Posted on 05/13/2009 5:47:15 AM PDT by reaganaut1
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Last week, Massachusetts' Supreme Judicial Court heard arguments in Town Fair Tire v. Massachusetts. In the coming months, the Supreme Judicial Court will decide the issue at hand: whether Massachusetts has the right to force businesses in New Hampshire to collect Bay State sales taxes when selling items to Massachusetts residents. Given the recent vote in the Massachusetts House of Representatives to increase sales taxes by 25 percent, the impulse to dam the flood of Massachusetts shoppers into sales-tax-free New Hampshire grows stronger among Bay State officials perpetually frustrated with potential tax dollars flowing north across the border.
Town Fair Tire v. Massachusetts revolves around a tax bill presented to three New Hampshire Town Fair Tire (TFT) stores by the Massachusetts Department of Revenue. The bill stems from a Massachusetts audit of the New Hampshire stores covering the period of October 2000 to April 2003. The Bay State estimated that it lost revenue justly owed to it due to more than 300 border-crossing shoppers, and demanded that TFT -- which has numerous stores in Massachusetts as well -- pony up $108,947 in taxes, interest, and penalties.
TFT's invoices revealed customers listing Massachusetts addresses. "Based upon the evidence, and in the absence of evidence to the contrary, the [Tax] Board inferred that the vehicles owned or operated by Massachusetts residents also bore Massachusetts registration plates ('license plates') and certificates of inspection ('inspection stickers'), which provided additional evidence to TFT of the intended place of use of the tires," the state's appellate tax board judged. Massachusetts assumed that the addresses on the invoices were connected to cars with Massachusetts plates and inspection stickers, the presumed sight of which should have prompted tire technicians to alert clerks to assess a 5 percent tax upon the sale.
(Excerpt) Read more at spectator.org ...
Ugh, the “it’s” should be “its” in the title.
This is comical to the extent that MA liberals go into NH to avoid sales taxes even though they impose on themselves some of the highest rates of taxation in the country. It makes one doubt the intelligence of John F. Kerry, EMK, and indeed the MA voters themselves. But they know everything in MA, right?
The Mass DOR can make the IRS look like amateurs.
My inference would be that former Massachusetts residents were escaping the socialist government of that People's Republic, moving to a state with more individual rights and freedom, and that the "intended place of use of the tires" was outside Massachusetts. Of course, I would expect a mechanic installing tires to pay more attention to my tires than to speculation on my future plans. I hope TFT wins in court. If not, I hope they stop collecting addresses and ignore the socialist government to the south.
It's like NH is paying tribute ($) to the Liberal elite of MA. Was there a war? Did NH lose?
There is a mall in Nashua right by the Massatwochits border where folks love to shop. Rumor was, when it was built, a corner of the building was on the Mass border. Mass. tried collecting taxes from that store. So the mall built a wall inside that store, and knocked down the corner so it no longer resided on the Mass property.
If the Massachusetts DOR was serious, it would go after the customers individually for unpaid use taxes, as it is probably already empowered to do. The businesses operating outside of MA should tell the DOR to go screw itself.
Cash is king.
I believe that NH was invaded and taken over by Massholes. Much less "Live Free or Die" there today.
Heck, why stop with New Hampshire? Go for the other forty-eight states! And don't let those Bay Staters on European and Caribbean vacations get off either!
I would like to apologize to all the residents of New Hampshire for all of the Mass-holes that left Taxachusetts and moved to your state and started voting for the same type of liberals up there that they were trying to get away from down here.
Exactly! There is a vehicle in place already to collect these taxes from individuals. I don't see how they have any jurisdiction over the businesses outside of massachusetts, even if there are stores in Mass.
TFT and every other business should be working VERY hard to kill this likely precedent-setting measure post haste!
It's bad enough that NH residents who work in Massachusetts have to pay income tax to the People's Republic - that's what used to be called "taxation without representation" in less "enlightened" times. And now, the same greedy legislators who drive their taxpayer-fueled SUV's up here on weekends to stock up on tax-free liquor, smokes, etc. want NH businesses to help them steal more income from Massachusetts residents? As Howie Carr would say: "Hey: screw!"
“I would like to apologize to all the residents of New Hampshire for all of the Mass-holes that left Taxachusetts and moved to your state and started voting for the same type of liberals up there that they were trying to get away from down here.”
hey i fled to NH from MA and voted my conservatism in every election thus far. Unfortunately my wifes career may take us back to MA - YUCK
The businesses operating in New Hampshire also operate in Massachusetts and Massachusetts can and will litigate them into bankruptcy if they don’t comply.
Mass. has a list of customers who purchased in NH? Go after the customers, then!
Oh wait, that might affect votes...
The originators of that phrase were just a little off. it should have said "I Live Free or They Die!"
So as a NH resident, when I buy something in Massachusetts, will they not collect the 5% sales tax on me? Only seems fair.
Well, right there's the problem.
First the Massholes invade New Hampshire, and now, they’re trying to impose Masshole taxes on New Hampshire businesses. Geesh!
New York state collects sales tax on sales outside of the state which are shipped in. And so the story goes in the land of the free and the home of the brave. The end may be in sight.
Here in Maryland, Martin O’Moron and his friends in the Legislooture raised the sales tax from 5% to 6%. So now, my home improvement goods come from Delaware. :-)
I love watching these spend addicted liberal states go crazy as their tax revenues go down.
Then they need to close their Mass. operations.
Why do people keep supporting these leftist azzholes?
It’s cheaper for Mass to force others to do their own work, doncha know!
Or, the companies will merely close their MASS stores and operate only in NH. That will be a huge victory for Mass!
Remember to pay your homestate for all hamburgers you purchase at McDonalds and other chains while out of state...
I find I live in what I would call a tax utopia: In Washington State near the Oregon border. We have no state income tax, but a high sales tax. Oregon has no sales tax, but a high income tax. Solution: Live in Washington and shop in Oregon.
Town Fair Tire has a records keeping problem.
Great thought.
Cash is best ,but giving your name and or phone number to the merchant means you are in the databases.
About 5 years ago Wal-Mart would not sell me tires without my handing over my driver's license ;I walked out and have bought 5 full sets of tires elsewhere without their BS.Still even the shop I generally buy from has gotten more computerized and less personal.
It’s even worse. If the hike the sales tax to 6.25% not only will they add a $15/1000 reason to travel to NH, they will also enforce the NH trip as a way to tell Devall to f-off. Tires, paint, cigarettes, liguor, door hardware, appliances, ammunition...there are so many ways to make a trip to NH pay now. It is going to make retailers in Mass within 20 miles of the border obsolete.
After the third year of this I wrote a letter asking why I had to pay income tax to a state I no longer resided in.
They actually told me that it was the law and that I was paying them back for all the services I used over the prior 17 years. Of course, they made no mention of the taxes my parents paid.
As soon as I was legally able, I changed my state of residence to Texas for the remainder of my time in the service. Ever since I have endeavored to spend as little money as possible in Maryland.
Yep. However, I think the problem is that this is not as cut and dried as mail order, where there is a beautiful money/delivery trail right to your door. This is a touch more complicated and/ therefore, more litigious.
Or vice-versa.
In washington state, the sales tax is approaching 10%, but there is not tax on food.
Most of my purchases no (the gross majority, actually) is through craigslist, garage sales, or mail order.
We completely upgraded the furnishings of our five bedroom home this year with all antiques and leather, every single piece of which came from craigslist. Even our stereos, my basses, amps and recording equipment came from craiglist or out of state mail order. Likewise my cigars.
I did buy a cheap light duty power washer at Harbor Freight for $79 (plus tax).
Have you noticed the tax rate in Longview is several points lower than the rest of the state? Good ol’ competition.
This is insane.
These people have lost all ability to have rational thoughts.
When it comes to purchases made in one state and brought into another, the state of the resident may mandate that the resident has the obligation to declare and pay tax on their purchase. Most have chosen not to do so simply because the enforcement mechanism is not there. Subsequently, my state (Pennsylvania) which has no sales tax on clothing, sees a lot of visitors from neighboring states buying clothing. It is actually one of the few bright spots in our economy here. The politicians, as dense as they are otherwise, actually realize the taxes they miss on clothing are more than made up by payroll taxes, busines taxes and income from clothing shopping tourists.
There are numerous examples elsewhere in the nation which have major economic impact. Bottom line is that the Massachusetts DOR can regulate their own citizens (if they can), but they cannot require businesses in another state to do their work for them absent an interstate compact to do so.
Right down the street is a Jordan's Furniture store that is located in NH, but the store has 2 other locations in Massachusetts (they decided to expand to NH when the Mall was announced).
They collect Mass sales tax in that store. When my wife and I shopped there, we decided we weren't going to by there for that reason.
Ironically, there is a Bernie and Phyl's furniture store that is almost right across the street from that mall, and to the best of my knowledge, they don't collect sales tax (from NH residents, at the very least. We bought a mattress there, and we paid no sales tax on it).
They tried to do this a few years ago with liquor sales. Mass would send Gestapo state troopers up looking for Mass license plates in liquor store parking lots. The Governor's office got wind of what was happening, and ordered it's own state troopers to intervene, telling the Mass cops if they didn't bug out, there were subject to arrest.
The Governor also told Mr. Dukakis that under no circumstances would this type of behavior be permitted, and it would be in everyone's best interest if he just forgot about engaging in such folly.
Of course, that was during the Reagan years. I don't have to elaborate on that....
CA....
I remember that! Yes, when ol’ Mikey asked for a legal assessment of if NH could arrest his Staties, he was told yes. He said they had weapons to defend themselves, and was told that NH State Police had them too, and did he really want this to become a national issue?
Looks like a new battle may be brewing. I wonder what NH pols think of this?
NY sent people to NJ shopping centers to check on NY cars in their parking lots. The malls told them to screw off and if they found license plate checkers in their parking lots writing down license plate numbers, they’d have them arrested for trespassing.
I wouldn’t do it anyway If I were the business, what are they going to do “card” everyone??
If MA fines them, then go to their own General Court, and Griviences and petition to STOP MA(SS)’s unconstitutional and tyranous power grab. I am not in NH, but I sympathize MA can *go to hell and Deval should fail as a Governor!
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