sales tax on GM FNC barrel?

JFK52 · 07-23-2010, 06:04 PM

I was going to order a new FNC barrel from Green Mountain and when I used their shopping cart on the web site, it charged me a sales tax of $11.45. I must say that I was surprised, as I rarely am charged sales tax on out of state transactions. Did anyone who actually bought a barrel have to pay the sales tax?

xm15e2s · 07-23-2010, 08:47 PM

YUP, they charge sales tax.
They claim that they are a Corp and are required to.
I would say thats its poor business practice unless its required by law.

JFK52 · 07-24-2010, 04:27 PM

I am going to buy the barrel, because they are the only company who offers them. It leaves a real bad taste in my mouth about the sales tax. I purchase numerous items online from out of state companies, and this is the first time I can remember being charged sales tax by one on a transaction. Looks like they are trying to make up for the free shipping they offer on items over $50.

jasonpkm · 07-24-2010, 07:04 PM

Yep I paid sales tax to. But they are making an effort to produce FNC stuff. I do not know if I was charged sale tax for my UZI barrel?

amstilwell · 07-24-2010, 09:00 PM

Let's see - An FNC runs anywhere from $3000 to $7500 full auto to get into, and has factory replacement barrels that are non-existent. So that $11 sales tax seems pretty darn meaningless to me in comparison to the cost of my investment and the opportunity of having a replacement barrel.

We finally have aftermarket barrels for FNCs for heavens sake - and at a reasonable prices - and they look to be pretty well crafted! Give GM a frigging break and buy a one or two, else I can forsee this will be the first and last 100 barrels they'll ever make. To have only sold 11 barrels after a 5 page thread and months of everyone saying I want one and then whine about minor sales tax is rather sad in my opinion. Geez.

JFK52 · 07-25-2010, 11:58 AM

Well I will "whine" about it if I want as it is money out of my pocket, not yours. I was more surprised by it than anything else as no other out of state company that I do business with has charged me their states sales tax. Some states like Florida have a 7.5% sales tax, so the extra out of pocket on a large purchase could add up quickly. I could be wrong, but I did not think companies were REQUIRED to charge the sales tax on out of state online purchases. I would rather pay a reasonable shipping charge, which is something I can understand being charged as every item has to get in your hands somehow.

**carcass** · 07-25-2010, 02:44 PM

For states that have sales taxes, companies are required to collect sales tax only if the customer/shipping address is located in a state in which the company has a physical presence (i.e., retail store, outlet, factory, etc.). GM is either being lazy about this and just charging everyone a generic "sales tax" (at what rate? which state(s) are they paying this to?), or their state has a funny law that requires them to collect tax on all sales and remit to that state.

Generally the sales tax is remitted to the state in which the customer is located. GM is probably not doing this right, as state sales taxes vary widely from state to state.

huckleberry · 07-25-2010, 09:31 PM

Quote:

Originally Posted by amstilwell

Let's see - An FNC runs anywhere from $3000 to $7500 full auto to get into, and has factory replacement barrels that are non-existent. So that $11 sales tax seems pretty darn meaningless to me in comparison to the cost of my investment and the opportunity of having a replacement barrel.

We finally have aftermarket barrels for FNCs for heavens sake - and at a reasonable prices - and they look to be pretty well crafted! Give GM a frigging break and buy a one or two, else I can forsee this will be the first and last 100 barrels they'll ever make. To have only sold 11 barrels after a 5 page thread and months of everyone saying I want one and then whine about minor sales tax is rather sad in my opinion. Geez.

Sorry dude but they have no business collecting sales tax from anyone other than residents of of their own state

rsanborn · 07-26-2010, 06:50 AM

Maybe I shouldn't jump in but I will. Collecting sales tax is required by law if you are part of a corporation that has businesses in a certain amount of states, I believe it is 32 but not sure of the exact number. Following this law is corproate policy and I have no choice. This has been a total pain in the a$$ from the time we started the web site. Not only do we have to collect, we have to pay quite a bit of money to an outside company to update the tax codes every year. We also pay to distribute the tax proceeds to the states/municipalities that require it. We're not hiding anything or trying to make up for free shipping. If it were my choice I wouldn't charge it but it's not. Feel free to contact me at, rsanborn@gmriflebarrel.com.

Thanks
Rick
GMRB

**DStern1821** · 07-26-2010, 11:45 AM

Beretta USA in Virginia/Maryland charges me tax in Texas for internet orders, 11.25%, as do many other sites.

This thread's tone comes across as Green Mountain is doing something wrong or is somehow cheating buyers. The discussion of taxing internet orders and whether a company should or shouldn't is way off base. Its the company's decision.

Personally, I am very happy GM stepped up and delivered on a product that didnt exist. Hell, I dont even have a FNC in my NFA collection and I bought one for future use.

Just my $.02.

Dave

rsanborn · 07-26-2010, 01:34 PM

Just to further explain. Green Mountain, here in New Hampshire, is owned by the corporation Ebsco Industries out of Alabama. Ebsco has sales represention in all US states. Ebsco's publication division services libraries and military bases as well as schools with various publications. The below is from the Business.Gov web site:

If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes. In legal terms, this physical presence is known as a "nexus." Each state defines nexus differently, but all agree that if you have store or office of some sort, a nexus exists.

l4mbr3tt4 · 07-27-2010, 04:37 AM

I'm not complaining, but I have to say that this is the first time I have been charged sales tax from an order placed and shipped from NH.

NH, as many of you don't know, does not have sales tax!

In the end sales tax or not, these barrels are very affordable.

JFK52 · 07-27-2010, 11:30 PM

I started this thread and in no way was I saying that I thought GM was doing anything wrong or unethical. I was simply looking for an explanation on why they are collecting sales tax on an out of state online order. Just about all of my previous online orders have been sales tax free. So from that background it why I was asking my question.
I think Rick from GMRB did a great job of explaining his company's position and I salute him for doing so in this discussion. I ran a small business for years and had to collect sales tax for the state of Wisconsin. It was indeed a huge amount of paper work and very little financial incentive for doing a required job by the state department of revenue. Stiff fines and penalities if your were late in your payments and/or paperwork.
So thank you Rick for your clarification and for making the FNC barrels.
I am glad GMRB has made the new FNC barrels and I will be ordering one. I will just consider the sales tax as part of the rather reasonable cost of the barrel. Quality spare or replacement parts are essential for keeping a FNC running. Even better that these parts are made here in the USA.

huckleberry · 07-28-2010, 07:37 PM

Quote:

Originally Posted by rsanborn

Maybe I shouldn't jump in but I will. Collecting sales tax is required by law if you are part of a corporation that has businesses in a certain amount of states, I believe it is 32 but not sure of the exact number. Following this law is corproate policy and I have no choice. This has been a total pain in the a$$ from the time we started the web site. Not only do we have to collect, we have to pay quite a bit of money to an outside company to update the tax codes every year. We also pay to distribute the tax proceeds to the states/municipalities that require it. We're not hiding anything or trying to make up for free shipping. If it were my choice I wouldn't charge it but it's not. Feel free to contact me at, rsanborn@gmriflebarrel.com.

Thanks
Rick
GMRB

I am glad you said this cause I learn something new everyday. Taxes just piss me off.
Thanks for the info
Steve

waccou · 07-30-2010, 11:51 AM

Thought I would save thousands by having Tiffany's (the jewelry store) ship an engagement ring to me (in Louisiana) from Florida. There are no Tiffany's in Louisiana mind you. But I still had to pay because they have associated business presence in this state (apparently contracted repair service centers - which I thought was BS, but it was true). Only way I could have gotten away from paying was to ship to Oregon where they had no presence. You win some, you loose some.... could have almost bought another semi-FNC for what the taxes ran. Stung a bit.
All-in-all $11 is not much to moan about in the grand scheme of things - (i.e., one 20 rnd box of .223 = $7 -$10 on a good day = 12 seconds on full auto)

07-23-2010, 06:04 PM	#1
JFK52 Registered User Join Date: Jan 2008 Posts: 33 iTrader: 0 / 0%	sales tax on GM FNC barrel? I was going to order a new FNC barrel from Green Mountain and when I used their shopping cart on the web site, it charged me a sales tax of $11.45. I must say that I was surprised, as I rarely am charged sales tax on out of state transactions. Did anyone who actually bought a barrel have to pay the sales tax?

07-24-2010, 09:00 PM	#5
amstilwell Registered User Join Date: Nov 2008 Posts: 17 iTrader: 0 / 0%	Let's see - An FNC runs anywhere from $3000 to $7500 full auto to get into, and has factory replacement barrels that are non-existent. So that $11 sales tax seems pretty darn meaningless to me in comparison to the cost of my investment and the opportunity of having a replacement barrel. We finally have aftermarket barrels for FNCs for heavens sake - and at a reasonable prices - and they look to be pretty well crafted! Give GM a frigging break and buy a one or two, else I can forsee this will be the first and last 100 barrels they'll ever make. To have only sold 11 barrels after a 5 page thread and months of everyone saying I want one and then whine about minor sales tax is rather sad in my opinion. Geez. Last edited by amstilwell : 07-24-2010 at 09:46 PM.

07-25-2010, 02:44 PM	#7
carcass UZI Talk Supporter Join Date: Jan 2004 Location: Pennsylvania Posts: 1,627 iTrader: 6 / 100%	For states that have sales taxes, companies are required to collect sales tax only if the customer/shipping address is located in a state in which the company has a physical presence (i.e., retail store, outlet, factory, etc.). GM is either being lazy about this and just charging everyone a generic "sales tax" (at what rate? which state(s) are they paying this to?), or their state has a funny law that requires them to collect tax on all sales and remit to that state. Generally the sales tax is remitted to the state in which the customer is located. GM is probably not doing this right, as state sales taxes vary widely from state to state. __________________ "Live for yourself...there's no one else / More worth living for / Begging hands and bleeding hearts will only cry out for more" -- Neil Peart

07-30-2010, 11:51 AM	#15
waccou Registered User Join Date: Mar 2010 Location: New Orleans Posts: 18 iTrader: 0 / 0%	Even charged sales tax from Tiffany's. Thought I would save thousands by having Tiffany's (the jewelry store) ship an engagement ring to me (in Louisiana) from Florida. There are no Tiffany's in Louisiana mind you. But I still had to pay because they have associated business presence in this state (apparently contracted repair service centers - which I thought was BS, but it was true). Only way I could have gotten away from paying was to ship to Oregon where they had no presence. You win some, you loose some.... could have almost bought another semi-FNC for what the taxes ran. Stung a bit. All-in-all $11 is not much to moan about in the grand scheme of things - (i.e., one 20 rnd box of .223 = $7 -$10 on a good day = 12 seconds on full auto)

07-23-2010, 08:47 PM	#2
xm15e2s Registered User Join Date: Mar 2003 Posts: 829 iTrader: 3 / 100%	YUP, they charge sales tax. They claim that they are a Corp and are required to. I would say thats its poor business practice unless its required by law.

07-24-2010, 04:27 PM	#3
JFK52 Registered User Join Date: Jan 2008 Posts: 33 iTrader: 0 / 0%	I am going to buy the barrel, because they are the only company who offers them. It leaves a real bad taste in my mouth about the sales tax. I purchase numerous items online from out of state companies, and this is the first time I can remember being charged sales tax by one on a transaction. Looks like they are trying to make up for the free shipping they offer on items over $50.

07-24-2010, 07:04 PM	#4
jasonpkm Registered User Join Date: Jan 2009 Location: Peoples Republic of Maryland Posts: 153 iTrader: 0 / 0%	Yep I paid sales tax to. But they are making an effort to produce FNC stuff. I do not know if I was charged sale tax for my UZI barrel?

07-25-2010, 11:58 AM	#6
JFK52 Registered User Join Date: Jan 2008 Posts: 33 iTrader: 0 / 0%	Well I will "whine" about it if I want as it is money out of my pocket, not yours. I was more surprised by it than anything else as no other out of state company that I do business with has charged me their states sales tax. Some states like Florida have a 7.5% sales tax, so the extra out of pocket on a large purchase could add up quickly. I could be wrong, but I did not think companies were REQUIRED to charge the sales tax on out of state online purchases. I would rather pay a reasonable shipping charge, which is something I can understand being charged as every item has to get in your hands somehow.

07-26-2010, 06:50 AM	#9
rsanborn Registered User Join Date: Nov 2008 Posts: 62 iTrader: 1 / 100%	Maybe I shouldn't jump in but I will. Collecting sales tax is required by law if you are part of a corporation that has businesses in a certain amount of states, I believe it is 32 but not sure of the exact number. Following this law is corproate policy and I have no choice. This has been a total pain in the a$$ from the time we started the web site. Not only do we have to collect, we have to pay quite a bit of money to an outside company to update the tax codes every year. We also pay to distribute the tax proceeds to the states/municipalities that require it. We're not hiding anything or trying to make up for free shipping. If it were my choice I wouldn't charge it but it's not. Feel free to contact me at, rsanborn@gmriflebarrel.com. Thanks Rick GMRB

07-26-2010, 11:45 AM	#10
DStern1821 UZI Talk Life Member Join Date: Apr 2005 Posts: 21 iTrader: 1 / 100%	Beretta USA in Virginia/Maryland charges me tax in Texas for internet orders, 11.25%, as do many other sites. This thread's tone comes across as Green Mountain is doing something wrong or is somehow cheating buyers. The discussion of taxing internet orders and whether a company should or shouldn't is way off base. Its the company's decision. Personally, I am very happy GM stepped up and delivered on a product that didnt exist. Hell, I dont even have a FNC in my NFA collection and I bought one for future use. Just my $.02. Dave

07-26-2010, 01:34 PM	#11
rsanborn Registered User Join Date: Nov 2008 Posts: 62 iTrader: 1 / 100%	Just to further explain. Green Mountain, here in New Hampshire, is owned by the corporation Ebsco Industries out of Alabama. Ebsco has sales represention in all US states. Ebsco's publication division services libraries and military bases as well as schools with various publications. The below is from the Business.Gov web site: If your business has a physical presence in a state, such as a store, office or warehouse, you must collect applicable state and local sales tax from your customers. If you do not have a presence in a particular state, you are not required to collect sales taxes. In legal terms, this physical presence is known as a "nexus." Each state defines nexus differently, but all agree that if you have store or office of some sort, a nexus exists.

07-27-2010, 04:37 AM	#12
l4mbr3tt4 Registered User Join Date: Jan 2009 Posts: 48 iTrader: 0 / 0%	I'm not complaining, but I have to say that this is the first time I have been charged sales tax from an order placed and shipped from NH. NH, as many of you don't know, does not have sales tax! In the end sales tax or not, these barrels are very affordable.

07-27-2010, 11:30 PM	#13
JFK52 Registered User Join Date: Jan 2008 Posts: 33 iTrader: 0 / 0%	I started this thread and in no way was I saying that I thought GM was doing anything wrong or unethical. I was simply looking for an explanation on why they are collecting sales tax on an out of state online order. Just about all of my previous online orders have been sales tax free. So from that background it why I was asking my question. I think Rick from GMRB did a great job of explaining his company's position and I salute him for doing so in this discussion. I ran a small business for years and had to collect sales tax for the state of Wisconsin. It was indeed a huge amount of paper work and very little financial incentive for doing a required job by the state department of revenue. Stiff fines and penalities if your were late in your payments and/or paperwork. So thank you Rick for your clarification and for making the FNC barrels. I am glad GMRB has made the new FNC barrels and I will be ordering one. I will just consider the sales tax as part of the rather reasonable cost of the barrel. Quality spare or replacement parts are essential for keeping a FNC running. Even better that these parts are made here in the USA.