When the state cannot collect a sales tax from a seller in another country (or another state), it can impose a “use tax” upon the purchaser often at the same rate as the sales tax. And I believe this is true in a private transaction between a buyer and seller via Audiogon although that transaction and the resulting use tax is seldom ever found. The buyer is theoretically supposed to report the transaction to the state - never happens. It was pure (bad) luck that the tax collector found out about it. It was probably an error in valuing the amp by a little bureaucrat in the Tennessee department of revenue, not a Qnon conspiracy of Democrats. A lot of venting going on in these posts. Years ago I purchased an $8,000 pair of Focal speakers for $5,000 from a Canadian dealer. I may have paid customs on it, I don’t remember. But years later the California Board of Equalization caught up with me - the purchase was traceable - and I had to pay a Use Tax based upon the $5,000 purchase price, plus interest and penalties. No Big Brother paranoia was involved here.
Received a Bill for State Tax on An Amp Bought in Canada Last Year
Wow! The envelope said “Dept of Revenue” so I figured it may be my car tags due. I opened the envelope to find a statement that I owed $665 for “use tax” on an amp I bought last year in June. Shocked is an understatement. Yes, I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax. However, the amount they are basing it on is over double what I paid for the amp. But had to send it to Don Sachs for repair a few months later. So I wonder if they are seeing that as a separate purchase rather than a repair. They even charged me $43 interest which is more ridiculous IMO.
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow
So the question...Are you required to pay tax on a used amp or other used items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow
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You don’t pay sales tax in TN on a used item. The state made a mistake and must think the amp was new from a dealer. Parts Connextion is an audio parts seller located in Canada and changes no sales tax on orders to the US. Do they have to? Don’t think so as they do not have any physical or other connection to the US (nexus) I am aware of. |
When I bought an amp from Parts Express, I got the wrong model so it had to be sent back and I had another one sent to me. When returning it, I was told to state it was going back for repairs or a mod to avoid any hassle with customs and the whole declarations mess, and that was many years ago. Things haven't seemed to have changed so I wonder why the OP wasn't informed about it or it could just be some overzealous official in TN. All the best, Nonoise |
Considering California is the world’s 5th largest economy, $1.5 trillion would put it at the top to make it the best operating economy in the world, beating out all the other countries. Strange thing about all the money in CA; In spite of "rolling" in money, CA has the largest homeless population in the US. 1 in 4 homeless Americans are Californians. |
grannyring You don’t pay sales tax in TN on a used item. The state made a mistake and must think the amp was new from a dealer.Nope, that’s not how in works in Tennessee - you won’t find an exemption for used items on its sales tax website. (In fact, the state invokes especially strict rules for taxing used motor vehicles.) In addition to its sales tax, the state also has a companion "use tax" that applies "when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax ..." |
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