Dilemma: Buy On-Line (No Tax) or Buy Local and Pay More?

[Paultergeist]

I know this is probably a weird question, but it is kind of nagging at me. I am curious what others may think:

I am probably going to buy a Bose L1c in the near future. There is a Bose Showcase Store in my vicinity, but purchasing locally from that location incurs sales tax of about $66.00 -- not trivial for me.

On the other hand, if I order on-line, I save the tax [and we are already taxed plenty!].....and this is probably the financially-prudent thing for me to do (funds are tight).....but I rather dislike the idea of not supporting local businesses when I can.....

Argh. This feels like a bit of a no-win situation. Any thoughts?

[MiG50]

I try to buy things from my local store whenever I can, because I believe in those guys, and they've helped me a lot in the past. But in those cases, it's more about the relationship with the shop and the guys. It's always nice to put money into your local economy, and it helps support a relationship with people that can help you back or do you favors, give you advice, or help with repairs, etc.

If that isn't important to you, or worth the added cost, then order online. I've skipped buying from a few local shops because I didn't like the people in those shops, and didn't trust them to help me out when I needed it. You have to evaluate the situation in your area and make that calculation for yourself.

[Ted @ LA Guitar Sales]

Originally Posted by Paultergeist

I know this is probably a weird question, but it is kind of nagging at me. I am curious what others may think:

I am probably going to buy a Bose L1c in the near future. There is a Bose Showcase Store in my vicinity, but purchasing locally from that location incurs sales tax of about $66.00 -- not trivial for me.

On the other hand, if I order on-line, I save the tax [and we are already taxed plenty!].....and this is probably the financially-prudent thing for me to do (funds are tight).....but I rather dislike the idea of not supporting local businesses when I can.....

Argh. This feels like a bit of a no-win situation. Any thoughts?

As you may or may not know, as in most states, in California, you are legally obligated to pay the sales tax on items you purchase out of state, so you are basically discussing circumventing a legal obligation. A public forum might not be the best place to discuss such things.

[jdto]

Also consider any future issues with the gear may be better served via a local shop, rather than trying to go through online and out-of-state issues.

[MaurysMusic]

MiG50 said it well. I'd compose an entire reply but he basically typed what I would have.

[Paultergeist]

Originally Posted by Ted @ LA Guitar Sales

As you may or may not know, as in most states, in California, you are legally obligated to pay the sales tax on items you purchase out of state, so you are basically discussing circumventing a legal obligation. A public forum might not be the best place to discuss such things.

Hmmmm....actually I did not know that, but I appreciate you mentioning it.

So....just hypothetically.....if someone such as myself were to purchase on-line from a vendor who does not charge sales tax on out-of-state shipments (as is the case in this instance), how would I -- as a dutiful citizen -- charge myself a sales tax?

[martingitdave]

If you are referring to a corporate Bose shop, I would not feel too guilty. Most people are thinking of local merchants, when they consider buying local. Also, some states require you to include the use tax in filing.

[Ted @ LA Guitar Sales]

Originally Posted by Paultergeist

Hmmmm....actually I did not know that, but I appreciate you mentioning it.

So....just hypothetically.....if someone such as myself were to purchase on-line from a vendor who does not charge sales tax on out-of-state shipments (as is the case in this instance), how would I -- as a dutiful citizen -- charge myself a sales tax?

Here's the info for California residents like yourself:

https://www.boe.ca.gov/sutax/usetax.htm#Overview

"Use tax is owed by April 15th the year after you make a purchase for which California tax was not charged. You can either pay once a year when you file your state income taxes, or make payments directly to the BOE after each purchase."

[Chriscom]

Originally Posted by Ted @ LA Guitar Sales

As you may or may not know, as in most states, in California, you are legally obligated to pay the sales tax on items you purchase out of state, so you are basically discussing circumventing a legal obligation. A public forum might not be the best place to discuss such things.

A state with a 7.25% sales tax deserves to be circumvented.

If it were me, I'd think about my relationship with the local shop. I don't know what kind of services a Bose Showcase store offers, and that might be worth the levy, including people on-site willing to either troubleshoot the unit or help you exploit it to the fullest.

I spent months playing tons of guitars at a local Guitar Center, working with a particularly good salesman, and by the time I was ready to buy my GPC-28E, really felt I owed him. I also feel comfortable going back and playing other guitars in there--as a prospective buyer.

On the other hand I later bought a $600+ guitar from Sweetwater and a $1,300 guitar from Elderly without agonizing about it, because they had what I wanted. In fact that Sweetwater guitar (I think) was an Epiphone Masterbilt model I had tried at that same Guitar Center, but it was dusty, sounded horrible and the saleswoman I worked with that day didn't know the first thing about it, though she acted like she did and I didn't discover that til later. In any case I returned both the online orders--and ended up buying my GPRS1 from another Guitar Center around here.

It depends! Very helpful I'm sure.

[ChrisE]

I am a former tax auditor with the state department of revenue and Ted is right. You're supposed to report sales tax like you mentioned on your state income tax returns.

It's up to you to decide if you're willing to take the chance of getting caught and having to pay the tax, interest, and penalties.

Ask yourself one question--"Do I feel lucky?"

[JakeStone]

Originally Posted by Paultergeist

I know this is probably a weird question, but it is kind of nagging at me. I am curious what others may think:

I am probably going to buy a Bose L1c in the near future. There is a Bose Showcase Store in my vicinity, but purchasing locally from that location incurs sales tax of about $66.00 -- not trivial for me.

On the other hand, if I order on-line, I save the tax [and we are already taxed plenty!].....and this is probably the financially-prudent thing for me to do (funds are tight).....but I rather dislike the idea of not supporting local businesses when I can.....

Argh. This feels like a bit of a no-win situation. Any thoughts?

I bought mine just recently from local GC here in town.. First off, I have a great relationship with the manager there. He always goes out of his way to accommodate me. So the more I do business the better our "relationship" builds.

Personally, on large purchases like the Bose.... Buying local also gave me piece of mind of the 45 day return policy (no shipping hassle). Plus during the holidays .. They extend returns until Jan 31, 2018. So if anything fails or if I decide on something else... I have ton of time...I think it's well worth it!

[Paultergeist]

Thank you all for the insightful replies.

Ted, I appreciate you addressing my question with such specificity as well as the web-added link. I learned something which I did not previously know. It is something to consider.

I’ll give this a little more time to settle-out. I appreciate all the thoughts and opinions offered.

[Paultergeist]

Originally Posted by JakeStone

......
Personally, on large purchases like the Bose.... Buying local also gave me piece of mind of the 45 day return policy (no shipping hassle). Plus during the holidays .. They extend returns until Jan 31, 2018. So if anything fails or if I decide on something else... I have ton of time...I think it's well worth it!

This actually WAS part of the consideration.....as some on-line vendors automatically extend the manufacturer’s warranty for free....!

[JakeStone]

Originally Posted by Paultergeist

This actually WAS part of the consideration.....as some on-line vendors automatically extend the manufacturer’s warranty for free....!

So Bose honors the extended warranty?

May I ask .. Which vendors extend the manufacturer's warranty for free?

[hotroad]

I would consider what services I receive from paying the local sales tax. My guess is you receive some nice services from the sales tax such as snow removal, road upkeep, and on and on. Just sayin......