Advice needed: Is this a fair practice or am I getting shafted?
02-25-2007, 02:36 AM
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Advice needed: Is this a fair practice or am I getting shafted? Gentlemen, I'd like to explain my situation while also being vague as to not to offend or wrongly accuse anyone if I am totaly out of line.
I had my car transported out of state to a very reputable shop to have my engine forged and driveline upgraded. I sent with the car parts I wanted installed with my build (converter, gears, gauges, etc) and sent them a few others as the build progressed over the months. After getting the final dyno numbers I decided I wanted more so I shopped for a supercharger. I finally made my choice on what s/c I wanted and was ready to place the order. My builder then convinced me he could get a much better deal if he ordered it himself through his shop than I could. He got it for $150 less than the price I was quoted.
Here's the kicker --> On my final bill I am being charged 7% state sales tax on all parts and labor... including the supercharger. Buying the s/c would have cost me the price of the unit and shipping and I'm sure it cost him the same. So now he's charging me an extra $500+ in sales tax on this charger??? Some deal
Does anyone know for sure how out of state sales tax works??? Is the customer to be charged sales tax on parts and/or labor when from another state? I called LS1TECH vendor EEP in Indiana and unless I misunderstood them, they do not ----> EEP (scroll down to the green text)
I would appreciate any help or advice before I pay this bill and have my car shipped back.
Thanks
I had my car transported out of state to a very reputable shop to have my engine forged and driveline upgraded. I sent with the car parts I wanted installed with my build (converter, gears, gauges, etc) and sent them a few others as the build progressed over the months. After getting the final dyno numbers I decided I wanted more so I shopped for a supercharger. I finally made my choice on what s/c I wanted and was ready to place the order. My builder then convinced me he could get a much better deal if he ordered it himself through his shop than I could. He got it for $150 less than the price I was quoted.
Here's the kicker --> On my final bill I am being charged 7% state sales tax on all parts and labor... including the supercharger. Buying the s/c would have cost me the price of the unit and shipping and I'm sure it cost him the same. So now he's charging me an extra $500+ in sales tax on this charger??? Some deal
Does anyone know for sure how out of state sales tax works??? Is the customer to be charged sales tax on parts and/or labor when from another state? I called LS1TECH vendor EEP in Indiana and unless I misunderstood them, they do not ----> EEP (scroll down to the green text)
I would appreciate any help or advice before I pay this bill and have my car shipped back.
Thanks
02-25-2007, 10:03 AM
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Yes, he will charge you sales tax on all the parts and work he got and did for you. There should be no sales tax on the parts you gave him other than labor costs. There is no sales tax on the internet because the business that is selling it can only charge their in state sales tax. If they ship it out of state, they dont have to collect the tax. Dont quote me on this. This is how I believe the no tax on internet sales works.
02-25-2007, 02:57 PM
#4
If a car is transported in from out of state, then we do not charge sales tax, on anything.
These rules tend to change from state to state. In any case, this shop should of told you they were going to have to charge you the sales tax on the blower. I tell potential customers from my own state, and I have lost sales due to telling them, but I figure it is the right thing to do. Bob
These rules tend to change from state to state. In any case, this shop should of told you they were going to have to charge you the sales tax on the blower. I tell potential customers from my own state, and I have lost sales due to telling them, but I figure it is the right thing to do. Bob