If I understand what you are saying:

1) If the state I live in charges sales tax
2) and the drop-shipper has a warehouse in my state (or is licensed to 
do business in my state)
3) I get charged sales tax even though the the item is dropped-shipped 
from an out-of-state warehouse of the drop-shipper.

That is consistent  with my understanding of sales tax law.

For example, I am charged CA sales tax on Items I purchase from another 
company in Ohio, because they are licensed to do business in CA, but 
have no facilities in CA -- they do traveling schools & demonstrations.

So, to avoid charging me taxes, pcConnection has to find a drop-shipper 
that is NOT licensed to do business in my state.

Or, I need to find a vendor with a different drop-shipper.

By the reaction I get when I talk to pcConnection support people, 
"consideration" mainly applies to California residents.

Dick


On Oct 19, 2004, at 10:44 AM, Cary Gordon wrote:




> This hold true for every state that charges sales tax.  If you are in 
> CA and
> hsve one local warehouse that you ship from, it is dead simple: You 
> charge
> tax in CA and no tax anywhere else.
>
> The mail order computer stuff companies have a more complicated 
> situation.
> They have limited warehousing on their own.  Almost everything is 
> dropped
> shipped from distributors like Ingram Micro, Tech Data, etc., and those
> folks have warehouses everywhere.  The big vendors are connected to the
> distributors extranets, but even that does not guarantee that they have
> current stock info, so if they sell you a framitz that is in IM's PA
> warehouse, and it turns out to only be available in CA, they (and you) 
> have
> a problem.
>
> I went through a huge argument with a company in Denver who sold me a
> product that was supposedly coming from the manufacturer in Tennessee. 
>  They
> found out after the fact that it had shipped for CA and hit my credit 
> card
> for the tax. I wound up in a heated conversation with the president of 
> the
> company, and, finally, they took it off.
>
> Cary Gordon
> The Cherry Hill Company
>
>
>
> -----Original Message-----
> From: Dick Applebaum [mailto:[EMAIL PROTECTED]
> Sent: Tuesday, October 19, 2004 8:22 AM
> To: CF-Talk
> Subject: SOT: Drop-Ship Limitations to California
>
> This is SOT but it may affect anyone writing programs to do ecommerce 
> with
> customers in California.
>
> I was recently told by a pcConnection representative that they could 
> only
> drop-ship items to California from pcConnection warehouses in Ohio and
> Tennessee -- because of California tax laws.
>
> Anyone ever heard of this?
>
> In my case it has caused a 2 1/2 month delay in receiving an item I 
> ordered
> on Aug 2 that was in stock (but apparently not in the correct 
> warehouse).
>
> TIA
>
> Dick
>
>
> "Misery no longer loves company. Nowadays it insists on it."
> - Russell Baker -
>
>
>
> 

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