ADI vs. Internet Pricing

[Tommy]

Contact some smaller distributors, they want the business. i usually
get a better deal from my distributor than ADI. they are a small outfit
but they always come through.

 

[Robert L Bass]

There are some Federal regulations that prohibit

states to enact any regs which inhibit interstate
trade...

It's not a set of federal regulations. A US Supreme Court decision in Quill
v. North Dakota established that states cannot force a company located
outside their borders to collect sales taxes on their behalf unless the
company has "nexus" (a physical presence) within the taxing state.

In general this prohibits the charging and collection of sales taxes on
interstate sales.

Technically, it only prohibits states from forcing out of state merchants to
collect on their behalf. A number of states can require their citizens to
report and pay sales tax on things bought over the Internet or otherwise.
Enforcement is between the state and its citizens -- the merchant is under
no obligation to assist the states in any way.

However states find innovative ways to try and
get around that. One Arizona tries is to charge a "USE" tax and make the
buyer responsible
for it...

Exactly. The same is done by CT, FL and several others.

Personally I think its a deliberate attempt by the
state to circumvent Federal regs, but hey they are
getting away with it...

Although the "no sales tax advantage" clearly benefits online merchants like
me, I disagree with you on this one, Bob. The states have every right to
collect sales tax from their citizens. If their citizens wish otherwise
they can vote in new legislators. Unless and until they do, they'll be
legally obligated to pay their own sales taxes but online vendors like me
are not required to assist them in doing so.

Taxes suck. "Its about plucking the maximum
number of featehrs from the goose with a minimum
of squaking." (Hamilton I think)

Heh, heh, heh... :^)

--

Regards,
Robert L Bass

=============================>
Bass Home Electronics
4883 Fallcrest Circle
Sarasota · Florida · 34233
941-866-1100 Sales & Tech Support
http://www.bassburglaralarms.com
=============================>

 

[Doug L]

In California and I suspect many other states, you are required to pay a use
tax on products purchased in other states/countries if the sales tax isn't
collected by the seller. The onus being on the buyer to pay the tax.

http://www.boe.ca.gov/sutax/isvdprog.htm

I believe California also is mining the information from the customs
declaration forms collected at airports/ports from its residents returning
from overseas trips.

Doug L

 

[alarman]

I agree. ADI is not interrested in small dealers, at least in San Diego.
js

 

[Nomen Nescio]

alarman said:

I agree. ADI is not interrested in small dealers, at least in San Diego.

It's not just ADI. Everybody wants to skim the cream. The extreme
examples of this are the manufacturers like DMP and Bosch, who won't even
sell to dealers without a guaranteed level of purchases. Distributors do
something similar with pricing tiers, it's just not quite so blatant.

- badenov