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

[M19]

Originally Posted by The Bard Rocks

In wrestling with the issue of supporting local shops verses cheaper on-line stores, I finally came up with a practice that solves the issue for me. I pay the sales tax and buy local if everything else is equal.

^^^ I agree ^^^

[DCCougar]

Originally Posted by 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?"

Fortunately, I'm not in California, but I gotta ask: How is the California Tax Commission going to know that you bought a guitar from, say, Texas, off ebay?

Man, California really goes after the money, don't they? I'm looking to sell a house in California. Not only do the feds want 15% on the capital gains, California wants ANOTHER 13%. That's 28% on the capital gains? That's more than $66! Well, California can forget it - their greediness has forced us to do a 1031 Exchange, which shelters those capital gains....

[Kalani]

Only way they would know is:
1) You would have to get audited (which is already a slim chance)
2) the auditor would have to look at your credit card statement and/or your bank statement
3) auditor would then have to choose to look at that particular item; (pretty much rules out small purchases as there's a time cost-benefit factor to consider in an audit, i.e. is it worth their time to look at it?

Audit staff and budgets have been drastically cut over the years and they are understaffed which further lessens your chances of being audited.

BUT...it is your civic duty to pay the use tax (although I don't know of anyone who does)

[Spook]

There are some music store relics in very large cities from the time when it was common for people to make a living playing music. And I wish I could visit them. Brick and mortar stores will get some sales from those that won't buy unless they can handle whatever it is they're buying. As well as some sales from those willing to pay any extra to keep the place open (as if that's a viable business model). Thing is, where I live they don't carry the kind of gear I want. And if they did, I would expect them to compete on price.

Welcome to capitalism. We as buyers promote the free market economy by acting in our best interest. Grocery stores drove out roadside stands.. Walmart drove out main street shops.. Amazon is driving out lots of stuff. One day something will come along to replace Amazon. And that's exactly how it's supposed to work.

[Spook]

Somehow I don't think people in California are stupid enough to call out their out of state Craigslist and Ebay purchases on a tax form so they can send yet more money to the state. Agree with those that say this sort of draconian law should be circumvented. It certainly is not a reason to buy local and if I were considering a local merchant that said I should be worried about this, either ethically or legally, I would shop elsewhere.

When you buy from an online business (Amazon, Musicians Friend, et al) they will collect state taxes if your state requires it. That's where the real money is and what your local government is interested in.

[azfarrier]

I've found that almost always if I talk to a local store and ask them if they can give me the same out the door price as an online retailers price they will. It makes sense to them to take a little smaller profit than no profit at all. Sometimes the mark up is so small though that it just isn't there. And no I don't waste their time on picks and strings and such. This is only for large items. I've actually had a couple of places thank me for coming in and give them the opportunity to make the sale.

[aknow]

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?

Ask your local store to price match. Tell him to support you so you can support him.

[Paultergeist]

All,

I very much appreciate the thoughts and replies.

I think it was interesting to learn that -- technically / legally -- one is supposed to retro-actively pay state sales tax on items purchased over the internet, though I must say that I really don't think limited end-user purchasing activity such as my own is significant enough to be much of an issue.

I have been wrestling with the economics of it simply because I try to be thrifty (or "cheap," if one prefers) and monetary resources are very tight for me these days. Having said that, I have decided to buy locally and absorb the tax expense.

Originally Posted by aknow

Ask your local store to price match. Tell him to support you so you can support him.

I did discuss this with the Bose salesperson, but this is a Bose brick-and-mortar location, and these folks fall under Bose corporate policies -- I think Bose is standing pretty solid on their (current) end-of-year pricing. The salespeople just do not seem to have any latitude to help bridge the difference in cost with regards to ordering on-line.

What it comes down to for me is this: First, the particular salesperson I am working with is a real player himself, and that might be a useful professional affiliation to cultivate. Secondly, I see this as a bit of an insurance policy: if this unit ever gives me troubles, I want to be able to march right back there to that Bose store and ask for help (knowing that Bose has a pretty solid reputation for backing their products as it is).

Anyway, that is my decision. Pay the extra coin in sales tax and be in good standing as a customer at my local Bose store.

[azfarrier]

I hate to throw a monkey wrench into things now that you've made your decision but I just saw Sweetwater is offering many of their Bose products on sale now at 15% off. While I try and buy local it would be pretty tough for me to pay full price and sales tax for that. In your area that is an over 20% savings.

[JakeStone]

Originally Posted by azfarrier

I hate to throw a monkey wrench into things now that you've made your decision but I just saw Sweetwater is offering many of their Bose products on sale now at 15% off. While I try and buy local it would be pretty tough for me to pay full price and sales tax for that. In your area that is an over 20% savings.

It's already been established that all the Bose dealers have 15% off (Sale price $849.95).
The OP is buying direct from Bose at their local factory store.
https://www.bose.com/en_us/products/..._compact_black

In addition, all the authorized dealers have it at 15% off through Dec 31, 2017.

[troggg]

My local store here in The Land of Enchantment doesn't have a guitar that costs over $300 and charges $15 for a set of strings. Gee, let me think hard about where I'll shop!

The best buy-local perk I ever got was from the Denver Folklore Center. I'd been in there a bunch of times without ever pulling the trigger on a nice guitar. Finally, I bought a 60s D-18. The reward for becoming one of the family: they let you play Mississippi John Hurt's Guild F30!

[AxeDude]

Save your money-and your shipping boxes. If you can cut any money out from government, good for you. If local businesses don't like it, let 'em fight for lower taxes. I'm all for tax avoidance. If it's evasion, well-"do ya feel lucky punk?"

[azfarrier]

Originally Posted by JakeStone

It's already been established that all the Bose dealers have 15% off (Sale price $849.95).
The OP is buying direct from Bose at their local factory store.
https://www.bose.com/en_us/products/..._compact_black

In addition, all the authorized dealers have it at 15% off through Dec 31, 2017.

Sorry. I must have missed that part of the thread.

[JakeStone]

Originally Posted by azfarrier

Sorry. I must have missed that part of the thread.

No worries!

Congrats to the OP on your decision to get the L1C.. Regardless from where you got it from.

As we have seen here from Paul's last post, where we ultimately decide to buy from comes down to many factors.

Price is important, but not always the deciding factor.

Let's face it, in general we all want to save money and buy at lowest price... But there are times that spending a few more bucks is worth it. Like Paul said, he got the benefit of building relationship with local player... Plus local tech support from Bose factory store should he need it. Not to mention convenience, not having to worry about possible shipping issues from online dealer or return hassle (if needed).

But, personally, the notion of buying local to "support the local economy" is not a reason to me.. I am not going to pay more "Just" for that reason. But again, if the local store adds "Value" in some way, then it surely is worth it!