Beating Amazon's Sales Tax

Site Member - July 05, 2014
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Tip: Pay no sales tax at Amazon Tip-of-the-Week candidate:

There is a way to avoid paying sales tax when buying from Amazon.

Yes, even after the recent laws which were passed that forced Amazon to start collecting sales tax.

When buying an item, pay careful attention to how the item is shipped. An item that says it's "Sold by" or "fulfilled by" Amazon will force you to pay sales tax.

An item that is fulfilled by or shipped from a third-party seller usually will not collect state sales tax.

For example, you can save $25 in sales tax by selecting a different seller when buying a 42-inch LG television (model number 42LN5300). When purchased from Amazon, it costs $357 plus $24.99 in sales tax.

But, when on the product page, under the "Add to Cart" button there is a box titled "Other Sellers on Amazon." The prices from those sellers vary. Some are less than Amazon's price point and some are more. But if you select any of these others you may be able to avoid paying sales tax.

The same tv is sold by "Electronics Express" at a cheaper price point of $348.36, and you will also not be charged sales tax if you purchase from them.

Shipping is free on either deal, even if you aren't an Amazon Prime member, because the product costs more than $35. The only difference is the delivery timeframe (two days with Prime, 3-5 days from the third party sellers or non-Prime members).

This particular tv is advertised as eligible for Amazon's "Low Price Guarantee," meaning that they will match the price if you can find the same tv cheaper sold by someone else.

But they can't match the $25 in sales tax savings.

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