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Received a Bill for State Tax on An Amp Bought in Canada Last Year

Wow! The envelope said “Dept of Revenue” so I figured it may be my car tags due. I opened the envelope to find a statement that I owed $665 for “use tax” on an amp I bought last year in June.  Shocked is an understatement. Yes, I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax.  However, the amount they are basing it on is over double what I paid for the amp. But had to send it to Don Sachs for repair a few months later. So I wonder if they are seeing that as a separate purchase rather than a repair. They even charged me $43 interest which is more ridiculous IMO.
So the question...Are you required  to pay tax on a used amp or other used  items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow

artemus_5
cleeds
6,580 posts
 
grannyring
Show me where it says used items are taxed. Only retail sales are mentioned.
The term "retail sales" includes the sale of used items between private parties. I'm not sure why you think otherwise. In any event, the proof you seem to seek is in the OP, silly:
... I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax."
So he has a tax bill from the taxing authority, under the terms explained on the state website. If you think used items are somehow oddly exempt under Tennessee tax code, I’m sure the OP will be grateful for the appeal you’ll file on his behalf. When filing an appeal in a tax code dispute, you'll need to cite the exact language in the code that supports your claim. Good luck with that!
grannyring's avatar
grannyring
6,696 posts
 
I see. Used sales from private parties is not a retail sale by definition. States make errors  because people make errors. This was an error. Clearly. 
cleeds
6,580 posts
 
grannyring
Used sales from private parties is not a retail sale by definition ...
You’re mistaken. Retail sales include any private sales of items not intended for resale. That’s why the OP got a tax bill. For more information, see the state tax website that I’ve already provided you several times. In Tennessee’s case, it has even instituted a "use tax" so it can collect from users when a seller engages in your sort of argument. Again, that is explained on the website.

Remember: The OP already received a tax bill with interest. To contest it, he’ll have to do a little better than your protest. Believe me, these taxing entities have heard all of the excuses before right up to and including, "I’m a sovereign citizen and not subject to tax."
grannyring's avatar
grannyring
6,696 posts
 
I completely understand your sense of this. I understand it differently. Retail is not how you define it in my understanding. We will not agree on this. It may just may boil down to how far reaching our understanding of the law and “retail” applies case by case. TN residents are certainly not paying sales tax on Facebook and Craigs List type of used good sales. This particular case on the amp is curious. The state may think it was a new retail sale. Don’t know.
cleeds
6,580 posts
 
grannyring
TN residents are certainly not paying sales tax on Facebook and Craigs List type of used good sales
They should be charged sales tax on FB and CL if the seller is a business with a sales tax certificate, unless it otherwise qualifies for the exemption as listed by the state. (Note that used items aren’t listed as exempt from sales or use tax.) If the seller for whatever reason does not charge tax, the state can assess a "use tax" on the transaction, as explained on the website and as the OP discovered.

One thing to remember is that something is not rendered tax-free simply because tax is not charged. That’s the exact issue facing the "former guy" right now as well as the OP of this thread.
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