Are you wondering if you will be asked to part with some money in the name of sales tax if you buy your favorite jewelry from Blue Nile?
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Here, we are going to tell you how to save money while buying jewelry from Blue Nile and also let you in on:
- Whether Blue Nile charges sales tax on their jewelry
- If they have, how do you know how much to pay?
- The easiest way to by-pass the sales tax payment when buying jewelry from Blue Nile
- Is it legal to avoid this charge?
All these questions are answered in this guide as well as much more information given.[Table]
Blue Nile charges sales tax on most of the jewelry orders placed in their collection. The amount of tax collected is dependent on the state from which the customer is located.
This means it is possible that your friends or family may pay a completely different amount for the same piece of jewelry ordered from Blue Nile but in a different state. This is because of the difference in the sales tax charged (if any) for the various states. For instance, if you have a friend in Washington, D.C., the sales tax is going to be 6% for their order.
For a similar order made from New Hampshire, your friend or family will not be required to pay any sales tax on the order.
Blue Nile is a jewelry store that runs its operations mostly online, sales taxes are usually decided based on the place where the order is being made from rather than assigning the charges to a specific physical store that sells jewelry offline.[Video]
Calculating Sales Tax on Blue Nile Orders
As earlier mentioned, blue Nile calculates the additional amount as tax sales based on the state in which the customer is at the time of ordering. This is the reason the tax charges may vary from one state to another. Blue Nile charges taxes for jewelry ordered from the following states as of now:
Wyoming, Wisconsin, West Virginia, Washington state, Washington DC, Virginia, Vermont, Utah, South Dakota, South Carolina, Rhode Island, Pennsylvania, Oklahoma, Ohio, North Dakota, North Carolina, New York, New Jersey, Nevada, Nebraska, Mississippi, Minnesota, Michigan, Massachusetts, Maryland, Maine, Louisiana, Kentucky, Iowa, Indiana, Illinois, Idaho, Hawaii, Georgia, Connecticut, Colorado, California, and Alabama.
At the time of checking out, you can estimate the amount you are likely to be charged as for sales tax. For example, if you enter a 20001 zip code, Washington DC, you will be charged 6% of the total cost of the items you have ordered. On the other hand, if you enter a zip code in Arkansas, the sales tax will be %.
To get the specific amount you will pay or calculate the sales tax for your state, you can use the sales tax estimator that is found at the checkout area of the shopping cart. If you wish to calculate that amount manually, you need to know your state’s tax rate.
Let’s use a tax rate of 6% to make a sales tax approximation. If we order items worth $400, we shall take the 6% tax rate and multiply by the total cost ($400), which is 6% x 400.00. In this case, the tax rate would be $24.
Another easier way of calculating sales tax is by using $100.
While still using a cart that totals $400 and the same tax rate of 6%, it means you will pay $6 for every $100 that you spend. This method is used to calculate different sales tax quickly. For example, for $400, the sales tax is $24, if your cart was $1000, the charge would be $60, a total of %1500 would attract $90 in tax sales, and it continues like that.
Can You By-Pass The Sales Tax At Blue Nile To Get Jewelry Duty-Free?
Most probably you can. As much as more states are implementing legislation to impose sales tax on jewelry, it is still possible to buy jewelry from Blue Nile tax-free.[Image]
One great way to avoid paying sales tax is to move to a state that does not currently oblige Blue Nile to charge taxes from orders made on their items. The following states do not charge taxes on jewelry bought from Blue Nile, although this list can change at any time:
Texas, Tennessee. Oregon, Kansas, Missouri, Montana, New Hampshire, Alaska, Arizona, Arkansas, Delaware, Florida, and New Mexico.
If you do not live in any of these states, you can contact any of your family or friends who live in those states to place the order on your behalf. Once the jewelry reaches them, they can ship it to you.
If you do not reside in any of the tax-free states and do not have family or friends in those states too, you should think about setting up a temporary mailing address in one tax-free state. You can then have the jewelry shipped to you, provided the billing address is in one of the states listed above.
However, you need to look at the savings you are likely to make. The savings may be more than the cost of setting up a billing address in another state. This is very important if you are buying expensive jewelry.
Another way is to consider using locations that order and ship jewelry for you, but you will need to pay them for shipping. However, most of such services have been proven to be scammers and you should not even think about them in the first place.
Is It Legally Allowed To Avoid Sales Taxes?
There are no substantive laws that compel customers to pay sales taxes on jewelry items they order, the laws apply to jewelry stores and vendors. In this case, Blue Nile is legally required to collect taxes from jewelry bought from them by customers who are located in any of the states that charge jewelry duty.
Sometimes, Blue Nile is required by law to remit taxes later if for some reason a customer who is part of tax regulation is told that there are a lot of purchases made that avoided sales taxes. This means that Blue Nile will take up the responsibility of passing the said charges to other customers.
The truth is laws keep changing and jewelry customers should stop trying all means to avoid the law in a bid to save some bucks. In most cases, avoiding tax sales to save some money ends up being costly than the amount saved.
Tax Collection Laws Still Under Discussion
The regulations in use right now in the states that charge sales tax came about from a decision that was made by the Supreme Court in June 2018. This decision requires that online jewelry sellers collect sales duties from the people that buy jewelry from them. It is imperative to understand why the tax rate is different in various states and why the laws are subject to changes in the future.
After the Supreme Court decision, most states revised their regulations to mandate inline jewelry retailers to collect sales taxes from orders they get in their states. Regardless of this, major online retailers moved to court to challenge the Supreme Court ruling.
Blue Nile is one of the large online jewelry sellers that were among the first to implement the changes regarding tax collection in several states. They have since continued to add states to their list of tax-compulsory states. This is viewed in two ways: as good business practice on their part or as a blow to their customers.
The issue of sales taxes involves not only collecting sales taxes but also remitting the collected amounts to the relevant states. These amounts vary state from state and are often remitted at different times. This seems more like too much bookkeeping activities for online stores, especially large shops like Blue Nile. Blue Nile and other shops should be credited for stepping forward to comply with the new regulations.
All the information you get on this guide is up to date as of the time of publishing. However, it is good to appreciate that these regulations are currently being reviewed in some states and that some jewelry stores are challenging the Supreme Court ruling. The information in this guide is likely to change at any time.