This feedback is referring to the Leon River Merchantile store at 420 Early Blvd., Early, Texas. I was surprised to find out that the owner of this store, according to their manager and sales clerk, did not know or care that they are not to charge their customers sales tax on items mailed out of their state to an address in another state where they do not have a store.
They said that their website doesn't do this. There are companies that set this out of state sales tax up for you I told them.... Ebay and other websites have this taken care of.
Essentially what Leon River Merchantile is doing is charging all their customers that are buying directly from their store and/or off their websites sales tax when they don't need to be at the customers expense. At the end of the year when a business files their resale taxes online with the Franchise tax board it will not let a business pay for out of state taxes, so this store must be keeping the extra money paid by their customers.... This is a complete illegal rip off....
Being a retailer myself I know that I do not pay sales tax to the Franchise Tax Board in my state if I make a sale out of state and mail the item out of state from where the business has a store.
So, I bought an item at Leon River Merchantile by phone and live in a state where they do not have a business, and they charged insisted on charging me me sales tax and said they charge everybody sales tax on all out of state sales and always have.... So this means that they are making money on their out of state customers charging sales tax without having to pay it to their State of Texas Tax Franchise. If they would go to their State of Texas website below and look (I had emailed them and explained in great detail), they would realize that they are doing something completely wrong.... The website of The State of Texas says the following:
What if I sell to customers outside of Texas?
You do not need to collect sales tax on items you deliver directly to out-of-state locations. To document such a sale, your records must include proof of delivery, such as a bill of lading, a shipping invoice or a postal receipt. You may have to collect tax in another state if you are engaged in business there. You should contact the states where you buy or ship merchandise to find out if you are responsible for paying or collecting their taxes. The Multistate Tax Commission has a useful website at http://www.mtc.gov with links to the tax websites of other states. This includes websites.
Again, These people at Leon River Merchantile did not care what I had to say and still insisted to charge sales tax on my out of state purchase being mailed to an out of state address where they didn't have an address and they were kind of rude about it.... Every store I buy from out of state knows this. These people must be extremely inexperienced.
I think they should be reported to their Texas Tax Board. read more
