I remember a few years ago there was a lot of fuss here in Florida about this same issue, on in regarding computers.  The Use Tax thingy has been on the books a long time but most people either don't know about it, or just simply choose not to remember.  Back then (5 or 6 years ago?) the state was requesting records from large mail order computer places for all sales made to Florida residences and then sending them bills for the tax.  I controversy then was over whether they had to right to require those records from out of state businesses.  As I remember, the State was successful in obtaining them.

So I wonder now if it is actually photographers they are going after or all major photography equipment purchases, like then did before?

I guess, Lisa, you can always think about all the interest you made off the state's money during the past 3 years, but if you're like me, who as the extra cash to let sit around collecting interest!

This happened to me as well several years ago on a couch I bought. From the pamphlet that came with the bill, it sounded like they want their share of any product that you didn't pay taxes on that resides in Florida. Or even the difference if the sales taxes you paid was less than their sales tax rate. I assume they only crackdown on large ticket items.

Only 7% sales tax? Lucky *insult removed*. In Belgium it's 21% VAT and in the Philippines 12%.

If you live in California you should have a read on this from Ken Rockwell this morning

Proposed New Internet Taxes

I'm unsure exactly what's going on, but proposed California Assembly Bill 178 (AB 178) will require out-of-state sites like Amazon (and pretty much every site) to collect sales taxes on everything sold into California.

This sounds like a bad idea to me, so I oppose this. (I bet my wife opposes it more; she shops even more than I do.)

You might want to express your opinion to your California assembly member ....

 

Ken can oppose things all he wants.    I did some reading on the Amazon suit here in NY. Here is an interesting note from Accountingweb. com from Jan 14, 2009

A New York state judge has dismissed Amazon.com's lawsuit alleging the online retail giant had no requirement to pay sales tax in the state due to a lack of physical presence.

Last July, Amazon.com Inc. filed a complaint with the Supreme Court of the State of New York saying it is unconstitutional to require e-tailers based outside of New York to collect the state's sales and uses taxes.

New York State Supreme Court Justice Eileen Bransten said that New York law requires companies to collect state and local sales taxes if the company generates $10,000 or more in revenue as a result of commissions paid to persons in New York for sales referrals, The Wall Street Journal reported. Justice Bransten wrote that, "There is no basis upon which Amazon can prevail."

Although Amazon has no physical presence in New York, the company, through its "Associates Program," pays unaffiliated Web site operators across the country a commission if they advertise Amazon on their sites. Those ads often allow consumers to click through from the advertiser's Web site to Amazon.com. Under a New York law enacted last April, that amounts to solicitation of business in the state, Reuters reports.

Amazon had argued in its lawsuit that the New York law unfairly targets Amazon, is overly broad and vague, and violates the commerce clause of the constitution because it imposes tax-collection obligations on out-of-state entities.

Amazon has been complying with the New York law and collecting sales tax on shipments to New York, but had hoped to prevail in its lawsuit. The company has the right to appeal the New York Supreme Court's decision.
 
The Affiliate Program, in which Ken is a likely participant, is in part how the courts justified the collection of tax. I don't know if Amazon has any appeal underway. Poor Ken. I feel so sorry for him. 

I, too, think that most states have a Use Tax and I have heard about it before. I don't think it was enforced, but as previously stated, now that everybody's grasping for money, I am not surprised that there will be a crackdown.

I think a lot of places are starting to charge sales tax. For instance, I just upgraded all my Adobe software to CS4 and ordered from the Adobe Store online, which lists its address as San Jose, CA. They included sales tax.

This is what scares me - I live in the US, too. My husband & I are in our early 50's. He's looking to retire when he turns 591/2 and can access what funds are still remaining in his 401K. We've both been relying on Healthcare benefit associated with his job; Medicare won't kick in until he's 67. We both have a lot of health issues, and with our "pre-existing conditions" it will be very difficult to get insurance, and if we do manage to find it, it will cost us a fortune. Lisa, are there any health issues in your family? I've heard insurance can $1000 or more per month for people with pre-existing conditions - who can afford that?  

Sorry to hear about your situation Allsa.   I really hope you find reasonable insurance.  This is a terrible dilemma for a lot of people.  

My step dad had lung cancer surgery over 15 years ago.  He has been cancer free since then but was unable to get insurance for a number of years.  Now he and my mom are covered through his job, but yeah, they pay an arm and a leg for it.  

My husband and I are in our 40's.  I have had health problems but have not had to change insurance since then, fortunately.  We did pay many thousands in copays etc. when I had surgeries, though. My husband works for the school board so they have good insurance, but it is expensive, not to mention a PITA when you need to get pre-approval for every little thing.  

ETA:  Sorry for going off topic.  Guess the ON topic point I am trying to make is it irks me to have to pay additional taxes when I don't get anything in return. 

Quote from: FlemishDreams on June 19, 2009, 23:23

Only 7% sales tax? Lucky *insult removed*. In Belgium it's 21% VAT and in the Philippines 12%.

That's only State taxes Flemish.  We also pay 25% federal income tax and 15% social security tax.

No I was mentioning VAT alone = sales tax in the US = 21%. The income taxes are a separate story. What about 50% income tax plus 20% social security tax paid largely by the employer?

States have been howling about use taxes on mail order and internet sales for decades. Sorry you got nailed in the Florida tax fishing for more revenue.You stated, they offered you with a payment option without penalty or interest. Oh how nice of them? What a heart?
Did they provide you with purchase information? Or was it a threat of audit?

 

Quote from: shutterdrop on June 21, 2009, 17:30

Did they provide you with purchase information? Or was it a threat of audit?

 

Threat of audit.  They don't appear to have any info about what I have bought.  Unless of course they already audited one of the stores I shop at, which info they did not volunteer.

Frankly even the possibility of an audit is enough of a threat for me.  I have a very low threshold for aggravation.  Would rather pay them the $ owed than fight it.   I am sure they are banking on a similar attitude from most photogs. 

Average gross income for photographers in the US is 52k.  (surely quite a bit less for average micro photog).  Who can afford to hire and lawyer and fight at that income level?

That what I thought. They are trolling for targets. I understand it cost money to fight and it is fight you may not win.

Yes, we have small claims court here.  I have never used it but I understand there are court fees to be paid.

However this is not a dispute with a neighbor.  It is the gov't enforcing a policy I don't like.  You can't take the government to small claims court to get out of paying taxes.   

However this is not a dispute with a neighbor.  It is the gov't enforcing a policy I don't like.  You can't take the government to small claims court to get out of paying taxes. 

If you are sure there is some abuse in the interpretation of the law, I believe you could.

Lisa,
I think when you filed for a corporate ID number and registered your Corp. with an address in Florida, you tripped the wire. 

I suspect you are right Roadrunner.  The timing is awfully coincidental...