Amsoil rep...can you explain?

[TCDiesel]

The dealer Network That is setup with Amsoil is stupid. The end user is were Tax Should be paid,Not the Dealer or seller. The Preferred Customer and the Dealer are the same cost. Why be the seller,then turn around and Tax Your Local Buyers. I Get the same hassle for the MN Dept of Rev when I purchase and pay the Tax,When I re-sell I don't charge it I just add it to the cost" WHY ARE YOU NOT CHARGING SALES TAX",I explain it to them every Time they audit,The Dept Just cannot bring them self to the conclusion of the Tax already was paid. They are Money W***s

 

[CDonaldson]

I am a licensed business in my state, sent in the tax exemption with my Amsoil paperwork, they still cahrge me the sales tax. While I do have to make an adjustment in my accounting system for paying the sales tax up front, they do not charge my states sales tax rate, they charge more than my states rate, that is the part that makes no sense to me, charging more. This is the first company I have EVER dealt with in my 40-some years of owning a small business that has ever charged sales tax up front to a business. I don't mind paying shipping, I get charged that from every company, but the sales tax???



They are pricing themselves out of business, to allow the public to purchase at dealer prices guarantees a business no profit margin, their structure system is a deterrant to doing business with them. I have used their products exclusively in my truck but I AM considering other product lines at this time due to the high cost of doing business with them.





CD

 

[DNordvik]

I think the only way to not pay sales tax to Amsoil would be to get setup as a commercial account. Not sure on this though. Never tried it. I am the end user. And I dont use it in a manufacturing process.



I know the shipping is expensive but their products work good for me. Especially with gas ans propane powered engines. Change oil at 35,000 mile intervals is great for me. Not everyone likes amsoil and that is their choice. So far my experience is good.

 

[morbius]

After reading all this, for sure I will never purchase their products. They are not the only company that sells oil and filters, some of which is better known and better performing. I have permits for sales tax exemptions and that means something as licensed business. I have been in business over 20 years and also never paid sales tax up front. To me, it all looks like pyramid scheme business.

 

[d6c]

Would somebody please grab a fire extinguisher... I'm going to get flamed real quick... Amsoil's $20 fee to be a dealer sounds like a cheap membership program and maybe they caught onto their "dealers" were actually the end users of the product and avoiding paying any sales tax?? Don't use their products and live in Oregon (NO sales tax) so just thinking out loud.....

 

[amsoilman]

After reading all this, for sure I will never purchase their products. They are not the only company that sells oil and filters, some of which is better known and better performing. I have permits for sales tax exemptions and that means something as licensed business. I have been in business over 20 years and also never paid sales tax up front. To me, it all looks like pyramid scheme business.

I am an Amsoil Dealer, and have a "Storefront" operation in Utah. I also have a Utah State Tax License, so I do quarterly sales tax redemtions to the state, based on my "Retail Sales".

When I purchase the Amsoil products, I do not pay any sales tax up front, as I have the sales tax exemption registered with Amsoil Inc. , including the two states(Nevada and Washington) product centers, therefore no sales taxes are charged in those two states. I have those two states registered, as I sometimes go there and pick up the products, and there is NO SHIPPING charges added. When I make a sale, I charge the person I am selling to the sales tax for my state(6. 85%). This way if a "preferred customer" or another dealer comes in to my store, they get charged the sales tax on the bottomline, either the retail price or the wholesale price.

As far as pricing goes from Amsoil Inc. An "Independent dealer" or "Preferred Customer", are charged the same price! If an "Independent Dealer", like myself sets up a "Preferred Customer", I make what is called a "Commission Credit" based on each and every product sold. When I have received a given amount of those "Commission Credits", I am paid a percentage of those "Commission Credits" in cash paid to me by Amsoil Inc. That is the benefit of being an "Independent Dealer", as a "Preferred Customer" does not earn any of those credits, and can not set up any accounts, such as "Dealers', "Prferred Customers", Retail or Commercial accounts with the Company.

 

[KLauber]

Flamethrower...ignite!!

If you buy something you pay sales tax. That idea has been around a few years. JohnBoy5, why is that a deal killer? You guys going to start your own country where no one pays tax and everything goes to ****? Amsoil collecting the sales tax and sending it to the respective state(s) is hugely cost effective to me. d6c you have the tax collected elsewhere in Oregone and you know it. Morbius, they have been a MLM company since 1972, modeled after Amway which last I heard was a several billion dollar company. Amsoil products are excellent and extremely cost effective to use. Nobody comes close.



TCDiesel, you having a bad day or what? WHat other oil & filter company is set up as a MLM and has unbeatable products?



Cdonaldson, as a dealer you get a percentage bonus, the preferred customer does not.



Everybody have a Merry CHristmas and reflect on what a great country this is, taxes included. Wanna move to Belarus or Venezuela, Zimbabwe or RUssia, maybe? Count yer blessings!



Ken

Amsoil user since 2006

Dealer since Oct 2010

 

[TCDiesel]

Schaeffer is One, And Bio-Clean Systems have Been running it in their Pumps for Years,They ran Ams and others prior, found Schaeffer eliminate most Pump issues,I ran that company for Years,In-fact the current Owner is with Me On our annual Snowmobile Trip in the Rockies,Also work With CAT until the project finish last Jan. Have connections with every type of road use and off road companies for Decades. Ams is good But There are other companies with equal or superior Products @ less cost.



I have NO problem with Paying the sales Tax. The local Dealer is charging T&C the sales Tax even after I submitted the ST-3 form to him, His statement is AMS will NOT allow T&C to be Exempt when Purchasing form him,The Cost and the hassle has brought us to the Point of Dropping AMS.

 

[TCDiesel]

Example: the service Just preformed on customer Vehicle With AMS (ABC) the Charge was XXX. The Agent form The Dept of Rev looks at the invoice then - the service Say why did you NOT Charge Sales Tax on the $150. 00 for the Products (Ams) I just had to Pay $434. 00 in additional Sales Tax B/C of this. They would NOT except the Process and Demand I Pay it... ...

 

[NavyDood]

I personally love the fact that I can order stuff online and not pay any sales tax unless the company I ordered from is in TX. That is one of the biggest benefits of buying online and most of the time the cheapest prices also. I have not run across any other company that I have bought from in the past 12 years of living in TX that I have had to pay sales tax if they are not in TX.

 

[GHarman]

I think the only way to not pay sales tax to Amsoil would be to get setup as a commercial account. Not sure on this though. Never tried it. I am the end user. And I dont use it in a manufacturing process.



I know the shipping is expensive but their products work good for me. Especially with gas ans propane powered engines. Change oil at 35,000 mile intervals is great for me. Not everyone likes amsoil and that is their choice. So far my experience is good.

I have a "commercial account" with Amsoil(This also means that I cannot resell it. The business is the end user. ). I still pay state sales tax.

A state sales tax license is not a way out of paying sales taxes. It only postpones the payment. Sales tax is collected quarterly in Colorado. If you have low sales in the present month you are still expected to pay sales taxes on your estimated sales! Yeah, I dont understand that one, either. However, the language is there when you get your license. GregH

 

[KLauber]

TC, did not know about Schaeffer being a MLM like AMs. Its a good business model, you only get out what you put in, just like the other MLMs. DOnt wreck them snowmobiles and have fun!!

Ken

 

[steved]

Schaeffer is One

I use Schaeffers, and have had good results. They offer free shipping if you buy more than a certain amount of "stuff" through them, that was the deal-maker for me when I was searching for a boutique synthetic. They also have the dealer thing going on. I'm not saying they are/aren't better than Amsoil, just that they are who I chose to use.



I don't mind paying taxes for a product, but I don't like being charged taxes twice or for more than what my state tax is set.

 

[ENafziger]

personally love the fact that I can order stuff online and not pay any sales tax unless the company I ordered from is in TX. That is one of the biggest benefits of buying online and most of the time the cheapest prices also. I have not run across any other company that I have bought from in the past 12 years of living in TX that I have had to pay sales tax if they are not in TX. <!-- google_ad_section_end -->

This expresses exactly my feelings, and what causes my hesitation. I don't believe the argument that all internet orders will sooner or later be taxed so the government picked Amsoil first and this is what we have to look forward to. There are a plethora of companies that do much more mail-order sales than Amsoil that don't have this tax policy If Amsoil really did that much business, I'm sure the shipping rates could be MUCH cheaper as well due to bulk quantity shipping agreements (like McMaster-Carr, etc have).

I called Amsoil to ask about this, and I was just read a standard blurb about them being registered for taxes in all states... however, no reasoning could be given for why this was, or why other mail order companies operated differently. If it truly was a state tax, it would be consinstent with the amount of state sales tax (above testimonies prove otherwise). If it truly was a government mandate/requirement/etc, it doesn't make sense that Amsoil would be the sole company targeted with this penalty.

From what I can gather, Amsoil basically adds an extra 9. 25% or so fee to all orders and calls it "tax". It does NOT however seem that this is a state tax. It seems like it is a "customer" tax... that penalizes you for purchasing from them them!

I hope Amsoil can give a logical answer proving otherwise. I really hope Amsoil could become a "normal" American company--charging tax when the product is purchased in a state with a warehouse/store/distribution center, and charging shipping only went sent across state lines.

When it comes down to it, I guess you suck it up, pay your $20 membership fee, 9. 25% customer penalty tax, and continue to use Amsoil... or else take your business somewhere else. As for me, I'm not sure which way I'll go.

I love Amsoil products. I'm beginning to not like the Amsoil business organizational structure and associated riff-raff.

--Eric

 

[ENafziger]

am an Amsoil Dealer, and have a "Storefront" operation in Utah. I also have a Utah State Tax License, so I do quarterly sales tax redemtions to the state, based on my "Retail Sales".
When I purchase the Amsoil products, I do not pay any sales tax up front, as I have the sales tax exemption registered with Amsoil Inc. , including the two states(Nevada and Washington) product centers, therefore no sales taxes are charged in those two states. I have those two states registered, as I sometimes go there and pick up the products, and there is NO SHIPPING charges added. When I make a sale, I charge the person I am selling to the sales tax for my state(6. 85%). This way if a "preferred customer" or another dealer comes in to my store, they get charged the sales tax on the bottomline, either the retail price or the wholesale price.
As far as pricing goes from Amsoil Inc. An "Independent dealer" or "Preferred Customer", are charged the same price! If an "Independent Dealer", like myself sets up a "Preferred Customer", I make what is called a "Commission Credit" based on each and every product sold. When I have received a given amount of those "Commission Credits", I am paid a percentage of those "Commission Credits" in cash paid to me by Amsoil Inc. That is the benefit of being an "Independent Dealer", as a "Preferred Customer" does not earn any of those credits, and can not set up any accounts, such as "Dealers', "Prferred Customers", Retail or Commercial accounts with the Company. <!-- google_ad_section_end --> <!-- / message --><!-- sig -->

Hey Wayne!

I just read back through all the comments, and appreciate your response... although I don't know that it particularly answers completely my reservations.

However, it brings up another question. If I place my order with you, what pricing will I get? Will I have to pay tax if ordering from you?

Thanks!!!

--Eric

 

[DNordvik]

My customer penalty tax is only 6% which happens to match the sales tax rate for Iowa.

 

[amsoilman]

Here is the Tax Policy direct from Amsoil Inc.



SALES TAX COLLECTION AND EXEMPTION FOR DEALERS

Why does AMSOIL collect sales tax at the time of a Dealer's purchase?

AMSOIL INC. is registered to collect sales tax in each state, province and most local jurisdictions where applicable.

As a multi-level marketing company, AMSOIL INC. has the responsibility of ensuring that sales tax is correctly

collected and remitted to the appropriate taxing jurisdiction for our Dealers.

AMSOIL INC. has Dealers in every state and province, which creates a situation known as “Nexus”. This is a legal

concept that demonstrates the ability of AMSOIL to maintain a legal presence in the various states and provinces

where business is conducted even if AMSOIL does not have a physical presence in these areas. Nexus requires that

AMSOIL comply with the statutory regulations of the Department of Revenue in each state or province.

This means that as a Dealer you do not need to resister to collect sales tax. Taxes are automatically calculated on the

suggested retail prices of a Dealer's order. Therefore, when a Dealer sells this product and charges sales tax, any tax

amount charged is the property of the Dealer. The initial sales tax amount has already been collected and paid by

AMSOIL INC. to the respective state or province. This is valid as long as the tax rate charged is the same as the rate

that AMSOIL charges on the original purchase. See the “What if AMSOIL charges sales tax based on an

incorrect tax rates?” for instances where tax rates differ. For Preferred Customers, sales tax will be charged on the

purchase price of the product.

What if the products a Dealer wants to order will not be resold?

For Dealers, taxes will automatically calculate based on the suggested retail price. Therefore, if you are a Dealer

ordering for personal use, you must notify the telephone operator before giving the item number to be ordered or

check the “personal use” button on the online order form. You may place orders that contain items both for resale

and for personal use. Be sure to tell the operator which items are for personal use as you place each item number in

an order.

If you prefer to pay the sales tax directly to your state or provincial revenue department rather than having AMSOIL

collect it at the time of your purchase you can file as tax exempt with AMSOIL INC. However, you must contact

your state or province for registration information and provide the necessary documentation to register as tax exempt

with AMSOIL INC. See the section on tax exemption for more details.



AMSOIL collects sales tax on your purchases based on either:

1) Suggested Retail prices if the items are for resale; or

2) Dealer Cost if the items are for your personal use. If your order is phoned in, you must notify the operator that you are purchasing for personal use.

AMSOIL has an established Sales Tax Rate for all states. Because we are sometimes required to collect city, county and other taxes as well, the tax rate we charge may be higher than just your sales tax.

The sales tax rates are set in the following manner:

1) If you pick up your order at a Distribution Center, you will be charged the sales tax applicable at that point-of-sale, that is, the prevailing tax rate at the Distribution Center location. (Exception: State of Washington requires us to charge WA Sales Tax on products picked up in Portland by Dealers residing in WA; State of California requires us to charge CA Sales Tax on products picked up in Portland and Las Vegas by dealers residing in California).

2) If you sell any product at a different price than the "Suggested Retail": a) you are entitled to a tax refund if you sell it at a lower rate, b) you are required to pay additional tax if you sell it at a higher rate. In either case, submit a G20 Sales Tax Form and supporting documentation to AMSOIL INC.

3) If you are exempt from paying sales tax in any state or territory, please fill out a G495 (US)

or G495C (CANADA) sales tax exemption form.

 

[amsoilman]

Here are the Taxes Listed by STATE:



The table below provides you with the state sales tax rate and a combined average rate by state. This will allow you to estimate the sales tax due on your order. Please note that the rate is an average combined rate and there may be other local rates that you will need to take into consideration. Local taxing jurisdictions can include county, district, township, parish, borough, municipality, etc.

At the time you place your order the correct sales tax will calculate based on the destination of your product or pick-up location if you go to a distribution center. Sales tax is calculated at the point of sale, which is the location where the goods are received by the purchaser - the end destination. Sales tax rates will be broken out on your invoice into state and local taxing jurisdictions.

*- Please note the combined rate is an average that may not include all the local taxing jurisdictions at your location. These rates are effective February 1, 2010.

Source: theSTC - State Sales Tax Rates



STATE STATE RATE COMBINED AVERAGE RATE*

Alabama 4. 0% 8. 1%

Alaska N/A N/A

Arizona 5. 6% 7. 15%

Arkansas 6. 0% 8. 25%

California 7. 25% 9. 15%

Colorado 2. 9% 6. 4%

Connecticut 6. 0% N/A

Delaware N/A N/A

District of Columbia 5. 75% N/A

Florida 6. 5% 6. 7%

Georgia 7. 0% 6. 95%

Hawaii 4. 5% 4. 5%

Idaho 6. 0% 6. 05%

Illinois 6. 25% 8. 4%

Indiana 7. 0% 7. 0%

Iowa 6. 0% 6. 85%

Kansas 5. 3% 7. 0%

Kentucky 6. 0% 6. 0%

Louisiana 4. 0% 8. 75%

Maine 5. 0% 5. 0%

Maryland 6. 0% 6. 0%

Massachusetts 6. 25% 6. 25%

Michigan 6. 0% 6. 0%

Minnesota 6. 875% 7. 2%

Mississippi 7. 0% 7. 0%

Missouri 4. 225% 7. 05%

Montana N/A N/A

Nebraska 5. 5% 6. 0%

Nevada 6. 85% 7. 85%

New Hampshire N/A N/A

New Jersey 7. 0% 7. 0%

New Mexico 5. 0% 6. 4%

New York 4. 0% 8. 45%

North Carolina 5. 75% 7. 8%

North Dakota 5. 0% 5. 8%

Ohio 5. 5% 6. 85%

Oklahoma 4. 5% 8. 15%

Oregon N/A N/A

Pennsylvania 6. 0% 6. 4%

Puerto Rico 6. 5% N/A

Rhode Island 7. 0% 7. 0%

South Carolina 6. 0% 7. 05%

South Dakota 4. 0% 5. 5%

Tennessee 7. 0% 9. 45%

Texas 6. 25% 8. 05%

Utah 4. 7% 6. 7%

Vermont 6. 0% 6. 05%

Virginia 4. 0% 5. 0%

Washington 6. 5% 8. 75%

West Virginia 6. 0% 6. 0%

Wisconsin 5. 0% 5. 4%

Wyoming 4. 0% 5. 25%

Special Taxes

The following information applies to the states listed above in bold print that have excise taxes or other special taxes. Remember to add the excise taxes to the product total before figuring your sales tax. The excise taxes are not exempt from state sales tax.

Alabama:

• There is a 4% sales tax charged on air and oil filters, mounting kits, fuel additives, MP Metal Protector, Power Foam and car care products.

• There is a $0. 06 per gallon excise tax charged on Shock Therapy oil, natural gas engine oil, gear lube, chaincase lubricant, transmission fluid, bar and chain oil, grease, hydraulic oil, chain and gear oil, compressor oil and foam filter oil.

• There is a $0. 06 per gallon excise tax plus a $0. 15 per gallon inspection fee on engine oil, diesel oil and two-cycle oil.

California:

• Effective June 1, 2010 there is a $0. 26 per gallon tax on all lubricating oil except differential additives, chaincase lubricant, two-cycle oils, bar and chain oil, grease, hydraulic oil, chain and gear oil and compressor oil.

Connecticut:

• As of February 1, 2010 there is a 7% “Petroleum Tax” on all AMSOIL products except air filters, oil filters, by-pass oil filters, dual-remote oil filtration kits, BP parts, oil analysis kits, antifreeze, car cleaning products and fuel/water separators.

Hawaii:

• Dealers, PC's and Accounts with a tax exemption must pay 0. 5% on product total.

• Dealers, PC's and Accounts without a tax exemption must pay 4. 5% on product total.

Rhode Island:

• There is a $0. 10 per gallon tax on the ANT Antifreeze & Engine Coolant.

• There is a $0. 05 per quart tax on the following lubricating oils: engine oil, diesel oil, gear lube, chaincase lubricant, transmission fluid, two-cycle oil, bar and chain oil, hydraulic oil, chain and gear oil and compressor oil.

• There is a $0. 0025 per gallon tax on products that contain organic solvents. These products include: two-cycle oil, gasoline additive, Gasoline Stabilizer, diesel fuel additive, Diesel Fuel Modifier, Series 2000 Octane Boost, Home Heating Fuel Extender, MP Metal Protector, Silicone Spray, Power Foam and Engine Flush.

Texas:

• There is a $0. 01 per quart tax on automotive oils. This includes: engine oil, diesel oil, gear lubes, transmission fluid and hydraulic/transmission fluid.

Utah:

• There is a $0. 04 per quart lubricating oil fee pertaining to all containers except those 55 Gallons or larger on the following lubricants: engine oil, diesel oil, shock therapy oil, gear lube, hydraulic oil, chain and gear oil and compressor oil.

 

[TCDiesel]

The MN is WRONG (Amsoilman),MN has County tax, In Hennepin,Mpls Has their city Tax,Anoka Has Transit Tax, ETC,See were this is going... ... !!!!! Soon We will Have stadium Tax. . This is so Ugly its pathetic. If You believe In More Taxes, 1st Member who Can Prove They PAID Or gave More on their Personal Income Tax I will Match it. It always seems that someone who wants more Tax,Always want someone else to Pay it.

 

[amsoilman]

The MN is WRONG (Amsoilman),MN has County tax, In Hennepin,Mpls Has their city Tax,Anoka Has Transit Tax, ETC,See were this is going... ... !!!!! Soon We will Have stadium Tax. . This is so Ugly its pathetic. If You believe In More Taxes, 1st Member who Can Prove They PAID Or gave More on their Personal Income Tax I will Match it. It always seems that someone who wants more Tax,Always want someone else to Pay it.

Did you look at this "NOTE"?



*- Please note the combined rate is an average that may not include all the local taxing jurisdictions at your location. These rates are effective February 1, 2010.

Speaking of Taxes, Have you ever looked at the taxes on a Cell Phone bill? In my case there are taxes on taxes!



Have a super nice Holiday!