Seibertron.com Energon Pub Forums

Thanks to a heads up from Seibertronian o.supreme, we have word that last year's South Dakota v. Wayfair, Inc. Supreme Court Ruling is set to have some impacts on the way that online retailers provide us with Transformers products.

For those who didn't follow the story, South Dakota v. Wayfair, Inc. was a United States Supreme Court case where it was determined on a 5-4 vote that individual States have the right to tax online retailers, even if those online retailers don't have locations within those states. Prior to the ruling, States were not allowed to tax online retailers if said retailer did not have a location within their state.

The ruling now means that states are able to tax stores like BigBadToyStore, which is the store that brought this new reach of the ruling to our attention. Stores like Amazon.com and Hasbro Pulse already charge sales tax, but BigBadToyStore, along with other site sponsors, have been pretty free from that sales tax reach until now. We learned this information thanks to an email sent to o.supreme.

While we are beginning to see the effects of the ruling, we have probably not seen the full extent of the rulings reach.

Read up on the email below, which includes the 3 states set to charge taxes as of April 1, and let us know what you think in the comments section below.

Last June the Supreme Court ruled that states can charge sales tax on internet purchases. Many states already have laws in effect or laws that will be going into effect soon. We anticipate most states will have sales tax laws in place by the end of the year. States write their own tax laws so each state can be different, but we expect the majority of internet retailers will have to collect sales tax in most states. We are required to abide by these laws.

On April 1st, we will begin charging sales tax in the following states:

- California
- Colorado
- Minnesota

All shipments going to these states will be subject to sales tax. You are receiving this notice because you currently have open pre-orders and/or items in your Pile of Loot that will be affected based on the Preferred Address in your account. You will be charged tax on: pre-orders that arrive and are processed, any items in your Pile of Loot that are released for shipment, and all new orders.

I'm surprised New York isn't on there, but I'm not complaining

there is only 4 states with no sales tax and im glad im in Oregon
although this starts April 1st so maybe its a joke

I wonder if this means BBTS will lower their base prices to begin with? Does this mean they will charge tax on products that aren't traditionally sold in the US?

Also glad to be in Oregon! Woohoo!

Wireless_Phantom wrote:As someone who lives in Illinois (Much higher sales tax than some areas) I'm glad it doesn't apply to me.

The moment the politicians running Illinois (democrats btw) see or smell a tax opportunity, they go after it. So I'm sure as soon as any of them learn there is another company who will collect taxes for them, they'll jump on the boat.

I'll just drop this here as this seems like a better place for it.

carytheone wrote:

william-james88 wrote:How dos the US tax law work on books? In Canada, they are a major exception to everything. Only federal tax can be charged for books, not provincial/state.

We're supposed to pay sales tax on everything, but varies from state to state. I'm only vaguely familiar with Louisiana though, but most major websites now collect sales tax on all physical and digital goods in Louisiana. BBTS doesn't... yet.

We also have different/no tax on food. In some places I go I'll see several different taxes on a receipt. The easy version is there is a reduced food tax and then the full tax on non food. Some cities charge a tax as well. Some states charge no food tax.

I just found out recently (because they are trying to change the law) that in Louisiana the parishes (counties for the other 49 states) collect the tax. This is why our state has a hard time with tax and internet sales. I'm not sure of the details, but they want to change that so it's easier to get the state taxes from online sales. The parishes are fighting this because they use that money for their budget before giving the state the collected tax.

EDIT: Oh if I remember correctly (in Louisiana) we are supposed to report tax we didn't pay on our tax return. But I didn't buy anything online that wasn't taxed

Your a money guy, take a look at this - https://en.wikipedia.org/wiki/Sales_tax ... ted_States

TL;DR - its a mess in the states.

chuckdawg1999 wrote:I wonder if this means BBTS will lower their base prices to begin with? Does this mean they will charge tax on products that aren't traditionally sold in the US?

Unlikely, they still need to make a certain profit margin. They'll tack on tax and report it to the states like everyone else. I can only imagine how much of a paperwork nightmare that has to be.

This may drive more people to self import as the BBTS "import premium" is already pretty steep and for now we'll be able to avoid the tax man while importing.

I wonder how long it will take to get the South Dakota v. Wayfair, Inc decision overturned.

BBTS has already been charging sales tax to some states for a few months now. Illinois, where I live is among them.

I didn't realize this would be all that news worthy. I recieved the same letter back on December 28th of last year, as I reside in Nebraska.

BBTS wrote:This June the Supreme Court ruled that states can charge sales tax on internet purchases. Many states already have laws in effect or laws that will be going into effect very soon. States write their own tax laws so each state can be different, but we expect the majority of internet retailers will have to collect sales tax in most states. We are required to abide by these laws.

After December 31st, we will begin charging sales tax in the following states:

Iowa
Nebraska
Utah
West Virginia
All shipments going to these states will be subject to sales tax. You are receiving this notice because you currently have open pre-orders and/or items in your Pile of Loot that will be affected based on the Preferred Address in your account. You will be charged tax on: pre-orders that arrive and are processed, any items in your Pile of Loot that are released for shipment, and all new orders.

Thank you for your continued support and business. As always, if you have any questions please reach out to Customer Service. Our Customer Service team is available to assist you via email or phone Monday through Friday 7:00AM to 3:30PM (CST).

BBTS Customer Service
service@bigbadtoystore.com
Phone: 1-888-980-2287

The kicker here for me was I had MP-36+ on pre-order for the better part of 2018. He had been listed to arrive in December. Needless to say 36 was a pretty high dollar item, and I did not receive him until the beginning of January. So I got hit with the tax.

Another FYI in regards to BBTS. If you are using their P.O.L., you should expect two separate charges. One for the item without tax, either at time of purchase, or if a pre-order, when it becomes available. They then process a separate fee, for taxes and shipping at time of shipping.

BATTLEMASTER IIC wrote:I'm surprised New York isn't on there, but I'm not complaining

They do, NY was one of the first to start charging online tax and its why i no longer shop at BBTS.

carytheone wrote:

chuckdawg1999 wrote:I wonder if this means BBTS will lower their base prices to begin with? Does this mean they will charge tax on products that aren't traditionally sold in the US?

Unlikely, they still need to make a certain profit margin. They'll tack on tax and report it to the states like everyone else. I can only imagine how much of a paperwork nightmare that has to be.

This may drive more people to self import as the BBTS "import premium" is already pretty steep and for now we'll be able to avoid the tax man while importing.

Once Amazon Japan opened up I never looked back.