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Old 09-03-2009, 01:38 PM   #674
Evalou
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Join Date: May 2005
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Originally Posted by STAMPINGODDESS View Post
While I can't say with 100% certainty, it again has to do with state laws. I believe that any internet company that has a bricks & mortor presences in your state is required by state law to collect sales tax. Even though SU does not have a bricks & mortor presence, by their business model of having demonstrators in each state selling to customers in a particular state, they (SU) are required by law to collect sales tax regardless of whether your order is placed at a home party or via your demonstrator's website.

I would venture to guess that if SU did NOT collect the NJ sales tax from you, based upon their business model in your state, that the State of NJ would come after them.

I can say that at least here in Ohio where sales tax is charged on shipping I have beeen charged sales tax by EVERY direct sales/home party plan order I have placed whether it was placed at my friend's party or directly from the consultant's website.

Lastly, another piece of food for thought on the sales tax issue, if you are placing orders via the internet from companies that are not charging you sales tax on yoru order, then check your state laws. I know that here in Ohio, the tax code states that we are supposed to disclose to the state what we spent via the internet and are required to remit the applicable sales tax due with our income tax returns each April. Does everyone do this? If I was a betting woman I would say that less than 10% comply with this law, but it is on the books nonetheless.
Actually, they do not even have to have BRICK and MORTAR. What they do have is what is called NEXUS and that means they have a license to do business in that state. So, SU must have a license or (NEXUS) to do business in NJ. When a business has that license in any State, they MUST collect the State Sales Tax for that state and pay it to the state, IF that state charges sales tax and sales tax on shipping.
(This is what I work on for 18 years with the catalog company that I worked for)
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