Sales Tax Exemptions

[justafrog]

Depends on the state. In New York you can file to get repaid.

 

I'm a dummy, I mis-read the question.

 

Yes, in California you can take overpaid sales tax (like to TLG) on your sales tax returns against sales tax you'd have to fork over for that reporting period.

 

There is also reportedly a way to file for sales tax overpayments, as Achilles mentions, in California as well, but I haven't yet looked into it.

[belljohn]

I'm a dummy, I mis-read the question.

 

Yes, in California you can take overpaid sales tax (like to TLG) on your sales tax returns against sales tax you'd have to fork over for that reporting period.

 

There is also reportedly a way to file for sales tax overpayments, as Achilles mentions, in California as well, but I haven't yet looked into it.

 

In Wisconsin, you have to have a company representative sign a form that lists your extra tax payments before the state will refund you directly.  I didn't think Lego would do this.

 

Otherwise, you have to have tax liability from sales, and can that offset extra tax during your filing period.

 

On another note, I just got my Walmart.com exemption (after 5 weeks), and now I am going to submit for a refund on all my purchases from this year.  I will see how it goes.

[justafrog]

I received a note from Walmart approving my request for a sales tax refund from a day or two ago, they say give it 7 days to appear back on my debit card. Not a bad experience so far.

[mudcatsfan]

I received a note from Walmart approving my request for a sales tax refund from a day or two ago, they say give it 7 days to appear back on my debit card. Not a bad experience so far.

 

Mrs.Frog,

 

Considering how many items you may have purchased BEFORE requesting sales tax exemption, is there anything you can do to recoup the sales tax you'd spent in the past so that you're not facing double taxation when you sell those items?

 

[shameless flattery to get my question answered] Also, let me say that you're one of my favorite contributors to the site. Love your writing style.

[Achilles]

Legally, no - Purchases before you were legally exempt there is nothing you can do to get the money back.

You CAN however take the sales tax you paid as a deduction. 

[justafrog]

Legally, no - Purchases before you were legally exempt there is nothing you can do to get the money back.

You CAN however take the sales tax you paid as a deduction. 

 

Agreed - I don't know of any state where you can retroactively claim sales tax spent before your exemption.

[belljohn]

I believe if you already have a sales tax number with your state, and you make a purchase while waiting for your tax exempt number from the seller, you can still request a refund.  Target has given me a refund on purchases made before they had approved my tax exempt status with them.

[justafrog]

Walmart.com update...

 

Waited 7 days as instructed in their email for my $32 in sales tax to be refunded. Nothin'.

 

eMailed them today to let them know of this shocking oversight, they sent me an apology and told me it was REALLY done this time and to wait another 7 days.

 

Yeah, go ahead and pull the other one. 

 

I'll let y'all know how long it really ends up taking.

[justafrog]

Success! Sales tax refund hit my debit card this morning. I have rewarded Walmart.com with another order and another refund request. 

[belljohn]

Success! Sales tax refund hit my debit card this morning. I have rewarded Walmart.com with another order and another refund request. 

 

Did you get an email too, or just your card refund?  It has been 7 days since I submitted mine, so maybe a few more days to wait.  What are you buying at Walmart that you can't get at Target?  I find Target so much better with their 5% off and no tax automatically.  It is like double VIP points every day compared to LEGO Shop at Home with sales tax.  I've almost had it with Walmart's shipping too.

[justafrog]

I got an email that it was in process, and then the actual refund showed up in the bank account attached to the debit card I used.

 

Arkham Asylums are still attached to $15 gift cards, so that's mostly what I'm buying at Walmart right now. The first purchase was for Simpsons Houses, though - I don't have a business red card yet, so the 5% discount from Target isn't in play for me yet. On my list of fun things to do in my spare time. 

[belljohn]

I don't have a business redcard either.  I use my personal card without any issues online or in the store.  

 

Your right, AA still is a little better at Walmart.  Your sets have been shipped well?  My last three orders have been terrible.

[justafrog]

I order in multiples which seems to quell my local shipping hub's need to slap stickers directly to boxes - most of the time they come packed in the original LEGO shipping cartons.  It wouldn't matter to me, though - since I'm only buying to rip the boxes open immediately and sell the pieces off on Bricklink and eBay, box condition is of no importance to me.

 

Re: Redcard - despite my lawless hussy behavior with TLG, when a company offers me what I consider fair play I try to abide by their terms. I could use the personal red card, but I'd feel bad about it since they offer a business option and I know I'm not "supposed" to use the personal one for resale purposes. Just a strange kick to my particular gallop, nothing against what anyone else chooses to do.

[belljohn]

I just got my Walmart refund for my Haunted Houses and Tower Bridges that I bought a few months ago.  They made me send in proof that I resold toys before they would do it for me.  A link to my eBay store did the trick, but it is interesting they were checking even after they approved my reseller status.  I am impressed that it only took a week considering how long it took to get initial approval.

[gmpirate]

more resellers accounts are with target vs. walmart. target is reseller friendly vs. walmart.

How is that?  I buy tax free from Walmart and have never had issues.

[newbie77]

How is that?  I buy tax free from Walmart and have never had issues.

for walmart online order don't you have to fax and submit paperwork for tax refund? i was told that is the only way. they charge tax at the purchase all the time.

[Bold-Arrow]

for walmart online order don't you have to fax and submit paperwork for tax refund? i was told that is the only way. they charge tax at the purchase all the time.

once your account is approved for tax exempt status , u don't need to fax anything anymore ...they charge you tax when you order then u submit request to refund for each order. Target on the other is a breeze, once u are approved you are all set

[gmpirate]

for walmart online order don't you have to fax and submit paperwork for tax refund? i was told that is the only way. they charge tax at the purchase all the time.

Yes, you do.  Then you're set.  Although you may have to call in after an order to have them remove the tax.  They used to not charge the tax automatically, so I don't know if its hit and mis or you just have to call every time now.

 

But really, except for Amazon, most sources are going to charge you tax.  When you file quarterly, you just deduct any sales tax paid on purchased from what you owe. Its no big deal unless this is your only retail business you do.  If its all you do, then you have to file for a refund which is probably more of a pain.

 

(and yes I know you can only deduct the sales tax once  your items have sold)

[newbie77]

Yes, you do.  Then you're set.  Although you may have to call in after an order to have them remove the tax.  They used to not charge the tax automatically, so I don't know if its hit and mis or you just have to call every time now.

 

But really, except for Amazon, most sources are going to charge you tax.  When you file quarterly, you just deduct any sales tax paid on purchased from what you owe. Its no big deal unless this is your only retail business you do.  If its all you do, then you have to file for a refund which is probably more of a pain.

 

(and yes I know you can only deduct the sales tax once  your items have sold)

target don't once you submit the paperwork and the account is setup. you can order via that account and i have never seen tax applied there.

whereas with regard to walmart every order i need to call them and fax them the document with the invoice. so its a hassle

[gmpirate]

target don't once you submit the paperwork and the account is setup. you can order via that account and i have never seen tax applied there.

whereas with regard to walmart every order i need to call them and fax them the document with the invoice. so its a hassle

Well, I've never had to resubmit paperwork to Walmart.  And since any sales tax paid can be deducted on sales tax returns, I don't see Target as a good option if their prices are higher.  

 

On another note, I thought I heard the Target 5% cannot be used for resellers??

[justafrog]

My experiences:

 

WalMart was a pain to get set up, but now that it's working it's simple enough: Place the order, get charged the sales tax, send them an email requesting they refund the sales tax. Usually takes a few days from first to last step.

 

Target was easy to set up and now my online Target account just automatically sets the sales tax to zero.

Ditto Amazon.com

[jaisonline]

My experiences:

 

WalMart was a pain to get set up, but now that it's working it's simple enough: Place the order, get charged the sales tax, send them an email requesting they refund the sales tax. Usually takes a few days from first to last step.

 

Target was easy to set up and now my online Target account just automatically sets the sales tax to zero.

Ditto Amazon.com

I couldn't have typed it better myself

Yoyo is better easy also.

[justafrog]

I don't get any sense that Amazon is against granting sales tax exemptions. They were super helpful to me when I did it (they were the first I set up, so I screwed it up like 4 times and CS was very patient in helping me work it out).

 

I would just email them and ask them - they have really good, responsive online CS, let them know what you'd like to do, and ask if they have any problems with that or rules against it. 

[exciter1]

I'm still yet to try for tax exemption. I find it a hassle enough shopping at Wal-Mart, I don't have tax in Ohio for Amazon yet, and TRU & KMart are painful enough with coupons promos, etc.

 

Just curious, on average, how much longer does processing the tax exempt purchases take per visit?  Are the stores cooperative and I guess the real answer is, you obviously think it is worth it?

[justafrog]

I haven't done the ST exemption in a Walmart Brick & Mortar yet, so can't address that.

 

Target is super easy - you have your certificate and they do it at the regular checkouts. Takes just an extra minute. Kmart you have to go to customer service, usually takes me maybe 10 minutes or so (part of this is them calling to manager to figure out how to do it. )

 

TRU haven't tried yet.

 

All the stores have been very cooperative and helpful, and I have been super patient and friendly which I'm sure helps. Even when they're dumb as bricks, I keep smiling and keep my tone of voice very, very nice.