Traveling to Avoid Sales Tax

[DaveP043]

10 minutes ago, Dave2512 said:

I live in a small town so it's common to drive 30 miles or more for just about anything.

So the question becomes, for you, would you drive 60 miles each way to get something you could get with only a 30 mile drive, in order to save $53 in tax.

[iacas]

3 minutes ago, DaveP043 said:

So the question becomes, for you, would you drive 60 miles each way to get something you could get with only a 30 mile drive, in order to save $53 in tax.

You can also just buy it online, with free shipping (Apple will charge you the sales tax), and not spend time or gas or wear and tear…

@jamo of course has the same option - buy it with the sales tax or pay extra (time, gas, etc.) to get it but without the tax. Even though he should pay the tax after all…

[Dave2512]

13 minutes ago, DaveP043 said:

So the question becomes, for you, would you drive 60 miles each way to get something you could get with only a 30 mile drive, in order to save $53 in tax.

Maybe for me it's more a time issue. My work day with travel time is 8-6:30 and later if I have late deals to work, Sat is 8-2:30. The only time away from work I've had since 2005 is funerals and loan closings so it's all about schedule. Probably not wise but I consider time before money so if I could get my new phone closer I would especially if it meant I had time to do something else I would chose time.

[krupa]

I wouldn't make the trip.  I have a fairly arbitrary feeling about how much my time is worth and driving 60 miles round trip just to avoid sales tax to buy a googaw doesn't seem justified.   I'd actually pay more by ordering online and paying for shipping (if they charged for it.)

 

[DaveP043]

8 minutes ago, iacas said:

You can also just buy it online, with free shipping (Apple will charge you the sales tax), and not spend time or gas or wear and tear…

@jamo of course has the same option - buy it with the sales tax or pay extra (time, gas, etc.) to get it but without the tax. Even though he should pay the tax after all…

I think @jamo's original question was meant to be non-specific as far as the particular item, the iPhone was just his current target.  But online sourcing can be available for just about anything we buy these days, so the suggestion is certainly valid.  But isn't there something to be said for immediate gratification, for being able to hold your new toy in your hand the minute you go forward with the purchase?  

It seems that so much of life today is moving toward having something, particularly information, right now."  I certainly see it in business, people will call asking why I haven't responded to an email they sent 10 minutes ago, apparently amazed that I have other tasks to work on besides theirs.  The trend toward more and more online buying is heading the other direction, toward buying now and getting it later.  

[iacas]

1 minute ago, DaveP043 said:

I think @jamo's original question was meant to be non-specific as far as the particular item, the iPhone was just his current target.

I don't like to assume. I'm talking about this specific thing. Obviously everyone's going to have a point at which saving $x is not worth y minutes/etc. You won't drive 30 minutes to save six cents on a $0.99 item, but you probably would if somehow you could save a few thousand dollars in taxes on a car (I said "if somehow…" ).

1 minute ago, DaveP043 said:

It seems that so much of life today is moving toward having something, particularly information, right now."
…
The trend toward more and more online buying is heading the other direction, toward buying now and getting it later.  

Those contradict, no?

[Kalnoky]

14 hours ago, jamo said:

"Use taxes," I believe.

Absolutely correct. We have a similar relationship between Oregon (no sales tax) and Washington (6.5%). Washington has gone after Oregon businesses for failing to pay sales tax on Washington customers, even to the point of bankrupting some of them. I'm not aware if they have prosecuted individuals. This may be different in the Northeast, of course.

Short answer: Yes, I would make the trip to save $53. My daily commute is nearly as far as this, and since I drive a hybrid, gas is only a couple of bucks. 

[DaveP043]

8 minutes ago, iacas said:

Those contradict, no?

They do indeed contradict, yet I see both as real trends.  Perhaps we, as a society, are seeing information as more time-crucial, and the physical things as less so.

[nevets88]

24 minutes ago, DaveP043 said:

I think @jamo's original question was meant to be non-specific as far as the particular item, the iPhone was just his current target.  But online sourcing can be available for just about anything we buy these days, so the suggestion is certainly valid.  But isn't there something to be said for immediate gratification, for being able to hold your new toy in your hand the minute you go forward with the purchase?  

It seems that so much of life today is moving toward having something, particularly information, right now."  I certainly see it in business, people will call asking why I haven't responded to an email they sent 10 minutes ago, apparently amazed that I have other tasks to work on besides theirs.  The trend toward more and more online buying is heading the other direction, toward buying now and getting it later.  

Perhaps it's different with areas of concentrated population? I noticed Amazon is providing more and more get it the same day options, I've been able to get same day shipping, free, in some instances and they're experimenting with drone deliveries. You also have the dash button which resupplies you with whatever goods you regularly need. OTOH, Amazon is really pushing the Echo and its variants, which is definitely information, now.

[Gunther]

39 minutes ago, DaveP043 said:

I think @jamo's original question was meant to be non-specific as far as the particular item, the iPhone was just his current target.  But online sourcing can be available for just about anything we buy these days, so the suggestion is certainly valid.  But isn't there something to be said for immediate gratification, for being able to hold your new toy in your hand the minute you go forward with the purchase?  

It seems that so much of life today is moving toward having something, particularly information, right now."  I certainly see it in business, people will call asking why I haven't responded to an email they sent 10 minutes ago, apparently amazed that I have other tasks to work on besides theirs.  The trend toward more and more online buying is heading the other direction, toward buying now and getting it later.  

Now I'm unsure of the intent of the question.  I didn't focus on the details, necessarily either.  I may or may not travel 60 miles round trip to save $50, it would depend on what I had going on that day.  

But in general, I believe in paying as little tax as legally possible.  I am severely over taxed now.

[mchepp]

I have a similar situation although my distance is 15 miles not 30. My general rule is anything greater than $200 I will make the drive.

[drmevo]

18 hours ago, CarlSpackler said:

Are there any good golf courses in New Hampshire?

 

18 hours ago, jamo said:

For the purposes of this, let's say you have no other reason or desire to go to New Hampshire. If you go, it would just be to get whatever you need. 

And to your question: no. 

Hey now...If you ever make it up this way, I'd be happy to prove you wrong  

On the tax thing, it would totally depend on the amount of money saved if it were me.  Assuming 30 miles translates to a little more than 30 minutes highway driving, that's worth it in my book for about $50.  Much less than that, probably not. 

Live Free or Die!   

[Gunther]

9 minutes ago, drmevo said:

 

Hey now...If you ever make it up this way, I'd be happy to prove you wrong  

On the tax thing, it would totally depend on the amount of money saved if it were me.  Assuming 30 miles translates to a little more than 30 minutes highway driving, that's worth it in my book for about $50.  Much less than that, probably not. 

Live Free or Die!   

I have some relatives in NH, I lived in Portsmouth and Nashua for a time.  I recall a strong dislike amongst the locals for Massachusites.  The term "Massholes" comes to mind?

[iacas]

2 minutes ago, Gunther said:

I have some relatives in NH, I lived in Portsmouth and Nashua for a time.  I recall a strong dislike amongst the locals for Massachusites.  The term "Massholes" comes to mind?

Besides calling a bunch of people from a certain state a name, what on earth does that have to do with the topic?

[drmevo]

3 minutes ago, Gunther said:

I have some relatives in NH, I lived in Portsmouth and Nashua for a time.  I recall a strong dislike amongst the locals for Massachusites.  The term "Massholes" comes to mind?

Ha, I was very tempted to include that in my post but, yes absolutely. If the tax situation were the other way around no way I'd be driving to MA for some stinking discount!

1 minute ago, iacas said:

Besides calling a bunch of people from a certain state a name, what on earth does that have to do with the topic?

I should clarify it's not so much to do with the people themselves but the way they tend to drive (yes, a stereotype).  

Edited October 4, 2016 by drmevo

[iacas]

2 minutes ago, drmevo said:

I should clarify it's not so much to do with the people themselves but the way they tend to drive (yes, a stereotype).  

I'm aware of that and don't really care. It's negative without even being on topic.

[jamo]

FWIW, I tried to make the OP vague because the exact situation doesn't really matter. If I buy an iPhone 7 I'll get it in CT, where I live, but when I was a kid we lived in Massachusetts just close enough to New Hampshire where it could be an option for big purchases.

I just think it's an interesting question because it's not just the math about whether the taxes saved are greater or less than the extra gas used, it involves the time it takes (and how much that matters to you), and your general perception of taxes. 

I never bothered making the drive to New Hampshire, and even when I went to college in Delaware (where there's no sales tax), I often went to a Wal Mart just over the border (literally feet over the border) in Elkton, Maryland for my shopping. But I know some people who went to New Hampshire for everything.

[Dave2512]

Hard to split hairs when it comes to convenience. The "value menu" mentalities I know typically aren't as savvy as they think and it can turn into a step over a dollar to save a dime situation if it drags out. IME it's not possible to win every consumer battle.