Speedway tax

[James903]

Anyone else get a letter from speedway listing all purchases and dates mentioning state sales tax hasn’t been paid?

[Bentbolt]

no but I was going to make a purchase earlier this week and they wanted to charge tax. they was in Florida and im in iowa. I thought it was only if it was coming from same state.

[Clyde65]

That depends on your state. Many states changed their laws so they could get some intrastate revenue...

[LEEVON]

I would toss that letter in the garbage can. If they didn't collect tax at the time of sale and are now liable for it to your state, how is that your fault? Unless you really like Speedway and want to donate to their screw-up. It's true though, many online transactions are now taxed depending on your state. Big retailers like Amazon were first, the smaller ones are catching up. It sucks, but it also saves my from itemizing these transactions on quarterly filings for my business.

[mongocanfly]

I had been buying stuff from one place out of state..never charged tax...last time I ordered they charged me tax....when I questioned it they said they now had a store in our state so they had to charge tax....

[The Rocknrod]

Yes if they have a store in your state like Northern Tool etc. or the home state says "they want they muny" You will pay tax at the transaction / checkout.

[StorminNorman]

Summit does something like this too. They don't charge the tax, but they tell you they are reporting the purchase to your state revenue dept. Ostensibly so they state can send you a tax bill. Some thing to do with some laws that were made. Not all states.

[jeffahart]

Just got an alternator delivered to my doorstep yesterday from summit. $132 no tax Free shipping. Got here in two days.

There are a few hundred tax jurisdictions in Los Angeles County! And over 10,000 nation wide. And they all want a piece of the tax pie. If you make a sale in an online store in Los Angeles county to someone living in Los Angeles County you have to pic the tax rate from that jurisdiction(by zip code). And you must maintain that tax schedule. Anything out of Los Angeles county in Cali would be a flat Cali rate. Imagine what a PITA maintaining all the jurisdictions state wide or nation wide. Another exercise to break the back of the little guy!

[James903]

It’s sounds like it might be something I could just blow off. I did notice when I was doing my taxes on TurboTax there was something in there asking about online purchases. So, I might just enter the amount and see what happens and how much it’s effects my return. i also thought about just holding on to the letter and riding it out and see what happens. I spent more ordering from cpp and a couple other companies then I did speedway last year and haven’t received anything from them yet. Speedway way needs to have a disclaimer or something at checkout if they don’t plan on collecting at time of purchase.

[FleetsidePaul]

No way would I pay a retroactive tax on a purchase.

[B. W.]

I'm with everyone else here - ignore it, not our problem. Eventually all of the states are going to start collecting BUT, IMO, it will probably cost them more to run the collection program that the taxes received (based on current gov't operating costs!)

Montana has no sales tax, which spoils me! I go out of state & find myself 17 cents short in the McDonald's drive through!

[James903]

I looked into it a bit more and I’m going to pay it. Its a new law Colorado passed to create more revenue. From what I read it has been trying to pass since 2010 but kept getting shut down and it finally approved mid July 2017. Speedway did what they were supposed to do as far as sending the letter, now I’ve got to do my part and pay up. Hopefully speedway starts including the state tax soon just to make it hassle free and easy. Thanks for all the input

[Mack B]

Originally Posted by James903

I looked into it a bit more and I’m going to pay it. Its a new law Colorado passed to create more revenue. From what I read it has been trying to pass since 2010 but kept getting shut down and it finally approved mid July 2017. Speedway did what they were supposed to do as far as sending the letter, now I’ve got to do my part and pay up. Hopefully speedway starts including the state tax soon just to make it hassle free and easy. Thanks for all the input

I don’t think they can collect the tax up front because of being in a different state. Every year my accountant asks if I made any online purchases I need to pay sales tax on, and I always reply honestly and say I’ve never even been on the internet . Levity. I know that ride is coming to an end.

[The Rocknrod]

I have paid taxes online when making a purchase. Not unheard of.

[Mack B]

Originally Posted by The Rocknrod

I have paid taxes online when making a purchase. Not unheard of.

Is this in response to this?

Originally Posted by Mack B

I don’t think they can collect the tax up front because of being in a different state.

I think the only time a business can collect on internet sales is when they have a physical location in that same state. I'm small potatoes but have made sales in surrounding states and wasn't allowed to collect the tax. I rely on a cpa to keep me out of the pokey