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Forum Thread
FYI, Connecticut Slickdealers: CT hunting down sales tax from online purchases (e.g. Newegg)
(First time SD forums poster, please have mercy! Sorry if I'm posting this in the wrong place... wasn't sure where this belonged.)
FYI to Connecticut Slickdealers: The state of CT is now trying to enforce its infamous "use tax" law, which claims you must pay CT sales tax even when buying something out of state. CT is sending notices to residents who have made substantial "tax-free" purchases from online retailers, demanding that they retroactively pay CT sales tax on their past purchases.
Full article from the Hartford Courant: http://www.courant.com/politics/h...story.html
According to this Reddit thread [reddit.com], the state seems to be only going after people who spent more than $2K in online purchases.
How does the state know what you bought? Well... the company you bought from may have ratted you out. CT sent inquiries to several major online retailers asking for info on purchases made by Connecticut residents. Some companies -- notably Newegg -- were happy to comply, and sent a list of names and purchase information to the state of CT, which then turned around and sent tax bills to those residents.
For most states, the argument is that if the online retailer does not have a physical (brick & mortar) presence in the state, the state cannot collect sales tax. Connecticut has decided it does not agree with that interpretation and (out of desperation for more tax revenue) started this campaign to collect additional sales tax. FWIW, South Dakota has tried this recently, and there is currently a major challenge to this tax collection scheme that is working its way through the courts and will likely end up at the Supreme Court.
TL;DR: Heads-up to Connecticut residents who make big purchases (especially tech-related ones) online: be careful who you purchase from. If you spend a lot at an online store that doesn't charge you sales tax -- and/or buy from a retailer who has no qualms about handing over your purchase info to the state, like Newegg -- you might be getting a tax notice from CT soon. Good luck.
[edit: "See Deal" link goes to Reddit discussion thread about this topic. Sorry again for any confusion.]
FYI to Connecticut Slickdealers: The state of CT is now trying to enforce its infamous "use tax" law, which claims you must pay CT sales tax even when buying something out of state. CT is sending notices to residents who have made substantial "tax-free" purchases from online retailers, demanding that they retroactively pay CT sales tax on their past purchases.
Full article from the Hartford Courant: http://www.courant.com/politics/h...story.html
According to this Reddit thread [reddit.com], the state seems to be only going after people who spent more than $2K in online purchases.
How does the state know what you bought? Well... the company you bought from may have ratted you out. CT sent inquiries to several major online retailers asking for info on purchases made by Connecticut residents. Some companies -- notably Newegg -- were happy to comply, and sent a list of names and purchase information to the state of CT, which then turned around and sent tax bills to those residents.
For most states, the argument is that if the online retailer does not have a physical (brick & mortar) presence in the state, the state cannot collect sales tax. Connecticut has decided it does not agree with that interpretation and (out of desperation for more tax revenue) started this campaign to collect additional sales tax. FWIW, South Dakota has tried this recently, and there is currently a major challenge to this tax collection scheme that is working its way through the courts and will likely end up at the Supreme Court.
TL;DR: Heads-up to Connecticut residents who make big purchases (especially tech-related ones) online: be careful who you purchase from. If you spend a lot at an online store that doesn't charge you sales tax -- and/or buy from a retailer who has no qualms about handing over your purchase info to the state, like Newegg -- you might be getting a tax notice from CT soon. Good luck.
[edit: "See Deal" link goes to Reddit discussion thread about this topic. Sorry again for any confusion.]
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I received a note from newegg today for purchases in RI.
Again, my letter is from newegg, not RI.
I purchased around 900 worth of goods this past year.
to summarize letter,
over $ 100 letters are sent out.
Owe tax on the 20th of the month following the purchase.
more later if I have time. But that is the basics.
Make me pay tax or not pay tax.
But to try to make me send in money each month seems silly to me.
once a year seems logical, maybe twice a year, but each month, blehhhh.
Or maybe Newegg can just start collecting it as other companies do now.
It is from a Rhode Island news station, and points out the difference is current enforcement philosophies between RI and CT.
(which seems to be CT is going hard after people right away, but RI seems to be letting it settle in with people, and pointing out that you are supposed to do so at the end of the year with tax filing.)
http://turnto10.com/i-team/consum...he-tax-man
There is a case coming before the supreme court that could decide the issue for everyone
https://www.bloomberg.c
I have seen people mention the changes coming, and being called trolls for it.
The supreme court case decision will be a big decider of where things go.
https://slickdeals.net/f/11280951-psa-newegg-sharing-historical-customer-purchase-histories-with-foreign-state-tax-collectors
https://slickdeals.net/f/11300855-newegg-s-lovely-surprise-for-their-connecticut-customers?v=1&s
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Also, if anyone is looking to sue Newegg for breaching the terms of their Privacy Policy which clearly states they will not share my information with anyone else, let me know. Sure would be nice to get a class action suit against them.
Newegg you are dead to me.
"We reserve the right to disclose your personally identifiable information as required by law, and when we believe that disclosure is necessary to protect our rights and/or comply with a judicial proceeding, court order, or legal process served on our website."
And from the Hartford Courant: "Newegg and other companies gave up their customer records in response to letters that the state tax department sent last summer to about 150 online retailers that have significant sales to Connecticut residents. Retailers were given two options: Begin collecting sales tax from Connecticut customers going forward and send that money to the state, or turn over the records."
"We reserve the right to disclose your personally identifiable information as required by law, and when we believe that disclosure is necessary to protect our rights and/or comply with a judicial proceeding, court order, or legal process served on our website."
And from the Hartford Courant: "Newegg and other companies gave up their customer records in response to letters that the state tax department sent last summer to about 150 online retailers that have significant sales to Connecticut residents. Retailers were given two options: Begin collecting sales tax from Connecticut customers going forward and send that money to the state, or turn over the records."
I also like that according to the news site "retailers were given two options: Begin collecting sales tax from Connecticut customers going forward and send that money to the state, or turn over the records." Except those aren't the only options. CT cannot just order a merchant that is not in their state to turn over their records. Newegg could've just told them to go pound sand. Yet, they did not. Which likely means that there is more going on that is not being disclosed. It is possible that Newegg has expansion plans in CT and needs to stay on their good side...