Tool dealers that do not charge sales tax

[Peter Schussheim]

Looking for recommendations on internet retailers in United States that sell tools online and do not charge sales tax. I know of a few Festool dealers who fit this criteria, however, I'd like to hear about others that sell the Big Corporate brands (dewalt, makita, milwaukee, et cetera).

Thank you and have a blessed New Year

[Earl McLain]

Good luck. Most states have really clamped down on interstate commerce as a method for people to avoid sales tax payments. I won't pretend to know the rules or regs--just that it seems to have pretty much dried up.
earl

[Richard Coers]

https://smallbiztrends.com/2022/01/internet-sales-tax.html

"Do You Need to Collect Sales Tax for Selling Online?"

"Yes, and internet-based retailers have a 2018 Supreme Court ruling to thank for having to collect sales tax from shoppers and fill out tax returns."

[Justin Rapp]

So in some cases there are still some allowance on collecting sales tax. It depends on the state you live in, but if you ship out of state and your state has a minimum tax collection requirement, you might not get taxed if it's a small company. Some states have what is called a Sales Tax Nexus. They won't require you to pay sales tax unless you ship say, $100,000 worth of product to their state.

It is state by state, very tricky and very hard to understand so I think most retailers shipping out of state are just collecting the tax and sending it in to be 'safe'.

[Steve Demuth]

You're looking for a very small retailer, or one who is willing to risk getting into hock with the New Jersey tax authorities. New Jersey requires sellers to register with the state and collect sales tax if they execute 200 or more transactions per year that are shipped into the state, or are selling through an online marketplace like eBay, Etsy, Zoro, or the like. Almost any serious business is going to register with the Streamlined Sales Tax system (a consortium of states that have created a common registration system for vendors), either directly, or through a Certified Service Provider (services that both register your business and compute and remit taxes for you). Trouble comes to those who don't.

[Bill Dufour]

Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
Bill D

[Rob Luter]

They get you coming and going. An online retailer will be obligated to collect sales tax and forward it to your state as long as they have an agreement with your state to do so. If not, it is assumed (by your state) that you will declare the purchase and pay it directly. This may not be the case if you live in a state without sales tax. Personally, I don’t worry about it. If sales tax makes it unaffordable I didn’t really need it to begin with. If my state wants to come after me for a $100 internet sale, I wish them well. Disclaimer: I don’t do a lot of tax free online purchasing. My state would spent $10K collecting $20 of owed tax. I’m not the the droid they’re searching for.

[Frederick Skelly]

Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
Bill D

Bill, you probaby just missed it, but the OP lives in Jersey. Nevada wouldnt make as much sense for him as it does for you.

[John Lanciani]

Your best bet is probably to just make a list, call ahead and make the drive to Delaware.

[Jay Runde]

Nevada does not charge sales tax. Just drive there and pick it up. I go every few years to get stuff not sold in California, paint, varnish etc.
Bill D
Since when? I have lived in Nevada since 1997 and I've always had to pay sales tax.

[Dick Strauss]

Maybe someone confused sales tax and income tax as far as Nevada is concerned.

If the original poster is a Reseller and has a "Certificate of Resale", it shouldn't be too difficult to avoid paying taxes on something to be resold. If not, the sellers are probably paying the tax to make the sale (discounting the sale price to equal the taxes).

[Myk Rian]

In Michigan, any seller making more than 200 sales to here, must pay the sales taxes to Mi.
Now, how does any business know more than 200 sales will happen before hand? They don't, so they collect it anyway.
What happens to those collected taxes if 200 sales are not met?

The whole thing is stupid.

[Jim Becker]

You can drive to Delaware and buy without paying sale tax at point of sale. You technically still owe it to NJ when you return, however. The "sales tax advantage" with mail order/Internet buying disappeared quite a while ago for the reasons that folks have already mentioned.

[Bill Dufour]

Since when? I have lived in Nevada since 1997 and I've always had to pay sales tax.
My bad. I knew that. I still go to Hd and Lowes in carson city to get stuff not sold in California.
Bill D

[Justin Rapp]

You can drive to Delaware and buy without paying sale tax at point of sale. You technically still owe it to NJ when you return, however. The "sales tax advantage" with mail order/Internet buying disappeared quite a while ago for the reasons that folks have already mentioned.

Yup- the drive to Delaware for bit ticket items is sometimes worth it, sometimes not if you get hit with piles of tolls, and of course gas. However I used to drive through deleware pretty often and stopping at woodcraft with tax-free purchases was nice.

[derek labian]

Depending on who you are buying from, they may be a tax-exempt dealer. For example, if a dealer sells from a state that does not collect sales tax to a state that has exemptions for that category based on low volume or type of product or also does not collect sales tax. It seems that would be hard to find, so it's likely anyone you are buying from is just not paying the required taxes. If you receive goods from a dealer and they don't charge you sales tax/remit taxes to your state, and your state requires it, you should pay the use tax. Typically sales/use taxes are interchangeable. I'm not tax attorney, but the point is, someone has to pay the tax in most cases.

People also cross the Oregon/Washington border to purchase goods sales tax free to take back to Washington.

[John K Jordan]

Are you tax exempt? That’s the only legal way I know to avoid paying sales tax, at least in TN.

I have an ag tax exemption and don’t pay sales tax on things I can justify as related to farming. Feed, supplies, fertilizer and fuel of course are not taxed, but also equipment and tools related to maintaining the equipment, land, or livestock (including beekeeping). This can make a significant difference in the cost of big equipment and attachments. Retailers like Home Depot and Lowes honor the exemption (after registering the credentials).

Even Amazon provides a way to let me apply or remove sales tax per item as I decide appropriate. I assume some day I may have to explain my justifications to the state but I have no problem with that. For everything unrelated to the farm I pay TN sales tax, even if purchased and shipped from out of state. I don’t mind paying sales tax; it helps that TN is one of the nine in the US with no state income tax!

BTW to qualify for agriculture tax exemption in TN the farm has to be registered and you have to show a certain level of profit. I have no idea what it takes to qualify for other types of exemption.

Oh, off topic but if you have enough land and trees you might qualify for another type of tax break - the county Forestry Greenbelt program can cut annual property taxes to about half. A lot of people don’t know about this. I don’t know if it’s everywhere or just here but could be worth checking into!



Looking for recommendations on internet retailers in United States that sell tools online and do not charge sales tax. I know of a few Festool dealers who fit this criteria, however, I'd like to hear about others that sell the Big Corporate brands (dewalt, makita, milwaukee, et cetera).

Thank you and have a blessed New Year

[Bill Dufour]

In Oregon my brothers farm came as a registered farm with lower property taxes. If he wanted to sell it for non farm use he had to let the state know and wait something like ten years as the taxes increased.
Bill D

[Bill Dufour]

Delaware, Montana, New Hampshire and Oregon do not charge sales tax.
Do military PX's charge sales tax?
Bill D.

[John K Jordan]

In Oregon my brothers farm came as a registered farm with lower property taxes. If he wanted to sell it for non farm use he had to let the state know and wait something like ten years as the taxes increased.
Bill D

Typically you can subdivide, develop, or sell any time and simply pay back taxes. For example of I decided to develop my forest land and give up the greenbelt status I would have to pay three years of back taxes.

[Bill Dufour]

My understanding is Oregon set it up so there was no way for a developer to buy a farm and quickly build on it. The law forces them to invest for ten years and pay higher taxes and a penalty tax before they can turn one shovel of dirt. Very few developers are in it for the long haul or have the extra cash to invest for long term gains.
BilL D

[Pat Germain]

Delaware, Montana, New Hampshire and Oregon do not charge sales tax.
Do military PX's charge sales tax?
Bill D.

The Army/Air Force Exchange and Navy Exchange do not charge sales tax. To shop at a military exchange, you must be active duty, retired or veteran. (They recently opened up exchanges to veterans due to declining sales.)

Although they carry small power tools, I've never seen any large power tools at an exchange.

Here's a link to the web site: https://www.shopmyexchange.com/