Stupid question

Visibilities · 06-24-2018, 02:09 AM

Hey guys. In short, I have a racing shop doing a (re) build on my car. After some planning, we figured it would be best for the shop to order everything in for me and I'd pay it all on an invoice. However, the shop is charing me over $1000 in state sales tax (not labor tax) for the parts. I'm certain none of the parts distributors are in the same state as us, which seems to be the only logical reason I'd be charged state sales tax. I've never had a shop do work for me. Is this right of them? Thanks - Vis

h422694 · 06-24-2018, 06:08 AM

It depends. Sales tax is generally charged by the business selling you the items. If everything is on their invoice and they are in a state that charges sales tax, they have to charge you sales tax. Think about buying a car. If your state charges sales tax, you have to pay it regardless of where the car was actually built or sent to the dealer from.

Deputy347k9 · 06-24-2018, 06:23 AM

This must be one hell of a rebuild! What is the break down of the total rebuild cost?

motorhead · 06-24-2018, 07:03 AM

So you are dropping around 12grand in parts a lone into this build before sales taxs?
Because Oklahoma has a 8.68 tax in most of the state.

Steve Dallas · 06-24-2018, 10:30 AM

Remember that the Supreme Court just made a decision that online and retail companies selling to out of state now are REQUIRED to charge the sales tax of the state the purchaser is from. No more skipping out on sales tax...

HackSaw · 06-24-2018, 01:09 PM

When i heard about that supreme court ruling I thought thats going to bum out millions of people (Billions?) Glad it doesnt affect me

Visibilities · 06-24-2018, 01:37 PM

Well I guess that sums it up. Thanks for the answers. I was just a little suspicious about it. I'm in Oklahoma which obviously has sales tax. And yes, it's about 13k in parts. New motor

kmarshall2121 · 06-25-2018, 02:44 PM

Most states, if not all, dont allow tax on labor...

BMR Sales · 06-25-2018, 03:05 PM

Quote:

Originally Posted by Steve Dallas

Remember that the Supreme Court just made a decision that online and retail companies selling to out of state now are REQUIRED to charge the sales tax of the state the purchaser is from. No more skipping out on sales tax...

They made the decision to allow States to enact legislation to collect Sales Tax. It will happen, but if you want to escape the "Man", you need to act soon

pyroguy · 06-25-2018, 04:43 PM

You might be able to get away with the sales tax if you get a list of parts, buy them online, and bring it to the shop to install. However, like BMR Sales suggested you might want to act soon before states start enacting new laws related to it. The only time the government moves quick on any kind of legislation is when they can charge more money out of people.

Visibilities · 06-25-2018, 06:41 PM

It's too late. Parts are already ordered. I'll just bite the bill

Stingr69 · 06-26-2018, 07:23 AM

Fact - You were always responsible for reporting your out of state purchase and paying the sales tax yourself. Nobody ever did it though. Out of state retailers were typically not licensed to collect tax in all of the 50 states so the retailer could not collect and remit it. From a practical standpoint - no, there was no revenue officer chasing after you, but it was an act of tax evasion if you never reported and paid the tax yourself after the purchase.

06-24-2018, 02:09 AM	#1
Visibilities Drives: 2014 SS - Sleeved 427/Procharged Join Date: Mar 2017 Location: Central Oklahoma Posts: 109	Stupid question Hey guys. In short, I have a racing shop doing a (re) build on my car. After some planning, we figured it would be best for the shop to order everything in for me and I'd pay it all on an invoice. However, the shop is charing me over $1000 in state sales tax (not labor tax) for the parts. I'm certain none of the parts distributors are in the same state as us, which seems to be the only logical reason I'd be charged state sales tax. I've never had a shop do work for me. Is this right of them? Thanks - Vis

06-24-2018, 06:23 AM	#3
Deputy347k9 Drives: 2014 Ashen Gray Convertible Join Date: Apr 2017 Location: Havelock, NC Posts: 1,329	This must be one hell of a rebuild! What is the break down of the total rebuild cost? __________________

06-24-2018, 10:30 AM	#5
Steve Dallas Commits weekly crime Drives: 2017 Camaro 1LT Join Date: Nov 2009 Location: Camano Island, WA Posts: 9,513 View My Garage	Remember that the Supreme Court just made a decision that online and retail companies selling to out of state now are REQUIRED to charge the sales tax of the state the purchaser is from. No more skipping out on sales tax... __________________ 2017 Camaro 1LT - Blue Barchetta IV I fire up the willing engine, responding with a roar. Tires spitting gravel I commit my weekly crime.

06-25-2018, 04:43 PM	#10
pyroguy Started#gottalovethatblue Drives: ABM #831 Join Date: Apr 2013 Location: TN Posts: 6,913 View My Garage	You might be able to get away with the sales tax if you get a list of parts, buy them online, and bring it to the shop to install. However, like BMR Sales suggested you might want to act soon before states start enacting new laws related to it. The only time the government moves quick on any kind of legislation is when they can charge more money out of people. __________________ '10 Camaro 2SS/RS \| Aqua Blue #831 of 3,903 \| Silver Stripes Check out my build thread

06-24-2018, 06:08 AM	#2
h422694 Drives: '16 Z06 7 Spd, 2024 High Country HD Join Date: May 2015 Location: Kansas City area Posts: 442	It depends. Sales tax is generally charged by the business selling you the items. If everything is on their invoice and they are in a state that charges sales tax, they have to charge you sales tax. Think about buying a car. If your state charges sales tax, you have to pay it regardless of where the car was actually built or sent to the dealer from.

06-24-2018, 07:03 AM	#4
motorhead Drives: Love the one you're with Join Date: Sep 2009 Location: Downtown Charlie Brown Posts: 11,850	So you are dropping around 12grand in parts a lone into this build before sales taxs? Because Oklahoma has a 8.68 tax in most of the state.

06-24-2018, 01:09 PM	#6
HackSaw Drives: 2017 Camaro SS Join Date: May 2018 Location: Portland Oregon Posts: 151	When i heard about that supreme court ruling I thought thats going to bum out millions of people (Billions?) Glad it doesnt affect me

06-24-2018, 01:37 PM	#7
Visibilities Drives: 2014 SS - Sleeved 427/Procharged Join Date: Mar 2017 Location: Central Oklahoma Posts: 109	Well I guess that sums it up. Thanks for the answers. I was just a little suspicious about it. I'm in Oklahoma which obviously has sales tax. And yes, it's about 13k in parts. New motor

06-25-2018, 02:44 PM	#8
kmarshall2121 Drives: 2012 45th Anniversary Edition Join Date: Aug 2012 Location: San Diego, CA Posts: 1,618 View My Garage	Most states, if not all, dont allow tax on labor...

06-25-2018, 06:41 PM	#11
Visibilities Drives: 2014 SS - Sleeved 427/Procharged Join Date: Mar 2017 Location: Central Oklahoma Posts: 109	It's too late. Parts are already ordered. I'll just bite the bill

06-26-2018, 07:23 AM	#12
Stingr69 '69 Owned Since '79 Drives: '69 Z/28 LeMans Blue w/White Join Date: Oct 2008 Location: LR AR Posts: 1,847 View My Garage	Fact - You were always responsible for reporting your out of state purchase and paying the sales tax yourself. Nobody ever did it though. Out of state retailers were typically not licensed to collect tax in all of the 50 states so the retailer could not collect and remit it. From a practical standpoint - no, there was no revenue officer chasing after you, but it was an act of tax evasion if you never reported and paid the tax yourself after the purchase.