(Topic ID: 233111)

2019 New Pinball purchase will be taxed.

By mnpinball

5 years ago


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  • 586 posts
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  • Latest reply 4 years ago by SadSack
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    Topic index (key posts)

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    Post #297 Comments from a distributor. Posted by KingPinGames (5 years ago)

    Post #304 More info from a distributor. Posted by KingPinGames (5 years ago)

    Post #355 Economic nexus test, uses Louisiana as an example. Posted by iceman44 (5 years ago)

    Post #415 Comment from distributor. Posted by Gexchange (5 years ago)

    Post #465 State by state tracker. Posted by flynnibus (5 years ago)

    Post #505 Some expierence for 2019 and suggestions. Posted by Pinzap (5 years ago)

    Post #513 Break down of thresholds state by state Posted by Hemispheres (5 years ago)


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    -1
    #349 5 years ago
    Quoted from KingPinGames:

    This has definitely been on my mind lately. I have lots of customers in different states, mainly for tax reasons, but also because we have built a relationship. The way I understood the law was "if I (the seller) had a physical presence in the same state as you (the buyer) then I was required to collect the sales tax. On the other hand, if you (the buyer) were located in a different state then it was up to you to pay the tax. It's not that you never had to pay the tax, it was that I just never had to collect it.
    Now, under the new laws, I'm am a glorified tax collector for the government. What does this mean for me as a distributor? Let me ask this instead. Let's say I make the 18 hour drive one way from my office to texas pinball fest. What advantages does a texas resident have to buy from me instead of from their local distributor? Other than offering extended warranties and exclusive stories about the superstar jjp designer?
    I can see this new tax collection law increasing my local sales as now I am on the same price level as guys from out of state, but I can't see a reason (other than personal) for making the business journey to far away shows. I will probably still make the trip to tpf because I like the show and they (dallas) do not have a local JJP/Spooky distributor, but (as always) I encourage everyone to buy locally to support local dealers.
    I ask the pinside crowd this. Would you still continue to buy from and out of state dealer if they had to collect sales tax from you (and charge a higher shipping rate)? I included the high shipping since shipping one game states away cost more than shipping a dozen games to my office where "local" buyers can pick them up? I have lot of pinball friends in lots of other states, but I would not blame any of them for choosing to buy locally if all else was equal.
    Lots to think about in 2019.

    The short answer is no. I wish you luck in 2019, going forward is going to be a tougher ride.

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