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Thread: Tool dealers that do not charge sales tax

  1. #1
    Join Date
    Jan 2022
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    Tool dealers that do not charge sales tax

    Looking for recommendations on internet retailers in United States that sell tools online and do not charge sales tax. I know of a few Festool dealers who fit this criteria, however, I'd like to hear about others that sell the Big Corporate brands (dewalt, makita, milwaukee, et cetera).

    Thank you and have a blessed New Year

  2. #2
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    Oct 2013
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    Good luck. Most states have really clamped down on interstate commerce as a method for people to avoid sales tax payments. I won't pretend to know the rules or regs--just that it seems to have pretty much dried up.
    earl

  3. #3
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    https://smallbiztrends.com/2022/01/i...sales-tax.html

    "Do You Need to Collect Sales Tax for Selling Online?"


    "Yes, and internet-based retailers have a 2018 Supreme Court ruling to thank for having to collect sales tax from shoppers and fill out tax returns."

  4. #4
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    So in some cases there are still some allowance on collecting sales tax. It depends on the state you live in, but if you ship out of state and your state has a minimum tax collection requirement, you might not get taxed if it's a small company. Some states have what is called a Sales Tax Nexus. They won't require you to pay sales tax unless you ship say, $100,000 worth of product to their state.

    It is state by state, very tricky and very hard to understand so I think most retailers shipping out of state are just collecting the tax and sending it in to be 'safe'.
    Distraction could lead to dismemberment!

  5. #5
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    You're looking for a very small retailer, or one who is willing to risk getting into hock with the New Jersey tax authorities. New Jersey requires sellers to register with the state and collect sales tax if they execute 200 or more transactions per year that are shipped into the state, or are selling through an online marketplace like eBay, Etsy, Zoro, or the like. Almost any serious business is going to register with the Streamlined Sales Tax system (a consortium of states that have created a common registration system for vendors), either directly, or through a Certified Service Provider (services that both register your business and compute and remit taxes for you). Trouble comes to those who don't.

  6. #6
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    Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
    Bill D

  7. #7
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    They get you coming and going. An online retailer will be obligated to collect sales tax and forward it to your state as long as they have an agreement with your state to do so. If not, it is assumed (by your state) that you will declare the purchase and pay it directly. This may not be the case if you live in a state without sales tax. Personally, I don’t worry about it. If sales tax makes it unaffordable I didn’t really need it to begin with. If my state wants to come after me for a $100 internet sale, I wish them well. Disclaimer: I don’t do a lot of tax free online purchasing. My state would spent $10K collecting $20 of owed tax. I’m not the the droid they’re searching for.
    Sharp solves all manner of problems.

  8. #8
    Quote Originally Posted by Bill Dufour View Post
    Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
    Bill D
    Bill, you probaby just missed it, but the OP lives in Jersey. Nevada wouldnt make as much sense for him as it does for you.
    "All that is necessary for the triumph of evil is that good men do nothing."

    “If you want to know what a man's like, take a good look at how he treats his inferiors, not his equals.”

  9. #9
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    Your best bet is probably to just make a list, call ahead and make the drive to Delaware.

  10. #10
    Quote Originally Posted by Bill Dufour View Post
    Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
    Bill D
    Since when? I have lived in Nevada since 1997 and I've always had to pay sales tax.

  11. #11
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    Maybe someone confused sales tax and income tax as far as Nevada is concerned.

    If the original poster is a Reseller and has a "Certificate of Resale", it shouldn't be too difficult to avoid paying taxes on something to be resold. If not, the sellers are probably paying the tax to make the sale (discounting the sale price to equal the taxes).

  12. #12
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    In Michigan, any seller making more than 200 sales to here, must pay the sales taxes to Mi.
    Now, how does any business know more than 200 sales will happen before hand? They don't, so they collect it anyway.
    What happens to those collected taxes if 200 sales are not met?

    The whole thing is stupid.
    Never, under any circumstances, consume a laxative and sleeping pill, on the same night

  13. #13
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    You can drive to Delaware and buy without paying sale tax at point of sale. You technically still owe it to NJ when you return, however. The "sales tax advantage" with mail order/Internet buying disappeared quite a while ago for the reasons that folks have already mentioned.
    --

    The most expensive tool is the one you buy "cheaply" and often...

  14. #14
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    Quote Originally Posted by Jay Runde View Post
    Since when? I have lived in Nevada since 1997 and I've always had to pay sales tax.
    My bad. I knew that. I still go to Hd and Lowes in carson city to get stuff not sold in California.
    Bill D

  15. #15
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    Quote Originally Posted by Jim Becker View Post
    You can drive to Delaware and buy without paying sale tax at point of sale. You technically still owe it to NJ when you return, however. The "sales tax advantage" with mail order/Internet buying disappeared quite a while ago for the reasons that folks have already mentioned.
    Yup- the drive to Delaware for bit ticket items is sometimes worth it, sometimes not if you get hit with piles of tolls, and of course gas. However I used to drive through deleware pretty often and stopping at woodcraft with tax-free purchases was nice.
    Distraction could lead to dismemberment!

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