Yet Another Tax?
- Illinoisans should prepare to pay more for online purchases from out-of-state retailers.
The U.S. Supreme Court’s recent decision in South Dakota v. Wayfair Inc. is projected to increase revenue to the Illinois state budget by $140 million this year. As a result of the decision, and a change in Illinois law passed with this year’s budget bill, most out-of-state retailers who sell to Illinois customers will be required to collect and remit a “use tax” of 6.25 percent on all online transactions starting Oct. 1.
Anyone know if you ship to a PO Box in another state, can you avoid the 6.25%? We make enough trips to [censored] that renting a PO Box and picking up stuff every month or so might be a good economic move. And we'd be more than willing to let others ship to that address for the price of a six-pack.
Labels: money questions
posted by SCC at 12:03 AM
74 Comments:
is the use tax instead of sales tax or is it addition to sales tax?
thanks democrates!
I don't think that would matter where it's shipped to. It's the address of the buyer that determines if it's taxes are collected. And anyway both Indiana and Wisconsin are also planning to expand collection of online sales taxes.
My parents live just over the border in Indiana so I have to make several trips there a month anyways. Been shipping ammo and other consumer goods there for years from internet purchases, on top of the gas, Cabela's, Costco, and other store purchases I make in Indiana when I'm out that way. Fuck this state, city, and county with their bull shit taxes! I've yet to pay a dime on plastic bag or water bottle taxes. I can't wait until I leave IL for good....
I don't know for sure, but if it's like cellphones, the address to which the bill goes to determines the tax rate (e.g. 9-1-1 service tax).
rb
10.25% or more in Crook County, buying from out of state at 6.25% = 4% discount. Use a rewards credit card like a Chase Freedom card that lets you turn points into cash, and you can accumulate another 1-5% on the purchase.
Technically if you're a RESIDENT of IL, you are responsible for the Use Tax - but few, if any, ever paid it so the States pushed SCOTUS for the Wayfair decision requiring them to collect tax on out of State purchases.
So even if you ship it to a PO Box in [censored], where [censored] = out of Illinois, you're still responsible for the tax. Using a PO Box might get you dinged on Federal charges of using the mails for fraud. If you're going to consider such a tax shelter, you might want to use a Private Mail Box company to avoid the USPS.
But let's be realistic - how much $$$ are we talking about? Thousands of dollars in tax might make it worthwhile to take the frequent trips, but could get the attention of the State. Hundreds of dollars might not be worth it.
Easiest and least risky thing is to find a decent credit card that gives you a consistent 2% (like a Fidelity account linked Visa card), and combine that with the 4+% you're saving by only paying 6.25%, and you're just about breaking even. 4% savings + 2% rebate = 6%, and you're paying another 0.25% so it's not even worth it.
Some cards have up to 5% categories, with 1% on everything, so if you have one of those, it could be worth it to use instead of the Fidelity guaranteed 2% card because you'll end up with an additional 3%, so you come out ahead.
OR, the best thing? Fuck Illinois. Time to flee this overtaxed looney bin and not worry about such bullshit.
According to the article the Illinois General Assembly is planning to spend the tax money rather than to use it to pay down debit or to repeal other harmful taxes. The law is being enforced because the State says it creates an unfair advantage over brick an mortar stores here. So how do the brick & mortar stores benefit? The State is not giving them any breaks or lowering sales taxes to stimulate business here. No they are just going to spend it but for what? Kind of like the soda sugar tax. Tax the citizens but exempt the ones who the tax was supposed to target.
This is the result of voting for democrats.
The only way to make it stop is to refuse to vote for democrats.
No exceptions.
My advice to higher taxes? Open a Robinhood account and start learning how to trade guys. For what it's worth I just started trading and I have had some ups and downs but am starting to "figure it out". Overall I am down a few thousands due to the US/China trade was as my gamble on China ADR stocks was a poor pick but I just diversified and invested in some CBD stocks a few days ago (Cannabis oil-based products) and they are skyrocketing now. My investment of $35K went up 30 percent last night.
I know this is OT and I hope SCC posts it as it's nothing to due with CPD. I always try to pass on what I can to help fellow CPD escape the job/city as I did after 20 years.
They need to pay for Guaranteed Income somehow. Whatever they spend it on will be just another take it from the workers and give it to the takers. God forbid they pay an existing debt that not the Democratic way. Remember its all for the children.
Democrats will just call themselves something else.
i can't wait to retie and get the hell out of this freakin state. i make many trips to Wisconsin and i spend as much as I can or need there.. Then fill up. sure hope the rest of you wake up.
It's the address where it’s shipped. I’m in CA with 10% sales tax. When I ship something from Amazon to my sister in IL it gets charged her sales tax (less). When I ship same item to WI (where I’m moving) is even less. I can put an item in my cart and switch shipping addresses and see the change.
Remember this when your fake FOP endorses Democrats.
This is the reason I put my five 1bdrm condos on the market and leaving Illinois. This is why 2 of my kids have moved to Florida and one of the others is thinking of moving to Tenn.
Off topic, what they are doing to a man that followed the rules is a shame!
Technically, Everyone was supposed to pay sales tax on products purchased from retail merchants via the Internet before the scotus ruling. It's just that online merchants didn't collect it automatically and there was not an efficient way to make sure taxes were paid. The purchaser was supposed to figure out the sales tax on the items they purchased throughout the year that weren't taxed and then pay the tax when submitting the Illinois tax return. It's probably a bit more complicated than that, but that's how it was explained to me by a tax person.
Remember It's for the children.
This is only the state tax, local taxes don't count. We were always supposed to pay the tax at the end of the year. Technically not a new tax.
Buying a car in Illinois? Title it to a rented private P.O. box (UPS store or mailboxes etc.) in a town with a favorable tax rate (Morris, Bourbonnais) or any other at 6.25%, then do a change of address to your current location.
the decision enforces state tax only, not the local gov taxes, therefore you would pay 7% shipping it to Ind 6.5 in ILL and 5 in Wis. If you have a trusted family member who lives out of state you can get a credit card tied to their address and the "use tax" will be tied to the billing address rather than shipping address.Alaska Delaware Montana New Hampshire and Oregon are zero.
A box at a UPS Store or FedEx/Kinkos mailbox is an actual street address, so you can receive packages there without worrying who the shipper is. A PO box wont take a UPS package, unless that's changed in recent years.
I had a box for gun parts that vendors like Cheaperthandirt wouldnt ship to IL and used it for all my other mail order purchases the last time IL tried to impose this tax.
Use tax is levied upon the user by the state in which the product will be used, so by shipping to another state you will be subject to that state's use tax. Could end up costing you more.
Anonymous said...
This is the result of voting for democrats.
The only way to make it stop is to refuse to vote for democrats.
No exceptions.
9/29/2018 03:17:00 AM
Watching the slandering of the judge on live tv, reaffirmed my vow to never vote for another democrat! I was ashamed that the “little Dick” Durbin, was right in there doing his best to please his fellow dem assholes. It was like a gang rape, tag teaming the attacks! Who the fuck elected him? Pieces of shit politicians. Was he paying back for their help for his lobbyist wife and son? No shame! Chicago values on display. Unbelievable, mother fuckers! I’m still pissed......
You can thank the dumbocrats for another tax. Keep voting for the party with their hands in your pockets. You D voters must like being slaves. Not only do they take the money you work for they give it away to those that refuse to work. Nice scheme to stay in power. A revolution is coming.
Will be interesting to see just what new FREE thing they will come up with to buy votes with. Won't be used to pay down debt but will be used to pander to their community voters.
Finally a tax I can live with. The internet has and is killing the retail stores. Afraid this is coming to late to save the current brick and mortar stores. One day you will all wake up and wonder what happened to all the jobs that many families depended on. Robot pickers and packers filling orders at the Amazons of the world. Just who will be earning money to buy anything? Be careful what you wish for, all this convince ( no leaving home to shop) will come at a terrible cost down the road. The new kiosks at Mc Donald are the answer to the $15 an hour "want fries with that" crowd. Just the start, once the robot burger flippers get right Fast food establishments will become like the self service gas stations. Then what will the no job skills Link community do? For that matter what will the taxpaying people do?
The real question is "who" will pay this tax. Definitely not everybody, we all know that certain people in this county and state are exempt from paying for anything. Just like the shit show when fairywinkles started her pop tax.
All veterans now able to use PX on-line. No sales tax. Free shipping for anything over $49.00 Can make sense with large purchases like television etc. Prices similar to Costco. Sometimes a little better.
Most E-bay stores wont ship to a PO box. What a bad idea. Less stores will now ship to Illinois, Wisconsin, and Indiana.
I am planning my exit strategy from Chicago, Cook County, Illinois. What a cesspool.
oh, you wacky Millennial...embrace what you have created!
you and you alone, by your political ignorance have nurtured this monster...
embrace the suck and download the app!!!
next up...bike licenses $150 a year!
Just because you do not take an interest in politics doesn't mean politics won't take an interest in you.
"justin bieber"
https://chicago.suntimes.com/news/bail-reform-cook-county-judge-michael-clancy-timothy-evans-bond-court-injustice-watch/
One guy who knows high bonds can help keep criminals off the street not help them commit more crimes
i will, once again, use my brothers indiana address for my banking info and switch to paperless billing and notifications. My brother and i already have a joint acccount for our business, so i know he would never jam me up. i could even have it shipped to his house and im guessing he can foward to me like a letter. problem solved.
If you pay taxes for on line purchases, It should go to the store that has the standing business since they are using City services,Like Police and Fire.
"Anyone know if you ship to a PO Box in another state, can you avoid the 6.25%?"
I am going to hazard a guess and say yes.
Dipshit Dicky Dirtbin must be grinning ear-to-ear. He's been pushing to tax internet sales for at least a decade "to be fair to the brick-and-mortar stores." Like he gives a damn. He's a Democrat for crying out loud. The only thing he cares about is tax and spend. Let the brick-and-mortar stores compete by offering services the online sellers can't provide.
For those who keep punching the Dem ticket-----Eat shit and die. Please.
And the death spiral continues. Fuck winkle or light foot gets in, count on more. They would make the cars carrying people leaving the state permanently step on the gas and hit the nitrous. God help up all. 10 more years.....see ya!
+++++ The U.S. Supreme Court’s recent decision in South Dakota v. Wayfair Inc. is projected to increase revenue to the Illinois state budget by $140 million this year. +++++
First, let's get this out of the way: There's no way in hell that Illinois will see anything close to an *extra* $140 Million Dollars in 'use tax' money. Everyone with an IQ above room temperature knows that projected income from some new tax is always waaaaay over what's projected and finally comes in -- see; Soda Tax. Conversely, projected costs for some new vote buying scam of a 'program' is always ridiculously under-estimated -- see; ObamaCare Insurance Premium 'savings'.
Now for the important stuff; Thanks a lot Supreme Court (aka: SCOTUS), thanks for f--king nothing Justice Kennedy you spineless 'swing vote', enjoy your retirement, asshole. It's SCOTUS rulings like Wayfair -- and others where Kennedy sided with the leftists -- why its imperative that Judge Kavanaugh get confirmed in the Senate asap after this bullshit FBI 'investigation' -- really it's just a Background Check, and his 7th! -- is completed by next Friday.
Anywho, this use tax being collected doesn't affect me too much. I do do all my shopping online but some places already collect Il Sales Tax and the amount isn't much. My biggest exposure is, or would be, when I buy a another guitar. I buy them and all my guitar / musical accessories from Sweetwater Sound (www.sweetwater.com), in Ft Wayne Indiana. But even a purchase of a $1,000 Guitar would only be $62.25 in taxes, and I don't buy many $1,000 guitars (my last Fender Stratocaster was $999.99). And Sweetwater's service is so friggen good I wouldn't shop anywhere else anyway, and they have Free Shipping on any size order. (note: NEVER buy a guitar from Guitar Center -- EVER!).
this is wonderful! And maybe they can use the money to expand the new free payments to any who WONT work. Life is freeeeee!!!!! And always remember, vote democRAT!
I have a summer home in Kentucky, and my entire family will use it's address for all online purchases. Fuck Illinois.
Becoming a vagabond on the Information Superhighway
Riddle me this ol' boys in blue.
Chicago tourism recorded 55 million visitors in 2017
Illinois welcomed a record 114 million visitors to the state in 2017
How many of them brought their cell phones with them and freeload on our cell networks tax free?
Are they calling home, sending snapchats, facebook videos and youtube livestreams, while they're here?
Chicago's population is what 2.7 million people? Illinois population is 12.8 million Let that sink in.
Residents pay all sorts of taxes including fees for 911 services why are we subsidizing all these freeloading tourist and allow them to congest our communications networks tax free eh?
It's my understanding that cell phones are taxed based upon the phones billing address not the phone number or area code. The tech savvy now use an out of state billing address to establish service and then turn on paperless billing so you don't even need to maintain an out of state address. (Better than throwing an old box of clothes in the basement of some house somewhere and calling it the place you live!)
What about streaming services entertainment taxes on Netflix, Hulu, Amazon, etc. Taxes are paid based on billing addresses no?
I've heard rumors of people that are now driving outside of Chicago AND Cook co. just to avoid contributing their tax dollars to crooked organizations even if they are not saving money in the process. It's principle.
"10.25% or more in Crook County, buying from out of state at 6.25% = 4% discount. Use a rewards credit card like a Chase Freedom card that lets you turn points into cash, and you can accumulate another 1-5% on the purchase."
===============
Using credit cards the banks charge their own tax to use them. For example, 1.51% plus $0.10 is the current Visa interchange fee for a swiped consumer credit card.
Just because it's hidden and not itemized on your receipt don't think you're not paying for it.
Credit cards are the biggest con job of the century and people have been conditioned to use them and pay the equiv of a tax to the banks on everything they buy with them. People are paying ATM fees for the privilege of the bank to replace tellers with machines.
It's time customers demand that 1.5% discount for paying cash imo
Nevertheless it is no longer an issue about just saving money for some. It's about whether you support this type of criminal behavior.
Just like the Kavanaugh vote is no longer only about appointing this man to the SCOTUS. Senators that vote no are endorsing the procedures being used to ruin the reputations of others based upon allegations.
Is this the country that we want. Everything decided by the FBI. Sounds like a police state to me.
If you don't feel that the local government is supporting you why would you want to fund them with your tax dollars plain and simple. We don't have to shop in Chicago. We don't have to shop in Cook Co. and we don't have to shop in Illinois.
Gasoline is over $4/gal downtown. It's $3/gal in Cicero with a ten gallon tank you do the math. Outside Cook co the savings are greater and outside Illinois even more. That $10 savings represents 2.5 gallons of additional gas which at 30 mpg on the highway means one can travel 75 miles round trip and break even. Now while you're out there why not shop too.
I just can’t wait to move!
As a citizen of this Cook County Cesspool of corruption, I wonder about exactly who the "Children" are. Seems to me that the children are machine connected adults with their hands in Rahm's pants.
Fuck the democrats, fuck Rahm and fuck the children too.
After all it's for the children.
No matter how the JVD circus show comes out Dude Inc is going to want to party (destroy shit) and possibly harm other's as well.
All of you who lay it down daily for us be blessed by G-d and your riot gear. Do not sacrifice all you have worked for. Save your home's, your family and yourselves. It is apparent that nobody cares for you other than those that respect LEO's and hopefully your fellow officers.
Even if you wrote fiction you could never have imagined the bullshit-show this has become. As soon as we get the money we are looking to leave. We work hard as hell and just cannot afford to live here anymore.
Richard
P.S. add Kwame and BJ to the FY pile.
An Amazon (has been adding an IL tax for a couple yrs. now) sanctuary benefit enhancement package.
Why aren’t they charitable.
All IL has to do is get those other online retailers to pay what they collected on sales.
They’ll be skimming for years like those pop up ghetto stores, go out of bidness and reopen under a new license.
Lets hope eBay opens up better offerings, so far no brick and mortar store - no tax paid.
$130 mil could pay retiree 55% healthcare.
But any revenue collected in IL goes directly to the Sanctuary freeloaders.
Here we go J.B. JumBo Prickless:
$149 mil is projected, doesn’t include the costs of the newly created IL Dept of Revenue, Bureau of Online Tax Collection, 1 Executive Director, 3 Asst. Directors, 6 deputy assistant directors, 2 deputy directors of collections, 6 deputy administrative directors, several assistants to various deputies of investigations, a 35 member team of underlings for each department.
Plus vehicles, equipment, expenses and office rental space.
It’s about jobs.
Hey Gov, how about not going away the store to every deadbeat that wanders in?
Blogger Unknown said...
I have a summer home in Kentucky, and my entire family will use it's address for all online purchases. Fuck Illinois.
Are you only order in the summer?
"Anyone know if you ship to a PO Box in another state, can you avoid the 6.25%?"
I am going to hazard a guess and say yes.
Will a PO Box accept a large box big ticket item? Those are the kind of purchases you save a lot on
https://www.salestaxsupport.com/sales-tax-information/sales-tax-help-questions/category/sales-tax-compliance/
I really hate this state, city, and county. Can’t wait to be part of the exodus
Pony up kids. The Great Unwashed Democrat welfare voter needs things.
I just can’t wait to move!
9/29/2018 01:21:00 PM
That's what my bowels said!!!!!!
All of you with houses out of state will have to apply for a credit card with an out of state address, and then buy and have the goods shipped out of state. Easy enough to do. Just have electronic billing to your email and pay that way. The CPFCU credit union has online bill payment, and it's easy to set up.
How sad for Illinois...I voted for Rauner, and I will again if Pritzker is the other choice. It took some political will to stand up to Madigan, and the machine. It doesn't bother me one iota that we didn't have a budget all those years. But again, they taxed the middle class here.
To the kid with the Robinhood stock account, Day trading can be very volatile, up 30 percent in one day, down 35 percent the next. Marijuana stocks are tough to project. Read the stock analysis by a reputable analyst. Be careful, your retirement account could slip away with a few bad choices. I hope you are diversified. The market may be due for a correction soon...
Get out of Chicago, and Illinois ASAP....only 3 states don't tax pensions. Florida, Nevada, and Illinois. But I bet Illinois will soon...Other states tax out of state pensions, be careful.
Be Safe...
Fuck you Illinois. 2 years and I’ll be looking at that welcom to Illinois sign in my rear view mirror.
Anonymous Anonymous said...
Remember this when your fake FOP endorses Democrats.
9/29/2018 06:48:00 AM
Didn't the State FOP Lodge endorse Pritzker?
If so they will be wanting Lodge 7 and Trooper Lodge 41 to follow along.
More reason for Amazon to piss on Illinois.
http://nadignewspapers.com/2018/09/29/officer-reportedly-served-with-complaint-arena-alleges-police-firefighters-made-racially-charged-remarks-against-jeff-pk-housing-plan/
Problem is, this will affect ALL states, so there will be no getting away from it even if you live out of state...
A friend of a friends 3rd cousin's barber lived in a small town (population 20K) and use to rent garage space to his Chicago friends, usually it was around 1 square inch, so their car can be registered at his address. I guess there was no vehicle sticker and lower insurance costs, don't know for sure but I have no doubt, none whatsoever, that those same renters bought a Chicago vehicle sticker anyway. Worked well for 5 years until that person moved back to Crook County.
Giving money to Illinois, and Chicago specifically, is like giving dope to an addict - it's never enough and they always want more.
My advice to higher taxes? Open a Robinhood account and start learning how to trade guys. For what it's worth I just started trading and I have had some ups and downs but am starting to "figure it out". Overall I am down a few thousands due to the US/China trade was as my gamble on China ADR stocks was a poor pick but I just diversified and invested in some CBD stocks a few days ago (Cannabis oil-based products) and they are skyrocketing now. My investment of $35K went up 30 percent last night.
I know this is OT and I hope SCC posts it as it's nothing to due with CPD. I always try to pass on what I can to help fellow CPD escape the job/city as I did after 20 years.
9/29/2018 05:44:00 AM
Yeh thanks bro. A new way to gamble myself either to riches or rags is just what I need. The scratch lottery ticket thing is getting old.
What about overseas purchases? If I buy from Hong Kong, UK, Japan, do they collect and pay the state? What about eBay, foreign and US?
People leaving don’t understand that they have to vote different. The people staying must be happy because they keep voting DemocRAT!
I have a better idea!
I'm permanently leaving Illinois!
So the state of Illinois is going sue a business in Calif for not collecting the tax? No, they won't sue the business, they will sue the customer, you....because that will be all they can do.
Madigan will want an itemized list of all out of state purchases on your state income tax return.........
LOL, you guys got much more to worry about than the internet tax situation. Stop bitching and looking for a non existent scam and pony up. Just wait until new Mayor And Governor get done with you, doubt you'll have any money left to make those internet purchases. Water and garbage fees going up, new bike and scooter taxes, per mile driven tax, pension payoff tax for both city and state and not last or least the Obama shrine tax. Think I'm kidding just wait until after elections. Sorry forgot the new home sale transfer tax of 20% of profit tax. Hope you kept all the home improvement receipts you are going to need them.
Problem is those getting out number those giving. Then of course you have all the dumb liberals.
Gas in Indiana is $2.43 in Mt Greenwood it $3.10
Have your credit card registered to a different address. Most places go on where the billing address is and not the shipping address. If you gift someone(yourself) something why would you have to pay the recipients tax level. Works with cell phones too. Some places do tax on shipping address though. It has to do with source, destination, and POS.
just go over the border, northsiders WI, southsiders IN, for shopping excursions. Esp for Xmas shopping.
9/29/2018 05:41:00 PM said ...
Get out of Chicago, and Illinois ASAP....only 3 states don't tax pensions. Florida, Nevada, and Illinois.
Actually, Florida and Nevada don't tax anything--they don't have a state income tax on individuals. Neither does Washington, Wyoming, South Dakota or Texas. Tennessee only taxes interest and dividends. They do not tax pensions. There are other states that do not tax pensions as well.
And yeah, GTFO of Chicago, Cook County, and Illinois sooner rather than later.
Get out of Chicago, and Illinois ASAP....only 3 states don't tax pensions. Florida, Nevada, and Illinois. But I bet Illinois will soon...Other states tax out of state pensions, be careful.
There are more than 3. There are at least 7, maybe 8
All these taxes and the city, county and state are still broke. Why?
One word. Ebay. That is all.
Many states exempt some retirement income, but if you retire to one of these nine states, you don’t have to do the math. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income tax – for any residents. For retirees, in particular, that means no state income tax on Social Security benefits, withdrawals from IRAs and 401(k)s, and payouts from pensions.
Anonymous Anonymous said...
My advice to higher taxes? Open a Robinhood account and start learning how to trade guys. For what it's worth I just started trading and I have had some ups and downs but am starting to "figure it out". Overall I am down a few thousands due to the US/China trade was as my gamble on China ADR stocks was a poor pick but I just diversified and invested in some CBD stocks a few days ago (Cannabis oil-based products) and they are skyrocketing now. My investment of $35K went up 30 percent last night.
I know this is OT and I hope SCC posts it as it's nothing to due with CPD. I always try to pass on what I can to help fellow CPD escape the job/city as I did after 20 years.
9/29/2018 05:44:00 AM
Yeh thanks bro. A new way to gamble myself either to riches or rags is just what I need. The scratch lottery ticket thing is getting old.
9/29/2018 08:16:00 PM
You are going to lose all of your money. Every last dime. Stop trading today.
States exempting pension income entirely for qualified individuals are Alaska, Florida, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.
States that exempt or provide a credit for a portion of pension income include: Alabama, Arkansas, Colorado, Delaware, Georgia, Hawaii, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Missouri, Montana, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, South Carolina, Utah, Virginia and Wisconsin.
States, where pension income is taxed, includes Arizona, California, Connecticut, District of Columbia, Idaho, Indiana, Kansas, Massachusetts, Minnesota, Nebraska, North Carolina, North Dakota, Rhode Island, Vermont and West Virginia.
Tax tax tax and more tax. We are getting taxed to death !!!!!
So, you buy something on line and pay out of state seller the tax. The seller is required to register and send that tax to Illinois. There are certain dollar thresholds for the seller b4 they are to collect the tax. Assuming all things are equal....what safeguards are in place to ensure the seller remits the tax to Illinois? If the seller doesn't payover the tax what will Illinois do, send a letter ? Illinois can't collect the tax that is due from Illinois businesses now but they will from out of state sellers.........yes sir, not even a reach around.
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