Just got my "Limited" edition of the new Cabela's master catalog today.

There has been some comment as to whether they are charging sales tax on their internet orders. Here is what they say on the paper order form included with the catalog:

Sales Tax by State (Effective January 1, 2008)

Group 2 - Ct, In, Ks, Mn, Mo, Ne, Nv, Pa, SD, Tx, Wa, Wi, Wv - we are required to collect sales tax on orders AFTER shipping charges.

Group 1 - Az, Id, Il, La, Ut - we are required to collect sales tax on orders BEFORE shipping charges.

It would apprear anywhere they have a retail store, the state requires they collect a sales tax on the order - either by mail, phone or internet. Only jab is the Group 2 states require the tax be applied to the shipping charges also.

It's a cruel world out there! :(

Yup, you can't blame Cabela's. The states want their pound of flesh. You can see the state's reasoning, though - if there's a Cabela's store in your state, and you buy something from Cabela's, there's really no difference between you getting it from Cabela's via a delivery truck or if you get it via your own truck. And you'd pay sales tax if you bought it in the store.

So if purchasers who do not live in ANY of these States place an order whether by phone, mail, or internet, to Cabela's will they be charge sales tax? I may be mistaken but I believe the sales tax is applicable only if your State has a Cabela's presence. Why would Cabela's be interested in collecting sales tax for a State in which they do not have a store. You are fortunate to have a new Cabela's open recently in Glendale which places you in Group 1. My State doesn't have a Cabela's yet so everything I order should be tax-free?

This was only a matter of time coming. We have two Cabela's in Idaho now, sure glad they don't double up.

If they ever build one here, I'll still be fortunate, no sales tax :D

Marshal Kane - If Cabela's does not have a retail presence in your particular state, then there will be NO sales tax added to your mail/phone/internet order.

Rocky - Understand perfectly their reasoning (no choice in the matter) for charging the tax. What galls me is the "Group 2" states that have to tax the shipping costs too. :eek:

Uh huh. WAY back when I lived in (barf) Illinois, I worked in a Western Auto store to pay my way through college (at a whopping $1.65/hour - this WAS a while ago!), we had to charge state sales tax on the Federal tire excise tax! Boy, did some customers get in a lather about that; but it was state law. Sales tax is/was applied LAST, no mater what the other fees or taxes were. Illinois: the first socialist state in the Union.

Taxing taxes, squeezing every dollar out of that penny.

Wasn't that part of the reason for that party in Boston Harbor? Might need a repeat performance.

That was because the colonists were being taxed on basic necessities and not seeing the benefits of taxation, unlike today.

So I guess I'll have to give them a call. I want to know if I have my order shipped to the Cabelas nearest me. Which is in Idaho. Do I have to pay taxes there? or will it be still considered an Oregon purchase and no sales tax?

If you are paying for it online with your residence in Oregon, you should be tax exempt, because they offer the ship to store feature for free.

Throw MI in the mix of being taxed as well, though I don't know if it's before or after shipping charges. Looks like any orders I make to Cabelas from now on will only be when I have one of the "spend $150 get $20 off" coupons. I'll just have to throw things in my wish list and let that coupon take care of most of the tax and shipping.

Since I operate a business in SD I get periodic flyers from the department of revenue. Even a conservative state like SD is getting on the band wagon over trying to collect taxes on out of state mail order and internet sales. All such sales are now taxed to people living in state.

I wonder since main street usa don't see as much traffic and people are increasingly using other means to purchase, if it isn't their way of bolstering the declining revenue collections? In my opinion it's just a matter of time before it's done universally. However, I don't agree on charging taxes on tax and shipping.

Yes, MontyF, that's exactly what it is. If x% sales tax brings the revenue needed for whatever operations it's funding, and then there's a move to online purchasing such that the sales tax stream declines 30%, you raise the sales tax. Plus, if you live in Idaho at least, you're required by law to report on your state income tax return any purchases you made online or any other way on which you did not pay sales tax, and then you pay that sales tax owed on your tax return.

Rockey,
I can remember how hot my father got when he found that Illinois was charging tax on gasoline and then sales tax on the gas tax. He would be sure he didn't have to fill up in Illinois even he had to pay more in adjoining states.

It would apprear anywhere they have a retail store, the state requires they collect a sales tax on the order - either by mail, phone or internet. Only jab is the Group 2 states require the tax be applied to the shipping charges also.

It's a cruel world out there! :(

Ouch !!! Thanks for bringing it to our attention Kdub.

Sad to see my state gouging like that. Even if they weren't charging tax on the shipping, cost is already inflated by paying both tax and shipping. Sure am glad Midway is not in Texas, although their shipping costs have increased. I'm going to start doing more comparison shopping to Grafs, Midsouth, Natchez and other online suppliers whereas I had pretty much just settled on using Midway.

Don't the states have enough sense to realize that if they chrage the tax just because a business has a presence somewhere in the state they are hurting themself? Customers simply make a point of buying from a dealer in a different state and the state then loses the business and personal income taxes on the entire transaction. Furthermore when in-state businesses go under because the sales are being exported there go the jobs and property taxes. The shortsighted ***'s are cutting their own throats.

I live in a rural area so almost all my shopping is done by mail. With gas costing over $3.00 a gallon I'm sure not going to drive 150-200 miles, each way, to go shopping.

Given the choice or ordering a product at more or less the same price and paying taxes from one and not the other where will I spend my money? Duh!!

I live in Denver and about two years back they announced plans to open a Cabelas here. I remember thinking at the time that I would probably have to arrange to have my paycheck direct deposited there once it opened. About a year back they delayed the groundbreaking due to the economy. I guess Cabelas saw the writing on the wall even if the current administration in Washington didn't.
In any event, I still don't have to pay sales tax on my Cabelas purchases since there are no Colorado stores. At least for the time being.

Bagtic and I are in the same boat. I think twice before placing an order to Cabelas. I hate to pay shipping and tax on Midway orders, so I don't order from them. Its a shame I can order cheaper from Natchez in Tenn than Midway in Missouri.Q

Cabela's was slated to build North of Atlanta Ga and be the first Southeastern store to open. They even had a site picked out and a conceptual layout choosen. This was in late 2006 early 2007 I think. Well...When the state of Georgia told them that they would have to pay sales tax on internet and catalog orders they dumped the whole concept.

Ga wasn't satisified with the increased revenue from taxing only in the stores they got greedy and asked for it all (not suprising) and screwed themselves out of everthing.

Last I heard cabela's is looking at a site somewhere in Alabama now. Could be wrong about that though.

Now on the flip side what about "Bass Pro"? I live in Georgia and there is a Bass Pro in Georgia. I just recently 2/13/08 placed an order with them and did not have to pay sales tax on my phone order that was shipped to me here in Georgia. Don't tell anybody!!