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Old April 02, 2017, 11:41   #1
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Costco violates California sales tax law




REVENUE AND TAXATION CODE SECTION 6051-6055 6051. For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 2 1/2 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state on or after August 1, 1933, and to and including June 30, 1935, and at the rate of 3 percent thereafter, and at the rate of 2 1/2 percent on and after July 1, 1943, and to and including June 30, 1949, and at the rate of 3 percent on and after July 1, 1949, and to and including July 31, 1967, and at the rate of 4 percent on and after August 1, 1967, and to and including June 30, 1972, and at the rate of 3 3/4 percent on and after July 1, 1972, and to and including June 30, 1973, and at the rate of 4 3/4 percent on and after July 1, 1973, and to and including September 30, 1973, and at the rate of 3 3/4 percent on and after October 1, 1973, and to and including March 31, 1974, and at the rate of 4 3/4 percent thereafter.
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Old April 02, 2017, 11:48   #2
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Am I missing something?
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Old April 02, 2017, 12:04   #3
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On the sign they say they obey the law but as the law clearly states "For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers."

And while yes most all businesses do this I found that Costco states in their sign that they "Obey the law".



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Am I missing something?
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Old April 02, 2017, 12:14   #4
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I still don't get it
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Old April 02, 2017, 12:48   #5
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I still don't get it
Me either.
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Old April 02, 2017, 12:50   #6
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I don't get it and don't care
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Old April 02, 2017, 13:44   #7
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I think he is referencing the "personal property" part of the statute and the fact that they sell business property. He does omit that the state considers all businesses to be entities and therefore they are selling "personal property".
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Old April 02, 2017, 14:03   #8
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No, that's not it at all.

No one here has the capacity to use logic any more ?

Read the law posted just under the photo, the responsibility of paying the tax is the retailers not the customer of Costco or any other retailer is what I get from the law but yet they still add on a tax to pass on to the state.

And they still say they follow the law in their sign that is on the wall.

They don't ask if the customer would like to volunteer the money for Costco in turn to give to the state they make it seem like it's the law that the customer must pay Costco to give to the state like Costco acts as the states agent.

As in any contract if full disclosure is not given the contract is null and void.

And since they don't tell the customer that the tax is their responsibility they have voided terms of the contract.

remember your contract law classes, there are 3 parts to a contract.


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I think he is referencing the "personal property" part of the statute and the fact that they sell business property. He does omit that the state considers all businesses to be entities and therefore they are selling "personal property".
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Old April 02, 2017, 15:00   #9
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I have to pay the electric, tooling and machine cost, supplies and all other cost associated with my shop. These cost are passed to my customers. The sales tax is just another cost passed to the customer.

Why would a sign negate a sales tax? Does every business give 'full disclosure' to every purchase. How can that be done at a Convince Store? Someone is going to go through all the legal ranglings to buy a 6 pack?
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Old April 02, 2017, 15:04   #10
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A. Downsize the sign...

B. Nothing says that they can't charge the customer for the tax they pay to the State...

C. Leave CA...

Forrest
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Old April 02, 2017, 16:21   #11
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Isn't Costco a wholesaler (by membership)? That seems to negate the collection of sales taxes. But then Commiefornia is a strange place....
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Old April 02, 2017, 16:35   #12
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this like the pit bull thread.
to keep it simple jack, businesses add all taxes to the price of the product or service and the customer pays for it.

now i have met a lot of idiots who think businesses have a secret pot of gold they use to pay taxes, now thats no shiite.

or some that think businesses should, get this, work for free.
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Old April 02, 2017, 17:22   #13
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Holy fugging big pictures buttman..please learn to resize.
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Old April 02, 2017, 17:27   #14
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But then Commiefornia is a strange place....
Ain't it though? Everytime I cross state lines, all I smell is ass and KY...
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Old April 02, 2017, 20:26   #15
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Businesses do not pay taxes, they collect them.
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Old April 02, 2017, 20:29   #16
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Originally Posted by 12v71 View Post
Isn't Costco a wholesaler (by membership)? That seems to negate the collection of sales taxes. But then Commiefornia is a strange place....
If you have a tax exempt certificate from your state then you don't pay sales tax.
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Old April 02, 2017, 20:56   #17
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If you have a tax exempt certificate from your state then you don't pay sales tax.
That's the one that throws me off, I have a business certificate and never really thought about the regular buyers. Checked online and Joe Shmoe non business guy does pay sales tax.
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Old April 02, 2017, 20:58   #18
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You don't read too well do ya ?

The law clearly states.

For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers at the rate of 2 1/2 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state.


It does not say the business need collect the tax from the consumer, not saying they can't attempt to collect it to cover their asses when the state asks them for the tax but the law does not say the customer is liable to pay the tax.

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Businesses do not pay taxes, they collect them.
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Old April 03, 2017, 03:32   #19
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If you have a tax exempt certificate from your state then you don't pay sales tax.
Costco is HQd in Washington, I'm sure this is the case. I had a friend who worked for a California company remotely in Florida, they collected California income taxes which Florida doesn't have, a quick call and it was all reversed and his money back. I know they are different situations but it seems there is always a work around for Cali taxes.
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Old April 03, 2017, 08:49   #20
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The current sales tax in California is 6%.

The law cited by NFADLR concludes with the sales tax at 4.75%, so Costco is taxing sales at the lower rate in accordance with the cited law.
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Old April 03, 2017, 09:57   #21
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This is sales tax, not income tax.

Apples and oranges.


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Costco is HQd in Washington, I'm sure this is the case. I had a friend who worked for a California company remotely in Florida, they collected California income taxes which Florida doesn't have, a quick call and it was all reversed and his money back. I know they are different situations but it seems there is always a work around for Cali taxes.


My contention isn't about the percentage that should be paid, it's about who is liable to pay the sales tax via the terms of the law.

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The current sales tax in California is 6%.

The law cited by NFADLR concludes with the sales tax at 4.75%, so Costco is taxing sales at the lower rate in accordance with the cited law.
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Old April 03, 2017, 10:27   #22
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Quote:
Originally Posted by NFADLR View Post
This is sales tax, not income tax.

Apples and oranges.






My contention isn't about the percentage that should be paid, it's about who is liable to pay the sales tax via the terms of the law.
I see what you mean, in the end couldnt it be refunded come tax season?
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Old April 03, 2017, 19:05   #23
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I see what you mean, in the end couldnt it be refunded come tax season?
Not necessarily "refunded" but you can deduct the amount of taxes already paid out of your income to other entities(i.e. sales, property, income tax paid to another state (on state returns) etc..)

But to the original post unless you have some proof that COSTCO isn't paying taxes then they are obeying the law. The law does not prevent retailers from passing the amount that they are taxed on to the consumer. In the case of most retailers it is a sales ploy to make the consumer feel like they are paying less by displaying the shelf price with no tax included but then they tack it on upon check out when the consumer is already mentally prepared to take ownership of the item. Nothing out of line with the law, just tricky.

Very infrequently do they include the tax in the advertised price. One of the most un-noticed instances of including tax in the price is at the gas pump. There the price you pay has the tax included in the advertised price.
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Old April 05, 2017, 18:34   #24
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NFADLR, Why do you insist in living in that shit hole state??

The Aggravation in Paradise is WAY UP THERE, Hate that state, wish the surrounding states would "Absorb it" and change its Basic Nature.
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Old April 05, 2017, 19:23   #25
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Property values are way down here.

If I sold the land now I would not get enough to buy a mobile home in a old folks park!!

BTW Not saying that Costco does not pay the tax to the state saying that they are passing it onto the consumers and not letting them now that doing it in that way is not based in law.

the law states for the "For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers".
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Old April 06, 2017, 19:48   #26
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The current sales tax in California is 6%.

The law cited by NFADLR concludes with the sales tax at 4.75%, so Costco is taxing sales at the lower rate in accordance with the cited law.
if I remember correctly, different areas of Calif charge different rates--I worked at two Costcos there--one in south Orange County, one in Palm Desert--and shopped in alot of others--different rates in locations. I may be wrong, but that seems the way I remember it.
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Old April 08, 2017, 10:50   #27
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Yes this is true but it has no bearing on my points.

I'm not doubting that costco pays the tax they collect from their customers my point is they don't have the right to charge their customers that tax as its their obligation to pay










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if I remember correctly, different areas of Calif charge different rates--I worked at two Costcos there--one in south Orange County, one in Palm Desert--and shopped in alot of others--different rates in locations. I may be wrong, but that seems the way I remember it.
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Old April 08, 2017, 12:51   #28
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Yes this is true but it has no bearing on my points.

I'm not doubting that costco pays the tax they collect from their customers my point is they don't have the right to charge their customers that tax as its their obligation to pay

Costco customers can choose not to pay by shopping elsewhere.
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Old April 08, 2017, 19:54   #29
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I have a letter sent into the CAFTB we shall see what they have to say about this.

There is a specific way they need to advertise by law and if they dont then they and every other retailer that does not abide by the law is violating said law.

A class action suit would be interesting.

Who else is pissed at paying a tax that the law clearly states is responsibility of the retailer.

Remember: For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers


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Costco customers can choose not to pay by shopping elsewhere.
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Old April 09, 2017, 15:56   #30
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I have a letter sent into the CAFTB we shall see what they have to say about this.

There is a specific way they need to advertise by law and if they dont then they and every other retailer that does not abide by the law is violating said law.

A class action suit would be interesting.

Who else is pissed at paying a tax that the law clearly states is responsibility of the retailer.

Remember: For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers
What makes you think that they won't disclose it correctly + the cost of litigation if a law suit were to prove they did something wrong? The only person that would come out ahead are lawyers.
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Old April 14, 2017, 16:43   #31
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If you buy something at Costco, you are not paying the tax. Right? You are not handing cash over to the State.

The retailer is paying the tax.

Your final purchase price just includes a premium on top of the normal item's cost, which is equivalent to and expressed as a sales tax amount on your receipt.

They could just raise the prices of everything by x percent and not put it on the receipt and use that x percent to pay their tax obligation.

But some other law probably says that they have to make it visible to the customer.

What do you think?
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Old April 16, 2017, 04:03   #32
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I collect sales tax on all items sold and every month fill out an ST-3 then the state directly takes amount reported from my corporate bank account. Have to collect sales tax on all items sold for consumers use. Only exception is is buyer has a Sales and Use tax number and is buying item for re-sale then my form exempts them from paying Sales and Use tax till resell to their vendor. Have a State Sales and Use form on record at all my vendors. If go into Lowe's and buy some lumber and screws, give person at contractor check out my account number and DO NOT pay sales tax at point of purchase. Say I stop at paint store and buy paint for same project again I don't pay Sales and Use tax as "Materials for Further Processing" but when project is finished and sold to client I apply Sales Tax to their item. This way materials are not charged sales tax dozens of times before reach end user. It is a use tax, not a product tax and only applies to end user.

Go to same paint store and buy paint to use on my house I am obligated to pay Sales Tax as the final user in the chain. If go to Lowe's and buy a generator am installing for a client and reselling I don't pay sales tax at Lowe's but charge it to the customer and pass on to State when resell it. That way state gets Sales Tax only once but at the higher sold price to end user. If go in next day and buy a generator to use myself have to pay Sales and Use tax as final user in chain whether a business or not.

Suggest O.P. go get a location, business license, apply for Federal I.D. Number, State Sales and Use number then fill out their form every month or forward applicable information to CPA to fill out and e-file your form for you. You will understand more about taxes than ever wanted to. I charge Sales Tax on every item manufactured and resold unless sold for resale again. I don't charge Sales tax on pure labor like digging a hole where no product changes hands.
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Old April 16, 2017, 09:43   #33
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Huey You are smoking something real powerful as I have quoted the law and shown the SOC (State Of California) website URL where the law sits and 99% of you here can't seem to get it thru your thick heads that the consumer, that is anyone buying a product at retail is not responsible for paying the tax...


READ HERE ONE MORE TIME..


For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers.

Quote:
Originally Posted by hueyville View Post
I collect sales tax on all items sold and every month fill out an ST-3 then the state directly takes amount reported from my corporate bank account. Have to collect sales tax on all items sold for consumers use. Only exception is is buyer has a Sales and Use tax number and is buying item for re-sale then my form exempts them from paying Sales and Use tax till resell to their vendor. Have a State Sales and Use form on record at all my vendors. If go into Lowe's and buy some lumber and screws, give person at contractor check out my account number and DO NOT pay sales tax at point of purchase. Say I stop at paint store and buy paint for same project again I don't pay Sales and Use tax as "Materials for Further Processing" but when project is finished and sold to client I apply Sales Tax to their item. This way materials are not charged sales tax dozens of times before reach end user. It is a use tax, not a product tax and only applies to end user.

Go to same paint store and buy paint to use on my house I am obligated to pay Sales Tax as the final user in the chain. If go to Lowe's and buy a generator am installing for a client and reselling I don't pay sales tax at Lowe's but charge it to the customer and pass on to State when resell it. That way state gets Sales Tax only once but at the higher sold price to end user. If go in next day and buy a generator to use myself have to pay Sales and Use tax as final user in chain whether a business or not.

Suggest O.P. go get a location, business license, apply for Federal I.D. Number, State Sales and Use number then fill out their form every month or forward applicable information to CPA to fill out and e-file your form for you. You will understand more about taxes than ever wanted to. I charge Sales Tax on every item manufactured and resold unless sold for resale again. I don't charge Sales tax on pure labor like digging a hole where no product changes hands.
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Old April 18, 2017, 15:53   #34
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NFADLR, when Trump knocks the crap out of the Anti 2A crowd and re-instates--

--FREEDOM to use Suppressors, Full auto, etc, then you might be out of a Job, eh??
Time for you to pack up and Get out of CaliPhuckia Friend.
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Old April 18, 2017, 15:59   #35
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Find me a buyer over 300K for a 25 acre piece of land and I'm gone.

I realise yall are just teasing me but if you don't think I've been trying to move after listening to everything I've said in the last 15 years you are off your nut.


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--FREEDOM to use Suppressors, Full auto, etc, then you might be out of a Job, eh??
Time for you to pack up and Get out of CaliPhuckia Friend.
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Old April 18, 2017, 17:22   #36
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Find me a buyer over 300K for a 25 acre piece of land and I'm gone.

I realise yall are just teasing me but if you don't think I've been trying to move after listening to everything I've said in the last 15 years you are off your nut.
Well, eventually you may...

Just like I left New York 35 years ago for the free State of Colorado...

Oh, wait...

Forrest
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