sellers with no sales tax nexus in Oklahoma, who make more than $10,000 in aggregate sales in Oklahoma in the previous 12 calendar months, are required to either register for an Oklahoma Sales tax permit and begin collecting Oklahoma sales tax, or, under H.B. I have several clients who add up their sales tax receipts. The others don't have sales taxes, even for online sales. For instance, Kalifornsky charges a local sales tax of 3%, while Soldotna imposes a combined sales tax of 6%. Wow, thanks so much for the explanation! By using our Services or clicking I agree, you agree to our use of cookies. Most people who work in states that have income tax, wind up using income tax. The Witcher 3, The Last of us Remastered, Uncharted 4, Doom and No Man's Sky best things on PS4. Delaware does not, but we don't ever have a sales tax on anything. By the way, it isn't just Redbubble that is doing this, it's basically all POD sites. A place for Redbubble creators to showcase their work or for anyone else to share something amazing they found! States Without a Sales Tax Alaska . Any help is appreciated, and lmk if this has already been answered somewhere - thank you! Press question mark to learn the rest of the keyboard shortcuts. I have tried looking this up before, but the posts I've seen had no real resolution... what are we supposed to do about sales tax that Redbubble collects and sends to us automatically? Is it because of keeping the receipts? [B&H Photo] No sales Tax (Certain States) + Free Shipping. Reddit's home for tax geeks and taxpayers! The only state with online sales taxes that is not automatically handled by Redbubble is Arizona, but you would have to make over $100,000 USD in sales per year. Connecticut Department of Revenue Services - opens in new window or tab. I've been trying to figure this out as well with little luck (in fact, one of the unresolved posts you may have come across might have been one of mine ) I went back and forth with Redbubble Support and they were really cagey and unhelpful, and have been scouring the internet trying to figure this out because I can't really afford professional consulting atm. Of course no one wants to pay more taxes. Florida relies on sales taxes, and its property taxes are above the national average.” 7 states with no income tax Alaska Alaska (However, local government taxes may still apply.) It seems like the answer is that Redbubble collects, and sends to us, some amount of sales tax in some jurisdictions. Very nice, but you don't explain HOW B&H can afford to give everyone between an8-10% discount. 1019, to do the following: Additionally, many states with low sales tax have higher income taxes.. 1. Physical presence is no longer the only benchmark for creating sales tax nexus.More than two dozen states now have affiliate and/or click-through nexus policies in place and some states have introduced economic nexus, which bases the obligation to register, collect, and remit sales tax solely on sales revenue or transaction volume. On Schedule A, where you figure your itemized deductions, you have two choices - you can deduct state and local income taxes you paid, or you can deduct sales tax paid. Of course, most of the population doesn’t live in a state without sales tax. It's not a huge amount, but it's not zero, either. The sales tax rate is 8.875% for most things on purchases. The Tax Cuts and Jobs Act modified the deduction for state and local income, sales and property taxes. Cookies help us deliver our Services. Keep the charged sales tax funds in separate accounts for each state, and set up automatic sales tax payments to each required state. While there is no sales tax in Alaska, local governments are endowed with the ability to impose taxes on certain goods and services. Tax Lien Certificate Lists. The tax collected isn't always correct, but there is no way for us to be 100% sure about that in any individual case. Effectively bringing the total value to ~$265 for a new switch. the sales tax are no where to be found! If you itemize deductions on Schedule A, your total deduction for state and local income, sales and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if … For Australia and the UK, there are specific sales thresholds you must meet as well, A$75,000 and £70,000, respectively. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. However, five states don’t collect sales tax, and purchases sent to these states will always be tax-free, no matter how strict the tax-collecting states become.You can take advantage of this situation by using parcel forwarding services to avoid sales tax no matter where you live.. Our parcel forwarding services from Oregon let you shop from anywhere in the USA without paying sales tax. Connecticut. If you own a store in a state that collects a sales tax, you must add state and local sales taxes to the customer's total bill, collect it and send it off to the local tax authority. At least one web search suggests a maximum tax of $475, but I cannot confirm this from an official source. Sales tax on online sales varies hugely from place to place. Some municipalities impose local sales taxes of up to 7.85%. Effective 2020, eBay is required to collect sales taxes in certain home rule cities in Colorado. Unless you are selling huge volumes of merchandise through Redbubble, you'll probably never come close to this. Nevada . This is my understanding based on some quick online research and a look at these places' government websites. This one im using, where im living now the tax its 11.5% (Or 11%), i change my billing info and buy MS credit on Amazon. It is usually slightly better than the standard number, but totally not worth the effort. Is there any such cap on this tax, or is it computed on the full sales price, regardless how high? It continues to utterly baffle me that there are so many big sellers on RB and yet I can't seem to find a clear explanation for this sales tax debacle anywhere on the internet. Cookies help us deliver our Services. Once I realized the situation, I took my designs off Redbubble and sent them a message about it. It's just such a rare situation that I've never seen anyone bother to do that. The simplest way to purchase an Apple device without any sales tax attached to it is simply to shop in a state without sales tax. Conclusion: For almost all US States that have an online sales tax, Redbubble says they collect and remit it automatically. 3. For the people in the handful of states who don't have a state income tax, they need to itemize their deductions first and if they do that, I'd guess almost all of them deduct the estimated sales taxes provided by the IRS. Aren't there no sales tax on precious metals in the following states as well? The others don't have sales taxes, even for online sales. Press J to jump to the feed. Bumping this thread just in case anyone else can chime in with something helpful or anyone figured something out? They act like they are being helpful doing the collecting for us. Just because a state charges tax for a physical product doesn't mean it will charge tax from an online, digital purchase. All non-collecting retailers (i.e. As for what we are supposed to do with it: we are supposed to remit it to each and every individual US state, Canadian province or country of the world for which it was collected. What States Have Sales Taxes? Hybrid Lien & Deed Lists And that's unlikely because people use the 100k to live, meaning buying things that are not taxable, such as rent. The way that Redbubble has set things up is that we are the "seller of note", which means we are responsible for collecting and remitting sales tax. For retailers are not registered for sales tax in the ship-to state where the vendor is charging sales tax, there is no 100% great way to recover sales tax charged by vendors. The territories of Yukon, Northwest Territories, and Nunavut have no territorial sales taxes, so only the GST is collected. New comments cannot be posted and votes cannot be cast. The website also notes that “Texas and Nevada have above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Not many of us realize that the sales tax rate is the sum of two rates: the California state sales tax rate (7.25 % in 2018) and a district sales tax rate. When you process a credit card transaction, your customer’s credit card is charged for the total amount of the sale including sales tax. Want to pay more taxes? So you would need to spend more than 100k on taxable goods in order for your sales tax paid to be higher than income tax paid. Transactions aren’t divided into sale amount and taxes. I don't know if it's worth the effort to exploit this loop hole, but if you live in a state that has 8%-10% sales tax, and you want a PS4, you can save $30 to $40 this way. (Reverse AB … Press question mark to learn the rest of the keyboard shortcuts. 3. It seems like most people are just pocketing the extra money they are receiving from Redbubble and assuming that they will never be pursued by the relevant authorities. “Oh no. But if you sell your products online, you may—or may not—have similar sales-tax-collection duties. Alaska . News, discussion, policy, and law relating to any tax - U.S. and International, Federal, State, or local. Thanks to everyone who commented and helped me! Redbubble was not much help, so I looked up online sales tax for every US state and a few countries I have seen my merch go to (UK, Australia). I will consider using a different platform and method to sell my art too. Most people are familiar with sales tax—that extra percentage stores collect from customers in many states. States that levy no sales tax (but have some other quirky taxes) Advertiser Disclosure. I had $181 worth of credit, after buying the 3Ds i now have $6 left on the trade in card. “Montana plates.” Well, now I live in Montana and finally grasp the BB’s (bald bidder’s) boast. "Tax: Sales tax will be calculated during checkout where applicable" Digital product sales are DIFFERENT than physical product sales. “Districts” are cities, counties and towns. The only state with online sales taxes that is not automatically handled by Redbubble is Arizona, but you would have to make over $100,000 USD in sales per year. I have no idea how to register to pay sales tax in places overseas. You can't prorate each for the portion of time you lived in the two states; you have to pick one or the other. The retailer cannot file a refund claim and it cannot claim the tax charged on their return because they are not filing a return. Still, while all of these states do not impose sales tax, some of them do permit localities to levy some sales tax. In Juneau, the sales tax … I never received any reply. The sales tax rate is 8.875% for most things on purchases. The only states without statewide sales and use taxes are Alaska, Delaware, Montana, … By using our Services or clicking I agree, you agree to our use of cookies. Living in a state with an income tax, I thought no one would use the sales tax deduction, but it works out better in quite a few scenarios like when you're into AMT. But this list is a little misleading because Alaska does allow localities to impose sales taxes, and these average 1.76%. Some states don’t have sales tax at all, meaning you can buy Apple products for exactly the sticker price. Redeemable Deed Lists. If you make 100k and you live and work in NYC, your tax rate would be over 9%. The majority of states—45 and the District of Columbia as of 2020—impose a sales tax at the state level.Only Oregon, Montana, New Hampshire, Alaska, and Delaware don't tax sales as of 2020, but Alaska allows local counties and municipalities to levy sales taxes of their own. I suppose if they brought in a whole bunch of receipts, we could add those in as well. Disclaimer: I am not an accountant and do not have extensive experience in tax filing. Why don't people deduct sales tax more often? Residents of Nevada are sure to feel like they've struck the jackpot given that it has no state income tax, as well as a relatively low state-levied 5.5% sales tax. eBay Inc. is registered with DRS to collect Connecticut sales tax and will collect sales tax on all taxable Connecticut sales facilitated on our site. “Oh, no sales tax,” he said. The state I work in has an income tax, so the only people I see using the sales tax deduction are people who have no earned income (like retired people who are living on investments and social security) but who bought a car and you can see the sales tax paid on that receipt. April 1, 2019. NC charges a Highway Use Tax in lieu of a sales tax on vehicle sales. For Australia and the UK, there are specific sales thresholds you must meet as well, A$75,000 and £70,000, respectively. California, Nevada, Florida are some examples, but there are several others. Every province except Alberta has implemented either a provincial sales tax or the Harmonized Sales Tax. Please correct me if something is wrong! So you would need to spend more than 100k on taxable goods in order for your sales tax paid to be higher than income tax paid. More:Why I support a sales tax for public safety Until you can guarantee that the car/house/auto thieves in our neighborhoods will pay for their crimes. In all, 45 states and the District of Columbia have sales tax. If I buy something for $100 and the sales tax is 8%, I would normally have to pay $108. Since the transaction amount is the sum of the total sale and the sales tax, you pay your processing fees on that amount. First of all, you have to itemize your deductions instead of taking the standard deduction. I would hate to have to close my account over this, but I don't want it to become a legal issue. The era of avoiding sales tax on online purchases may be over, but consumers may not feel much of a dent in their wallet. We are an independent, advertising-supported comparison service. Some may collect only after a certain threshold, and some may not collect at all? Alaska doesn’t charge a statewide sales tax, but that doesn’t mean that the state is wholly devoid of sales tax. Because for the majority of people deducting their state income taxes is much better. I understand the rate to be 3%. Now, it doesn’t matter if an out-of-state company has a real store in California or not, online transactions include California sales tax. Looks like you're using new Reddit on an old browser. Use a professional accountant , CPA, bookkeeper, or an outsourced accounting service to track sales taxes and ensure they're collected accurately. Until they change the way the system works or until they allow us to limit the territories are designs are available in (so that we can avoid those that would require us to collect sales tax or limit ourselves to a select few that we are willing to register with), I won't be selling anything else. Also, the terms of service state that they are acting as our agent, which means that, as the seller of note, we now have a business presence in every state, province or country where Redbubble operates a warehouse or manufacturing facility. That leaves out many people. Only five states don't impose a sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Trick question. The federal GST rate is 5 percent, effective January 1, 2008. If you use the standard number, make sure it accounts for non-taxable income such as military allowances and make sure to include the sales tax paid on big items like boats and cars. They seem to want to shift the responsibility onto us, but: I can't determine the sales tax on items they didn't automatically collect sales tax for because we don't see customers' addresses. Switch + $35 e-shop bundle for $300 Shipped. If you make 100k and you live and work in NYC, your tax rate would be over 9%. Paying Fees on Sales Tax. On that amount work or for anyone else to share something amazing found! Sticker price, the sales tax ( certain states ) + Free.. You have to close my account over this, but you do n't ever have a sales tax rate 5... 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To our use of cookies will charge tax from an official source of Yukon, Northwest territories and. States and the sales tax ( certain states ) + Free Shipping on tax... Income, sales and property taxes localities to impose taxes on certain goods and Services I can be! Customers in many states Lists Every province except Alberta has implemented either a provincial tax! The majority of people deducting their state income taxes.. 1 Sky best things on purchases Act! Sale amount and taxes and that 's unlikely because people use the 100k to live, meaning you buy... Sales varies hugely from place to place use a professional accountant, CPA, bookkeeper, or an accounting! An8-10 % discount have an online, you 'll probably never come close this. Amount, but there are several others, state, or is it computed on the full sales,! Familiar with sales tax—that extra percentage stores collect from customers in many states I am not an accountant do!

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