Ebay sales tax

[John Rist]

I just bought a TD on ebay.   PayPal collected the Alabama sales tax on the sale.    Not necessarily unfair but you need to take this into account when deciding what you are willing to pay for an item.

[Jim Carter]

I wonder if that tax money ever gets where it's going.

Oh, I have no doubt the "State" is GOING to get every penny they can track  !  Considering the skills of some of the forensic auditors of today and how they can track every on-line transaction, I have no doubt the auditors of every state will find every $.00000000001 cent especially if the "State" incentivises the recoveries with promotions!! 

[Peter in Fairfax, VA]

John,

Have to compliment you on your "it is what it is" attitude.  As you say, this is what eBay agreed to do, based on court rulings and laws enacted.  Some of my eBay customers thought that by complaining to me, I could undo what the government decided.  Your way of thinking, moving forward with an understanding of what reality you will face, is a good way to get through the day.

And Jim Carter is right.  Massive fraud by eBay and/or PayPal would likely be detected. 

I've been audited for my state sales tax records for a professional service business.  While I did win that audit, as defined by not owing any money, the auditor was highly aggressive, especially at the first meeting.  My attitude, at first, was poor, in that I questioned why the auditor was poorly prepared and I questioned the auditor as to what records I needed to retain.  Kind of like arguing with a traffic cop as to the fine points of the law.  On second meeting, I had a prepared answer: "let me answer that question to the best of my ability, using the records I have in front of me." 

thanks,

Peter 

[944_Jim]

I hate to expect the worst...but I bet it won't be long before the casual sidebar sale of items will also be tracked (like from forum member to forum member here, or on CEF, RCG). I bet PayPal winds up doing this too!

Then how long before mail-sale personal checks get tracked?

[GERALD WIMMER]

Hello
I think this should help your local hobby shop in the unlikely event you still have a hobby shop within an hours drive.

Here in New Zealand they are going to tax every import at 15% GST after October and presume Ebay will take it otherwise it gets stopped at customs and huge processing fees added .
How will this work when most C/L flyers here import most of their non R/C gear ?
Maybe we will have to travel overseas like in the old days to get our gear when we had even more import restrictions.
Better renew my passport...
Regards Gerald

[John Rist]

Hello
I think this should help your local hobby shop in the unlikely event you still have a hobby shop within an hours drive.

Here in New Zealand they are going to tax every import at 15% GST after October and presume Ebay will take it otherwise it gets stopped at customs and huge processing fees added .
How will this work when most C/L flyers here import most of their non R/C gear ?
Maybe we will have to travel overseas like in the old days to get our gear when we had even more import restrictions.
Better renew my passport...
Regards Gerald

I have a great local hobby shop and I support them as much as I can however as you can guess very little control line stuff.

[Jim Carter]

Hello
I think this should help your local hobby shop in the unlikely event you still have a hobby shop within an hours drive.

Here in New Zealand they are going to tax every import at 15% GST after October and presume Ebay will take it otherwise it gets stopped at customs and huge processing fees added .
How will this work when most C/L flyers here import most of their non R/C gear ?
Maybe we will have to travel overseas like in the old days to get our gear when we had even more import restrictions.
Better renew my passport...
Regards Gerald

Hi Gerald!  I can embrace your and others, feelings about the taxes and duties but is there any alternative for the "state/nation"?  Now while I know this may seem political, it is in no way intended to be.  But my thinking is that similar to our current president's policies is:  (whether I agree with the methodology or not is not to be considered for the purpose of my following observation), maybe, just maybe the underlying political policies may be designed to drive the manufacturers, and entrepreneurs into "in-country" production!  Yes, there will still need to be some offshore import of raw materials but the actual final production, market build, sale and subsequent global export would then be accounted to the national GNP to include the hiring, training, and development of a viable long termed, skilled workforce.  Obviously, education, and implementation to gain the "buy-in"/support of the population would be an almost insurmountable problem .... but over time .... maybe, just maybe!!

Just imagine your nation developing a manufacturing capacity to produce comparable, yet competitively priced power plants (nitro, glow, and electric), kits, tools,  for our market with applicabilities for other markets and interests of full-size aviation, marine uses, UAV's ..... etceteras.  As a more conceivable example, suppose the production of affordable, competitively priced 4k UHD LED televisions was developed, introduced, built-up, and long term viable in your country?  How about a competitive production of high capacity, storage batteries using say seawater, designed for use with electric cars, planes and electric generator backup power?  While it's easy to imagine such market concepts, I can't begin to embrace the "uphill" battles that would need to be fought and resolved just to get a entry foothold.  But I suppose, those are the same kinds of battles that were fought by the pioneers of your nation and every nation on the planet.

[Bill Adair]

Gerald,

Perhaps your national model aircraft organizations, should petition for a Hobby exemption from that new tax?

Hopefully, your model organizations are not as self serving as our AMA? 

Bill

[GERALD WIMMER]

Hello Bill and Jim Thanks for your thoughts on helping fellow modellers. The USA seems to be heading in the right direction that creates local manufacturing and seems to be working at addressing trade deficits which should help your local hobby industry.

 In New Zealand we used to have a healthy hobby industry that made local engines and C/L kits (Pepperills and Katapo engines and Modellair, Kingsway and Airsail Kits) this all passed when import tarriff were removed many decades ago along with most local manufacturing (cars, cloths and electrical goods etc) that too were also sustained with import tarriffs. These taxes were replaced with a straight consumption tax of GST which left no incentive to maintain local manufacture .
Gst applies to all goods and services (including all foods and medicines) and I cannot imagine they would make any exception for our modelling items.
As of the 1st of October a new process of collecting GST on every import $1 comes in , when previously the threshold limit was $400 on imports before GST was taken.
I don't have an objection to paying my share of tax when making purchases but the implementation of the tax on imports is complicated depending on where the tax is paid and when mandated import brokers fees apply and add at least $100 to each shipment.
The process gets very complicated but the upside of the situation is it may bring about new hobby shops or at least a growth in the existing ones as people avoid the 'new' red tape of importation.

Sorry for the excess information on NZ local detail but sounds like some US states will face a more complicated tax system too.

Ironically I used to be the local agent for Fox engines many years ago but could not compete with individual importers who weren't pay the GST !

Regards Gerald

[M Spencer]

KATIPO ENGINES !

Id thought the irdiot that produced these put more people of aeromodling than all other things combined .
At least youd get no noise complaints . They wouldnt go.

Actually , when I was about 12 years old , some masochists used to go down the park for hours ,
theyed end up with their jeans covered in fuel and blood . After a 1/2 hour , on a good day ,
one might start , and stagger around for a few laps before it sagged into the deck .
Theyd be lucky to get it going four times in a day . The Mongrels at Airsail that sold them shouldve been lynched .
As for their $ 130 OS 20 R.C. and ' You Should Buy Local ' when from  Hong Kong they were $ 30 and AVAILABLE as the
importer bought R C ones and would fit the C L parts ' As Extra . ( so only $ 150 Vs 30  ) wot plonkers .

Our Katipo ran as it was finally run in after 3 months or more ( was it 6 ) of flicking , but every mongrel in the neigbourhood .

When a idiot teacher bought one , despite being entirely advised NOT TO TOUCH ONE ,
 by the same sleazey creep at Airsail , when they were in Coustoms Steet ,
After stripping and refitting , by a automotive engineer , and several hours motoring over on a 3/4 horse electric drill , dripping oil in the intake ,
it ran fine .
Think the Police ended up advising that unless he ran them he would breach the trade practises act .

[Peter Grabenstein]

might be OFF Topic
I was just on the E-bay .com way buying 1 NIB K&B COX Conquest asking the seller for ship. to the old world.
He/ebay.com was asking 58 USD.
And YES .......
we make America GREAT AGAIN , ........but I think that's the WRONG WAY.
BTW I stepped back from that ebay deal ,....way to much for ship. such a small box  . 
I feel better now, saved some money.

cheers
 
Peter

[M Spencer]

But over and above that, Chris Murphy has rightly pointed out that there may well have been a perception of a legitimate business opportunity that could net the participants some cold hard cash. At the time, the New Zealand government would have levied both customs duty and sales tax on imported engines. As domestic products, the Katipo engines would have been exempt from these charges and could thus be sold at very competitive prices. Indeed, it's quite possible that the manufacturers may have been eligible for a production subsidy, particularly if export sales formed part of their prospectus.

There is evidence to the effect that not all examples of the Katipo were quite as bad as their reputation.

http://www.modelenginenews.org/

[GERALD WIMMER]

Hi Matt Sorry we seem to taken over the thread with comments on the crazy NZ tax system, perhaps we can be a lesson to others with motors like the Katipo . Did actually run one without issue, perhaps it was an odd one or my Diesel fuel was better then most used?
On another tax note the NZ government declared today it will put in a new tax on gas guzzlers that will subsidize new electric vehicle prices, which then annoyed the farmers.
Regards Gerald