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Thread: Sales tax if trading in an embroidery machine.

  1. #1
    Senior Member joivey's Avatar
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    Sales tax if trading in an embroidery machine.

    I live in NC and am interested in trading in my Babylock Ellissimo Gold II for the new Babylock Destiny. But....the dealer tells me I would be charged sales tax on the total selling price of the new machine, not the difference. Do any of you have information or experience about this?
    Thanks,
    Jo Ann
    Jo Ann

  2. #2
    Super Member sewingsuz's Avatar
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    This is probably because when he bought the machine wholesale he has a tax # from the state and is exempt from the tax and passes that on to you then he has to pay it to the state on a monthly or quarterly report. They don't care about the trade in like a car. He is not making any money on the tax he charges you he has to save that and pay it out. I have done accounting all my life and this how it works in AZ. I hope this helps you understand. When and if he sells your trade in I don't know how that works.
    Suzanne
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  3. #3
    Power Poster ManiacQuilter2's Avatar
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    Sorry, I have never traded in a DSM. Just doesn't sound right.
    A Good Friend, like an old quilt, is both a Treasure and a Comfort

  4. #4
    Senior Member joivey's Avatar
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    I think you are exactly right and for the reasons you stated. I am just trying to find a way to save $700.
    Thanks,
    Jo Ann
    Jo Ann

  5. #5
    Power Poster nativetexan's Avatar
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    Yep, it figures. Taxes are taxes. No way around them.

  6. #6
    Power Poster lynnie's Avatar
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    they get you coming or going, never heard of this one.
    put off till tomorrow what you can do today, and if you procrastinate long enough, you may never have to do it.

  7. #7
    Senior Member joivey's Avatar
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    And if the dealer sells the machine I trade in (that I have already paid taxes on) they will collect sales tax on that too, again.
    Jo Ann
    Jo Ann

  8. #8
    Super Member laurafet's Avatar
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    Unfortunately, Jo Ann, that is the way NC is currently set up. If I am not mistaken, you have to pay full sales tax on a vehicle in NC too. I do believe there is still a cap (max) on them, but nevertheless...
    BTW-my sis and aunt both live in Seven Lakes!

  9. #9
    Senior Member joivey's Avatar
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    Goodness....small world. Are your sister and aunt into sewing, quilting, embroidery, etc?l We should get together.
    Jo Ann
    Jo Ann

  10. #10
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    Think of your old machine as a gift card to be used as partial payment for your new machine.

  11. #11
    Super Member mermaid's Avatar
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    The tax set-up in N.C. is not the same for all states..in TN where I am, you just pay tax on the difference. Why don't you take that $700. take a little vacation trip to Oregon, and pay no sales tax at all? I think that's how it is out there cause I've purchased camera and other electronics for no tax there. Always plan ahead if we're 'tripping' thru Oregon --save up my big purchases.

  12. #12
    Senior Member kathidahl's Avatar
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    Well, in IL they charge sales tax on thrift shop sales...those things obviously were charged tax on the first sale.
    So the tax must be a tax to sell something..LOL

  13. #13
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    Quote Originally Posted by lynnie View Post
    they get you coming or going, never heard of this one.
    Yep, you pay taxes when you earn the money and again when you spend it.

  14. #14
    Senior Member joivey's Avatar
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    The only problem with going to another state to save money on the sales tax is that where am I then going to get it serviced. I think dealer support is very important, especially with a new, highly technical machine.
    Jo Ann
    Jo Ann

  15. #15
    Super Member coopah's Avatar
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    $700 is a lot of money in tax!!! I send in monthly sales tax to the State of FL. It varies every month. The only way for the state to check is to audit my books. I don't know how SC does this, but it seems that there should be some tax credit to you from the sale he will make on your used machine. I'd call someone like the BBB or figure out a way to know if what he's telling you is correct. (You don't have to mention his business, just ask how you could find out that kind of information.) And, yes, Oregon is sales tax free. Oregonians don't pay any sales tax when they visit WA state, unless the law has recently changed.
    "A woman is like a tea bag-you can't tell how strong she is until you put her in hot water." Eleanor Roosevelt

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    Those states that don't charge a sales tax........must be generating cash from other sources to keep the budget in the black.....what could they be....real estate, services?? Just curious

  17. #17
    Power Poster Jingle's Avatar
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    Businesses are only sales tax collectors for the State they are in. Business are liable for paying them to State. We have no say in what is exempt, that is between the State and the other companies we sell to. No taxes on services here in Missouri, just on the parts.
    Another Phyllis
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  18. #18
    Super Member Peckish's Avatar
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    Quote Originally Posted by Geri B View Post
    Those states that don't charge a sales tax........must be generating cash from other sources to keep the budget in the black.....what could they be....real estate, services?? Just curious
    Oregon has no sales tax, but there is an income tax at around 9%. It's higher if you live or work in certain metropolitan areas, such as Multnomah County (Portland), because the local municipalities tack their own income taxes on top.

    I live in Washington, right across the border from Oregon. It annoys me how many Oregonians cross the border to shop in Washington tax-free, but if you live in Washington and work in Oregon, you get no exception from the tax. It's taxation without representation.

  19. #19
    Super Member Luv Quilts and Cats's Avatar
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    Quote Originally Posted by Geri B View Post
    Those states that don't charge a sales tax........must be generating cash from other sources to keep the budget in the black.....what could they be....real estate, services?? Just curious
    New Hampshire has no sales or income tax. However, it relies very heavily on property taxes, liquor sales, lottery sales, cigarette taxes. People running for office usually have the take "the Pledge" no support for sales or income taxes or most likely they will not be elected. Sometimes the state and local budgeting processes can get real messy.
    Luv Quilts and Cats
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