Public

iTrader: (19)

LOL the saga continues: So apparently there is a use tax that has to be paid in the state of IL. I guess the kit was duty free but not use tax free. Now since the kit had fake turbo's I'm considering trying to show some form of a loss on the $4850 they valued it at. Anybody got any other idea's?

Klimaxx

iTrader: (1)

what % tax are they looking to get? any fines?

Public

iTrader: (19)

The tax is 6.25% and based on 07. As far as fines go I'm sure there will be since the states broke. I wont know any more really until I get the second letter.

Texas_WS6

iTrader: (9)

Move to Texas, problem solved.

CarsandWomen

iTrader: (19)

true story.

jsteele90

iTrader: (13)

fake turboes?

Gregory

iTrader: (4)

Not intending to take this thread too far off course, but Texas has a state debt per person that is just a couple hundred dollars less than what California has. It is approximately $12,700.00 per person. This is almost a thousand dollars more per person than in Illinois.

Source: http://www.usdebtclock.org/index.html

Things are changing for the worse in Texas.

Texas_WS6

iTrader: (9)

I dont either, but, wow, i had no idea. I know it has no debt because of the states constitution will not allow it, but they do tax pretty good. At least its paid for up front and not left for other generations to deal with.

So you bought this kit over the internet and they are sending you a tax bill for it? Dang politicians! The older I get the less I think they are good for.

Public

iTrader: (19)

That clock is worse than an alarm clock going off at 5 AM.

MosesMcgregor

iTrader: (16)

is that right? my turbos seem pretty real.

Boo"SS"t

iTrader: (2)

Don't worry about it, Obama will take care of you!

I would'nt be surprise if they start taxing everybody for everytime you fart.

odarabla

iTrader: (1)

You could always move to Louisiana and just deal with the oil!!

lowbirdws6

iTrader: (62)

This could be a good thread, keep it going! I live in California and they tax you for everything and all of the city governments are corrupt. City officials are paying themselves $500.000 a year for sitting on their asses and watching things go to hell. The Federal Government is no different especially with the idiot we have running the country now!

AES Racing

iTrader: (6)

use tax is for businesses who purchase machinery and goods for business use. If you purchase these items in state the use tax is abated, if you bring in ie machinery from out of state you are to pay use tax.

Purchased APS system myself 2007 and havn't had any letters from state pertaining to that purchase.

I think someone classified your purchase incorrectly? I hope? Or did you buy it though your own business?

AES Racing

iTrader: (6)

The CHRA of the units are from Taiwan. Take it for what its worth. We want to pay $5,000 for a turbo system you get a pair of $450 turbochargers.

APS made an earlier version of the GTO turbo system that used genuine ball bearing Garrett GT28 or 30 turbochargers with internal wastegate. That system sold for $13,000 area. For example thats what it would cost with brand name units, that cost $2,000 each.

My APS Kinugawa turbos lasted 3 years, 30,000 miles, I hit WOT about 2 weeks ago left a plume of oil smoke, they have more shaft play then a gay porno.

Bob@BruteSpeed

iTrader: (16)

Here is what "Use tax" is classified as in Indiana

Who owes Indiana use tax?

Generally, any type of business entity (individual, partnership, corporation, etc.) that makes purchases of tangible personal property is subject to use tax unless it previously paid at least a 7 percent sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are 7 percent.

Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7 percent sales tax at the time of purchase, you do not owe a use tax. However, if you did not pay at least a 7 percent sales tax, you may owe use tax.

What type of purchases might cause me to become liable for use tax?

* Catalog purchases by phone or mail from out-of-state vendors
* Internet purchases from out-of-state vendors
* Items withdrawn from your inventory for personal use or to give away
* Any purchase for which a statutory exemption is not available per the Indiana Code (IC 6-2.5-5)

Bob

mgroshong

What Garrett gt28/gt30 costs $2k? Seriously that not even close to the cost of the turbo's. Let alone the price they pay when mass producing a turbo kit.

AES Racing

iTrader: (6)

Ok they cost $1200 I stand corrected.

merim123

iTrader: (11)

i use to be an accountant in another life and fairly familiar with sales and use tax in illinois. did you buy through a business? if so, than it's easy for them to see when you get audited like all businesses. if it was a personal purchase, how did it get flagged/picked up even for discussion even in an audit?

I'm guessing this was all business related and if it's on your books, depending on how good their auditor is in spotting it, you would be liable by the book.

Sales tax should always be collected on retail sales by a retailer where they have Nexus (physical presence in a state), so any retailer in Illinois must charge and collect sales tax in illinois and remit those taxes to the state.

you'll owe the interest no matter what, but try to plead on the penalty if you can and get an accountant involved. my experience is 15+ years ago but I know the nexus rules haven't changed.

Public

iTrader: (19)

Was not bought threw a business, was bought personally. I got a call from Fedex that said either I had to have a tax ID or social to get that package sorted according to customs. I'm sure that's how it was tracked by the state.

I called my tax guy as soon as I got the letter. He says wait on letter number two and lets see what they want. My plan I hope is to get enough proof to show we received knockoff turbo's and try and de-value the kit. Any better ideas out there?