Hemmings subscription renewal - sales tax

[rocketraider]

I give two of my younger car buddies Hemmings Muscle Machines subscriptions for Christmas every year. Got the renewal notices today. 

 

The renewals were two different prices. These boys live roughly 20 miles apart, one in VA, one in NC.

 

Called HMN to find out what's going on. Apparently sometime since last renewal NC has started collecting sales tax on magazine subscriptions.

 

So looks like depending where you live you'll be paying the state for the privilege of reading a magazine, car or otherwise.

 

I can see this contributing to further demise of printed media. Wonder how states will find a way to tax digital media?

 

More importantly, since AACA publishes a magazine, will they figure out a way to tax Antique Automobile?

 

 

[Xander Wildeisen]

I am going to have to charge you a posting tax for telling us about this.

[SC38dls]

Some states have been doing this IF a magazine has an office in the state. Any type office, sales for ads, editorial or research are just a few examples. Most of the pubs just consider it part of the cost of doing business. Hemmings is hurting so maybe they just don’t want to eat that cost. It may also be because they are a sales agent in a loose sense with their main book. 
dave s 

[Peter J.Heizmann]

2 hours ago, rocketraider said:

I give two of my younger car buddies Hemmings Muscle Machines subscriptions for Christmas every year. Got the renewal notices today. 

 

The renewals were two different prices. These boys live roughly 20 miles apart, one in VA, one in NC.

 

Called HMN to find out what's going on. Apparently sometime since last renewal NC has started collecting sales tax on magazine subscriptions.

 

So looks like depending where you live you'll be paying the state for the privilege of reading a magazine, car or otherwise.

 

I can see this contributing to further demise of printed media. Wonder how states will find a way to tax digital media?

 

More importantly, since AACA publishes a magazine, will they figure out a way to tax Antique Automobile?

 

 

Glenn...this has been going on for quite awhile here in PA.  Also it has been all over the national news for quite awhile.  In 2018 I bought my wife a $55 purse and paid for it using American Express only because it was a Philadelphia Eagles logo item.  When I had my taxes done in 2019 the preparing folks informed me that the only reason I had to file a PA income tax return was because of the darn $55 purse purchase.  (Retired folks here in PA do not normally have to file a PA tax return.  Only Federal.)  Oh well, so be it...

 

As for the AACA and Antique Automobile magazine I believe they are exempt as they fall under the 501c3 Non-Profit umbrella.  Hemmngs is a for-profit company.

 

 

Edited August 3, 2022 by Peter J.Heizmann (see edit history)

[Bhigdog]

4 minutes ago, Peter J.Heizmann said:

(Retired folks here in PA do not normally have to file a tax return. 

Huh! I guess the good folks in Harrisburg will be sending back the $2830 I sent them a few months back...........Bob

[John348]

20 minutes ago, Bhigdog said:

Huh! I guess the good folks in Harrisburg will be sending back the $2830 I sent them a few months back...........Bob

Don't hold your breath, but if you owed them they would find you pretty fast

 

 

Some state charge sales tax on newspapers, which I was surprised with. As I remember from High School that it went back to days of Ben Franklin, I thought the states could not tax newspapers? 

[Peter J.Heizmann]

1 hour ago, Bhigdog said:

Huh! I guess the good folks in Harrisburg will be sending back the $2830 I sent them a few months back...........Bob

Corrected my above post, Mr. Beck.  To add more detail the $55 purse generated a whopping $3.30 in sales tax due.  The time to fill out a PA tax return, plus postage was hardly worth it, but, thems da rules bud.

[rocketraider]

But the Commonwealth got theirs...🙂🙃 Never mind they spent more in processing it than it brought in.

 

John, newspapers are strange here in VA. Buy one off a paper rack, no tax. Buy one in a store, you pay state and local tax. Mystery to me... come to think of it there aren't many newspaper racks around any more.

 

Mmph. Live in Virginia, pay sales tax to NC, on an item purchased in Vermont.🤡

[John348]

44 minutes ago, rocketraider said:

But the Commonwealth got theirs...🙂🙃 Never mind they spent more in processing it than it brought in.

 

John, newspapers are strange here in VA. Buy one off a paper rack, no tax. Buy one in a store, you pay state and local tax. Mystery to me... come to think of it there aren't many newspaper racks around any more.

 

Mmph. Live in Virginia, pay sales tax to NC, on an item purchased in Vermont.🤡

Glenn

In Virginia is where it happened to me. I was visiting my son in Charlottesville, I walked in the store and picked up the paper, left the exact amount on the counter and walked out the door, like I have done thousands of other times in my lifetime in NY. The clerk came out acting like I robbed the paper, because I left without paying the sales tax. It was somewhat embarrassing. 

 

You have a valid point about living in one state paying tax to another for a product to come from a third one

[SC38dls]

If you live in one state and buy something in another state you pay taxes in the state you purchase the product in no matter where it is made. You do that for gas when you travel why not for a paper or food or a magazine? The store is selling the product and is paying the supplier a wholesale price for that product. Magazine subscriptions were usually done thru the mails and therefore bypassed the middleman. Some states started charging the magazine taxes if they had an office in the state and therefore were registered in that state and subject to taxes. Some states have taken it further due to the loss of sales taxes caused by the rise of internet sales from out of state. Most of these states have passed new laws to be able to charge these sales taxes. Many pubs fought these taxes and won the suits by arguing the free press argument and other laws allowed under laws and double taxation rules. In this current state of being taxed in every way a governmental agency can tax us I’m sure some states will continue to apply taxes any way they can and then spend more tax dollars fighting anyone that challenges their doing so. 
dave s 

[8E45E]

6 minutes ago, SC38dls said:

If you live in one state and buy something in another state you pay taxes in the state you purchase the product in no matter where it is made. You do that for gas when you travel why not for a paper or food or a magazine? The store is selling the product and is paying the supplier a wholesale price for that product. Magazine subscriptions were usually done thru the mails and therefore bypassed the middleman. Some states started charging the magazine taxes if they had an office in the state and therefore were registered in that state and subject to taxes. Some states have taken it further due to the loss of sales taxes caused by the rise of internet sales from out of state. Most of these states have passed new laws to be able to charge these sales taxes. Many pubs fought these taxes and won the suits by arguing the free press argument and other laws allowed under laws and double taxation rules. In this current state of being taxed in every way a governmental agency can tax us I’m sure some states will continue to apply taxes any way they can and then spend more tax dollars fighting anyone that challenges their doing so. 
dave s 

When I visited the state of Washington, for major purchases, all I had to do was show my driver's licence to prove I was not a resident there, and the merchant would fill out a sales tax exemption form and deduct it right at the till.

 

Craig

[SC38dls]

Craig, most states will allow that on some types of purchases. I bought a car when I lived in KY, when I moved to SC they wanted to charge me sales tax on the same car. I showed I had already paid the tax and they credited it but still charged me a large transfer fee for an out of state car this was on top all the license fees and transfer tittle fees. Do you buy gas in WA? Do you get an exemption for that type purchase? Do you claim the purchase for your major item on your state tax filing, it may be against the law not to do it punishable by a fine or even jail. I don’t know all the states laws, I was giving you information from my 45+ years of working in the subscriptions end of magazine publishing. These tax laws may have changed as we middle and lower end of the pay scale seem to pay more and more taxes with every tax break that gets passed. 
dave s 

Edited August 4, 2022 by SC38dls (see edit history)

[Matt Harwood]

15 hours ago, Peter J.Heizmann said:

Corrected my above post, Mr. Beck.  To add more detail the $55 purse generated a whopping $3.30 in sales tax due.  The time to fill out a PA tax return, plus postage was hardly worth it, but, thems da rules bud.

Why are you filing an income tax return in a state where you simply paid sales tax?

[30DodgePanel]

Exactly what I was thinking. Even if he used the AmEx under a business account I can't see why he'd pay income tax on a purchase. 

Honestly can't even think of a scenario where you would have to pay income tax to another state unless you're doing business in that state.

 

[30DodgePanel]

18 hours ago, rocketraider said:

I give two of my younger car buddies Hemmings Muscle Machines subscriptions for Christmas every year. Got the renewal notices today. 

 

The renewals were two different prices. These boys live roughly 20 miles apart, one in VA, one in NC.

 

Called HMN to find out what's going on. Apparently sometime since last renewal NC has started collecting sales tax on magazine subscriptions.

 

So looks like depending where you live you'll be paying the state for the privilege of reading a magazine, car or otherwise.

 

I can see this contributing to further demise of printed media. Wonder how states will find a way to tax digital media?

 

More importantly, since AACA publishes a magazine, will they figure out a way to tax Antique Automobile?

 

 

Happens all the time in the metro areas...

 

Each city has their own tax rates, so even one mile apart can be a difference in the purchase of exact same product/item purchased.

 

Some states already tax digital media btw

Sales Tax by State: Should You Charge Sales Tax on Digital Products? - TaxJar

 

 

[Frank DuVal]

2 hours ago, Matt Harwood said:

Why are you filing an income tax return in a state where you simply paid sales tax?

Peter does live in Pennsylvania, look at his left panel information.,

[JACK M]

3 hours ago, 8E45E said:

When I visited the state of Washington, for major purchases, all I had to do was show my driver's licence to prove I was not a resident there, and the merchant would fill out a sales tax exemption form and deduct it right at the till.

 

Craig

Only the bigger stores and then only on large purchases, the deeper you get into Washington the less frequent.

I think everybody in Vancouver buys their stuff in Oregon. Huge shopping center right at the border.

I have a friend whose wife's relatives all come down from Tacoma on black Friday to do the Christmas shopping.

[8E45E]

21 hours ago, SC38dls said:

Do you claim the purchase for your major item on your state tax filing, it may be against the law not to do it punishable by a fine or even jail.

Yes, any goods I purchase in the US must be declared at the border.  I'm usually in the US over 48 hours, and therefore, get an exemption from duty on major purchases.

 

Alberta is similar to Oregon; no state/provincial sales tax.

 

Craig

Edited August 5, 2022 by 8E45E (see edit history)

[Peter J.Heizmann]

3 hours ago, Matt Harwood said:

Why are you filing an income tax return in a state where you simply paid sales tax?

Simply because the purse was bought online from an out of state company.  I used an American Express credit card.  Paid the exact amount without paying PA’s 6% sales tax.  Was notified by PA that I owe $3.30 tax.  I am retired claiming Social Security and must pay Federal income tax only.  Sent PA the return along with  W-2s and check for $3.30.  PA started to aggressively go after online sales and the rest is history.

[Lahti35]

I was surprised to find I had to pay MI sales tax on car parts I bought from Turkey, Germany, and the UK! It ain't right I tell ya! 

[Jim Skelly]

1 hour ago, Lahti35 said:

I was surprised to find I had to pay MI sales tax on car parts I bought from Turkey, Germany, and the UK! It ain't right I tell ya! 

I agree that Michigan (and other states) should not be collecting sales tax on items purchased elsewhere.  Michigan calls it a Use Tax (it should be called a Screw You tax).  After all, if I am unable to buy the item in Michigan, why should they benefit from any sales tax?  Another state or country should get the tax benefit from the sale.  Ebay and other e-commerce sites have been collecting it for a while now.  

[8E45E]

On 8/3/2022 at 8:28 PM, rocketraider said:

John, newspapers are strange here in VA. Buy one off a paper rack, no tax. Buy one in a store, you pay state and local tax. Mystery to me... come to think of it there aren't many newspaper racks around any more.

How about delivered to your home the old fashioned way, via a newspaper carrier?  

 

Craig

[rocketraider]

Depends on the publisher. I get two locals delivered by mail, one comes M-W-F, the other M-Th. Neither itemizes tax in their annual subs. I buy two other Wednesday weeklies at local stores. The stores charge tax. It's still cheaper to buy those as I get into out-of-area subscription rates for mail delivery.

 

I dropped the local daily earlier this year when the annual rate hit $425/year plus sales tax. That rag is now owned by a big media conglomerate and doesn't cover much if any local area news. It was delivered by carrier and every time a new carrier took the route (which was several times a year) it took ugly phone calls to straighten out the delivery- new carrier would invariably leave off the four subscribers on this dead end gravel road for a couple weeks, and the subscription service for this paper in Southern Virginia was handled out of Tulsa OK.

[JoeShmoe]

Back to original Hemmings topic and different prices....Watch out for those guys! While reading my last Hemmings I used the "Subscribe to Hemmings" card they stick in the pages as a bookmark. Shortly after I was going through my mail and opened a Hemmings renewal notice. What? The existing customer renewal price was higher than the Subscription card price!  No drama or calls; I just started a new subscription and let the old one lapse.    Joe

[rocketraider]

When I called, HMN subscription dept offered me a substantial discount if I renewed by phone with a credit card. I didn't have the credit card handy so passed. I might call back and take 'em up on it if they can guarantee the renewal won't happen automatically at a different price next year. That's why I shy away from automatic payments.

 

I realize cost of print media is high and getting worse. Just wish money-grubbing governments wouldn't try to grub so much money while getting creative when they're doing it.

[Gunsmoke]

I'm trying hard to find an AACA element in this bunch of mostly rants about sales taxes. We all know no one who likes to pay taxes, so posting a topic on it is bound to only raise hackles. Please guys, stay with old cars. 

[30DodgePanel]

24 minutes ago, Gunsmoke said:

I'm trying hard to find an AACA element in this bunch of mostly rants about sales taxes. We all know no one who likes to pay taxes, so posting a topic on it is bound to only raise hackles. Please guys, stay with old cars. 

LOL, you call this rants? That's amazing in itself....

 

You do realize Hemmings is old cars right? And,,, if you do a five second search you'll see many articles (in Hemmings) about the AACA and how it promotes the AACA. 

 

I'm having a hard time trying to understand why you are continuously playing the holier than thou card? 

I would hope that if anyone sees a descrepency anywhere in regards to unjust overpaying in our hobby then someone would have the nads to say something. 
Some of us don't like bending over for the heck of it  

[Peter Gariepy]

21 minutes ago, 30DodgePanel said:

LOL, you call this rants? That's amazing in itself....

 

You do realize Hemmings is old cars right? And,,, if you do a five second search you'll see many articles (in Hemmings) about the AACA and how it promotes the AACA. 

 

I'm having a hard time trying to understand why you are continuously playing the holier than thou card? 

I would hope that if anyone sees a descrepency anywhere in regards to unjust overpaying in our hobby then someone would have the nads to say something. 
Some of us don't like bending over for the heck of it  

I'm gonna side with Gunsmoke.

 

25+ posts ranting over sales tax (like $2?... maybe?).  Yes, its for a car magazine. But it's really just about whining over a new sales tax.  Serves little purpose other than to increase people's blood pressure. Sure as heck wont change a thing complaining about it here.

[Bhigdog]

4 hours ago, Gunsmoke said:

I'm trying hard to find an AACA element in this bunch of mostly rants about sales taxes. We all know no one who likes to pay taxes, so posting a topic on it is bound to only raise hackles. Please guys, stay with old cars. 

It's like a loss leader in a sales establishment. It may not be totally kosher but it brings customers into the store who are likely to buy additional items. 

The aaca is a store and the forum is a loss leader. The store is hoping to entice visitors into staying awhile.

That being the case it makes perfect sense to make the forum as attractive, informative and ENJOYABLE as possible.

25+ customers found the thread attractive enough to respond.

I'm thinking any salesman would be very happy with those results.

Making the forum fun rather harping and lecturing should be the focus. 

Keep your eye on the prize.

It will pay off........bob

Edited August 5, 2022 by Bhigdog (see edit history)

[SC38dls]

Renewal efforts cost approximately the amount to produce, mail and process, If you throw in the cost of mailing the issues most pubs are happy to break even. The purpose is to keep the sub base above the guarantee number they have on a rate card for advertising. Pubs will allow outside agencies to offer you a renewal or new offer at a low price they pay part to the pub and the difference to the agency. Again this type offer is to maintain the sub base. The taxes get paid either by the sub, the agency or the pub. It’s an incidental cost of doing business. If they can get the sub to pay it’s more to cover cost for the pub or the agency. 
Hemmings is bleeding subs and car listings. They don’t want to have to reduce ad revenue because they have fallen below the guarantee. Go for the best possible rate you can get as that way you won’t feel as bad when they close a mag an give you a magazine for the remainder of your term you have no interest in. 
dave s 

Edited August 5, 2022 by SC38dls (see edit history)

[Peter Gariepy]

4 hours ago, Bhigdog said:

The aaca is a store and the forum is a loss leader. The store is hoping to entice visitors into staying awhile.

 

I disagree with you analogy. 
—-The AACA is a club. 
—-The forum is a benefit provided by the club to its members, and the hobby at large. 

I do agree the forum should be enjoyable, but it should also be on topic.  This topic is neither.