NVM + 2011
• jewels
Ten Reasons to Not Pay Tax on Jewelry [ B y S cott B ohall ]
David Letterman is the king of the tongue-in-cheek top-ten list, but here is my attempt. The fol-
lowing are the top ten reasons people give me for not wanting to pay taxes on jewelry: 10) I pay enough taxes already. Taxes seems to be a bad word, no matter how low they get. Fees seems better. We will agree to pay initiation fees, late payment fees, ticket broker fees, airline fees, environmental waste fees, etc., with less resistance. In that case, consider the jewelry tax a jewelry fee. (9) Oregon does not charge sales tax. Oregon’s government no doubt did this to cheer up the citizens who’ve had enough cloudiness and rain. Why not purchase a round-trip flight ticket to Oregon for about $600 and see if anyone has this exact same item for the exact same price to avoid the tax?
(8) I am a veteran. While I thank you for your service, there is no legal way to avoid taxes because of service in a military branch.
(7) I want to ship this item out of state. This loophole will eventually be closed, but for now, it is safe. I am shocked, however, at how many times someone is so excited to get a new item and then ships it to another state and has someone there ship it back to them. This can avoid about $100 in tax, but this is like ordering a dinner at a fine restaurant, packaging it to go, freezing it, and eating it a week later. (6) What if I pay cash? I am all for a cash discount—there are many times when I am willing to discount the item more than the amount of the tax. Of course, I still need to charge tax—which is the law.
(5) Politicians do not need the money. Maybe, but since it is the law, I follow it. Furthermore, taxes pay for the services we enjoy. (4) My old jeweler did not charge tax. This is a sensitive one. The “old” jeweler might have died or might have gone out of business (maybe he or she got caught cheating on taxes).
(3) I am a senior. While this gets you a deal on coffee and breakfast, the same courtesy has not been extended to taxes. When I am 65, I do hope they change it. (2) I won’t tell anyone. While I am a trusting person by nature, this phrase has let me down since the first grade when my best friend ratted me out for tossing a dinner roll at the principal. I am not going to risk the consequences on a mere “promise,” and again—I obey national and state laws. And the number-one reason most people want to avoid taxes...is a tie! Yes, Mr. Letterman, I have two final answers.
(1) Cruise ships offer “duty free” jewelry. Getting jewelry duty free may be the worst reason for buying jewelry. People are willing to overpay for jewelry that is made in Hong Kong and then shipped to St. Thomas to be sold at 50 percent off a fictitious price, which cheats the U.S. Government out of the duty on that item. Most of the time, you could go to any mall in any city in the country and buy the exact same ring from the exact same company for less money. I knew someone who overpaid for a lowerquality tanzanite by 2,500 duty-free dollars. Internet purchases are tax free—so far. I’m positive that this will change soon. There’s a lot of money changing hands online, and each state needs the income. Furthermore, unlike a CD or book, there are too many variables when it comes to jewelry—you don’t know what you are getting. Ask any jewelry appraiser how many scams and overstated quality and values he or she sees from Internet purchases.
If you don’t know jewelry, know your jeweler. Meanwhile, pay your taxes and be done with it. AUGUST | SEPTEMBER 2011 North Valley
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