Internet sales tax

[Blalock]

Last night I ordered a 308 upper from DPMS and noticed they charged me $92.00 for sales tax. It was after hours and the upper that I wanted wasn't in stock anywhere else so I placed the order. Today I called and told them that I lived in Md and not in Mn and asked to have the sales tax removed. They stated that it was not a mistake since they travel to gunshows around the country it constitutes a presence. I'm not sure how I feel about this as I've been to plenty of gun shows and have never seen DPMS. I understand its their policy so I'm gonna suck it up as I really want the upper but I was wondering what everyone thinks about thi?.

 

[WeaponsCollector]

Unfortunately legalized robbery(taxes) are very popular these days and I expect it to get even worse. There will be an expansion of internet sales taxes and an increase of many other existing taxes like the gas tax. Maybe we can even get a mileage tax added to the gas tax which is already a mileage tax so they can tax us twice for the same exact thing.

 

[erwos]

They're screwing you. There's no way that a gun show appearance could count as a "nexus" for tax purposes.

Might want to think about contacting the IRS to see if they have any thoughts about recovering unauthorized sales tax collections.

 

[INMY01TA]

I would have cancelled that order while you had the phone.

 

[kalister1]

Last night I ordered a 308 upper from DPMS and noticed they charged me $92.00 for sales tax. It was after hours and the upper that I wanted wasn't in stock anywhere else so I placed the order. Today I called and told them that I lived in Md and not in Mn and asked to have the sales tax removed. They stated that it was not a mistake since they travel to gunshows around the country it constitutes a presence. I'm not sure how I feel about this as I've been to plenty of gun shows and have never seen DPMS. I understand its their policy so I'm gonna suck it up as I really want the upper but I was wondering what everyone thinks about thi?.

Ask for the list of Maryland shows that they attend, so you can buy it there.

 

[PapiBarcelona]

I'm pretty sure I saw a DPMS table at timonium. Big DPMS bannner, well dressed rep or reps, and a few rifles on the table.

 

[webb297]

My understading is - If they send paid salesmen into or they make 1 physical sale in the state - that does count for Nexus

http://business.marylandtaxes.com/taxinfo/nexus.asp

 

[MDGolom]

They're screwing you. There's no way that a gun show appearance could count as a "nexus" for tax purposes.
QUOTE]

It's up to the state to define what creates a Nexus in their state. According to the Maryland Comptoller, the following is the definition:

Under Maryland law, out-of-state vendors must register with the Maryland comptroller and file Maryland sales and use tax returns if the vendor shows a nexus connection by:

Permanently or temporarily maintaining, occupying, or using any office, sales or sample room, or distribution, storage, warehouse, or other place for the sale of tangible personal property or a taxable service directly or indirectly through an agent or subsidiary (Tax-General Article, Section 11-701(b)(2)(i)); Having an agent, canvasser, representative, salesman, or solicitor operating in the state for the purpose of delivering, selling, or taking orders for tangible personal property or a taxable service (Section 11-701(b)(2)(ii)); or
Entering the state on a regular basis to provide service or repair for tangible personal property (Section 11-701(b)(2)(iii)).

Based on this, he has established a Nexus in Maryland. One state (Nevada?) says if you land your corporate jet in the state two or more times a year, you have a Nexus. I work for a catalog retailer here in Maryland, but we sell throughout the US and Canada, so I know what a PITA this whole issue is.

 

[Blalock]

They're screwing you. There's no way that a gun show appearance could count as a "nexus" for tax purposes.
QUOTE]

It's up to the state to define what creates a Nexus in their state. According to the Maryland Comptoller, the following is the definition:

Under Maryland law, out-of-state vendors must register with the Maryland comptroller and file Maryland sales and use tax returns if the vendor shows a nexus connection by:

Permanently or temporarily maintaining, occupying, or using any office, sales or sample room, or distribution, storage, warehouse, or other place for the sale of tangible personal property or a taxable service directly or indirectly through an agent or subsidiary (Tax-General Article, Section 11-701(b)(2)(i)); Having an agent, canvasser, representative, salesman, or solicitor operating in the state for the purpose of delivering, selling, or taking orders for tangible personal property or a taxable service (Section 11-701(b)(2)(ii)); or
Entering the state on a regular basis to provide service or repair for tangible personal property (Section 11-701(b)(2)(iii)).

Based on this, he has established a Nexus in Maryland. One state (Nevada?) says if you land your corporate jet in the state two or more times a year, you have a Nexus. I work for a catalog retailer here in Maryland, but we sell throughout the US and Canada, so I know what a PITA this whole issue is.

Thanks! Now I don't feel so bent over.

 

[Baccusboy]

Bent over or not, there's no way in heck i'd do business with them.

 

[MDMOUNTAINEER]

Do you really think they send that money to Maryland?

 

[STSCM]

Do you really think they send that money to Maryland?

Does MD have a form you can submit concerning this transaction, kinda like a Fed 1099? Make sure they don't pocket the change kinda thang.

 

[mikec]

Do you really think they send that money to Maryland?

Without seeing how they are processing orders, we can't say. It should be easy to have the accounting software track all of this and then every three months, the company cuts a check to each state. Remember, DPMS is part of the group that owns Remington and Marlin as well. A smaller company, like Spikes might be able to slip under the radar, but REMINGTON ARMS is rather a large target.

BTW, what brand rifles/shotguns does MD buy for MSP or any of the other state agencies issued firearms? How tough would it be for MS, or any other state, to slip a clause into a police purchase contract requiring that company to track direct internet sales than end up in MD?

 

[davsco]

i'd be pretty shocked if a big company like dpms would collect, but keep, state sales tax. wouldn't be so shocked if a mom and pop was doing it. look at the receipt and make sure it sales 'sales tax' and not just 'misc' or 'other.'

the good news is that if you bought it at a store in MD, you'd be paying the sales tax anyway. but i guess if you bought from midway or the like you would have not paid the tax (though legally you're supposed to file and pay for that).

 

[atom33]

If you buy from, say, midway (no MD physical presence), would the MD FFL that does the transfer charge/collect MD sales tax on the cost of the firearm?

 

[WatTyler]

My company has to do physical business in PA once a year and we have to keep our vendor certificate up to date and pay sales tax semiannually to PA and, yeah, it has been determined that this applies to our internet sales to PA as well. So it's not unheard of and the tax is actually paid because I have to write the checks. Oliver Wendell Holmes said something about taxes being the price we pay for civilized society. But they're really the protection money we pay to the shakedown artists so we don't get mugged.

 

[gamer_jim]

I would call MD comptroller and verify they do in fact send them the sales tax revenue.

 

[mikec]

I would call MD comptroller and verify they do in fact send them the sales tax revenue.

Under what name?? DPMS Panther Arms? Freedom Group? Cerberus Capital Management?

BTW, let's not forget that Cerberus, the parent company, has investments in a number of companies. Who knows which one has a MD address and if they are paying the sales tax through that holding company or individually through each company?

 

[Indiana Jones]

Unfortunately legalized robbery(taxes) are very popular these days and I expect it to get even worse. There will be an expansion of internet sales taxes and an increase of many other existing taxes like the gas tax. Maybe we can even get a mileage tax added to the gas tax which is already a mileage tax so they can tax us twice for the same exact thing.

i hate taxes. i heard there was a group of people who got taxed ALOT and decided to start their own country WITHOUT unnecessary taxes. went well for a while...

 

[marko12]

Internet Tax, just another way to kill the economy !