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Amsoil rep...can you explain?

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Hello!

I've been a loyal Amsoil customer for awhile now, and usually place a large order ( > $500) every year or so. I'm ready to place another order, and am having some problems.

The order total is $596. 41. However, when I check out, I'm being charged shipping of $59. 23 as well as $55. 16 in sales tax... which brings the total to $710. 80!!!

Question is, why am I being charged sales tax for an online-out-of-state purchase? I called and asked if I can pick it up locally and avoid the shipping... and the answer was no. Amsoil doesn't even have a Warehouse anywhere in the state of TN. There are individual reps who I can go through, although none carry all the products I need and I would no longer receive "Dealer Pricing".

It doesn't seem right to be charged an extra 20% on top of the cost of the items. :confused:

Can someone shed some light on what's going on? I'd like to continue with Amsoil products, but as money is getting tighter, the order + 20% isn't sitting too well with me at the moment...

Thanks, Eric
 
I'll comment that usually if the company has an office in the state you live, sales taxes are added. Last time I ordered from them, the product was on my stoop the next day. This makes me think that a local guy with an office delivers in my area.
 
if the company has an office in the state you live, sales taxes are added. Last time I ordered from them, the product was on my stoop the next day. This makes me think that a local guy with an office delivers in my area. <!-- google_ad_section_end --> <!-- / message --><!-- sig -->

That's a good thought! I could understand that in your case, as Amsoil has a warehouse in Dallas, TX. However, they don't have a warehouse even close to Tennessee... the closest pickup point for me is nearly 400 miles one-way.

If you place a large order again, it may benefit you to pick yours up. It looks like they have a warehouse only ~25 miles from you!

--Eric
 
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Because of those that I refuse to order from them. No one in our area stocks the merchandise yet there are 4 dealers (all which work from their homes, some of which are only available after hours) and all they do is order from the same web page as I would. So I pay sales tax for our area and shipping from xcross country ?!?!? No thanks. Even when I try dealer out of state, they want to nail me for local sales tax, not right.
 
Hello!



I've been a loyal Amsoil customer for awhile now, and usually place a large order ( > $500) every year or so. I'm ready to place another order, and am having some problems.



The order total is $596. 41. However, when I check out, I'm being charged shipping of $59. 23 as well as $55. 16 in sales tax... which brings the total to $710. 80!!!



Question is, why am I being charged sales tax for an online-out-of-state purchase? I called and asked if I can pick it up locally and avoid the shipping... and the answer was no. Amsoil doesn't even have a Warehouse anywhere in the state of TN. There are individual reps who I can go through, although none carry all the products I need and I would no longer receive "Dealer Pricing".



It doesn't seem right to be charged an extra 20% on top of the cost of the items. :confused:



Can someone shed some light on what's going on? I'd like to continue with Amsoil products, but as money is getting tighter, the order + 20% isn't sitting too well with me at the moment...



Thanks, Eric



from what i understand, sells tax is going to be apart of every computer order... no matter where you live... so the goverment can get more money... .
 
I'm no tax expert, but the way that I understand tax on internet sales is that if the company that you purchase something from via the internet is either incorporated in a state that has a reciprocal tax agreement with the state you live in or the company that you purchase from has a store/outlet in the state you live in you will be charged sales tax. Now how much tax you are charged depends on the agreement or the tax rate for the state you live in. AFrias is correct in the both Congress and the State Governments are chomping at the bit to tax ALL internet transactions because they know all too well how much money they are losing (especially the State Governments). The biggest problem is that they can't all agree on what rate to charge or how to collect it. This is probably working in our favor as a consumer because waiting for 50 State Governments to all agree on something, let alone with the federal Government, could take a while! :-laf
 
These state governments have been trying for years to tap the Internet commerce without much success . I think some of these companies are cowering under it sucks
 
well as much as i dont like taxes the smart thing for everyone to agree on is to charge taxes on the state the company is based in then that state gets more money from them. it would benifit companies in a way too because state might want to provide these big companies and incentive to be based in their state as opposed to another. lets hope they dont figure this all out so that at least on the internet there is no sales tax
 
I just closed my small business, (20 employees - 30 something years) and here in WA if we shipped out of state we were not required to collect WA sales tax... If and out of state customer picked up in WA we were required to get the tax unless they had a resale certificate... . however there is movement to force all businesses to collect sales tax and forward it to the correct state... Larger mail order companies, JC Penney, Wal Mart, Target, Sears, Cabela's etc etc have already been forced into this mess...

If and when the states get the man power they will enforce their sales tax codes on all businesses... . This is a huge revenue lost to the states...

Right now congress is working on legislation regarding the internet and I'm afraid that soon we'll be forced to pay tax to either the Federal Govt, or to each state...

Mhannink - after some reviews by our dept of revenue, there is NO DISCOUNT for collecting out of state taxes, just big fines for not doing it your caught... Of all the government people we had in to inspect us, OSHA, IRS, etc etc... the WA Dept of Revenue was there at least yearly and the auditor would spend the day looking, and looking and looking... . for us, our computer and software kept it all on the UP and UP...
 
I don't have the answer for you, but I'd like to think since there isnt a distribution point in TN then you should not be paying sales tax unless you buy from a private TN dealer. Did you ever buy online using a TN dealers referral number in the past? What is even funnier is you are paying 9. 25% sales tax. Isn't TN sales tax 7% for non food items?

I will agree with others. I don't like the way Amsoil does their sales business with the private dealers. But, for me it is a small price to pay for the best oil on the market.
 
but I'd like to think since there isnt a distribution point in TN then you should not be paying sales tax unless you buy from a private TN dealer. Did you ever buy online using a TN dealers referral number in the past? What is even funnier is you are paying 9. 25% sales tax. Isn't TN sales tax 7% for non food items?

I'd like to think the tax shouldn't apply as well. I pay the $20/yr membership fee to get "Dealer" pricing, so I've never used another dealer's code. Assuming that paying the $20/yr really does give you the same price that a dealer can buy his oil for, I'm not sure why dealers exist anyway?

Unfortunately, TN has a 9. 25% sales tax on all goods, food and non-food items.

I've used Amsoil exclusively in the past for everything from chainsaws, jet skis, engine oil, weedeaters, wash and wax products, spark plugs, spray lubricants, fogging oils, penetrants, brake fluid, differential fluid, transmission fluid, etc. However, this 20% add-on to the order amount really has me re-thinking some things.

Even with by-pass filtration, Amsoil synthetics, and oil analysis, I can't extend oil changes past the 7,500 mile mark. Soot loading and additional stresses on an engine at the 600 hp mark dictate the necessity to change much sooner than on a stock engine. I'm wondering if a good quality off-the-shelf synthetic may prove more economical and offer just as good of protection for my purposes?

Maybe I'm making more of this than I should... but with a baby coming tomorrow, my wife losing her job, and a 2 year pay freeze at work, every dollar spent is making a real impact. And somehow $59 in shipping to a business address and an addition $55 in tax for an out-of-state order has me wondering if I'm doing the right thing with my money.

--Eric
 
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From Amsoil's "Sales Tax Blueprint" for dealers.

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 register 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.
 
Hmmm... well thanks for the response. So basically, amsoil charges the dealer tax upfront when items are purchased, as they assume items are going to be re-sold.



Therefore, it seems there are two ways of ordering online. . first you can "become" a dealer and order with a discount, but that means you pay your $20 for dealer status and then pay tax as well. Or second, you can pay full retail price but save your membership fee and not pay tax?



Why then does the amsoil dealer down the road charge me tax on top of the marked up price? Since he is a dealer, the tax should have already been paid when he ordered the products and had them shipped in!? So for me to purchase from him, i'm paying the dealer cost plus tax plus shipping to get it to him plus some amount of markup to cover his membership and profit plus another round of tax when I purchase the product!!!



I need to think about this some more, but it seems that there is really no good way to purchase amsoil. As an individual as a consumer, I can be penalized 3 ways for purchasing One, pay full retail plus shipping. Two, pay dealer price plus shipping plus a re-sale tax, even though i'm not going to resell. Third, I can go to another dealer and pay dealer pricing plus tax plus shipping plus markup plus tax again.



This still doesn't seem right. Its almost like there is an extra 9. 25% fee tacked on just because they can, but it is called sales tax to appear not as obvious. Is there a way that I can pay my dealership membership fee to get the better pricing, but verify the products are for are not for resale?



When I buy Redline synthetic or Royal purple or whatever out of state there is no tax added.

Can amsoil package their oil with a "not for re-sale" and do the same?



--Eric
 
well seeing this just prevented me from buying the product... i was on the fence about it till i seen this, i expect to see many others making the same choise i am..... kind of sucks too.
 
That is the problem with the dealer network. They pay no less than the "preferred customer" price. What they do after that is infortunately their prerogative.

I have been fortunate enough to have close friends that only charged me preferred price and tax only. No shipping.
 
Amsoil Is getting to cost more then its worth,The oil way Amsoil will change their policies is when the Bottom line is effected,We have been using their products for Years,But its Very Likely We will be switching.
 
Amsoil charges sales tax on all sales because they are covering their responsibility to the government. In order to not pay sales tax you need a sales tax exemption certificate from your state department of revenue. There is no such thing as a tax free purchase on taxable items without an exemption certificate. If you are not charged sales tax when you are the end user on a taxable product, it is your responsibility to send the sales tax to your state department of revenue. This is hard to enforce, so as usual the government starts with the larger parties they can make responsible, ie; Amsoil. It is also why most government bodies are trying to decide what to do about it since internet purchases have grown. Someone is responsible for the tax no matter what. That is why taxes are the second guaranty in life.
 
Amsoil charges sales tax on all sales because they are covering their responsibility to the government. In order to not pay sales tax you need a sales tax exemption certificate from your state department of revenue. There is no such thing as a tax free purchase on taxable items without an exemption certificate. If you are not charged sales tax when you are the end user on a taxable product, it is your responsibility to send the sales tax to your state department of revenue. This is hard to enforce, so as usual the government starts with the larger parties they can make responsible, ie; Amsoil. It is also why most government bodies are trying to decide what to do about it since internet purchases have grown. Someone is responsible for the tax no matter what. That is why taxes are the second guaranty in life.



whats the first death?
 
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