Competitive Cyclist charged me sales tax [Archive]

Bruce K

11-23-2018, 04:12 PM

More states are cracking down on sales tax collection from online sales

Amazon always collects sales tax for wherever the merchandise is going.

Some other vendors not so much....

Where do you live?

BK

John H.

11-23-2018, 04:15 PM

CC did that to me a year ago.
I went back and forth telling them they didn't need to do that since I am in California.
They wouldn't budge.

Going forward, I just factor that into the price when I am deciding who to buy from. Excel and Colorado Cyclist do not charge tax in California.

LJohnny

11-23-2018, 04:18 PM

Yes, pretty standard for while, I think I noticed it as long back as 6 months

loxx0050

11-23-2018, 04:24 PM

The laws have changed to crack down on collecting sales tax on online purchases. This is happening pretty much across all online stores. The beginning of last month was when it took effect. Even eBay has been collecting sales tax now. Look up or search for a recent Supreme Court decision on this earlier this year on the sales tax collecting ruling. My state was one of those affected and my last order from Competitive Cyclist, Backcountry and even eBay charged me sales tax.

I suspect that is why some stores like Arts Cyclery ceased online sales recently so as not to deal with the logistical nightmare of collecting sales tax for nearly every state and also having to files taxes for all said states too.

scooter

11-23-2018, 04:34 PM

In a 5-4 ruling back in June, the U.S. Supreme Court ruled (South Dakota v. Wayfair Inc.) that states can collect sale tax from online retailers. They reversed the court's longstanding rule that states cannot require companies without a physical presence to collect sales taxes.

FlashUNC

11-23-2018, 05:13 PM

The golden age of ecommerce, in some ways, is over.

merlinmurph

11-23-2018, 05:35 PM

Makes me wonder how many retailers will collect the tax and pocket it.

Just the cynic in me coming out.

Dino Suegiù

11-23-2018, 05:38 PM

Will be happening more and more, certainly.

dustyrider

11-23-2018, 05:54 PM

How about a package forwarding business in a non-taxed state?
Instead of 2 day shipping, make it 3!

Willy

11-23-2018, 05:58 PM

I suspect that is why some stores like Arts Cyclery ceased online sales recently so as not to deal with the logistical nightmare of collecting sales tax for nearly every state and also having to files taxes for all said states too.

I am shocked about Arts Cyclery. They were my go to shop for internet orders. Just tried looking at their site and sure enough no merchandise. Anyone know the story?

fa63

11-23-2018, 06:06 PM

I am shocked about Arts Cyclery. They were my go to shop for internet orders. Just tried looking at their site and sure enough no merchandise. Anyone know the story?I remember reading that the original owner wanted out, and some employees got together and saved the brick and mortar operation.

MattTuck

11-23-2018, 06:06 PM

How about a package forwarding business in a non-taxed state?
Instead of 2 day shipping, make it 3!

It is nice to live in a state with no sales tax when doing online shopping. Not so nice when you get your property tax bill, or have to renew your car registration.

MagicHour

11-23-2018, 06:12 PM

I noticed the last year or two they seem to have phased out their inventory in lieu of Specialized only and now it seems are a B&M only now. I always thought they had a good eclectic selection of varying pricepoints.

I am shocked about Arts Cyclery. They were my go to shop for internet orders. Just tried looking at their site and sure enough no merchandise. Anyone know the story?

dem

11-23-2018, 06:32 PM

The Wayfair decision lets each state decide on the mandatory reporting or collection aspect - so it will vary depending on where you live.

Here ya go.. the big one is probably the last column for most of us: "marketplace reporting" - ie, eBay collecting sales tax.

https://www.salestaxinstitute.com/resources/remote-seller-nexus-chart

ultraman6970

11-23-2018, 07:19 PM

Well, that's why the UK is blooming right now.

72gmc

11-23-2018, 07:39 PM

The golden age of ecommerce, in some ways, is over.

Don’t I remember a congressman once talked about charging a stamp-like fee for email? Sales tax seems reasonable by comparison.

loxx0050

11-23-2018, 07:42 PM

I remember reading that the original owner wanted out, and some employees got together and saved the brick and mortar operation.

That I didn't know and thanks for sharing. I only found out about them ceasing online sales when the other month I checked out their site looking for a good price on the last parts for an upgrade kit I was working on and they had a big message stating so. Was blowing out inventory at really low prices and stated once stock is gone they will end online sales.

commonguy001

11-24-2018, 07:10 AM

Mikej

11-24-2018, 07:28 AM

Knew it was coming living in Mn.
It makes buying local a no brainer when prices are equal and online distribution is limited to retailers that charge sales tax.
Did buy a new mtb helmet from Backcountry aka Competive Cyclist on Black Friday but it was 50% off and with 12% Active Junky cash was still by far the best price even with sales tax included.

As long as it’s in stock I agree. My entire problem with local retail is ordering a part and then waiting for the store to order it. CC has the inventory up to date and 2nd air. Youre not going to beat a lot of their prices. And their return policy is great.

Bruce K

11-24-2018, 08:35 AM

It does level the playing field some and I prefer to buy local even for a small “premium”

But the availability issue can easily supersede that idea if it is something I need quickly and is only available on line.

BK

unterhausen

11-24-2018, 09:41 AM

Makes me wonder how many retailers will collect the tax and pocket it.

Just the cynic in me coming out.a local business just got charged for hiding $60000 in sales tax revenue from the state. They are still open though. I think online retailers might be less likely to cheat, since the system is automated.

As long as it’s in stock I agree. My entire problem with local retail is ordering a part and then waiting for the store to order it. CC has the inventory up to date and 2nd air. Youre not going to beat a lot of their prices. And their return policy is great.
I know my LBS is an outlier, but I usually get things faster through them than through an online dealer. But they save me so much money that I don't cheat on them, except for the occasional ebay purchase.

Heisenberg

11-24-2018, 10:14 AM

ultraman6970

11-24-2018, 10:25 AM

That bike shop got caught in those 60k maybe because somebody told on them, is not that uncle sam went there to check them out as result of a raffle.

henrypretz

11-24-2018, 10:29 AM

We were in their neighborhood this week. They've moved just down the street. Didn't have time to stop in.
I always appreciated their tutorial videos. Does anyone know if those still exist somewhere in cyberspace?
edit: found the videos
https://www.youtube.com/user/wwwartscyclerycom

I remember reading that the original owner wanted out, and some employees got together and saved the brick and mortar operation.

Web1111a

11-24-2018, 10:38 AM

CC is owned by TSG, and thus, has an office in CA.

Thus, sales tax! They wouldn’t budge ‘cause evasion and whatnot.

Who is TSG?

unterhausen

11-24-2018, 10:42 AM

That bike shop got caught in those 60k maybe because somebody told on them, is not that uncle sam went there to check them out as result of a raffle.
It was is a flower shop, not a bike shop.

there is no national sales tax, so uncle sam has nothing to do with it. Pennsylvania cross-checks between what you write off for purchases and what you report on sales, to make sure they line up. It could have been that or the local government just has a spreadsheet and checks income between years. Either way, it's not really difficult to guess someone's cheating on sales taxes, there is a lot of data that can be cross-checked. For example, inventory vs. sales. It's a lot more difficult to check up on internet sellers.

Lionel

11-24-2018, 10:53 AM

Competitive cyclist (and backcountry...) web site cannot be accessed when I am in Europe, they are re-directing me to some other local EU site. This is the most moronic thing I have ever seen. I used to buy a lot of stuff from Backcountry while in Europe and shipped to my US address. Anyway.....

ultraman6970

11-24-2018, 03:02 PM

They redirect you based in the IP?? interesting they did that to you...

zap

11-24-2018, 03:13 PM

Plum Hill

11-24-2018, 03:59 PM

Split an order with Excel and CC for pretty much the same stuff. Placed Excel order first, then CC and got hit with sales tax.

I recall some of the online taxing also has to do with the amount of sales a business does with the state of the recipient.

FierteTi52

11-24-2018, 08:35 PM

I’m in New York State and when shopping for my Santa Cruz 5010 found out Competitive Cyclist was going to charge sales tax on the bike. I ended up ordering the bike through Colorado Cyclist and saved the sales tax.

Llewellyn

11-24-2018, 10:16 PM

The laws have changed to crack down on collecting sales tax on online purchases. This is happening pretty much across all online stores. The beginning of last month was when it took effect. Even eBay has been collecting sales tax now. Look up or search for a recent Supreme Court decision on this earlier this year on the sales tax collecting ruling. My state was one of those affected and my last order from Competitive Cyclist, Backcountry and even eBay charged me sales tax.

This must be catching on everywhere because after years of relentless whining from a high-profile Aussie retailer the government caved in and scrapped the (admittedly generous) threshold for GST from $1k down to zero. So now GST is charged at source (Ebay etc). As someone else commented it looks like the golden age of e-commerce might be over (at least for bike parts)

Lionel

11-25-2018, 12:36 AM

Blame might be with EU regulators.

https://www.wired.com/story/europes-new-privacy-law-will-change-the-web-and-more/

Don't know seems stupid to me. If they want to restrict shipping to EU I get in but the fact I cannot access the web site ........

oldpotatoe

11-25-2018, 06:04 AM

That bike shop got caught in those 60k maybe because somebody told on them, is not that uncle sam went there to check them out as result of a raffle.

Not UncleSam but state and local tax. The tax beanies actually check that stuff pretty closely..be a day late and you will hear about it. Send it in early(always from the previous month) and you get no discount. Some will see this as 'income', but all you are doing is collecting it for the state, city, county, government.

peanutgallery

11-25-2018, 07:17 AM

So. ...

What's wrong with sales tax? I see nothing wrong with every one paying their part

Mikej

11-25-2018, 09:25 AM

So. ...

What's wrong with sales tax? I see nothing wrong with every one paying their part

Nothing. It was not collected in the past and there was not a warning they were going to begin collecting tax from out of state customers. I also just purchased items from other retailers online and was not charged sales tax. So, people are inconsistently paying their part. That is what’s wrong.

peanutgallery

11-25-2018, 10:43 AM

Welcome to the new economy, you should probably plan paying sales tax from here on out. On-lines place will start getting audited etc and the new rules will eventually catch up with everyone. As someone stated above, the golden age is done

Nothing. It was not collected in the past and there was not a warning they were going to begin collecting tax from out of state customers. I also just purchased items from other retailers online and was not charged sales tax. So, people are inconsistently paying their part. That is what’s wrong.

zap

11-25-2018, 01:10 PM

Don't know seems stupid to me. If they want to restrict shipping to EU I get in but the fact I cannot access the web site ........

Get used to it.

More and more websites outside the EU will not be accessible to EU residents.

simonov

11-25-2018, 01:16 PM

Nothing. It was not collected in the past and there was not a warning they were going to begin collecting tax from out of state customers. I also just purchased items from other retailers online and was not charged sales tax. So, people are inconsistently paying their part. That is what’s wrong.

Did the site's shopping cart show you tax as a line item before you hit "Purchase?" Sites are inconsistent because things are in transition. Some stores/companies have the systems in place to pay taxes as is now required and some don't. In time it will become the norm, especially when platforms that many stores use as their backend, like Shopify, get updated to handle managing taxes for each state.

Mikej

11-25-2018, 03:04 PM

Did the site's shopping cart show you tax as a line item before you hit "Purchase?" Sites are inconsistent because things are in transition. Some stores/companies have the systems in place to pay taxes as is now required and some don't. In time it will become the norm, especially when platforms that many stores use as their backend, like Shopify, get updated to handle managing taxes for each state.

Yes -

gemship

11-25-2018, 03:18 PM

So. ...

What's wrong with sales tax? I see nothing wrong with every one paying their part

I dunno man but that sounds like a miserable view of this situation. Can anybody really expect their state to do anything beneficial with the extra income? I get a kick out of that, a bunch of number crunchers working the states looking to weasle our hard earned bucks only to flush em into the abyss. Your roads will still suck at the end of the day and your chances at getting run over are always going up, lol. A tax is just a form of legal extortion to a more or lesser degree. Ever here of the Boston Tea Party?, it's time to revolt boys.

All kidding aside this thread piqued my interest enough to research my how my home state Ma. is handling online sales tax. Seems there charging it for the purchases from bigger companies that have a physical presence in the state even if it's simply virtual as well as doing over a half a million in sales. However outta state vendors that are more "mom and pop" under half a million won't be held to it so that's nice to hear.

Jdg68

11-28-2018, 03:34 PM

chiasticon

11-29-2018, 06:39 AM

Did buy a new mtb helmet from Backcountry aka Competive Cyclist on Black Friday but it was 50% off and with 12% Active Junky cash was still by far the best price even with sales tax included.did the same this week. the Active Junky cash back more than made up for the sales tax charged.

I don't mind paying the tax but it sucks to see your cart at one price and then get to the final stage of checkout and see it jump up. if you're logged into your account, they know where you live and should be able to project how much your final price will be.

zap

11-29-2018, 08:37 AM

My fiance is a renovation contractor and was audited by the state (Va). She ended up having to pay several thousand in taxes on some large cabinetry purchases where sales tax was not collected. Eventually you can probably expect to see states auditing private citizens for this too...

Reseller cert?

For end users this has been going on for decades.....mostly with large furniture purchases.

Consumer purchases furniture in NC, truck with goods enters say NY, stops at weigh station and manifest is reviewed. Officials see US$35K worth of furniture going to Mr/s Jones house on Long Island......:hello: .