4 ms·

Sales taxes are going to bite into their business. My state (Massachusetts) has forced them to charge sales tax starting some time later this year, and that's

Sales taxes are going to bite into their business. My state (Massachusetts) has forced them to charge sales tax starting some time later this year, and that's bound to affect sales. Tax-free New Hampshire is 45 minutes away from Boston, and I suspect that once the sales tax kicks in, all those malls and outlets up north are going to see an uptick in business. In fact, probably that's why they're squeezing the shipping now, because of this impending hit that they know they're going to take, until people become resigned to the tax.

hyperbovine 13y ago
For a $2000 plasma, maybe. But you're going to drive 45 minutes to avoid paying $7 in taxes on a pair of shoes? I really doubt that. The scenario you outline would be true if people did a large amount of shopping once a month, but Amazon customers are now accustomed to making hundreds of little purchases throughout the year.
- blisterpeanuts 13y ago
  Probably you're right, and actually in the case of shoes I would patronize my local running shoe store because they're awesome people (also, most types of shoes are not taxed in Mass. so it's not the best example :). But it might alter our shopping behavior and start being more disciplined and saving up lists of stuff to get, and then the trip starts to become worthwhile. (It doesn't hurt that I have a Prius now, 50 mpg/22kpl).
- waylandsmithers 13y ago
  New Hampshire's State Liquor store, just over the border, seems to enjoy tons of business from thirsty Bostonians who don't want to pay sales tax.
klipt 13y ago
Shouldn't you technically be paying a use tax if you buy stuff in NH but use it in Boston? I thought that was also the logic behind requiring online stores to charge tax. http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html http://www.mass.gov/dor/individuals/taxpayer-help-and-resour... > Example: You purchase furniture for your Massachusetts business or residence from an out-of-state firm and pay no Massachusetts sales tax. You are required to pay the 6.25 percent Massachusetts use tax. The use tax applies because the furniture was not subject to a sales tax in the other state and because it is for use in the Commonwealth.
- blisterpeanuts 13y ago
  According to the use tax definition in that link, the vendor has to actually deliver the item to the resident within the state boundaries: "Sells to Massachusetts residents or businesses and delivers, repairs or installs goods or telecommunications services within the Commonwealth." Without that stipulation, essentially anything you buy anywhere outside the state for which you didn't pay sales tax, then carried back into the state, is subject to a "use tax". This seems both unreasonable and unenforceable. Suppose while on a trip you buy a souvenir at a gift shop in NH, or Alaska, or Delaware, or Oregon, where there is no sales tax. Does this law actually require that you are to pay tax on it when you bring it over the border? That sounds like a tariff or customs duty, a power which the Constitution specifically assigns to only the Federal government. Also, given that the price of the item includes baked-in compensatory taxation such as higher property taxes or income taxes, effectively you would be double-taxed. New Hampshire, for example, has much higher property taxes than does Massachusetts. They have to get their revenue somewhere.
  - klipt 13y ago
    > That sounds like a tariff or customs duty, a power which the Constitution specifically assigns to only the Federal government. Well I'm no lawyer, but I think the difference is that tariffs apply regardless of the tax you paid overseas, whereas use tax only makes up the difference, if it was originally in your favor (if you pay 8.75% sales tax on an item in San Francisco, Massachusetts won't refund you the 2.75% difference when you bring it back, but they won't charge you extra tax either.)

hyperbovine 13y ago

For a $2000 plasma, maybe. But you're going to drive 45 minutes to avoid paying $7 in taxes on a pair of shoes? I really doubt that. The scenario you outline would be true if people did a large amount of shopping once a month, but Amazon customers are now accustomed to making hundreds of little purchases throughout the year.

blisterpeanuts 13y ago
Probably you're right, and actually in the case of shoes I would patronize my local running shoe store because they're awesome people (also, most types of shoes are not taxed in Mass. so it's not the best example :). But it might alter our shopping behavior and start being more disciplined and saving up lists of stuff to get, and then the trip starts to become worthwhile. (It doesn't hurt that I have a Prius now, 50 mpg/22kpl).
waylandsmithers 13y ago
New Hampshire's State Liquor store, just over the border, seems to enjoy tons of business from thirsty Bostonians who don't want to pay sales tax.

klipt 13y ago

Shouldn't you technically be paying a use tax if you buy stuff in NH but use it in Boston? I thought that was also the logic behind requiring online stores to charge tax. http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html http://www.mass.gov/dor/individuals/taxpayer-help-and-resour... > Example: You purchase furniture for your Massachusetts business or residence from an out-of-state firm and pay no Massachusetts sales tax. You are required to pay the 6.25 percent Massachusetts use tax. The use tax applies because the furniture was not subject to a sales tax in the other state and because it is for use in the Commonwealth.

blisterpeanuts 13y ago
According to the use tax definition in that link, the vendor has to actually deliver the item to the resident within the state boundaries: "Sells to Massachusetts residents or businesses and delivers, repairs or installs goods or telecommunications services within the Commonwealth." Without that stipulation, essentially anything you buy anywhere outside the state for which you didn't pay sales tax, then carried back into the state, is subject to a "use tax". This seems both unreasonable and unenforceable. Suppose while on a trip you buy a souvenir at a gift shop in NH, or Alaska, or Delaware, or Oregon, where there is no sales tax. Does this law actually require that you are to pay tax on it when you bring it over the border? That sounds like a tariff or customs duty, a power which the Constitution specifically assigns to only the Federal government. Also, given that the price of the item includes baked-in compensatory taxation such as higher property taxes or income taxes, effectively you would be double-taxed. New Hampshire, for example, has much higher property taxes than does Massachusetts. They have to get their revenue somewhere.
- klipt 13y ago
  > That sounds like a tariff or customs duty, a power which the Constitution specifically assigns to only the Federal government. Well I'm no lawyer, but I think the difference is that tariffs apply regardless of the tax you paid overseas, whereas use tax only makes up the difference, if it was originally in your favor (if you pay 8.75% sales tax on an item in San Francisco, Massachusetts won't refund you the 2.75% difference when you bring it back, but they won't charge you extra tax either.)