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  #1  
Old 04-28-2002, 03:02 PM
EthanMorse EthanMorse is offline
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Default Sales Tax for HD upgrade if sent into digi directly?

Just wondering if I'd still have to pay sales tax if I sent in my system to Digi as opposed to dealing with my dealer...

Thanx.
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  #2  
Old 04-28-2002, 10:26 PM
shadowbox shadowbox is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

They charge sales tax at the digi store, so that probably means yes. [img]images/icons/confused.gif[/img]
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  #3  
Old 04-30-2002, 09:41 PM
johnnyv johnnyv is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

Yes, is there some official news on this question, Digi?
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  #4  
Old 05-01-2002, 09:20 AM
ProdInfo ProdInfo is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

When purchasing a product directly from Digidesign, you will be charged sales tax at your particular state's (or county if it varies within your state) tax rate.

Only the following states are exempt:

AK, AR, DE, ID, KS, ME, MT, ND, NH, OR, RI, SC, VT, WV, and WY

Also, Canadian customers are responsible for GST.
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  #5  
Old 05-02-2002, 10:20 AM
loudist loudist is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

In which states does Digi have a 'Nexus'?

The tax collection process for out-of-state purchases varies by state. For example, if a buyer in Washington state phones an order to a seller in California, the seller must collect Washington sales tax if it has "nexus"—which is some tangible presence in that state, such as a sales office, warehouse or manufacturing facility. If the seller does not have a tangible presence in Washington, no tax is collected on the purchase. Some states are very aggressive in defining nexus while others offer more flexibility in what constitutes a business’s tangible presence, Newton-Clarke says.

For Internet transactions, states require sellers with nexus to collect sales taxes, citing Quill v. North Dakota. In this 1992 case, the U.S. Supreme Court ruled that a state cannot request a seller to collect sales and use taxes on Internet sales unless the seller has a nexus in that state.
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  #6  
Old 05-02-2002, 02:08 PM
andrej770 andrej770 is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

Ya know what! If I didn't know better I would swear we got a bunch of knowledgeable people on this board. And to think all they think we discuss is Pro Tools here! [img]images/icons/grin.gif[/img]

Great stuff guys.
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  #7  
Old 05-02-2002, 08:15 PM
Shawn B Shawn B is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

The issue of collecting sales tax has to do with authorized Digidesign dealers in those states. If Digi doesn't have and authorized dealer (or if that state, like NH, doesn't have a sales tax) they don't collect sales tax. However, if your state collects sales tax and Digidesign doesn't have an authorized dealer there, then you (the purchaser) are responsible for remitting sales tax on your own. Which I'm sure you all do. Right?
I actually know someone who was forced to pay state sales tax before he could receive his interstate purchase. The tax collector showed up at his door with the UPS delivery person. I also know of a number of people who have been stopped crossing the NH MA state line and were fined for having liquor from the NH tax free stores.
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  #8  
Old 05-02-2002, 09:36 PM
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AvidCS AvidCS is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

Digidesign, A division of Avid Technology, Inc is required to collect and report sales taxes for Canada and all but the below listed states.

AK, AR, DE, ID, KS, ME, MT, ND, NH, OR, RI, SC, VT, WV, and WY

These states are exempt because; 1) The state does not have a sales tax levy, or 2) Avid/Digidesign does not have a "nexus" in the state. Mr. Loudist has provided a concise definition of nexus in the above discussion thread.

If you have a question about your specific hardware exchange, please call the toll-free number for Digidesign Telesales and we will be happy to discuss this with you.

DigiCS
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  #9  
Old 05-03-2002, 12:37 AM
Lee Blaske Lee Blaske is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

Loudist is correct on this point.

For Digidesign, I think the fact that they put on presentations, demos, etc. in various states gives them a tangible presence in those states, and that's why they must collect tax.

Even if the state you live in does not require the seller to collect sales tax on mail order, phone order, internet, etc., sales, you might still be required to submit a use tax on these purchases. Here in Minnesota, if you purchase over $750 from out of state retailers (where tax isn't collected) in a year, you must submit the use tax on the entire amount. If you're taking a tax deduction for any of the equipment you're buying out of state, it'll probably be caught in an audit, and the fines and interest can really add up (I know this because it happened to me a number of years ago, and at the time, I was unaware that use tax had to be paid).

Lee Blaske
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  #10  
Old 05-03-2002, 04:03 AM
John McDaniel John McDaniel is offline
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Default Re: Sales Tax for HD upgrade if sent into digi directly?

If you own & operate a facility in a state that allows businesses to take a sales tax exemption on tangible property that is used in the manufacture of a taxable good, then you MAY NOT have to pay sales tax to Digi. It was a temendous hassle (Cust Support didn't want to deal with it-- you'll have to do the legwork and provide, fill out, and sign the proper state forms for Digi to keep on file), but I didn't pay sales tax for my last upgrade and for some other large ticket purchases from Digi. Check with your accountant or a business/tax professional. Everything I do with ProTools results in my having to charge sales tax --including sales tax on studio time. DON'T GO BY MY ADVICE. CONSULT A PROFESSIONAL IN YOUR TAX JURISDICTION. PERIOD.

later, j mcd
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