The reason why I ask is because most things we purchase here in California is charged an eight percent sales tax. It's actually a .0825 % sales tax. Normally, that doesn't amount to too much. However, for a $17,500 camera that's a big chunk of change. That adds $1443 to the price tag. I could buy the Nikon still lens everyone is talking about for that kind of money. Most companies don't collect this tax for out of state orders, but since I live in California that would mean paying the tax. What I'm wondering is if Red is going to do the same thing most other companies do and not charge the sales tax for out of state orders, or will everyone be subject to the California state tax regardless of where they live.
Will Red be cheaper out of state?
- Thread starter Deadzone
- Start date
RED has to charge TAX to CA residence. i believe you can get the percent lower if you use it in your business ( i think you need a state business # and the rate would be around 3% ) ....
or
when RED tells you your camera is ready .. you then give them your change of address because allot of us will have moved since placing a reservation ( no sales tax in Oregon - find a friend that lives in Oregon and become their roommate for a few days) .. you pay for your RED with a cashiers check issued from a Oregon bank ( or check from your oregon bank account ) .. RED then ships the camera to your Oregon address = NO sales TAX ...you then move back to CA after delivery ...
credit cards - if your credit card sends billing to a CA address you cannot use your credit card to pay for RED without paying sales tax ...so if you have your camera shipped to Oregon and you pay with a credit card that sends billing to your CA address you will pay sales tax on that camera you had shipped to oregon ...
you cannot tell RED to wait hold on shipping for 2 weeks till you find a Oregon address to use and/or that you are trying to avoid paying CA tax ( if you are a residence of CA) ... infact all RED employees should skip reading this thread !!!
or
when RED tells you your camera is ready .. you then give them your change of address because allot of us will have moved since placing a reservation ( no sales tax in Oregon - find a friend that lives in Oregon and become their roommate for a few days) .. you pay for your RED with a cashiers check issued from a Oregon bank ( or check from your oregon bank account ) .. RED then ships the camera to your Oregon address = NO sales TAX ...you then move back to CA after delivery ...
credit cards - if your credit card sends billing to a CA address you cannot use your credit card to pay for RED without paying sales tax ...so if you have your camera shipped to Oregon and you pay with a credit card that sends billing to your CA address you will pay sales tax on that camera you had shipped to oregon ...
you cannot tell RED to wait hold on shipping for 2 weeks till you find a Oregon address to use and/or that you are trying to avoid paying CA tax ( if you are a residence of CA) ... infact all RED employees should skip reading this thread !!!
Graeme_Nattress
Red Team
I'm not a US tax law expert, but if buy something like that out of state, aren't you meant to declare it on your tax return and pay your state's sales tax at that time?
CA state sales & use tax
CA state sales & use tax
Does the advertised price of any item sold anywhere in the USA ever include sales tax? In every purchase I've ever made, sales tax is added to the advertised price only at the checkout stage.
Note, California requires you to remit a "use tax" (which is the same rate as sales tax) for out-of-state purchases. I think it's the same in other states too. It's one of those tax rules more honored in the breach than the observance, but that is the law. http://www.boe.ca.gov/sutax/faqpurch.htm
CA state sales & use tax
Does the advertised price of any item sold anywhere in the USA ever include sales tax? In every purchase I've ever made, sales tax is added to the advertised price only at the checkout stage.
Note, California requires you to remit a "use tax" (which is the same rate as sales tax) for out-of-state purchases. I think it's the same in other states too. It's one of those tax rules more honored in the breach than the observance, but that is the law. http://www.boe.ca.gov/sutax/faqpurch.htm
Graeme's right. I had to declare a purchase I made over the internet from B&H as a business expense and had to pay CA sales tax at tax time. There's no way around it if it's a business expense. You should expect and budget for the $1443.00 Unless you'd rather lie and take the risk.
visceralpsyche
Well-known member
Don't worry Blue, we may not get the sales tax part added but you can bet your bum that the good old Aussie government will want their 10% GST when you import... unless it falls under camcorder rules which are (apparently) tax exempt now thanks to our supposed "free" trade agreeement. I'd love to have a definitive answer for Australia but that's the best of my knowledge until someone informs me better.
Blue said:
heh. Local sales tax is 8.25% in Los Angeles. According to TaxFoundation.org the average STATE Tax burden of a California resident is 10.9% of gross income. (That includes Sales and income tax.) #15 out of the 50 states.
That's just state. My personal federal tax burden last year was 26.4%. So, for me, my over all tax burden was 37.3%.
Ugh. I really do need to find a way around that sales tax.
G--
Ohh! Bonus Paragraph: The average Californian works until April 30th to pay their taxes. 1/4th of their overall salary goes to Taxes:
http://www.taxfoundation.org/taxfreedomday/
firewallet
Well-known member
Don't forget Delaware-"Delaware does not assess a sales tax on consumers."
SomewhereinLA
Well-known member
Well, if you have a company, you should be able to pay the 3% producer's tax, and then as a business expense your CPA should be able to deduct it at the end of the year.
laboprod
Active member
Personnaly I think I might have some free flight ticket (with the miles system) and should be able to come along to the RED factory to take my camera, and then go back to Switzerland. The only way not to pay the tax is to not declare it at the customs...besides the risk to be caught, it might be a problem when you are travelling to other country in the futur (how would you proove that you've already paid tax on it) or also for inssurance or stuff like that. I might be too much worry about not paying tax, but before doing someting it is good to know if the risk worth the benefice.
Muttondraw
Well-known member
I am not sure what the situation is over here in the UK. Still cameras are currently exempt from import duty because they are classed as information technology products by the EU, but camcorders attract 4.9% to 12.5%, depending upon whether they can record video on a line in or not (if they can't they are classed as a camcorder, if they can they are classed as a VCR). Of couse there is also a stinging 17.5% VAT to add to that, though that at least comes back... as long as you are VAT registered.
Martin
Martin
So that means more like 18.500 dollars for you USAmericans, right ?
I´m in Berlin, Germany and tried to check what they have come up with - customs wise, we have to pay 16 % VAT, 19 % in 2007,( value added tax ), that for sure, but I don´t know what the Red is according to the HS ( harmonized system ), so it can be classified for import tax, is it 9007.19 ( cinematographic camera system ) so it gets a 3,7 % tax or 8525.30 ( television camera ) ? This is only a guessing since the customs classification system of the EU must be invented by some morons, you need cryptographical skills to undertand it.
K.
I´m in Berlin, Germany and tried to check what they have come up with - customs wise, we have to pay 16 % VAT, 19 % in 2007,( value added tax ), that for sure, but I don´t know what the Red is according to the HS ( harmonized system ), so it can be classified for import tax, is it 9007.19 ( cinematographic camera system ) so it gets a 3,7 % tax or 8525.30 ( television camera ) ? This is only a guessing since the customs classification system of the EU must be invented by some morons, you need cryptographical skills to undertand it.
K.
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