Hi

A friend of mine has just told me that it may be possible to get sales tax refunds at JFK if I am a foreigner leaving the country. Is this true??

Sales taxes don't work like VATs. No refunds.

We all wish.

If it would exist the line would be 5 hours long.

Americans are smarter than others in that regard. It may have to do with the rate of tax, i.e. many VATs are very high, as is 15 to 25 percent, while sales tax rates tend to be under 10 percent.

Refunding taxes to people who don't live here seems silly...after all, they don't vote here.

The goal is to collect as much money from people who are from somewhere else. Hotel taxes come to mind, which are virtually unheard of in many countries (in part because the VAT already is built into the quoted room rate).

Fly from EWR - shop in Elizabeth - only 3% tax, and no tax on clothing.

The biggest difference in the U.S. is, I guess, that sales taxes are charged at state level or lower. That makes defining "departure", "exporting" and "foreigner" such a big mess and full of loop holes.

And just to add to the confusion of those used to a different system, we're technically required to pay sales tax on out of state purchases. In theory, a NY resident traveling to EU would get back the VAT and then owe NY any applicable sales tax (less sales tax paid at time of purchase).

NY has attempted to enforce this for US out of state purchases - they get records from shipping companies, etc. They even at one point sent revenue officers to write down NY auto license plates when parked in the Ikea parking lot in NJ.

They even at one point sent revenue officers to write down NY auto license plates when parked in the Ikea parking lot in NJ.

Talk about pissing in the wind.

But if you want to see some missing revenue, check out the buses full of non-tax-paying city-dwelling clothes shoppers arriving at Paramus Park. :D

Wirelessly posted (BlackBerry7130e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)

It is possible for non-New Yorkers to avoid paying sales tax on items purchased in New York: ship the items to your out-of-state address. Admittedly, this is impractical for small-ticket items. But larger stores will certainly ship expensive jewelry, watches, clothing, etc. to out-of-town residences. Caveat: New York residents who ship the items to out-of-town addresses and then fail to pay the compensating use tax on their NYS tax return are liable for criminal prosecution for tax evasion.

Fly from EWR - shop in Elizabeth - only 3% tax, and no tax on clothing.

Of course. Who would want to shop on Madison or Lexington Avenues when they could shop in that fashion mecca, Elizabeth, N.J.? :D

Wirelessly posted (BlackBerry7130e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)

It is possible for non-New Yorkers to avoid paying sales tax on items purchased in New York: ship the items to your out-of-state address. Admittedly, this is impractical for small-ticket items. But larger stores will certainly ship expensive jewelry, watches, clothing, etc. to out-of-town residences. Caveat: New York residents who ship the items to out-of-town addresses and then fail to pay the compensating use tax on their NYS tax return are liable for criminal prosecution for tax evasion.Wirely posted (Moondog/2Wire/DSL)

One caveat is that this only works if the shop doesn't have a physical business presence in the state that the items are shipped to. For instance, Tiffany & Co. has shops in many states. If shipping to MD, Tiffany & Co would have to collect MD sales tax because they have a physical presence there.

Of course. Who would want to shop on Madison or Lexington Avenues when they could shop in that fashion mecca, Elizabeth, N.J.? :D
I once had a major shopping spree at the Jersey Gardens Outlet Mall. Between the Neiman Marcus and Saks Fifth Avenue outlets, I saved a fortune! :cool:

Refunding taxes to people who don't live here seems silly...after all, they don't vote here.

That makes absolutely no sense. :rolleyes:

Taxes pay for infrastructure and services provided to residents of that state, or citizens of that country. If someone doesn't live there, they won't be around to see the benefit of "their tax dollars" will they? ;)

Here in Australia we refund the 10% GST (Goods and Services Tax) to outbound passengers. There are minimum amounts ($300AUD I think), and you have to have the goods with you (ie: not in checked luggage), but apart from that it's pretty straight-forward.

It even applies to residents heading overseas (and has helped me save 9% on digital and video cameras on more than one occasion. :))

Of course, if returning to Australia with those items, they are counted in your $900AUD personal items limit.

Cheers,
- Febs.

That makes absolutely no sense. :rolleyes:

Taxes pay for infrastructure and services provided to residents of that state, or citizens of that country. If someone doesn't live there, they won't be around to see the benefit of "their tax dollars" will they? ;)

Here in Australia we refund the 10% GST (Goods and Services Tax) to outbound passengers. There are minimum amounts ($300AUD I think), and you have to have the goods with you (ie: not in checked luggage), but apart from that it's pretty straight-forward.

It even applies to residents heading overseas (and has helped me save 9% on digital and video cameras on more than one occasion. :))

Of course, if returning to Australia with those items, they are counted in your $900AUD personal items limit.

Cheers,
- Febs.

The basic sentiment is that if you tax people whom you don't represent, they can't vote you out of office. As long as you don't drive away tourism, they'll tax non residents as much as possible.

The basic sentiment is that if you tax people whom you don't represent, they can't vote you out of office. As long as you don't drive away tourism, they'll tax non residents as much as possible.Yup. Here in the good ol' You Ess of Aaay, the highest sales tax rates are for hotels and rental cars, precisely because a state legislator's constituents tend not to get worked up over those the same way they would if their state sales tax or county property tax got raised.