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Author Topic: sales tax?
Richard Hamilton
Phenomenal Film Handler

Posts: 1341
From: Evansville, Indiana
Registered: Jan 2000


 - posted 12-11-2009 11:48 AM      Profile for Richard Hamilton   Email Richard Hamilton   Send New Private Message       Edit/Delete Post 
I ordered 2 bulbs a few weeks ago and had to pay for them in advance. I gave the dealer my checking account info and they took the money out of my account($2700), which I authorized. 6 days later they withdrew $250 from the same account without my knowledge. I incurred overdraft charges. The salesman said that it was for shipping, which there was a big mixup on, and he said they would credit my account. Now the accounting department is saying it is sales tax and they won't credit it.

My question is, how do dealers normally do this? Is charging sales tax a week after selling parts normal?

They are now telling me that if I have a tax ID#, they will gladly refund that money. They also said that if I do not have a Tax ID#, that the State of Indiana will refund that money. WTF???

I'm not badmouthing this company, just wondering about the billing and if it's right.

Rick

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001


 - posted 12-11-2009 12:11 PM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
Why the hell couldn't they just charge a price which included sales tax up front? That's what my company does. We provide an itemized list, a sub total and then another line item for sales tax and then the grand total. Pretty simple.

This supplier sounds very incompetent for not being able to do a little math. Potential defenders of this idiocy will say, "but different places have different sales tax rates." Boo hoo. If you're shipping products to that town in that part of the state you need a sales tax table saying who charges what. We update our lists at least once per quarter. Any company should be able to do that.

If I was in your position I would consider sending them a bill for your over-draft charges and time lost dealing with this bullshit. It also sounds suspicious for them to be dinging your bank account multiple times when they really only had authorization to charge it once.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 12-11-2009 12:39 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
Looks like time to find another dealer... Them taking extra out of your checkbook without telling you about it at first then explaining afterwards what happened and them tacking on the sales tax after a sale is completed doesn't seem a very correct way of doing business.

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Richard Hamilton
Phenomenal Film Handler

Posts: 1341
From: Evansville, Indiana
Registered: Jan 2000


 - posted 12-11-2009 12:47 PM      Profile for Richard Hamilton   Email Richard Hamilton   Send New Private Message       Edit/Delete Post 
Like I said, I'm not saying anything bad about this company, I was just wondering about these charges and the general practices of businesses. I was given the quote over the phone, then I asked the salesman to verify the price and shipping address (my home) via E-mail before I paid for them.

Before i even ordered them, I had done the research and knew exactly what my cost was going to be to ship them overseas once I got them. That price was reflected on my invoice to the theater.

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Brad Miller
Administrator

Posts: 17775
From: Plano, TX (36.2 miles NW of Rockwall)
Registered: May 99


 - posted 12-11-2009 01:15 PM      Profile for Brad Miller   Author's Homepage   Email Brad Miller       Edit/Delete Post 
Well somebody at that dealer is suffering from incompetence. I mean, everyone makes a mistake here and there, but that is ridiculous. Whatever price they quoted you should have included sales tax (if you bought it in the same state).

Next time just buy from Film-Tech. No sales tax and shipping costs are included. [Wink]

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99


 - posted 12-11-2009 01:18 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
I don't think I've EVER had a company charge our account more than once for anything...unless it's something agreed in advance, like multiple items shipping at multiple times. As for getting your money back from the state....that'll be the day.

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Mitchell Dvoskin
Phenomenal Film Handler

Posts: 1869
From: West Milford, NJ, USA
Registered: Jan 2001


 - posted 12-11-2009 01:28 PM      Profile for Mitchell Dvoskin   Email Mitchell Dvoskin   Send New Private Message       Edit/Delete Post 
Let's see. Indiana sales tax is 7%. $250 sales tax on $2700 is between 9.25% and 9.26%. If the dealer was not in the same state as the shipping destination, they currently can not charge you any sales tax unless the dealer has a physical presence in the destination state.

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Richard Hamilton
Phenomenal Film Handler

Posts: 1341
From: Evansville, Indiana
Registered: Jan 2000


 - posted 12-11-2009 01:46 PM      Profile for Richard Hamilton   Email Richard Hamilton   Send New Private Message       Edit/Delete Post 
I recieved an e-mail from the company saying it will be credited back to my account. Not sure if it was my persistant phone calls and e-mails to everybody and their boss, or me posting this on Film-Tech. Maybe Brad really is a god???

Rick

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David Zylstra
Master Film Handler

Posts: 432
From: Novi, MI, USA
Registered: Mar 2007


 - posted 12-11-2009 01:47 PM      Profile for David Zylstra   Email David Zylstra   Send New Private Message       Edit/Delete Post 
Correct me if I am wrong, but don't some state's mail order companies charge tax to customers in certain other states? I seem to recall that some states have agreements with other states to enforce the charging of sales tax (i.e. if you look at Amazon.com they show that they only charge sales tax to certain states).

If they were going to charge you for tax or shipping later the salesperson should have informed you - I wonder if you can report this to your bank as a fraudulent check and at least cause some hassle to the dealer for the "practice".

Either way you might be on the legal hook for the sales tax in your state (I have to claim all my out of state purchases that did not charge me tax on my MI income taxes and pay the sales tax on them).

I just read your update post - good news that they are crediting you the $$!

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Bill Enos
Film God

Posts: 2081
From: Richmond, Virginia, USA
Registered: Apr 2000


 - posted 12-11-2009 02:30 PM      Profile for Bill Enos   Email Bill Enos   Send New Private Message       Edit/Delete Post 
The tax laws pertaining to this are really screwy and it gets even more so when goods ship between states. The real issue is whether they can go back after the sale and draft your account again without permission, better talk to an attorney.

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Chris Slycord
Film God

Posts: 2986
From: 퍼항시, 경상푹도, South Korea
Registered: Mar 2007


 - posted 12-11-2009 05:30 PM      Profile for Chris Slycord   Email Chris Slycord   Send New Private Message       Edit/Delete Post 
Since they're giving him said money back, talking to an attorney seems unnecessary. [Smile]

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001


 - posted 12-11-2009 08:46 PM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
quote: David Zylstra
Correct me if I am wrong, but don't some state's mail order companies charge tax to customers in certain other states? I seem to recall that some states have agreements with other states to enforce the charging of sales tax (i.e. if you look at Amazon.com they show that they only charge sales tax to certain states).
Amazon has a number of distribution centers located across the United States. Generally speaking, if you live in a state that is home to an Amazon distribution center you're probably going to be paying sales tax on anything you buy from Amazon.com. The one nearest where I live is in Coffeeville, Kansas which is just north of the Oklahoma border.

Formerly, I was able to buy computers and other things mail order from Dell without paying any sales tax. About 5 years ago Dell opened a large customer service center in Oklahoma City just off the interchange with I-40 and I-44. Now that Dell has a "shingle" put up in the Sooner state anything I buy from them will include sales tax. That should make that next notebook computer purchase just a tad more financially painful.

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Jeremy Weigel
Phenomenal Film Handler

Posts: 1062
From: Edmond, OK, USA
Registered: Mar 2007


 - posted 12-11-2009 10:04 PM      Profile for Jeremy Weigel   Email Jeremy Weigel   Send New Private Message       Edit/Delete Post 
Oklahoma has a "use" tax that is suppose to be included when you file your state income tax. It is designed to collect the tax on items purchased out of state but "used" in this state. Its been on the books since the 1930's and came about as a result of catalog ordering and with internet sales sky rocketing over the past decade it has regained attention. Oklahoma as of about 5 years ago began listing the "use" tax again on the income tax form as a way to remind people that they are suppose to file it. Of course this is on the honor system. [Wink] I'm sure many other states have similar laws and are seeking ways to collect.

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Louis Bornwasser
Film God

Posts: 4441
From: prospect ky usa
Registered: Mar 2005


 - posted 12-12-2009 07:22 AM      Profile for Louis Bornwasser   Author's Homepage   Email Louis Bornwasser   Send New Private Message       Edit/Delete Post 
This is a very nasty issue that hits close to home.

Let's see. . . if I order from Christie and have them drop ship, I will pay sales tax in any state that THEY have a business presence (technician, or sale office.)

To avoid this, I will ship to my office in Kentucky and then reship. If the drop ship is to Kentucky or Indiana, then there is no problem, since I have sales tax numbers in those two states. IF THEY will ship international, there is no problem. Most will refuse.

It is impractical to fill out monthly sales tax reports in all tax jurisdictions: New York has hundreds, alone.

Hope this helps. . . . and, yes, the customer pays freight twice, but it is LESS than the sales tax. Louis

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