I know this question has nothing to do with webmaster forum.... anyways, I bought a shed from: Watson Management PO BOX 291 Manchester, TN Phone: (931) 635-2244 Fax: (931) 635-2255 http://watsonmgmt.com/ Sale price: $1,895.25 Sales Tax: 9% $170.57 Total: $2,065.82 Fine and dandy until I see the next column: Monthly Rent: 87.74 Monthly Sales Tax: 9% $7.90 Watson Management has already changed me 9% tax on the purchase of the shed (front end), now they are charging me 9% monthly sales tax on the backend? Is this even legal...? If I have already paid sales tax on the front end, then how are they able to collect "sales tax" on the backend? To me it seems like tax fraud.... I expect as much from credit cards; these days they not only charge you interest on your outstanding balance, they also add in a monthly service fee, but their fee is not labeled as "sales tax" it is labeled as "monthly fee" and for this reason I have canceled two credit cards. I just have to say the world of credit has just gotten so corrupt, and the govt too. When we are taxed, then we end up paying more taxes... We pay taxes, then we pay more taxes on toll roads.
Are you paying monthly or upfront? It sounds like they are just giving you the same tax numbers either upfront or paid over time. If you pay monthly, then they just charge you the tax monthly on the portion you are paying. Seems like math, not fraud. Am I missing something or where is the part where they are charging you twice? Are they making you pay the 2065 total and then adding tax again or just adding tax to the monthly payments on 1895? You're not sharing the key data to make sense of the question. Edit: Actually, reading their website it sounds like a rental contract anyway, so perhaps their use of the term "sales tax" is misleading and problematic or perhaps they just use it, not as actual tax, but as a way to arrive at the rental price. The precise language of the contact would be needed to see if they are, in fact, committing a fraud. It sounds like they could be crossing the line by charging sales tax on something that might not actually get sold. Since they claim it is a pure rental contract, it would seem that they could not charge "tax" unless the unit actually ended up being sold - which is only on completed contracts. If they charge "tax" on tons of rental sales that never end up changing ownership it sure sounds like that would be fraud. http://watsonmgmt.com/page3.html
Brown, I am paying monthly as stated.... 1: If it is not tax fraud, then why indicate two different ways of collecting tax? Why show a sales tax of 9% of the total, then turn around and show a monthly sales tax? Showing the taxes in the total would have been more then sufficient. 2: I have also added up the monthly "sales tax" 35months@$7.90 = $276.5 (its math alright, and it does not added up, it even exceeds the original tax of $170.57) So Watson Management is clearly charging me a total tax, then they are charging me another sales tax on top of the monthly payment, and it is clearly stated as a "sales tax" When a company sells something, they do have to charge a tax regardless if you are making payments or getting it right there on the spot, but I have never heard of paying taxes up front, then paying more taxes on the backend, and this is what I get for doing business, a surcharge....
Here was their response: Ok, I sorta understand what he is talking about now, even though the contract makes you think you are paying on both ends... so the question now is, why does it matter if it is cash price or not that will determine the tax amount? Even though the tax rate is 9%, it is obvious the cash price would have had the lower tax amount which would have been $170, but since it was not a cash buy, so over 35 months I am actually paying more taxes $7.90x35mo = $276.50 By making payments, I am clearly paying more in taxes... 1: Cash price: taxes would have been 9% @ 170.57 2: payment price: taxes will be 9% @ $9.70x35mo = $276.50
Because you are actually paying more for it by paying the monthly payment plan. It's a pretty simple concept really.
Exactly for 35 months you are paying $3070.90 with 9% sales tax then you will pay approximately $276.38 in sales tax.
no worries. I just did a payoff.... Just something less I have to worry about now.... and save some interest along the way... case closed