Quality Machine Tools is now charging Sales Tax

P

poorboy

H-M Supporter - Gold Member
H-M Supporter Gold Member
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Sep 1, 2020
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Hi,

Just letting people know that sales tax is now being charged for all orders leaving Quality Machine Tools (assuming that the delivery location charges sales tax). This includes machine, installs, packaging and shipping. May not seem like a lot, but I have a 935TS in their shop and now I will need to pay over $900 more for the same machine. I am glad that I already received 1340GT a while ago.

Thanks

Adam
 
Yeah more surprised it’s new. The two things guaranteed in life are taxes and death. The man needs his money more than ever. One reason to look for used!
 
I think they always have. At least to NE.
 
I have a 1340GT and a PM-25MV - all were shipped to Nevada and I never paid sales tax before.

I called Quality Machine Tools this morning and I was told that this is new because they are being audited. In any case, ny new mill will now cost much more than I was expecting.

$900+ more and 6+ months late ....
 
We have already been charging sales tax in most states since that wayfair decision and as laws change. And as we meet the thresholds in the states we weren't legally having to collect the sales tax before, it changes, we have no choice but to follow the laws. As we stated in the email, anyone can cancel without penalty if they wish to when that comes up. Really though, it was already supposed to be paid by the buyer directly to the state, so its not costing anyone anything extra, it is just that we collect instead the buyer paying direct to the state. Not that most people did that, but thats how the laws are written.

We are just following the law, no choice. More info on that here: https://www.streamlinedsalestax.org/for-businesses/remote-seller-faqs/remote-seller-state-guidance And Here:
taxfoundation.org

State Online Sales Taxes in the Post-Wayfair Era

Unity and uniformity are vital for a sound, constitutionally valid remote sales tax regime; while local sales taxes are entirely consistent with Wayfair.
taxfoundation.org taxfoundation.org

This is nothing but a huge PITA. Not only sales taxes, but Washington, TX, Ohio, and some other states have a gross receipts tax. So not only do we have to pay PA Income tax on everything, we also have to pay business taxes to many others states. I hope this goes back to court and there is some sort of uniformity given to this all soon. It is absolutely insane how much extra work this is for us. We are big enough to have to pay it in many places, but not big enough where I have a 30 person accounting department to handle it all. I am wasting too much time dealing with this instead of working on new machine designs, its killing me.
 
Matt beat me to it.

for completeness, they do give you the option to cancel your order for no cost if your machine is not yet here.
 
I'm sticking, pm30mv inbound (soon I hope). :) I know it's in PA, got an email about that on 1/6/22.
 
Just to be clear, PM is not charging sales tax, they are collecting it on behalf of your state, just like an instate vendor does. If your state has a use tax law, you have been required to pay sales tax since that was implemented, what is new is states requiring out of state vendors to collect it since the Supreme Court ruling.
 
My small business had to get tax #s, collect sales tax and file quarterly reports in 17 states. Get fined if any reports are late. Many of our sales were to exempt organizations that had to provide the paperwork. PITA! We got audited, they had three people, for 3 days, that went through our files page by page. They found 2 small items we had missed that came from the internet and disallowed our claim that stain base was part of the product. Fine was $6000+. Closely akin to the Mafia!
 
If you buy something from out of state for your use (as opposed to resell), and the vendor has not collected sales tax, you are required to report those purchases and pay the sales/use tax. When working for Fred, he had a sales tax audit. The auditor zeroed in on purchases from MSC, Rutland etc. It cost Fred $6k. Fast forward to when Jim and I opened our shop, I was very aware of this and made sure that the tax was paid. When we got audited, the guy spent 3 days and came up dry. We never got audited again.
 
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