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Conference wahoo::fishing

Title:Fishing Notes- Archived
Notice:See note 555.1 for a keyword directory of this conference
Moderator:DONMAC::MACINTYRE
Created:Fri Feb 14 1986
Last Modified:Fri Sep 20 1991
Last Successful Update:Fri Jun 06 1997
Number of topics:1660
Total number of notes:20970

1042.0. "Abuse Tax? Mailorder Taxing?" by FSHQA1::EPETERSEN () Tue Mar 21 1989 12:20

    Howdy Folks,
    
    When I received my mail order stuff from Cabela's there was a card
    enclosed mentioning something about an "Abuse Tax" , where the consumer
    would have to calculate the taxes on their purchases for the
    appropriate state (either your state, or the state where you're
    having the Mail Order goods sent).
    
    I agree this would be a real pain, Cabela's states that "Consumers
    would be the real losers" and 1/2 the card is set up so you can
    send it in to your Congressman_______________ stating "I've got
    enough to worry about instead of calculating 5.5% of $28.95, Stop
    the Abuse Tax"
    
    My question is: Do you think this would lower prices from mailorder
                    catalogs? , or will it increase them in a similar
    		    way that the bottle bill did?
    
    Where does the BassPro Catalog stand on this?
    
    I'm not sending this in unless I get a better feel of what is involved.
    
    
    Erik							
    
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1042.1Already HereSOLKIM::HORWITZBeach BagelTue Mar 21 1989 13:3413
    I doubt very much that this "abuse tax" would have any effect on
    the catalog prices.
    
    This 'mailorder' tax is not new. For the past few years, NJ has
    been trying desperately to collect the state sales tax on items
    purchased out of state. They go so far as to include a separate
    form with the State Income tax forms so you can 'fess up and pay
    up on everything you bought outside of NJ but had delivered in NJ.
    
    Interesting in that after the first year, they haven't published
    any annual results.
    
    BAGEL who_NEVER_buys_ANYTHING_out_of_state
1042.25% of 100 = ? ;-)FSHQA2::EPETERSENTue Mar 21 1989 14:216
    I'm wondering why Cabela's (or any mailorder company) cares about
    this tax.  What effect *does* it have on the M/O companies?
    
    It seems to be more of a burden on the customer, and who doesn't
    own a calculator these days?
    
1042.3WHO WANTS TO BE THE TAX MAN?SOLKIM::HORWITZBeach BagelTue Mar 21 1989 15:3612
    re:.2
    
    The m/o houses don't want to be bothered with the additional burden
    of being a TAX COLLECTOR for all those states with sales taxes.
    
    Historically, there was a good scam to buy expensive stuff in a
    neighboring state, and have it 'shipped' home. (Years ago my then
    soon-to-be-wife got a nicer engagement ring because we bought it
    in NY and had it 'shipped' home. We didn't have to pay tax in either
    state, and I applied the $ to the ring)
    
    Rich
1042.4Last loophole???DECWET::HELSELA thousand points of lightwt threadsTue Mar 21 1989 16:137
    Yup,  If you go to LL Bean's and you buy a pile of stuff they
    ask you if you want to carry it or have it shipped home
    tax free.  
    
    You say to yourself, "how long is this gonna last"
    
    /brett
1042.5Those Greedy Buggers!!CASV05::PRESTONBetter AI than none at allWed Mar 22 1989 14:2322
    I recently completed a course in Small Business Management, and
    the prof told us that Congress was trying to pass a law that
    would require mail order businesses to register as a business in 
    every state in which they planned to do business. In effect, this
    means all 50 states for any serious mail order house. Obviously,
    this was meant to be a precursor to collecting more taxes. Our
    Congressmen, really looking out for our best interests!
    
    If you think that this won't have an impact on prices, think again.
    The extra adminstrative overhead adds to their cost of doing business,
    which affects their profit margin, which affects how well they are
    able to offer competitive prices.
    
    I recently ordered something froma mail order house in Utah, and
    to my surprise, I was charged Massachusetts sales tax! This wasn't
    the case last year! Watch out, guys!
    
    If there's any specific complaint to make, we should make it now!
    
    Ed

    
1042.6Congressman ????????FSHQA2::EPETERSENWed Mar 22 1989 16:0813
    
    Thanks for the replies,
    
    Ed, I agree about the extra overhead (as I mentioned refering to
    how a 6 pack went up over a buck PLUS 30 cents!).
    
    It's going in the mail.  Which Congressman do I send it to, any
    idea?  I've never sent in anything to the government?
    
    I've gotten about 4 of these cards so far, so I can send them to
    more than one congressman.
    
    Erik