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U.S. Cavalry website charges sales tax in Texas
Posted: Thu Sep 06, 2012 12:12 pm
by MegaWatt
So I was going through the process of buying something from the US Cavalry website and I noticed at the checkout they were charging sales tax. I looked up their store locations and they list 3 in Kentucky and 3 in Georgia but nothing in Texas so I emailed them about it. I got a reply (quickly too) they do have a presence in TX. So I thought, cool, maybe I can go to their store if it's close. I asked where it was and she said they don't have a retail store yet, only a sales rep.
Does this mean they still have to charge Texans sales tax or am I missing something here?

Re: U.S. Cavalry website charges sales tax in Texas
Posted: Thu Sep 06, 2012 12:14 pm
by The Annoyed Man
MegaWatt wrote:So I was going through the process of buying something from the US Cavalry website and I noticed at the checkout they were charging sales tax. I looked up their store locations and they list 3 in Kentucky and 3 in Georgia but nothing in Texas so I emailed them about it. I got a reply (quickly too) they do have a presence in TX. So I thought, cool, maybe I can go to their store if it's close. I asked where it was and she said they don't have a retail store yet, only a sales rep.
Does this mean they still have to charge Texans sales tax or am I missing something here?

Yes, when you have a sales representation in the state, then you have a presence in the state. When you have a presence in the state, you have to charge sales tax for that presence. I've had to deal with this exact same issue in other industries.
Re: U.S. Cavalry website charges sales tax in Texas
Posted: Thu Sep 06, 2012 1:25 pm
by recaffeination
The Texas lawsuit against Amazon convinced a lot of online retailers to play it safe and collect sales tax in Texas. At the end of the day it's a wash because if the online retailer doesn't collect Texas sales tax, the law requires us to remit the use tax, which is the same rate as sales tax. So the total cost is the same for honest, law abiding people.
Re: U.S. Cavalry website charges sales tax in Texas
Posted: Thu Sep 06, 2012 1:27 pm
by MegaWatt
The Annoyed Man wrote:MegaWatt wrote:So I was going through the process of buying something from the US Cavalry website and I noticed at the checkout they were charging sales tax. I looked up their store locations and they list 3 in Kentucky and 3 in Georgia but nothing in Texas so I emailed them about it. I got a reply (quickly too) they do have a presence in TX. So I thought, cool, maybe I can go to their store if it's close. I asked where it was and she said they don't have a retail store yet, only a sales rep.
Does this mean they still have to charge Texans sales tax or am I missing something here?

Yes, when you have a sales representation in the state, then you have a presence in the state. When you have a presence in the state, you have to charge sales tax for that presence. I've had to deal with this exact same issue in other industries.
Thanks AM for clearing that up. Now I'm annoyed too!

Re: U.S. Cavalry website charges sales tax in Texas
Posted: Thu Sep 06, 2012 1:40 pm
by Teamless
MegaWatt wrote:Thanks TAM for clearing that up.
Fixed so he doesn't get any MORE Annoyed! LOL