That's why the state likes big corporate businesses more easily tracked and compliant. For many smaller businesses or not-for-profits, sales tax is largely reported on the honor system. A little for them and a little for me....In some cases nothing for them, and getting greedy attracts attention especially when you talk about it.
Tebb's Head Shops were located in several upstate cities and villages in a brazen attempt to sell previously unregulated drugs like 'bath salts" in normal storefront locations.
A Tebb's Head Shop in Syracuse Raided
But they have to be looking.
In our industry they have gone to making distributors report product sales to an establishment so that in an audit they can extrapolate sales . Fact is if you are at that point, they have already decided you are going to pay.
Best solution ? Just file on time and pay up.
Bath Salts Seller John Tebbetts
Oh and another thing. People buying drugs really are not having their sales tax remissions "stolen" as they likely have no expectation or understanding of such a collection. They are just paying twenty bucks to get high and be useless.There is an interesting ethical question about whether as local government officials we want to be receiving and spending "blood money" from the sale of a harmful product.....Some would argue if Mr. Tebbett's had paid sales tax, our local municipalities would have had more money for essential services. Of course saying you don't want that kind of tax revenue would involve government having a conscience.
Watertown Daily Times | AG: Tebb’s Headshop owner evaded $300K in sales tax
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