Sales tax for online order with in store pick up
Mboisvert67
Newbie

HI,

I live in MA and placed an online order for in store pick up in Salem, NH (where is NO sales tax).  When I picked up the phone, I was charged the $42 sales tax.  When I asked the associate, and then the manager, about this, they both told me there was nothing they could do and that because I "live in MA" I had to pay the sales tax.  NEVER in my life have I placed an order online for instore pick up in NH and paid sales tax.  Either the tax removes at final check out once I select the in store pick up location or the vendor removes the charge at the pick up.

How can they legally charge me sales tax for an item that I picked up in NH?  Manager told me he would "lose his job" if he removed it.

I even went as far as to suggest we cancel the online order and change it to an in store order and was told because they "checked in my pick up" (which I had never even set eyes on the phone yet- the associate asked for my id when I told him I had questions about the order).  However, they did offer to cancel and re-do the order with the $35 cancellation fee.  Thanks for nothing.

Perhaps there is a glitch in the online ordering?  The sales tax should be calculated based on the pick up location (or ship to address) of the device.

Is there any way to get this money back??

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Re: Sales tax for online order with in store pick up
Weth
Legend

Massachusetts and Verizon have the right to collect sales tax for MA if your service address is in MA since Verizon has a business presence in MA and you did an online order. Even when you buy stuff in NH with no sales tax, you are legally supposed to pay MA sales tax when you bring that item into MA to use in MA.

Right from your state's web page:

Sales Tax
The Massachusetts sales tax is 6.25 percent of the sales price or rental charge of tangible personal property or certain telecommunications services sold or rented in the Commonwealth. For a detailed definition of “sales price,” please see M.G.L. Ch. 64H sec. 1. Continue to A Guide to Sales and Use Tax .

Use Tax
The Massachusetts use tax is 6.25 percent of the sales price or rental charge on tangible personal property (including phone and mail order items or items purchased over the Internet) or certain telecommunications services on which no sales tax, or a sales tax rate less than the 6.25 percent Massachusetts rate, was paid and which is to be used, stored or consumed in the Commonwealth.

Sales & Use

You ordered over the internet and it is to be used in the Commonwealth.

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Re: Sales tax for online order with in store pick up
mflandshark
Contributor - Level 3

Its more than likely because of the billing address you have on file with Verizon. When you placed the order online it was going off of the address you have on your account and charged the taxes according to the state you actually live in. (which is why you've never had problems doing it before if you've never ordered in store pickup.) Its not illegal for anyone to charge taxes based off of the address you provided....

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Re: Sales tax for online order with in store pick up
Mboisvert67
Newbie

Thank you!  We do report to our accountant large purchase items from out of state as well.

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Re: Sales tax for online order with in store pick up
Weth
Legend

No problem. Be happy you have 6.25% and you only have a relatively short drive to NH. Here in Southern Cal, we pay 8-9% sales tax and if we want a 0% sales tax haven, we have to drive 810 miles to Oregon.