. Specifically, a sales-tax rebate of 75% from Patterson and 80% from San Bernardino. These deals are still in the works, but the high numbers are indicative of how desperate cities are to welcome major online retailers to the neighborhood.

However, Amazon as the new kid on the block isn’t necessarily a win-win situation. California law leaves it up to the merchant to pick the point of sale – that is, the community where they are physically housed which gets the share of the sales taxes. That means that online merchants can shop around the state for the best sales-tax rebate deal, while cities butt heads and try to out-bargain each other.

The result is that Amazon, previously so resistant to charging sales tax, could profit the most from the state sales tax – and not California itself. Now that’s hospitality at its best.
On the Money,
Sufen Wang
Wang Solutions