Is Best Buy a best buy?

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Re: Is Best Buy a best buy?

Postposted on Tue Aug 07, 2012 9:22 am

Aranarth wrote:
MethylONE wrote:They should just turn them into Amazon fulfillment centers and be done with it.

NOW, there's a really cool idea!

Amusingly, this is essentially the reverse of what TigerDirect did with their Naperville IL fulfillment center. When they acquired the rights to the name a few years back, they turned it into a CompUSA store! :lol:
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 8:18 am

Aranarth wrote:
MethylONE wrote:They should just turn them into Amazon fulfillment centers and be done with it.

NOW, there's a really cool idea!
I do wonder... assuming the Internet tax isn't enough to keep online retailers from being competitive... would it make sense for Best Buy to become the demo station for BestBuy.com? Ditch everything that people won't demo before they buy (routers, DVDs, printers), keep a decent stock of cables on hand and keep only one of everything else? Purchases are done via smartphone or take a tag to the checkout if you must and have it shipped to your house from a BB warehouse. With a self-checkout option, you could probably reduce staff to GeekSquad and returns. Train the floor personnel towards giving demonstrations and have workshops like Home Depot on how to set up routers, computers, printers, HT equipment, etc.

Here's the big question: If I get a demo and purchase online from the same company... is that still an online sale? Is that exempt from the sales tax (for now)?
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 8:30 am

Darkmage wrote:Here's the big question: If I get a demo and purchase online from the same company... is that still an online sale? Is that exempt from the sales tax (for now)?


In your scenario, no. All those old stores that are now "demo stations" would clearly constitute a nexus in your state, undeniably so if they sell anything on site (such as cables).

Online transactions aren't actually exempt from sales taxes, it's just that states don't have jurisdiction over businesses that don't exist in their state and thus they can't make those businesses collect it. Federalism, and all that.

So, if a business does have a presence in your state, state laws apply to them.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 9:34 am

trackerben wrote: Even in modern Singapore (from what I remember) and Hong Kong, most people walk or ride public transit to shopping streets or category-specific malls full of tiny shops selling mostly identical and oftentimes shoddy goods in more restrictive settings while watched over by pushy staff or shopowners.


Except for all the Louis Vuitton stores . . .
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 9:54 am

In Illinois they've added a line to the state income tax form to pay out-of-state sales tax. You are required to either pay a flat 0.06% of your income, or 6.25% of your actual out-of-state purchases. The form explicitly states that you may not leave the line blank.

I'm assuming that very few people actually bother to document everything they purchase from out-of-state, so this effectively amounts to a 0.06% hike in the state income tax rate. In the grand scheme of things, not a big deal... but probably a sign that enforcement of the "Internet tax" is ramping up.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 10:22 am

If they actually are doing that for 2012 taxes, that is complete **** (pardon my language). I've been paying sales tax when I buy stuff online figuring, "whatever, it makes some sense." But you're really going to double tax me on this?

/rage

Sorry, that upsets me.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 10:38 am

just brew it! wrote:I'm assuming that very few people actually bother to document everything they purchase from out-of-state, so this effectively amounts to a 0.06% hike in the state income tax rate. In the grand scheme of things, not a big deal... but probably a sign that enforcement of the "Internet tax" is ramping up.

Vermont has a similar scheme and the $81 I paid for 2011 isn't even close to what I would have paid had sales tax been charged on all online purchases so for now I'm not complaining.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 10:58 am

superjawes wrote:If they actually are doing that for 2012 taxes, that is complete **** (pardon my language). I've been paying sales tax when I buy stuff online figuring, "whatever, it makes some sense." But you're really going to double tax me on this?

/rage

Sorry, that upsets me.

As long as you can document the tax you paid you don't get double-taxed.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 11:52 am

just brew it! wrote:As long as you can document the tax you paid you don't get double-taxed.

And with IL's 6 basis point (compared to VT's 8 basis point) tax, you could likely document sufficient on-line tax payments to cover the entire income-based line anyways.

At least here in VT the income-based method is a safe harbor as long as no single item purchased online and tax-free was over $1000. Those you're supposed to itemize and file a separate use tax return.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 3:00 pm

I know I have options and I am probably fine. It's just that since online retailers are charging state tax, it's baloney to add a line on the tax return. I know why they do it, so go talk to Newegg and Amazon. Although I think both are already charging tax for IL.
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Re: Is Best Buy a best buy?

Postposted on Wed Aug 08, 2012 5:23 pm

Newegg did not charge IL sales tax the last time I ordered from them (about a month ago).
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