Alembic Guitars Club

Connecting => Miscellaneous => Topic started by: jorge_s on April 29, 2008, 06:19:20 PM

Title: So I purchased a guitar from Canada and I learned a couple of things.
Post by: jorge_s on April 29, 2008, 06:19:20 PM

When the guitar was delivered it came with a NAFTA document that stated I did not owe taxes.  A few months go by and I get a letter from the state that I owe a use equivalency tax.  Upon researching this I find out that not only do I owe state sales tax on imported purchases from out of the country but also on out-of-state or on-line purchases where the seller was not required to collect taxes.  Wow! I hope the state doesn't find out about all the purchases  I've made where the only extra payment was for shipping.

Title: So I purchased a guitar from Canada and I learned a couple of things.
Post by: rami on April 29, 2008, 08:27:40 PM

I get the same treatment when I purchase goods from the U.S. into Canada. First there's the exchange rate, then come the import duties, then the provincial and federal sales taxes.
I feel your pain.

Title: So I purchased a guitar from Canada and I learned a couple of things.
Post by: terryc on April 30, 2008, 03:40:06 AM

jorge s..careful what you post here..anyone can read this forum..including the tax people

Title: So I purchased a guitar from Canada and I learned a couple of things.
Post by: jorge_s on April 30, 2008, 05:55:09 AM

I am not trying to get away from paying what is due.  It was just my understanding that on out of state purchases you didn't have to pay sales tax when the company you purchased from doesn't operate in your state of residence.  I now stand corrected.

Title: So I purchased a guitar from Canada and I learned a couple of things.
Post by: bassman10096 on April 30, 2008, 06:08:39 AM

Jorge:  Different states approach the sales tax issue with different degrees of aggressiveness.  Most would tell you the tax is payable, but many feel they lack the ability (mainly the information) to enforce and collect the tax.  I wonder (and have absolutely no idea) whether international transactions, such as yours, may be sufficiently tracked and reported to allow a state to request payment.