Sales Tax On Garments?

[Thinking]

My wife bought a garment top from Deseret Book yesterday. When I was entering the receipt I noticed that there was no sales tax. This is in Utah where sales tax is usually added to purchases. Why not garments?

 

For those who live in other states, have you noticed if you have paid sales tax on garments?

 

*Please keep the discussion to sales tax only.*

[filovirus]

Oregon has no sales tax so non-issue here.

[Raingirl]

Oregon has no sales tax so non-issue here.

 

You beat me to it.

 

I love it when the price is really the price.

[Stargazer]

I don't think there is any legal requirement to itemize price vs tax on receipts.  I've operated a business in Washington state and in regard to sales tax collection and the rule is that you can itemize this on the receipt or not.  If you don't list the sales tax on the receipt then you still have to calculate how much tax there is and pay it to the state.

 

You should ask about this at Deseret Book.  I would be interested to know, even if I'm not in Utah.  I tried searching through Utah's tax website, but I couldn't discover anything useful.

[Thinking]

I don't think there is any legal requirement to itemize price vs tax on receipts.  I've operated a business in Washington state and in regard to sales tax collection and the rule is that you can itemize this on the receipt or not.  If you don't list the sales tax on the receipt then you still have to calculate how much tax there is and pay it to the state.

 

The receipt is itemized and the tax is listed as 0.00.

[ALarson]

In my experience, if there is a profit made on an item (one buys the merchandise at a wholesale cost and sells it for a higher retail price), they owe the state sales tax (if they live in a state that has a sales tax).  Maybe the church makes no profit on the sales of garments or maybe they include the tax in the price of the garments as then you wouldn't see it itemized.

Edited August 14, 2015 by ALarson

[mnn727]

Some states do not charge tax on clothing.

[Thinking]

Some states do not charge tax on clothing.

 

Utah does.

[ksfisher]

It's been awhile since I've been in a Deseret Book store, but I don't recall ever seeing garments or any other type of temple clothing sold there.  I'd thought that any type of ceremonial temple clothing was only sold through distribution centers.

[bluebell]

It's been awhile since I've been in a Deseret Book store, but I don't recall ever seeing garments or any other type of temple clothing sold there.  I'd thought that any type of ceremonial temple clothing was only sold through distribution centers.

 

Some Deseret bookstores have distribution centers in the back.  Our's in Layton does while the one in Riverdale does not

[ksfisher]

Some Deseret bookstores have distribution centers in the back.  Our's in Layton does while the one in Riverdale does not

 

So are the items sold by the distribution center half of the store sold by Deseret Book or by the distribution center?

[Okrahomer]

So are the items sold by the distribution center half of the store sold by Deseret Book or by the distribution center?

 

My understanding is that they are sold by Deseret Book "as agent" for LDS Distribution Services.  There are about a dozen distribution centers which now operate within existing Deseret Book locations.  These consolidated "Deseret Book/Distribution Services" arrangements were announced here in 2011.

[Paradox_58]

My understanding is that they are sold by Deseret Book "as agent" for LDS Distribution Services.  There are about a dozen distribution centers which now operate within existing Deseret Book locations.  These consolidated "Deseret Book/Distribution Services" arrangements were announced here in 2011.

This is correct; no sales tax because the LDS Church Distribution center is part of the tax-exempt church organization. 

[Okrahomer]

This is correct; no sales tax because the LDS Church Distribution center is part of the tax-exempt church organization. 

 

Yes...exactly.  I should have made that point as well. 

[ksfisher]

This is correct; no sales tax because the LDS Church Distribution center is part of the tax-exempt church organization. 

 

That makes a lot more sense than Deseret Book not charging sales tax.

[bluebell]

So are the items sold by the distribution center half of the store sold by Deseret Book or by the distribution center?

By Deseret.

[Scott Lloyd]

My understanding is that they are sold by Deseret Book "as agent" for LDS Distribution Services. There are about a dozen distribution centers which now operate within existing Deseret Book locations. These consolidated "Deseret Book/Distribution Services" arrangements were announced here in 2011.

This is correct.

Distribution centers of the Church, as nonprofits, are not required to collect sales tax.

[theplains]

The receipt is itemized and the tax is listed as 0.00.

 

The tax paid to Uncle Sam makes its way in the process of manufacturing and shipping.

Throw in income tax too if the product is make in a factory (it's made up of all the fees

that go into figuring out the unit price and profit when selling something).  There are many

stores that have round numbers for their products ($10, $15, $20, etc) to make it simpler

for the consumer.  But the tax is there.

 

If you give me the garment for free, then my tax is 0.00.

 

Regards,

Jim

[Scott Lloyd]

The tax paid to Uncle Sam makes its way in the process of manufacturing and shipping.

Throw in income tax too if the product is make in a factory (it's made up of all the fees

that go into figuring out the unit price and profit when selling something).  There are many

stores that have round numbers for their products ($10, $15, $20, etc) to make it simpler

for the consumer.  But the tax is there.

 

If you give me the garment for free, then my tax is 0.00.

 

Regards,

Jim

There is no sales tax charged for Distribution Center items. Never has been. It makes no difference if they are sold at Deseret Book.

[Duncan]

I don't care about the sales tax, I get miffed by the fact that I have to order them online, it's hard to be me

[rpn]

in some places there is no tax on religious clothing, materials, and books.  g's qualify.

[Scott Lloyd]

in some places there is no tax on religious clothing, materials, and books. g's qualify.

Distribution Center stores operating separate from Deseret Book stores don't charge sales tax; they never have. The Church is not a commercial or retail entity.

The recent innovation of making Distribution Center sections in some Deseret Book stores does not change things insofar as collecting sales tax is concerned. Deseret Book is merely an "agent" for the Church Distribution Center, as has been pointed out here. The surprise registered here about sales tax not being charged for temple clothing reflects a lack of awareness of this fact.

Edited August 18, 2015 by Scott Lloyd

[Bernard Gui]

I'm confused. Here's the invoice from a recent order I made at the online LDS store...

 

 

Men’s Garment Tops, Thermax, Thermal Large, Regular In Stock #417050705   $5.80 × 1 $5.80 Men’s Garment Tops, Dri Lux Jersey, Round Neck Large, Regular In Stock #417790005   $3.65 × 6 $21.90 Subtotal: $27.70 Shipping: $3.00 Estimated Tax: $2.88 Total $33.58

[Scott Lloyd]

 

I'm confused. Here's the invoice from a recent order I made at the online LDS store...

 

 

Men’s Garment Tops, Thermax, Thermal Large, Regular In Stock #417050705   $5.80 × 1 $5.80 Men’s Garment Tops, Dri Lux Jersey, Round Neck Large, Regular In Stock #417790005   $3.65 × 6 $21.90 Subtotal: $27.70 Shipping: $3.00 Estimated Tax: $2.88 Total $33.58

 

I just did a trial order from my computer here in Salt Lake. The estimated tax is zero.

 

Could it be that the sales tax law in your state, wherever it is, is different than here in Utah in that non-profits are not exempt?

Edited August 20, 2015 by Scott Lloyd

[Okrahomer]

I just did a trial order from my computer here in Salt Lake. The estimated tax is zero.

 

Could it be that the sales tax law in your state, wherever it is, is different than here in Utah in that non-profits are not exempt?

I think you are probably correct--it seems to depend on the state. I found this in a New York State Tax Guide for Exempt Organizations:

"Internet sales means sales effected via the Internet. For example, these could be sales made from an exempt organization's online or virtual store, which may be accessed on the organization's Web site or some other Web site. If the exempt organization sells goods or services on its own Web site or if the organization sells its goods and services through an online store which is hosted by another Web site, and the organization makes such sales on a regular, frequent and continuous basis, then the organization's Internet sales are subject to tax."

http://www.tax.ny.gov/pdf/publications/sales/pub843.pdf