While I don’t particularly miss Alaska, I do miss living in a state without sales tax. Even nicer, until I finally surrendered my old AK license, I was able to request an exemption from sales tax while in Washington state.
Now, sales tax is a definite concern — especially since impoverished Arizona double dips with both sales and income tax. (The sales tax just hiked up to 9.3% so it’s considerable.)
Given that fun fact, and being the miser that I am, I’m now actively trying to avoid sales tax when possible.
Obviously, we can’t avoid it completely. Whenever we go out to eat, we’ll be slapped with it. Groceries have a lower rate, but sales tax is charged, nonetheless. And when we need an item at the last minute (or, really, less than a week ahead of time) we really don’t have much choice in the matter.
But when it comes to stockpiling, I have a lot more leeway.
Right now, for example, I’m trying to stockpile things we use. Mainly, this is because Bing cash back is going away. While cash-back rates were even higher as Father’s Day approached, I went ahead and scooped up as many deals as I could. I picked up a host of Philosophy products, a couple of pairs of shoes for myself, some shoes for when Tim’s finally wear out, plus day-to-day needs like extra sunscreen.
But I wasn’t just stocking up on good prices and good cash-back rates. By shopping online-only stores, I was saving nearly 10% right off the top.
Considering that Tim uses seven different Philosophy products, which range between $25-65, that’s a big deal. A really big deal, in fact.
Of course, this is easier in some areas than others. We can buy some groceries at Amazon — and I plan to do some more research about what’s available — but the majority of purchases will need to be made in brick and mortar stores.
And when it comes to cat food, I’ve yet to find an online store that consistently offers free shipping. Ditto on cat litter. Until I do, the bags we get at Costco will have to suffice.
Likewise, clothes aren’t an option. I need to try things on, which pretty much necessitates a brick and mortar store.
But for things like sunscreen, makeup or even toilet paper, you can’t beat a lot of online drugstores. Their pricing can be better than regular stores, you can get cash back and, of course, no sales tax!
I mean, seriously, have you ever thought about how much sales tax you spend on toilet paper? Unless you are a devoted couponer, it’s probably pretty significant. And all for an activity that you can’t even talk about in polite society! Or, really, any society, I would hope.
Of course, if you get movie passes — either on eBay or through My Coke Rewards — you won’t pay sales tax either. Well, so long as you don’t upgrade to 3-D. There are also plenty of coupons for free drinks or soda, thereby avoiding sales tax that way, too.
This hardly an exhaustive list. I’m sure there are plenty of things to add. Anyone have experience buying things online that most people just pick up in person?
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
{ 1 trackback }
{ 8 comments… read them below or add one }
I also live in a state with both sales and income taxes. (Local governments raise revenue with a hefty property tax.) The sales tax is higher than that in the neighboring states. Our sales tax exempts groceries, clothes, and prescription drugs; so it is a bit more pregressive than other states' sales taxes. I do not actively try to avoid sales tax, but will take that and the shipping costs into consideration when purchasing online. In all honesty, I do much of my shopping in person unless I can get a much better deal online. In many cases, I prefer to see the product before purchasing.
[Reply]
Abigail Reply:
June 30th, 2010 at 3:11 pm
I can see why you would definitely want to see the item in person. It makes shopping harder, for sure. Often, I'll check out an item in person, then go ahead and try to find it online — preferably at an online-only store — for less.
[Reply]
Abigail Reply:
June 30th, 2010 at 3:11 pm
I can see why you would definitely want to see the item in person. It makes shopping harder, for sure. Often, I'll check out an item in person, then go ahead and try to find it online — preferably at an online-only store — for less.
[Reply]
Well, you are still *supposed* to pay sales tax on online shipments, but I bet few people go through the trouble to do so. I really wouldn't mind it if they made it easier/automatic. I don't shop online to avoid the sales tax, but I know I should be better about keeping track of the taxes I owe. In general, though, I do try to buy from small, local businesses — even when it costs a little more. If people don't support them, then they won't be here. And I'm really happy that they are here for many different reasons, from providing local employment to having great customer service from people who know about the products and actually give a damn.
In general, I don't try to avoid taxes to avoid paying. I benefit from those taxes, as does any other citizen, so I think it's only fair for me to contribute to them. If the taxes are too high, then I should remember that come voting day. As it is, I've generally voted for things that will cost more in taxes because I believe they are worth it. But, all in all, I believe that I am getting my money's worth.
To be honest, I don't really see a big difference between actively trying to avoid sales tax and trying to cheat the IRS. I hate when companies try to get out of paying taxes through legal loopholes and offshore banks, so why would I want to do that?
Of course, if it is a matter of survival and you've cut out all the extras from your budget, then by all means do what it takes.
[Reply]
Abigail Reply:
June 30th, 2010 at 3:18 pm
Argh, I actually meant to put in a point in this post about whether it was a good idea in re: small/local business. (Unfortunately, we're surrounded by chains, so it's a little moot at present.)
And, yes, I think you have an excellent point about the benefits that come from taxes. (Actually, when a salesgirl the other day made some snarky comment about "them" stealing from us, I said, "Yeah, well, I guess I *do* like driving on paid roads and having schools." But I was met with a bit of a blank stare.")
I think it comes down to an internal struggle in me: I support taxes because, well, we need them. But the miser in me HATES to pay them. I don't so much mind on little items, but when I'm spending large amounts it feels good to save that extra money. Which really isn't any better — as you say, not paying taxes it not paying taxes.
I think it comes down to savings: If we have to pay $200+ to get Tim stuff that will keep his skin happy, it's nice to know we saved almost $20 off the top. But, to be fair, I got into the online buying, mainly to save money through cash back programs.
In other words, it would seem I'm awash in contradictions.
[Reply]
Meg Reply:
June 30th, 2010 at 4:18 pm
"In other words, it would seem I'm awash in contradictions."
Yeah, I think we all are — or most of us, at least. I try to do what I think is right, but it doesn't always work out that way. And the more strapped you are for cash, the more tired you are, the more stressed you are… well, those things add up and certainly make the decisions harder.
[Reply]
Meg Reply:
June 30th, 2010 at 4:18 pm
"In other words, it would seem I'm awash in contradictions."
Yeah, I think we all are — or most of us, at least. I try to do what I think is right, but it doesn't always work out that way. And the more strapped you are for cash, the more tired you are, the more stressed you are… well, those things add up and certainly make the decisions harder.
[Reply]
TEN Reply:
June 30th, 2010 at 3:36 pm
Well said. You articulated the way I feel really well.
I completely agree about avoiding local taxes for many reasons including that they pay for things that I support. Even if I don't support all state and local programs, I believe in the services that government provide and I believe that we all should pay for them.
[Reply]
Meg Reply:
June 30th, 2010 at 4:19 pm
Thanks!
[Reply]
Meg Reply:
June 30th, 2010 at 4:19 pm
Thanks!
[Reply]
Abigail Reply:
June 30th, 2010 at 3:18 pm
Argh, I actually meant to put in a point in this post about whether it was a good idea in re: small/local business. (Unfortunately, we're surrounded by chains, so it's a little moot at present.)
And, yes, I think you have an excellent point about the benefits that come from taxes. (Actually, when a salesgirl the other day made some snarky comment about "them" stealing from us, I said, "Yeah, well, I guess I *do* like driving on paid roads and having schools." But I was met with a bit of a blank stare.")
I think it comes down to an internal struggle in me: I support taxes because, well, we need them. But the miser in me HATES to pay them. I don't so much mind on little items, but when I'm spending large amounts it feels good to save that extra money. Which really isn't any better — as you say, not paying taxes it not paying taxes.
I think it comes down to savings: If we have to pay $200+ to get Tim stuff that will keep his skin happy, it's nice to know we saved almost $20 off the top. But, to be fair, I got into the online buying, mainly to save money through cash back programs.
In other words, it would seem I'm awash in contradictions.
[Reply]
TEN Reply:
June 30th, 2010 at 3:36 pm
Well said. You articulated the way I feel really well.
I completely agree about avoiding local taxes for many reasons including that they pay for things that I support. Even if I don't support all state and local programs, I believe in the services that government provide and I believe that we all should pay for them.
[Reply]
I will do this if I plan on ordering from the same company online. An example would be LL Bean. I may go to the store (once or twice a year) and try items on or see what the quality is and then order when I get home. I will not do this at a small, local business. My grey area is going to a big box store and then ordering from another big box store. I guess it depends on the situation.
[Reply]
I never really thought about it before. Now you've got me thinking.
The tax professionals will tell you that it's not unethical to decrease your tax liability, it's only unethical to refuse to pay taxes you owe. Considering also that sales taxes disproportionally affect us poor folks, I wouldn't feel bad about trying to avoid it.
Another good way to avoid tax is buying what you can from yard sales. That's not a bad strategy anyway, since yard sale pricing is supposed to be 10-30% of retail. Obviously this doesn't work for everything (I wouldn't buy groceries at a yard sale!), but when it does work, it works great.
[Reply]
Abigail Reply:
June 30th, 2010 at 6:53 pm
Actually… My mom sometimes gets groceries from estate sales. Mainly things like aluminum foil (usually 50 cents a box), but I've seen her pick up some food, too. Things like canned peaches for ten cents. The real caveat is to check the expiration date to be sure it's a recent purchase.
[Reply]
Abigail Reply:
June 30th, 2010 at 6:53 pm
Actually… My mom sometimes gets groceries from estate sales. Mainly things like aluminum foil (usually 50 cents a box), but I've seen her pick up some food, too. Things like canned peaches for ten cents. The real caveat is to check the expiration date to be sure it's a recent purchase.
[Reply]
Did you say you're in Washington state? Head on down to OR if you don't want sales tax. They are in trouble now, Oregon, that is, and it may lead to eventually adding a sales tax. They can't seem to balance their state budget. It's never about throwing more money at it. If you want insurance that your budget is balanced, learn to manage the money better. It's not rocket science.
[Reply]
Abigail Reply:
July 2nd, 2010 at 7:27 am
Jerry,
We moved down to Arizona, so that’s not an option anymore. Also, it’s not too much savings if you keep making a four-hour drive. Still, on big stuff it would have made sense, for sure.
[Reply]
Abigail Reply:
July 2nd, 2010 at 7:27 am
Jerry,
We moved down to Arizona, so that’s not an option anymore. Also, it’s not too much savings if you keep making a four-hour drive. Still, on big stuff it would have made sense, for sure.
[Reply]
I live in a state that has no sales tax, so it's not really an issue. I didn't realize that people could order things from the internet tax-free…when I order online, I just assume that since my billing address indicates a tax-free state, I am not charged sales tax.
[Reply]
Hey Abigail,
You could do what I do with clothes shopping: go to the brick & mortar store, find stuff you like, write down all the details (brand, size, colour, style number if you can find it), then leave the store without buying anything and look for that item online. I save a considerable amount off the retail price that way — it stands to reason you could tweak it so you're saving the sales tax too. The trouble, of course, is giving up instant gratification.
[Reply]
FYI — in AZ (where I also am!), the state sales tax is 6.6% (don’t remember, don’t really care), Maricopa county adds on a bit, and the municipalities add on the rest. So if you’re spending a good deal of cash (i.e. buying electronics or a car or something), you might want to find out what neighboring town’s sales tax is and see if it’s lower than where you are. Here is a list of taxes by city in Maricopa County: http://phoenix.about.com/od/govtoff/a/salestax.htm
You’d need to find a relevant list if you’re not in Maricopa County, of course.
[Reply]