Question about sales tax online vs. in-store...?
I live in New York City, in the borough of Queens. My father is unable to leave the home because he has emphysema which limits his mobility. He wants to buy nicotine gum on the Internet but finds that he is charged sales tax, whereas in-store he is not. Why would there suddenly be a tax on non-prescription drugs?? And why would it be online but not in-store? My father feels like he is being punished for not being able to go to a brick-n-mortar store. Anyone know what's up? Aren't non-prescription drugs supposed to be tax-free?
- StephenWeinsteinLv 71 decade agoFavorite Answer
Not all non-prescription drugs are supposed to be tax free. Only non-prescriptions drugs intended for "the cure, mitigation, treatment or prevention of illnesses or diseases in human beings" or "consumed by humans for the preservation of health" are supposed to be tax-free.
The law is the same for Internet stores and brick-and-mortar stores. Either
(a) Neither store should be charging tax. The Internet store is not following the law. He is being penalized, but not for being unable to go to a brick-and-mortar store. He is being penalized for using a store that does not follow the law. He should buy from another Internet store that does follow the law.
(b) Both stores should be charging tax. The brick-and-mortar store is breaking the law. Even if he bought the product there, he would be required by law to pay the tax (whether or not the store collected it from him).
The law on the subject of sales tax on drugs is NYS tax law § 1115. "Exemptions from sales and use taxes. (a) Receipts from the following shall be exempt from the tax on retail sales imposed under subdivision (a) of section eleven hundred five and the compensating use tax imposed under section eleven hundred ten: ... (3) Drugs and medicines intended for use, internally or externally, in the cure, mitigation, treatment or prevention of illnesses or diseases in human beings, medical equipment (including component parts thereof) and supplies required for such use or to correct or alleviate physical incapacity, and products consumed by humans for the preservation of health but not including cosmetics or toilet articles notwithstanding the presence of medicinal ingredients therein or medical equipment (including component parts thereof) and supplies, other than such drugs and medicines, purchased at retail for use in performing medical and similar services for compensation."
- Anonymous5 years ago
Read Old Hippie's excellent answer. If you buy online, your bike will arrive in a box, unassembled. It would take 30-60 minutes for an experienced bicycle mechanic to put the bike together, adjust the hub bearings, brakes, and derailleurs. A bike shop would also take the time to make sure you bought the correct size and fit you on the bike. All this is easily worth the extra money. If you assemble a bike yourself and make a mistake, your warranty might be voided and you could end up paying for repairs yourself. There is also the after sales service a bike shop provides. If you don't know anything about bike mechanics, a bike from a shop can end up costing far less, not more