How to Avoid Paying Sales Tax On Expensive Items Like Diamonds and Jewelry
With State sales taxes ranging from 3% to 9% or more, you need a plan on how to avoid paying hundreds or thousands of dollars in taxes on big ticket items such as jewelry, rings, or watches.
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Things You'll Need
- Confidence in UPS or Fedex
- A desire to buy a diamond ring or other jewelry
Instructions
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Find out how to avoid paying sales tax. Nearly all states do not have sales tax on items purchsed via the internet when the company you are buying from does not have a physically presence in that state. For instance, items purchased from Amazon.com or Blue Nile have no sales tax because they do not have a physical store in the states they are selling.
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If you do not want to buy over the internet, then you can also find a regular brick and mortar store (while you are travelling out of state) that doesn't have a presence in your home state. For example, if you buy a sweet new Rolex in Tourneau in New York and have the store ship it to to your home in Colorado (where the is not a Tournea), you pay no sales tax.
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Finally you can buy the item in a state that doesn't have any sales tax to begin with and bring it home with you. States that do not have sales tax are: Alaska, Delaware, Hawaii, Montana, New Hampshire, New Mexico, and Oregon.
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Tips & Warnings
You can save hundreds of dollars using this method for big purchases.
This works best with small items that are expensive, i.e. use this for wedding rings but not for cars!
Some cities or municipalities may still charge a tax even if there is no state tax.
The IRS may still hold you liable for tax even if the company did not charge you, check with your accountant.
