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View Full Version : Since when does Dell Business charge tax??


teddyFBI
08-19-2004, 06:41 PM
I was waiting for the price of the 20.1" monitor to drop just a little more before I bought it, so I was psyched this morning to see it for $719 on the Dell Business site. But with sales tax, it brings it up to about $765 (the "sale" price that you can usually find it at anyway).

I thought one of the perks of ordering from Dell was not paying tax...can I avoid paying tax on this somehow?

neotope
08-19-2004, 07:01 PM
You can avoid paying tax if you say you are buying it for the purpose of reselling it. Of course you'd also be comitting tax fraud then.

itsmarty
08-19-2004, 07:28 PM
The reason you don't pay tax for the most part online is because of US rules against taxing out of state customers, not because of a Dell policy. If you're asked to pay tax on an online purchase, it usually means the company you're buying from has a B&M location in your state and is required to do so.

Martin

Nixon
08-19-2004, 09:37 PM
Dell has charged tax for a while. Has nothing to do with having a store in your state. Most states that have a sales tax require you to pay tax on any purchases online. (Take a hard look at your income tax forms) Dell is basically taking the tax upfront. (Yes, I know few claim the sales taxes for online goods, but that doesn't mean you are not supposed to.)

itsmarty
08-19-2004, 10:56 PM
While that's the hope of most states, it's not true at this point. That's why you see lines such as "New York residents add 7% sales tax" at check-out.

Martin

Barry_G
08-19-2004, 11:56 PM
It's called a use tax or some nonsense. If you purchase goods out of state and bring back to your home state you are supposed to pay taxes on the item.

beernutz
08-20-2004, 01:02 AM
[ QUOTE ]
Dell has charged tax for a while. Has nothing to do with having a store in your state. Most states that have a sales tax require you to pay tax on any purchases online. (Take a hard look at your income tax forms) Dell is basically taking the tax upfront. (Yes, I know few claim the sales taxes for online goods, but that doesn't mean you are not supposed to.)

[/ QUOTE ]

I just purchased a PC from Dell's web site for my mother-in-law in July and she did not have to pay sales tax on it.

Bubu
08-20-2004, 01:47 AM
As several posters have pointed out, you are generally not charged tax by online stores if they are in a different state from that in which you reside. Technically you are required to declare these purchases in your state income tax (and pay the appropriate tax) - though few people do (I imagine).

Dell home user division does not charge tax (unless you are in Texas I think). Dell Corporate however does charge tax regardless of where you reside. I don't know why.

pzhon
08-21-2004, 07:56 AM
[ QUOTE ]
I was waiting for the price of the 20.1" monitor to drop just a little more before I bought it, so I was psyched this morning to see it for $719 on the Dell Business site. But with sales tax, it brings it up to about $765 (the "sale" price that you can usually find it at anyway).

I thought one of the perks of ordering from Dell was not paying tax...can I avoid paying tax on this somehow?

[/ QUOTE ]

According to a Dell sales representative a year ago, Dell Business is separated from Dell Home & Home Office. Dell Business has a presence in all 50 states. Home & Home Office does not. If you order from Home & Home Office from a state where they do not have a presence, you may be required by that state to pay taxes later, but Dell will not collect it up front.

Sometimes you get better deals on similar systems from one side versus the other, so if you use their web site check both.