Sales Tax

The sales tax that we collect from customers is not ours. We only collect it for the State. The customers don’t realize it sometimes. People will push to get us to “absorb” the tax. We don’t do that. Our prices are fair, usually better than can be found elsewhere. So, we don’t “eat” the tax as a rule.

I only take the tax out of the purchase price when we’ve marked the item up a bunch and I feel like they are paying too much, which isn’t often. After a while, you get to know your customers and some insist on not paying tax. With these guys, you just be sure to start high enough over minimum so you can take the tax out of the agreed upon purchase price, if need be.

So:

1. We charge sales tax.
2. The tax is not ours; it is collected on behalf of the State.
3. It is illegal for us to not collect it.
4. There are only a few very specific kinds of sales that are not taxable. See the policy “Taxable v. Non-taxable Sales.” All other sales are taxable.
5. We do not ship empty boxes out of state and let the customer leave the store with the merchandise and call it an “interstate” sale.
6. If the customer is not charged we still must pay the tax. This amount will be deducted from the gross sale and no commission will be paid on it.

Most people (95%) are bluffing when they say, “I won’t buy it if I have to pay tax.” I tell them, “Well, it is a shame for you to loose this good deal over 7.75% (or whatever the current tax rate is) . . . . Oh, well.”