B&H has just launched a new shopping credit card designed to save you the sales tax in all purchases made at B&H!

"Now, with the B&H Payboo Card, save the equivalent to the sales tax you pay on every purchase shipped to eligible states."

Full details and terms and conditions can be found here: B&H Payboo Credit Card Save the Tax | B&H Credit Card

I've done a bit of digging through the fine print and have found that the card will reimburse the full sales tax if you ship to the following states:

• California
• Connecticut
• Hawaii
• Illinois
• Kentucky
• Maine
• Maryland
• Michigan
• Minnesota
• Mississippi
• Nevada
• New Jersey
• New York
• North Carolina
• Oklahoma
• South Carolina
• South Dakota
• Utah
• Washington
• Wisconsin

The card instead gives a ~6% reward in the following states/territories (percentage may vary by state, see terms):

• Alabama
• DC
• Indiana
• Iowa
• Nebraska
• North Dakota
• Vermont
• West Virginia
• Wyoming

Remaining states/territories don't currently mandate the collection of sales tax by B&H, and will therefore receive no reward (this is subject to change if laws change):

• Alaska
• Arizona
• Arkansas
• Colorado
• Delaware
• Florida
• Georgia
• Idaho
• Kansas
• Louisiana
• Massachusetts
• Montana
• Missouri
• New Hampshire
• New Mexico
• Ohio
• Oregon
• Pennsylvania
• Puerto Rico
• Rhode Island
• Tennessee
• Texas
• Virginia

Note that this is a credit card and it has a high 29.99% APR rate, but you can get approved instantly and use the card online if you want to take advantage of it for the sales-tax-equivalent savings.

[dms]

I am no lawyer, but this seems legally wrong and ethically wrong! One of the problems I have is how can one divide the clients up into groups where some get a price reduction and others not. Could just as well do it based on one's religion (instead of state).

[nosliwmit]

I am no lawyer, but this seems legally wrong and ethically wrong! One of the problems I have is how can one divide the clients up into groups where some get a price reduction and others not. Could just as well do it based on one's religion (instead of state).

Why? B&H will continue to pay the required taxes, they're just giving you a rebate (sorry, a "loyalty reward") equivalent to that tax value. Sales tax equalization. Pretty clever, really. But make sure you pay your credit card bill before that 30% interest rate kicks in... It does say there's a minimum interest charge of $2.00, but sales tax on a lens or camera will be more than that...

If you don't have to pay sales tax because of where you live then you already get the same price as someone who does pay sales tax (but gets the rebate).

[Adam]

I am no lawyer, but this seems legally wrong and ethically wrong! One of the problems I have is how can one divide the clients up into groups where some get a price reduction and others not. Could just as well do it based on one's religion (instead of state).

They don't divide clients, they divide shipping addresses (which is what is used for the sales tax calculation). A clever workaround, but certainly legal given the fact that the necessary taxes will still end up being paid.

Adam
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[dms]

They don't divide clients, they divide shipping addresses (which is what is used for the sales tax calculation). A clever workaround, but certainly legal given the fact that the necessary taxes will still end up being paid.

As my shipping address represents me, I don't see the distinction. In any event I was just expressing my (low) opinion of what is being done. In the end the legal aspect will be decided by the courts, the ethical question will likely not.

And (BTW) if all the other major internet dealers do the same, it is another nail in the coffin for physical stores, and thus even less chance to try out gear before buying same.

[dms]

There is another problem, in effect customers in non-taxing states will be paying a tax. As B&H will have a price to charge that reflects their bottom line, and if they are giving x(%) back to half their customers, then the price will be x/2 higher to everyone.

[Rondec]

There is another problem, in effect customers in non-taxing states will be paying a tax. As B&H will have a price to charge that reflects their bottom line, and if they are giving x(%) back to half their customers, then the price will be x/2 higher to everyone.

Is B and H collecting sales tax for the states or are they expecting customers to pay a use tax after the fact? Because someone earlier posted that they live in Washington (the state) and got a list of purchases from B and H at tax time and my impression was that B and H hadn't charged them sales tax on their items, but expected them to report them after the fact.

I don't know that that changes your argument. I would still expect their prices to be competitive with Adorama and Amazon (Amazon definitely collects sales tax), even for folks who live in sales tax free zones. They just wouldn't have a reason to use this particular credit card.

I don't think this is some unfair Communist plot to take money from the sales tax free folks and redistribute it to those living in high sales tax zones, although certainly someone like yourself, who lives in New York is going to benefit, while someone like me who lives in Virginia (but is still expected report internet purchases for use tax) won't/

[gaweidert]

If you are lucky enough to live in a state like Montana that charges no sales tax there is no reason to get the card. Therefore you are not subsidizing purchases for states and counties that do charge sales taxes. No one is forced to get the card. It is not unlike the cash back offers from any other credit card. Those who do not pay off their monthly balance subsidize those who do.

[gump]

Just for the record. Ohio collects sales tax on Internet or other purchases that are for whatever reason are otherwise subject to the tax if within Ohio. We are obligated to report and pay the tax when we file our state income tax.

[steve_k]

This is a big deal for US customers.

B&H Payboo Card to refund sales tax on all orders [u]

[aslyfox]

This is a big deal for US customers.

be careful of the interest rate on any balance: 29.99% APR rate

Read more at: New B&H Offer: Pay no sales tax through reimbursement w/ Payboo card - PentaxForums.com

[stevebrot]

be careful of the interest rate on any balance: 29.99% APR rate

Read more at: New B&H Offer: Pay no sales tax through reimbursement w/ Payboo card - PentaxForums.com

Steve

[stevebrot]

I am no lawyer, but this seems legally wrong and ethically wrong! One of the problems I have is how can one divide the clients up into groups where some get a price reduction and others not. Could just as well do it based on one's religion (instead of state).

There is no discount. It is the credit card company that is paying the tax.

Addendum: Payboo is owned by B&H. What might be interesting is whether other vendors will adopt similar payment schemes as a win-win-win solution where the states, the customers, and the vendors all profit...assuming that at least a few use the card's credit feature. It should be noted that some stores (mostly used car, appliance, and furniture) in Washington "border towns" have traditionally advertised that they will pay the sales tax, with the hidden detail being that the goods must be purchased on revolving credit with the store.


Steve

[stevebrot]

Is B and H collecting sales tax for the states or are they expecting customers to pay a use tax after the fact? Because someone earlier posted that they live in Washington (the state) and got a list of purchases from B and H at tax time and my impression was that B and H hadn't charged them sales tax on their items, but expected them to report them after the fact.

I was that someone. I have not ordered from B&H since that post. They may well be collecting the tax now. The letter they sent me was for 2018 purchases.


Steve

[Not a Number]

Insurance companies base rates on location (usually zip code). Costs of Goods are affected by location. That's why gas and food is more expensive in one area compared to another.