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This seems pretty crooked to me...

Discussion in 'The Okie Corral' started by IndyGunFreak, Jul 17, 2012.

  1. IndyGunFreak

    IndyGunFreak

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    Earlier today I went to buy a wheel for my Mom's car after she went "curbing". Took a while to find one, and when I did, it was about a 30mi drive. I get there, tell the guy what I need, and he told me $35.. which seemed reasonable, especially considering I didn't have to pull it.

    He rings me up, and get this, I was charged $4 for the wheel, $.28 Tax, and the balance was "shipping and handling"... lol. I was standing right at the counter.

    I'm assuming shipping charges are not taxed. I've always thought junkyards would be a place to own that would be a nightmare for the IRS to audit.
     
  2. Breadman03

    Breadman03

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    The cost of fuel has made it very expensive to ship across a 28" counter.
     

  3. Resqu2

    Resqu2

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    I guess in all reality someone did have to handle it to get it off the car. Good loophole for the guys I guess. I know sellers on eBay used to charge $1 for an item plus $100 for shipping to get around eBay fees but that didn't last long.
     
  4. larry_minn

    larry_minn Silver Member Millennium Member

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    Lets see if I get this. You want a bone-yard tire. They have one, They tell you price, the receipt is price plus tax..
    You complain?

    I hauled in junk pickup for neighbor early spring. IIRC he got just under $200. I got permission to grab headlight bulbs, some other stuff. (works in my pickup)
    So they have guys who go into yard and remove stuff for buyers. Those folks not only remove items but record what it is, what car/yr/make... It was. Then they store them, keep records where stuff is....
    And you figure its all just grab rim you want/hand it over counter??
    Whats it cost to have your car tires removed? Then remove rim from wheel, Do this in junkyard..
     
  5. MoparMan1991

    MoparMan1991

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    Remove the rim from the wheel? I'd like to know what kind of places do you go to.
     
  6. IndyGunFreak

    IndyGunFreak

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    I didn't say I had a problem with it, it just struck me as odd as the item clearly was not shipped, and I'm sure if they got the wrong customer, the IRS would be very interested. I think a better thing to put on their receipt than "shipping and handling" would have been "labor".

    As for removing the tire, etc.. He went and grabbed it out of a huge stack of rims that were in a pole barn, so there was no tire on it anyway. I'm sure at some point, a tire was removed from the wheel before it was stacked and no, I would not have a problem paying for this, or paying for a tire if they had sold me the wheel with a tire. As for putting a tire on it, etc... I handled that at a tire shop, and it's unrelated to the scrap yard.

    IGF
     
  7. RichJ

    RichJ

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    A $35 automotive part is cheap anyway you look at it. Call it a fee, call it tax, call it anything you want because it's still only $35 in the end for what you need.
     
  8. Z71bill

    Z71bill

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    Many states charge sales tax on the physical item - but not on the labor/service part of the bill - IF LISTED as a separate charge.

    You hire someone to build a deck on your house - you negotiate a total price - all in -- $6,700.

    Material gets taxed - labor doesn't - if the bill says

    Wood $2,500
    Labor 4,000

    Tax on wood @ 8% $200

    Total $6,700

    If they just hand you a bill for $6,700 they will pay $496.30 in tax.

    Job will be $6203.70
    Tax @ 8% 496.30
    Total $6,700.

    The business would rather keep $6,500 VS $6,203.70
     
  9. ron59

    ron59 Bustin Caps

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    In some states, I believe... even LABOR is taxable.

    Shipping/handling isn't. They want the maximum "net" from the sale, not Uncle Sam.

    I don't blame them... the IRS can go straight to hell as far as I'm concerned.
     
  10. IndyGunFreak

    IndyGunFreak

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    Yeah, Labor is not taxed here in Indiana.

    I just found it weird they listed it as "shipping and handling" as opposed to "labor".

    I just thought it an interesting way to put it on the invoice, thats all.

    Also, I think many of you are missing the point of this thread. I'm not complaining about the price, or begrudging the scrap yard for attempting to make money. I just think if they ever got audited, they'd have a lot to answer for.
     
  11. Dennis in MA

    Dennis in MA Get off my lawn

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    Crooked auto guy? Is this the street he's on?

    [​IMG]
     
  12. ron59

    ron59 Bustin Caps

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    I just thought of something. In your first post, you mention the IRS.

    SALES TAX is a state/county/city thing, not federal, right? The IRS wouldn't be auditing/investigating over discrepancies there. Now, the state certainly might, but most state government agencies can't find their ass with both hands.

    Again, just a technicality, I do see your point about why they're doing it that way.

    Also... in SOME cases, it looks like labor charges *are* taxable in Indiana.
    http://www.in.gov/dor/reference/files/cd22.pdf
    Looking at Example 12, installation charges for the subwoofer (yeah, that's labor) would be taxable.

    I don't see an appropriate example of you case in that document, but they may know something you don't know, or just wanting to make sure it's not an issue regardless.

    I dunno.
     
    Last edited: Jul 17, 2012