Check your tax amounts in checkout

[scrubs147]

I have been doing my yearly (ugly) paper work for this year tax returns and have noticed something that is consistent with AutoGeek's tax amounts... all of my invoices show a sales tax amount over and above what I should be paying. It appears that the sales tax for Stuart Florida is 6.5%, and the sales tax (which I believe I am supposed to be charged at) is 6%.

I just placed an order which came to;
Sub-Total: 244.96
Tax: 17.15
Shipping & Handling: 0.00
TOTAL: 262.11

@ 6% sales tax - $14.70
@ 6.5% sales tax - $15.92

Quite a difference which adds up throughout the course of all the business I have done with AutoGeek. Something doesn't quite add up, and yes, I will be calling them first thing in the morning. Just want to give everyone a heads up to double check their invoices where the word "TAX" is listed.

[OMRebel]

If I'm not mistaken, technically you did business in Stuart, FL; therefore, you are to be charged at that local tax rate (6.5%). Your local tax rate has no bearing in online purchasing. However, I'm not a CPA - maybe there's one on here.

[Bunky]

I suspect in state residents have to pay the local tax (seller located).

[SubieMonte]

What is above the subtotal line? Were there any discounts?

[Nick@Autogeek]

Florida's general sales tax rate is 6% though individual counties are allowed to charge a Discretionary Sales Surtax. This discretionary sales surtax can range anywhere from .5 to 1.5%. This is often known as "county tax."

Most Florida residents will end up paying 7% sales tax. 6% state + 1% local.

[Setec Astronomy]

Originally Posted by SubieMonte

What is above the subtotal line? Were there any discounts?

I suspect this is the answer. I don't know about Florida, but New Jersey is pretty brutal about sales tax enforcement, and, for instance, if you have a coupon for a freebie, like "buy a stapler get a calculator for free" you have to pay the tax on what the calculator is valued at, even though you didn't pay for it.

So if the OP had a BOGO, or other sale item, he may have paid sales tax at the full amount on those items.

EDIT: Or what Nick just posted could be the answer

[oldgeek]

Local governments would love for online businesses to tax at the destination address. A couple of years ago Ohio and several other states banded together and tried to impliment this to no avail. The problem I had as a small businessman is that I use third party software for checkout and am at the mercy of the third party to provide destination routing tax support. Ohio law says that since I as the merchant, don't know the location of the buyer, "at the time of the sale", I can use source taxing. That is, I can charge the appropriate tax for the county where the business is located. I suspect something similar is happening in Florida.

[Setec Astronomy]

Originally Posted by oldgeek

Local governments would love for online businesses to tax at the destination address. A couple of years ago Ohio and several other states banded together and tried to impliment this to no avail. The problem I had as a small businessman is that I use third party software for checkout and am at the mercy of the third party to provide destination routing tax support. Ohio law says that since I as the merchant, don't know the location of the buyer, "at the time of the sale", I can use source taxing. That is, I can charge the appropriate tax for the county where the business is located. I suspect something similar is happening in Florida.

Yeah, it will be interesting to see how online taxing will change in the future, and how it will affect buying patterns. For instance, here in NJ I pay tax at Newegg but not at Amazon. Amazon wanted to build a warehouse here, but didn't want to start taxing NJ customers...I'm not sure if the deal went thru (for them to build it) but they were trying to negotiate a tax exclusion period in exchange for creating the jobs here.

Anyway, taxes just wind up being another factor that you have to weigh in online shopping in trying to get the best deal. Sure beats driving from store to store looking at prices!

[boatmangc]

I am a veteran of a nasty Forida sales tax audit. Over a quarter million $$ and 5 years of my life devoted to it.

Trust me they (Autogeek) have to collect tax for the county in which the products are sold.

Your only option would be to get a Florida sales and use tax certificate, and then be sure to charge sales tax on all of your work to cover the un collected tax.

Believe me, the state of Florida will get what they feel is "theirs"

In Monroe county Fl. Where I live the sales tax is 7.5%

[Audi X2]

The Florida Department of Revenue does clearly define how surtax amounts are to be collected.
When shipping from one county to another the tax rate collected is determined by the destination county of the shipment. So for example my company is in a non surtax county at @ 6% rate. However if we deliver to a county with a surtax we must remit and collect the additional amount which is usually equal to .5 to 1.5%. This is only applicable to amounts below $5000 per order.

So yes, I have noticed that Autogeek always charges their county rate which in my case is inaccurate and over collecting. If I physically went to their location it would be different and deemed 'customer pickup' and because I am physically in their county taking the delivery of the goods the rate charged would of course be correct.

The determining sales tax factor when shipping is involved in the state of Florida is the county where you reside and not the location of the goods that are being sent to you.