New Supreme Court Sales Tax Ruling

[mjwalsh]

I just thought I would share ... based on my order with Kleen-Rite to get in on the Black Friday - Thanksgiving 750 threshold free freight etc. I was asked by KR to provide a sales tax permit. They said they are dealing with the fact that just some of the items must be charged on the retail side by some states. They will exempt those items such as fragrance little trees & similar vend items specifically for a vending machine since that will be paid at the much larger retail rate by the car wash owner.

Has anyone heard from the other big car wash suppliers such as Windtrax & Dultmeier & others regarding what they have in mind. It is actually easier for the operator if the supplier at least flags those vend items so there is less parsing needed for the potential horrific Use Tax. Since I was audited back in about 1998 ... the state has sure got a lot of money Use Tax wise from us! Now the Use Tax will tend to be much less of an issue & maybe go away completely on the back-end. It will now be paid on the front-end but then the supplier is the one sending it in. Hopefully, the sometimes rascals will not harass our needed car wash suppliers too much based on the new Supreme Court ruling where I am pretty sure there were a bunch of politicians dancing in the streets (with the new ruling) somewhat along with the knowing of a tighter hold on businesses' every detail info .... even their tiniest of transactions via more credit card usage ... perceived "follow the herd" need!

 

[MEP001]

To what Supreme Court sales tax ruling are you referring?

Your issue sounds more like your state has passed something in order for them to collect more sales tax, rather than allow you to order it tax exempt and sell it from vendors without collecting tax, forcing Kleen-Rite to request an exemption permit (for which you are not exempt whether you're using the product or reselling it).

 

[Earl Weiss]

https://www.forbes.com/sites/greats...rts-internet-sales-tax-decision/#523e97243fbe

I believe the decision was issued in June It effectively overturned the "Quill" decision.

 

[Randy]

You guys should be happy your not running a car wash in Washington State We pay 9.8% sales tax on everything at the car wash, bay time, vac time, vending, everything. We also pay 9.8% use tax on everything we buy from out of state, the only items we don't pay use tax on are vending items we resell.

 

[Car_Wash_Guy]

You guys should be happy your not running a car wash in Washington State We pay 9.8% sales tax on everything at the car wash, bay time, vac time, vending, everything. We also pay 9.8% use tax on everything we buy from out of state, the only items we don't pay use tax on are vending items we resell.

Woah! They're your partners!

 

[FloridaSalesTaxAttorney]

This was the Wayfair vs South Dakota US Supreme court decision. I filed one of Amicus briefs for the case and attended oral arguments. Big picture, under the old rules (from the Quill decision in 1992), a state could not force a remote seller (seller from outside the state) to collect sales tax on sales into the state if that vendor did not have a "physical presence" in the destination state. So your car wash vendor in California with no operations in any other state, could not be forced to collect sales tax when products were shipped to any other state but California. The purchaser was responsible for determining whether use tax was due on the purchase and remitting the tax. So prior to the Wayfair decision, if you purchased products from an out of state vendor with no physical presence in your state, then that vendor did not have to charge you sales tax on those products. You would have to determine whether the items was inventory taxed to the customer (so the purchase/use was tax exempt to the car wash) or whether your cash wash owed use tax on it. Now, the Wayfair decision threw out the physical presence test. Now a remote seller could be forced to collect sales tax on sales into another state if the vendor meet a certain number of sales or number of transactions into the destination state. For the car washes, this means that some of your vendors would all of a sudden start charging your state's sales tax when they started to comply with the new rules. Each state had to enact laws to comply with the Wayfair decision. As of today, all states with a sales tax except Missouri and Florida have enacted these "economic nexus" laws.