Forgot Password
Pentax Camera Forums Home
 

Reply
Show Printable Version Search this Thread
  #1
New B&H Offer: Pay no sales tax through reimbursement w/ Payboo card
Posted By: Adam, 05-06-2019, 07:58 PM

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
Name:  payboo.PNG
Views: 412
Size:  785.1 KB

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.

Views: 1,558
05-06-2019, 09:39 PM   #2
dms
Site Supporter
Site Supporter




Join Date: Aug 2011
Location: New York, NY
Photos: Gallery
Posts: 1,842
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).
05-06-2019, 09:51 PM   #3
Site Supporter
Site Supporter




Join Date: Nov 2010
Location: Hong Kong
Photos: Gallery
Posts: 436
QuoteOriginally posted by dms Quote
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).
05-06-2019, 10:04 PM   #4
Administrator
Site Webmaster
Adam's Avatar

Join Date: Sep 2006
Location: Arizona
Photos: Gallery | Albums
Posts: 48,423
Original Poster
QuoteOriginally posted by dms Quote
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
PentaxForums.com Webmaster (Site Usage Guide | Site Help | My Photography)



PentaxForums.com server and development costs are user-supported. You can help cover these costs by donating. Or, buy your photo gear from our affiliates, Adorama, B&H Photo, or Topaz Labs, and get FREE Marketplace access - click here to see how! Trusted Pentax retailers:

05-06-2019, 10:53 PM   #5
dms
Site Supporter
Site Supporter




Join Date: Aug 2011
Location: New York, NY
Photos: Gallery
Posts: 1,842
QuoteOriginally posted by Adam Quote
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.
05-06-2019, 11:59 PM   #6
dms
Site Supporter
Site Supporter




Join Date: Aug 2011
Location: New York, NY
Photos: Gallery
Posts: 1,842
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.
05-07-2019, 02:50 AM   #7
Site Supporter
Site Supporter




Join Date: Mar 2009
Location: Gladys, Virginia
Photos: Gallery
Posts: 19,732
QuoteOriginally posted by dms Quote
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/
05-07-2019, 03:26 AM   #8
Loyal Site Supporter
Loyal Site Supporter




Join Date: Mar 2012
Location: Rochester, NY
Photos: Gallery
Posts: 3,414
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.

05-07-2019, 03:31 AM   #9
Site Supporter
Site Supporter
gump's Avatar

Join Date: Apr 2018
Location: Canton, Ohio
Photos: Albums
Posts: 191
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.
05-07-2019, 09:17 AM   #10
Loyal Site Supporter
Loyal Site Supporter




Join Date: Dec 2016
Location: Shelton, CT
Photos: Albums
Posts: 619
B&H Payboo card

This is a big deal for US customers.

B&H Payboo Card to refund sales tax on all orders [u]
05-07-2019, 09:21 AM   #11
Seeker of Knowledge
Loyal Site Supporter
aslyfox's Avatar

Join Date: Aug 2016
Location: Topeka, Kansas
Photos: Gallery | Albums
Posts: 13,333
QuoteOriginally posted by steve_k Quote
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
05-07-2019, 09:39 AM   #12
Otis Memorial Pentaxian
Loyal Site Supporter
stevebrot's Avatar

Join Date: Mar 2007
Location: Vancouver (USA)
Photos: Gallery | Albums
Posts: 32,639
QuoteOriginally posted by aslyfox Quote
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
05-07-2019, 09:40 AM   #13
Otis Memorial Pentaxian
Loyal Site Supporter
stevebrot's Avatar

Join Date: Mar 2007
Location: Vancouver (USA)
Photos: Gallery | Albums
Posts: 32,639
QuoteOriginally posted by dms Quote
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

Last edited by stevebrot; 05-07-2019 at 09:57 AM.
05-07-2019, 09:45 AM   #14
Otis Memorial Pentaxian
Loyal Site Supporter
stevebrot's Avatar

Join Date: Mar 2007
Location: Vancouver (USA)
Photos: Gallery | Albums
Posts: 32,639
QuoteOriginally posted by Rondec Quote
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
05-07-2019, 09:48 AM   #15
Moderator
Not a Number's Avatar

Join Date: Mar 2012
Location: Venice, CA
Posts: 5,910
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.
Reply

Bookmarks
  • Submit Thread to Facebook Facebook
  • Submit Thread to Twitter Twitter
  • Submit Thread to Digg Digg
Tags - Make this thread easier to find by adding keywords to it!
card, carolina, change, coupon, credit, pentax deals, photography, sales, savings, tax, terms, virginia
Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Sales tax ???? kjphilippona Ask B&H Photo! 6 01-07-2019 07:48 AM
Only B&H and KEH Are Charging Sales Tax On My Gear Orders Fenwoodian General Talk 32 12-03-2018 07:38 AM
Mitt Romney's Tax Plan : $145,000 tax break for the rich jogiba General Talk 22 03-21-2012 09:12 AM
Gingrich: His 15% Flat Tax Matches Romney’s Effective Tax Rate jogiba General Talk 9 01-20-2012 11:38 AM
Earn $2.4 million per hour and only pay a 15% tax rate ! jogiba General Talk 6 05-14-2011 04:06 AM



All times are GMT -7. The time now is 10:07 PM. | See also: NikonForums.com, CanonForums.com part of our network of photo forums!
  • Red (Default)
  • Green
  • Gray
  • Dark
  • Dark Yellow
  • Dark Blue
  • Old Red
  • Old Green
  • Old Gray
  • Dial-Up Style
Hello! It's great to see you back on the forum! Have you considered joining the community?
register
Creating a FREE ACCOUNT takes under a minute, removes ads, and lets you post! [Dismiss]
Top