View Full Version : When people say "no tax," they create potential legal problem
czieminski
10-18-2007, 12:38 PM
Slickdeals crew:
Has anyone ever asked your legal counsel about the potential problems with deals that reference "no tax," such as any deal involving amazon.com? You guys are usually pretty quick to take down posts with scanned coupons or other fraudulent matters. Not paying tax for internet purchases is illegal in most states -- you are supposed to pay "use tax" to the state, although I'm not sure if it is illegal to "advocate" not paying use tax by posting messages.
I'm also not sure what problems this poses for slickdeals, but I thought I'd bring it to your attention...I'd hate to see my favorite website sued by some state tax agency!
wikipost
10-18-2007, 12:38 PM
Those stores that people don't think charge tax do charge tax!!!
For Amazon.com, Kansas, Kentucky, North Dakota, or Washington are subject to tax.
And for newegg.com, CA, TN and NJ are subject to tax.
Just Peachy
10-18-2007, 12:57 PM
Slickdeals crew:
Has anyone ever asked your legal counsel about the potential problems with deals that reference "no tax," such as any deal involving amazon.com? You guys are usually pretty quick to take down posts with scanned coupons or other fraudulent matters. Not paying tax for internet purchases is illegal in most states -- you are supposed to pay "use tax" to the state, although I'm not sure if it is illegal to "advocate" not paying use tax by posting messages.
I'm also not sure what problems this poses for slickdeals, but I thought I'd bring it to your attention...I'd hate to see my favorite website sued by some state tax agency!
Wouldn't it be up to the retailer to get the tax if it's requested from a particular State?
czieminski
10-18-2007, 02:45 PM
Nope. Use tax is supposed to be reported to your state of residence when you make purchases out of state. Sorta like buying stuff internationally and then "declaring" it when you return to America. Check out these articles:
http://www.consumerwebwatch.org/dynamic/e-commerce-investigations-internet-tax.cfm
http://en.wikipedia.org/wiki/Use_tax
Tornadoredcabby
10-18-2007, 02:52 PM
So from now on it is "tax differed" not "tax free" :cool:
Tel0004
10-18-2007, 03:09 PM
I see nothing wrong with it. Its only saying no tax is charged upfront. What happens on tax day is none of my business, and none of slickdeals business. Its kind of like when you see a bong that says tobacco use only. Sure most people may not follow it, but its beyond the point.
*I don't smoke, I just though it was a good example.
Also, in some states, you are allowed a certain amount before you have to pay taxes on internet orders, and a lot of people may not hit that amount, so its completely legal. I think slickdeals has no responsibility to enforce the laws.
MissyMooMoo
10-18-2007, 07:30 PM
I think that "tax challanged" would be the best phrase to use. :rolleyes:
MozartA
10-19-2007, 12:46 PM
The additional problem is people don't understand a LOT of time it is only no tax (or deferred tax) for them.
For example, people post NO TAX for deal from newegg.com!!!
Or NO TAX for Amazon.com
But not true for everyone. For Amazon.com, Kansas, Kentucky, North Dakota, or Washington are subject to tax.
And for newegg.com, CA, TN and NJ are subject to tax.
So unless it is B&M deal and tax free day, otherwise people shouldn't put "no tax" since most people obviously don't understand some people do get charge tax. Usually when they said no tax (like Amazon, newegg) for certain deals, they are not correct for many people.
quazywong
10-19-2007, 12:49 PM
tax is ghey0rz