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Hobby Shops... Are They Viable Today?


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The "aggravation" of paypal?

I buy with one click. Find what I want on ebay... log onto paypal. Then literally one click. The whole process is over in less than 30 seconds. And ebay/paypal offer 100% satisfaction or your money back.

That's not "aggravation." That's fantastic customer service.

Agreed. Buying online is quick and easy. Right before Christmas I broke my digital camera. I went right to eBay and instantly found the latest model of our camera, and determined the lowest price. I hit that Buy It Now button around noon on a Monday. The package was delivered around 11am the next day. Can't beat it.

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>No fees. Don't forget, on the internet you pay for convenience.

actually, I think you will find it cheaper to buy on the net, and think clearly when adding up the extras: shipping is certainly an expense, but it is often offset at least somewhat when you do not have to pay sales tax, like you do in most states in brick and mortar situations. and certainly you can find kits cheaper than at a typical mom and pop hobby shop, even with shipping charges. you might even say you pay for convenience of having the shop on the corner with real people you can talk to. unfortunately its going that way for all "customer service", you might have to pay to talk to a bank teller one day soon.

jb

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>No fees. Don't forget, on the internet you pay for convenience.

actually, I think you will find it cheaper to buy on the net, and think clearly when adding up the extras: shipping is certainly an expense, but it is often offset at least somewhat when you do not have to pay sales tax, like you do in most states in brick and mortar situations.

Those days of Sales Tax free transactions are on their way out. Not making any sort of political statement, just a fact. When I ordered my wife's birthday present from Amazon I was charged Sales Tax on it. When the largest internet retailer does that, everyone will have to follow eventually or risk the wrath of the various State Taxation Departments, because we all know nobody willing admits to and then pays the requisite sale taxes on their state income tax forms.

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Those days of Sales Tax free transactions are on their way out. Not making any sort of political statement, just a fact. When I ordered my wife's birthday present from Amazon I was charged Sales Tax on it. When the largest internet retailer does that, everyone will have to follow eventually or risk the wrath of the various State Taxation Departments, because we all know nobody willing admits to and then pays the requisite sale taxes on their state income tax forms.

True. Since Amazon is placing warehouses in all kinds of places, they will charge you the sales tax if you live in that same area. Also, I just filed my own taxes and the State of Wisconsin asks for any items purchased online or from another state. If I drive to Illinois to buy something, I have to pay tax in Wisconsin.

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True. Since Amazon is placing warehouses in all kinds of places, they will charge you the sales tax if you live in that same area. Also, I just filed my own taxes and the State of Wisconsin asks for any items purchased online or from another state. If I drive to Illinois to buy something, I have to pay tax in Wisconsin.

I use Amazon Prime, and I do pay AZ sales tax on orders...

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True. Since Amazon is placing warehouses in all kinds of places, they will charge you the sales tax if you live in that same area. Also, I just filed my own taxes and the State of Wisconsin asks for any items purchased online or from another state. If I drive to Illinois to buy something, I have to pay tax in Wisconsin.

No, you only have to pay sales tax once. If anything you would have to pay the difference if WI is higher than IL, but usually that's just on big stuff like cars. Or if you did paid tax in IL for a large purchase, WI will file to get the tax money from IL. But still, you only pay once, or pay the difference.

Edited by Brett Barrow
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True. Since Amazon is placing warehouses in all kinds of places, they will charge you the sales tax if you live in that same area. Also, I just filed my own taxes and the State of Wisconsin asks for any items purchased online or from another state. If I drive to Illinois to buy something, I have to pay tax in Wisconsin.

While Amazon has a Distribution Center in Carlisle, PA, my order was shipped out of Cincinnati. I paid PA Sales Tax at the Amazon checkout, they know where you live (with the whole drone delivery idea that sounds way more ominous these days), and charge the appropriate tax rate.

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While Amazon has a Distribution Center in Carlisle, PA, my order was shipped out of Cincinnati. I paid PA Sales Tax at the Amazon checkout, they know where you live (with the whole drone delivery idea that sounds way more ominous these days), and charge the appropriate tax rate.

After Amazon opened their center here, is when AZ residents had to start paying local sales tax, but the nice thing about it is, I am only about 20 min's away from it , so when ever I buy something from Amazon direct , I get it next day, or second day, and dont have to pay for that extra , it is nice

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ok so yes amazon bent to the pressure and is charging it. and it is possible others might have to do the same. "possible" being the operative word; so far it is not countrywide (though I do have to pay CA tax for stuff originating in CA on ebay for instance).

but the thing about amazon: over 35$ (used to be 25 but that's another post) qualifies for free shipping, so having to pay the tax is again cancelled out by not having to pay the postage.

don't get me wrong; I don't think its right to local hobby shops, but its the reality: you are paying for them to serve you through the prices they have to charge just to be profitable.

jb

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No, you only have to pay sales tax once. If anything you would have to pay the difference if WI is higher than IL, but usually that's just on big stuff like cars. Or if you did paid tax in IL for a large purchase, WI will file to get the tax money from IL. But still, you only pay once, or pay the difference.

Wisconsin allows a credit, for sales tax properly paid in another state, against use tax due. If you properly paid sales tax in another state, the sales tax paid may be used to offset the Wisconsin use tax due. Sometimes, tax isn't paid on items purchased online...and that tax you will owe the State of Wisconsin

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While Amazon has a Distribution Center in Carlisle, PA, my order was shipped out of Cincinnati. I paid PA Sales Tax at the Amazon checkout, they know where you live (with the whole drone delivery idea that sounds way more ominous these days), and charge the appropriate tax rate.

It doesn't matter where they ship it from, if the vendor has a physical presence in your state, you pay sales tax.

Like others said, we will eventually pay sales tax on Internet sales. Large vendors will set themselves up for it, but if small vendors like eBay sellers get stuck collecting sales tax for all the states, it will no doubt become something that Paypal will manage for you. And of course, charge you a percentage for it!

No, you only have to pay sales tax once. If anything you would have to pay the difference if WI is higher than IL, but usually that's just on big stuff like cars. Or if you did paid tax in IL for a large purchase, WI will file to get the tax money from IL. But still, you only pay once, or pay the difference.

Brett is right. States seeking to collect sales tax from out of state purchases you made call it "Use Tax". You are supposed to declare that as part of your annual state income tax return. For instance, I live in PA (6%) about a half hour from DE (0%) so people do run to Delaware to save the sales tax. You know you have hit the border on Route 202 because on the PA side it's pretty much woods, and then you hit some major shopping areas right over the border. So one could save $60 on a $1000 purchase. And I'll bet very few would declare that on their tax return. In a split state situation if I lived in NJ (7%) and bought something in PA (6%), you are legally supposed to declare the extra 1% owed to NJ.

Cars are another story. Sales tax is collected by DMV upon titling a vehicle. For instance, my daughter from NJ bought her Fiat 500 here in PA because dealers are few. The dealer wrote up it up as an out of state sale, and put a PA temp tag on the back. He gave my daughter all the paperwork to bring to DMV in NJ. He wrote the deal to include the NJ (7%) and gave her a dealership check made payable to NJ DMV to pay the sales tax. So it didn't matter at all that she bought the car in PA (6%), she paid her home state tax upon titling and plating the vehicle.

There can be differences even inside of states. For instance, NJ has state economic development zones where they charge half sales tax to bring business into those areas. So if you want to go into Perth Amboy, Camden, Newark or other areas designated so, the sales tax is only 3.5% there vs 7% elsewhere in the state. NJ doesn't charge sales tax on 'necessities' like supermarket food or clothing. NY does (NY doesn't tax clothing under $110) so there are large malls at the border towns. Tax rates in NY state vary by area, but average 8% with NYC at 8.875%. NJ has a zone right at the foot of the Verrazano Bridge in Elizabeth, NJ near Newark airport. They built a huge IKEA there and the lot was always full of NY license plates. One time the NY tax folks came over and put warnings on all the NY cars in the lot. NJ chased them away as being out of their jurisdiction and it became a big deal that made it on the news.

Other taxes can vary as well. NJ has one of the lowest gasoline taxes. When I worked in Pearl River, NY a normal activity over lunchtime for NYers was 'going to Jersey for gas'. They could literally save 50 cents a gallon.

Edited by Tom Geiger
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