Thursday, December 13, 2007

1-800-698-2909...

That would be the phone number for the New York State Sales Tax Department.

Concerned Citizens recommends that the Town of New Hartford call that number and ask if the town is exempt from collecting sales tax. We did...the answer...if you are selling taxable items in the State of New York, you must register as a vendor and you must collect the sales tax...even if you are a town board that thinks they are above the law...doesn't matter.

At last night's town board meeting, it was stated that the Town of New Hartford sold a 1999 Truck with plow for $7,500 on eBay. When questioned as to the buyer, they would not answer the question. When asked if they collected sales tax, Councilwoman Krupa replied and we quote, "We are not a sales tax vendor. We do not collect sales tax."

Considering the fact that Councilwoman Krupa touts herself as being a lawyer and a CPA for Pyramid Management, the parent company of Sangertown Mall, we suggest that she take a refresher course or at least call New York State...1-800-698-2909.

Henceforth, we suggest that the town board realize that we do not make statements unless we verify that they are correct...more than we can say for the Town of New Hartford!

9 comments:

Mrs Mecomber said...

Internet sales tax is an extremely touchy issue. Isn't it in reality "interstate commerce" and therefore NYS cannot charge sales tax for itself? (Unless, of course, the buyer of NY goods is a resident of NY-- then you are charged sales tax).

The town did pay sales tax when it purchased the equipment. Charging sales tax to out-of-state buyers in a no-no according to the interstate commerce clause of the Constitution (although that hasn't stopped NYS from transgressing it before).

New Hartford, N.Y. Online said...

True, Mrs. Mecomber, internet sales tax is a touchy issue, but Sales Tax must be collected on all sales to NYS residents and/or states that have a cooperative agreement with NYS such as New Jersey even if it is an internet sale.

The rule is if you have a physical presence in New York State, you must collect sales tax on any sales to NYS residents; and that includes sales tax on any shipping cost. This blogger owns an "internet" business and I have to collect sales tax. Pain in the neck, but better than paying the fine.

Retired Auditor said...

Mrs. Mecomber:

Intrastate use of the internet in the purchasing of good and/or services requires the collection of sales taxes from anyone - INCLUDING the Town of New Hartford.

Reading the blog in this matter and reviewing what has been sold and the fact that the Town, especially, the Police Chief has failed to collect sales taxes is an intent to avoid the collection and payment of taxes.

Having served as a sales tax auditor in an earlier life; I can tell you, first-hand that the State of New York frowns upon these matters.

Were you aware of the fact that the vehicles sold requires DMV Forms to be completed by the Town Clerk? These are standard form when registering a vehicle, etc.

What is seen here is a wilfull attempt to NOT collect sales taxes.

In summary, the Police Chief and anyone who was part of these "private" sales of alleged drug seized property may very well be implicated in a scheme to defraud the NYS Tax Department and inturn, the people of the Town of New Hartford.

Strikeslip said...

It's troubling that Attorney Krupa would make such a remark. As a member of the bar, she is supposed to uphold the law.

Austinwalker said...

From eBay instructions:
You can use the eBay tax table to specify a unique sales tax rate for each U.S. state in which you are required to charge sales tax. When a prospective buyer views your items, your tax rates will be disclosed. When your buyer goes through eBay Checkout after purchasing one of your items, the system automatically calculates the correct sales tax amount based on the buyer's shipping address and the rates that you specified in your tax table. The sales tax amount will be included in the total amount requested from the buyer.

New Hartford, N.Y. Online said...

Retired Auditor,

We don't think it is a case of the Chief or anyone else trying to avoid the collecting and paying of sales tax. We think it is more a case of they didn't take the time to think about the ramifications of putting items up for sale nor did they bother to check with the NYS Sales Tax Dept. The unfortunate part is that they are not willing to listen to anyone who tries to tell them there is a problem.

Last night's town board meeting was shameful. Mr. Wiatr was treated with disrespect just because he started to ask questions. The Town Board and town employees should be ashamed of clapping for Joe Yagey as he tried to embarrass Mr. Wiatr. It was more like a three-ring circus instead of a town board meeting.

The arrogance in this town is troubling. Perhaps the "leaders" of this town, and we use the term loosely, need to be taken down a notch.

Anonymous said...

Mrs Mecomber,

The town is tax exempt; it never pays sales tax on anything, vehicles, gasoline, material, etc.

But still, if you are going to have such a large presence on the web and sell to NY buyers, you are supposed to collect sales tax.

In the case of the truck, NY will collect it when the buyer goes to register it (if he ever does). But if it ends up doing parking lot maintainence, like the Al Roberts buy-anything-Roger-will-sell-him deal - then it is doubtful NY will ever see the sales tax from the buyer.

But the snowblower and faucet buyers will escape paying sales tax. Nice deal for them.

And Joe Yagey is a sycophant, dancing to the tune of any town board, as history shows - Kazanjian, Keiser, Humphrey and now Reed. Go to Florida, Joe. It's cold up here now. See you in the Spring.

So, where is the money that the town received for these ebay sales?
Mrs. Krupa, if you are going to associate yourself with these bumbling idiots, remember - soon you become a bumbling idiot too.

Or after your know-it-all (incorrect) statements, maybe it's too late.

Mrs Mecomber said...

I already said that NYS sales to NYS residents is taxable.

I said that interstate commerce is within the authority of the FEDERAL government, and NOT New York State (whether NYS "frowns" upon it or not). The federal government has (thus far) chosen to NOT allow states to charge sales taxes via Internet purchases (as far as I know, unless something has changed).

AustinWalker made THE point amongst all the babbling: eBay already has a policy in place and sales tax to non-residents/residents is automatic.

New Hartford, N.Y. Online said...

The whole key to the question is whether or not you have sufficient physical presence in NYS...the town does...and you are selling to residents of NYS...the town has. A Guide to Sales Tax in NYS