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Newegg customers in Connecticut are receiving tax bills for past purchases

By Shawn Knight · 46 replies
Mar 6, 2018
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  1. Ogr8t1

    Ogr8t1 TS Rookie

    What really irritates me is that U.S. retailers don't just include sales taxes in the total price like every other country in the freakin world!!! It really makes purchasing much easier and transparent!
     
    senketsu and ShagnWagn like this.
  2. SirChocula

    SirChocula TS Maniac Posts: 174   +183

    Newegg has only been good the first few years it came out. Ever since then, it became a giant corporation like every other that can't give 2 sh*ts about their customers. I've long ago stopped purchasing crap from Newegg.
     
    Theinsanegamer likes this.
  3. Reachable

    Reachable TS Evangelist Posts: 307   +156

    What underlies this whole story is the absurdity of expecting any purchaser to remit the sales tax after the purchase. I'd never even heard of that until now! You charge the sales tax at the time of purchase. No customer is going to keep a record.

    Look, fourty-nine out of the fifty states are running in the red, so they're desperate for any source of revenue. But this is not the way to go about it. The state should have collected the taxes owed from Newegg, who would be regarded as negligent for not having collected them at the time of purchase.
     
  4. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 1,035   +552

    It did have clear regulation: until recently, online sales were treated the same as purchasing something through a catalog - no sales tax unless the catalog or their distributor was based in same state as the customer.

    This is retroactively applying a tax to purchases made under a different law. It won't end well for CT.
     
    Theinsanegamer likes this.
  5. ShagnWagn

    ShagnWagn TS Guru Posts: 437   +290

    So, I could get screwed for buying previous hardware for non-techie friends and family?

    I have already boycotted amazon because they charge tax when there is no entity in my (work office) state. I have yet to have a single shipment come from the location in the state I live in that does have an entity. So, if it doesn't ship from my own state, why am I being taxed for it? Government corruption.
     
  6. ShagnWagn

    ShagnWagn TS Guru Posts: 437   +290

    Local stores' prices aren't much more than online if you factor in online purchases with tax. At least for me where I also have a Microcenter. :)

    No taxes for online retailers ARE killing local shops - at least in my area. Ask Radio Shack. They are gone from my city.

    Inflation I guess depends on how you want to view it. When something costs more money to buy than before, that reduces the value of the dollar. Have you noticed the cost of groceries and restaurants skyrocketing? My money is worth less. To top it all off, at least in the IT industry, wages have not gone up correspondingly. Not only inflation, but no salary increases (I have suffered to an income I made back in 2002). The value of my dollar has gone down significantly.
     
  7. tipstir

    tipstir TS Ambassador Posts: 2,829   +190

    I am glad I am out of the State was crazy for licenses and such.. I've changed all accounts and ditched them. I am out of that state anyway.. Collecting tax on online purchases really how shame. I never going back there anyway. When I left the Jury Duty were trying to get me to do the duty, I told them I don't live in that state. I was able to get out of the Duty for a few reasons. They were very pushy in that State.
     
  8. taylor1277

    taylor1277 TS Rookie Posts: 19

    your kidding about that right, there should be no sales tax because your income is taxed. you must not own a home, I have school taxes, property taxes, county taxes, and my income is taxed, wish it was that way.
     
  9. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 10,769   +4,585

    I didn't say anything about property taxes.
     
  10. captaincranky

    captaincranky TechSpot Addict Posts: 13,918   +3,294

    Yeah but, the UK's, (and Europe's ?), VAT tax, starts to get really oppressive on high end goods.
     
    Theinsanegamer likes this.
  11. hophead

    hophead TS Rookie

    The ruling from the circuit court is only valid in their jurisdiction.
     
  12. ShagnWagn

    ShagnWagn TS Guru Posts: 437   +290

    Umm, do know there are several states that don't have sales tax? https://blog.taxjar.com/us-states-with-no-sales-tax/
     
  13. GeforcerFX

    GeforcerFX TS Evangelist Posts: 819   +333

    Well I don't pay sales tax in my state, I don't make more than $20,000 so I never pay any or much income tax between state and federal, I don't own land so I don't directly pay property taxes ( but yes my rent goes to paying that tax). Only taxes I pay are SS and MC, maybe a small amount to income depending on my end of year tax. Most American's really don't pay a lot of taxes, if you own property and it's in a nice or rapidly developing area then you truly have a right to complain, income tax is really only for the wealthy, most people get the vast majority of there back by the time they claim there dependents and what not. I have always liked the concept of a sales tax since your state can collect money from tourist's and people that get around income tax (illegal's or tax dodgers) since everyone has to buy stuff. Never really thought about the internet impact before, I have seen the listings on ebay, usually for Cal and Flor residents stating they will be charged tax since the business they are buying from is located there, but that's about it so far. Don't know how well Conn is gonna do in this, the cost of the lawsuits are prob going to outweigh the back taxes they collect.
     
  14. senketsu

    senketsu TS Guru Posts: 814   +544

    The multiplication of tax upon tax has become obscene. I earn an income, I pay income tax. For example I drive to the local mountains, I need gas, I use my already taxed dollars to purchase it, but included in the price is 10 cents/litre excise tax. Buy a coffee, pay 5% Federal Goods and Services Tax (GST). Go to a hotel, pay 5% GST as well as 4% tax on lodging and a 4% tax on the hotel room fee. And this is just a simple example in a Canadian province with NO sales tax. Other provinces add up to 10% provincial tax to feds GST.
     
  15. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,367   +1,487

    Micro center si the exception to the rule. Look anywhere that doesnt have a microcenter, where you are forced through local shops or best buy, and the selection is not only poor but also significantly higher then online.

    Stores are being killed off by many things. Catalogs have the same rules as online, yet catalogs didnt kill of retail through their entire existence. Stores have a lot more overhead then online does, draining profits, and they dont have the selection to compete with amazon. They also, depending on area, can have issues with customer service. Charging tax on online purchases doesnt change the fact that the internet has a far larger catalog of items then any storefront, is cheaper to run, and can reach just about anywhere. Those are the things killing stores.

    Radio shack is a poor choice, that chain was done in by their niche being much better served by the internet, not embracing said niche despite many opportunities, and one poor upper management decision after another.

    While taxes and other outside factors can affect the value of the dollar, inflation ultimately falls to the availability of additional money. IF the federal government stopped releasing any additional cash into the economy, the dollar would go through deflation as money bundled itself up top and didnt make its way back down. Part of the reason costs are inflating, and you dollar is worth less, is the federal reserve has been lending money to banks at near 0% interest rates, meaning said money can be thrown into the economy with no pressure to repay it, and no interest removing any value from the economy. This was done to jumpstart the economy to get out of the great recession, but now is becoming more of an issue as costs begin to skyrocket.
     
  16. i3kingwizardop

    i3kingwizardop TS Enthusiast Posts: 32   +12

    The purchaser bought the item in the state, and it was shipped to that state.
     
  17. i3kingwizardop

    i3kingwizardop TS Enthusiast Posts: 32   +12

    B&H still exists.
     
  18. Patrick Dorsman

    Patrick Dorsman TS Rookie

    Is this the case? I am a CT resident and I just got a bill in the mail for 300 dollars. As of now, I am not paying it until I figure out what I should do.
     
  19. Patrick Dorsman

    Patrick Dorsman TS Rookie

    Couldn't CT do the same thing with BH? I am a CT resident and BH and Newegg are two of my main vendors I use.
     
  20. Tim Dya

    Tim Dya TS Rookie

    Miller Bros. Co. v. Maryland (1954), the Supreme Court held that before a state may enact a tax, there must be "some minimum connection between a state and the person, property, or transaction it seeks to tax:'

    and this is the specific Connecticut law

    GENERAL STATUTES OF CONNECTICUT Volume 4 Title 12 Chapter 219 § 12-411

    The use tax. (1) Imposition and rate. (A) An excise tax is hereby imposed on the storage, acceptance, consumption or any other use in this state of tangible personal property purchased from any retailer for storage, acceptance, consumption or any other use in this state, the acceptance or receipt of any services constituting a sale in accordance with subdivision (2) of subsection (a) of section 12-407, purchased from any retailer for consumption or use in this state, [cut for brevity]


    One of the most unlimited powers a Government has is to tax and Use tax is actually pretty old(over 70 years) it's just hasn't be strictly enforced until recently with E-Commerce.
     
  21. Tim Dya

    Tim Dya TS Rookie

    IMO you should just pay what it says, because of the interest and penalties they will eventually start giving out.
     
  22. Tim Dya

    Tim Dya TS Rookie

    Not sure what people could sue for since the Use Tax has been on the books for decades. It's one of those things that most people should have known that we were skipping sales tax, but since it was never enforced no one cared and I think the President is pushing for laws to have all online retailers collect tax. It was fun while it lasted :)
     

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