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<p>[QUOTE="medoraman, post: 2465516, member: 26302"]I used to be a director in a tax department for a large mortgage firm. From that, I know for certain every state in the US has a law making having sales tax "included" in the price illegal. The first reason they did so was because direct tax on commerce was illegal, so by making the tax on the consumer they skirted the law. The second reason is exactly like you said, I am sure some do not include it in their returns. Without the seller having to list it separately there is no easy way to audit them.</p><p><br /></p><p>I am not saying consumers need to worry about this. It truly would be a dealer problem if the DOR got a hold of them. I am writing this for dealers here. At one point or another I handled sales and use taxes for every state that has them. Every single one of them has law forbidding "including" sales and use tax in the price. You can kind of say this in advertising, (we pay the tax kind of thing) but must give a detail receipt of how much was the sale and how much was tax to the consumer.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 2465516, member: 26302"]I used to be a director in a tax department for a large mortgage firm. From that, I know for certain every state in the US has a law making having sales tax "included" in the price illegal. The first reason they did so was because direct tax on commerce was illegal, so by making the tax on the consumer they skirted the law. The second reason is exactly like you said, I am sure some do not include it in their returns. Without the seller having to list it separately there is no easy way to audit them. I am not saying consumers need to worry about this. It truly would be a dealer problem if the DOR got a hold of them. I am writing this for dealers here. At one point or another I handled sales and use taxes for every state that has them. Every single one of them has law forbidding "including" sales and use tax in the price. You can kind of say this in advertising, (we pay the tax kind of thing) but must give a detail receipt of how much was the sale and how much was tax to the consumer.[/QUOTE]
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California sales tax discount.
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