B&H New York AG sues for unpaid taxes

PakkyT

Mu-43 Legend
Joined
Jun 20, 2015
Messages
7,247
Location
Massachusetts, USA
The article is confusing. First it talks about unpaid sales tax, then it goes on about selling the stuff at an instant discount and then getting reimbursed by the manufacturers and not reporting those reimbursements as income. So are they underpaying sales taxes or are they under reporting their income? I believe those are separate things.
 

ooheadsoo

Mu-43 Top Veteran
Joined
Jan 13, 2018
Messages
643
I didn't read the lawsuit, but the quoted text appears to refer specifically to sales tax multiple times.

This reminds me of cellphone rebate deals, where, at least where I live in CA, we have to pay sales tax on the pre-instant rebate price. However, I get the feeling that how it's treated at least in CA is that the customer is considered to have paid the full price up front, and the store is actually "advancing" the rebate to the customer in lieu of the traditional mail in rebate process. Thus we customers are obliged to pay the sales tax on the undiscounted price.
 

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