Chicago Music Exchange and online sales tax

Discussion in 'Guitars in General' started by crashintou, May 12, 2019.

  1. crashintou

    crashintou Senior Member

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    as far as I can tell in my state- there is supposed to be online state sales tax that you self report but the counties have not set forth any guidance as to the extra amount that they individually add. So if anything I would think retailers should only be collecting the lesser state amount. Considering it's 2.5% extra that they are adding for the highest county, that can be a significant amount on a nice guitar. And residents of the other counties should not be included in this. I happen to be more diligent as to what they are adding on but I'm sure many don't pay attention and are in fact overpaying on this tax.
     
  2. wmachine

    wmachine Member

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    If the only price difference buying online is the 7% (or whatever) tax rate. Otherwise, that makes no sense at all. Most of MF's Stupid Deals are way more saved than the tax.
    But suit yourself.

    I would certainly do that anyway, as you say. But especially now to confirm tax charged.

    Nope. My make sense to you, but they don't have to do that. In Ohio tax varies by county and CG (as stupid as everyone thinks they are) charges the correct amount by county. So you can't say can't!
     
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  3. JeffK

    JeffK Member

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    With the properly programmed software to analyze your ship-to location, they can get pretty granular in charging the proper sales tax for your locale. As noted, it's complicated, so it might take a while but they can (and should) get that dialed in.
     
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  4. smallbutmighty

    smallbutmighty Supporting Member

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    The days of tax-free internet sales is over.

    And not just between states in the US. It's international as well.

    For example, US companies are now required to collect and remit tax on behalf of Australia, on sales under $1,000. Yes, you read that right. I am certain more countries will follow.
     
  5. Otter359

    Otter359 Supporting Member

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    10.25% total sales tax for IL residents. 6.25% state + 1.75% Cook County + 1.25% Chicago city + 1% special sales tax. Yikes...
     
  6. Benderp

    Benderp Supporting Member

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    100% agreed. A huge pickup vendor is 10 minutes from my home and I buy online to save sales tax, sad but true
     
  7. BadgerDave

    BadgerDave Gold Supporting Member

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    CME is located in the City of Chicago, Cook County, Illinois.

    They just assume that the tax rates will go up another 3-4% between the payment and delivery dates.
     
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  8. Rockin J

    Rockin J Member

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    I don’t think this will hurt online sells much.
    Most local guitar stores don’t have much the common gear pager craves anyway.
    The two stores in my area are pretty lame.
    Guitar Center is a 2 hr drive and nothing special there either.
     
    Last edited: May 13, 2019
  9. BluntForceTrauma

    BluntForceTrauma Member

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    Well if I have to pay tax on an item I may as well play the item first before I buy. I basically can get the same price locally that I can get online now.
     
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  10. smallbutmighty

    smallbutmighty Supporting Member

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    One of the most common lines uttered at a Guitar Center...hell, at most music stores....hell, at most stores: "We don't have those in stock, but I can order one for you." :D
     
  11. BluntForceTrauma

    BluntForceTrauma Member

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    Well if I'm ordering from MF or Sweetwater I'm waiting the same number of days for it to arrive as ordering from GC. I used to tell GC when they say they can order me one "I can order it myself and get it sent to my door and not pay any sales tax to boot". Not any more I can't. If I'm paying sales tax I might as well get it shipped to the store so if I don't like it I can return it then and there.
     
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  12. Bogner

    Bogner Member

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    Call CME directly and get it sorted. ;)
     
  13. uab9253

    uab9253 Member

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    Yes we generally deal with that granular taxing authority data on the payroll side already as we employ for multiple states and multiple counties within those states. We deal with a 3rd party called BSI Taxfactory that keeps all the data straight relative to the tax authorites. I'm sure there are businesses like that on the sales tax side of the segment as well.
     
  14. Jeffj

    Jeffj Supporting Member

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  15. RicardoDiazHimself

    RicardoDiazHimself Member

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    The only thing that bothers me about this whole internet sales thing is that theyre double dipping on used instruments. Potentially, a guitar can be sold off dozens of times. They can get taxed many times the cost of the guitar in its lifetime.
    In Mexico you can get an official gov. invoice (factura) that states the item has paid taxes already. You give that invoice away with the item and you dont have to worry about it ever again.
     
  16. Guitarworks

    Guitarworks Member

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    Should you ask for, and receive, the requisite 20% off full retail, that should easily wipe out whatever tax you would've been on the hook for, regardless of your state. Even just getting 10% sliced off should do it.
     
  17. xjojox

    xjojox Tardis-dwelling wanker Gold Supporting Member

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    Mexico is not known for sound fiscal policies.

    The idea that is wrong to pay tax on a guitar (or any item) multiple times is based on the misconception that the guitar is what you are paying taxes on. It’s not. Technically, when it comes to sales tax, “items” aren’t taxed per se. Transactions are taxed. Based on the value of the item, sure, but it’s the transfer of the item that’s taxed. Moving an item from one party to another. You pay sales tax on a used guitar or a used car. The estate tax is a particularly controversial example.
     
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  18. RicardoDiazHimself

    RicardoDiazHimself Member

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    Sounds to me like double-dipping with extra steps :rolleyes:
     
  19. screamtone

    screamtone Supporting Member

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    Um... retailers don't charge sales tax. State governments charge sales tax. Retailers collect sales tax on behalf of the state government. As the sales tax/internet commerce laws change, it's foolish for retailers to not protect themselves in this situation. You can keep buying from retailers that don't "collect" sales tax, but that's not going to last forever.
     
  20. ScratchyPot

    ScratchyPot Member

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    I was looking to buy a guitar from CME last month and was surprised by the added California sales tax when it put it in my online cart. I called them and the sales guy I spoke with said that it recently kicked in for them; when I mentioned that some other big dealers are not charging sales tax, he told me that they will be very soon.
     

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