Received a Bill for State Tax on An Amp Bought in Canada Last Year


Wow! The envelope said “Dept of Revenue” so I figured it may be my car tags due. I opened the envelope to find a statement that I owed $665 for “use tax” on an amp I bought last year in June.  Shocked is an understatement. Yes, I bought a used amp from a guy in Canada through A’gon. But I paid the tariff on it. Now they also want tax.  However, the amount they are basing it on is over double what I paid for the amp. But had to send it to Don Sachs for repair a few months later. So I wonder if they are seeing that as a separate purchase rather than a repair. They even charged me $43 interest which is more ridiculous IMO.
So the question...Are you required  to pay tax on a used amp or other used  items? Has anyone else encountered this? Yes, I know the states are cracking down on the sales tax. But on used items? Wow

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Showing 2 responses by bassdude

I’m not sure what Tennessee requires... but... I thought they defined a "seller" as a legal business entity who sells at retail to consumers, as the type of transaction upon which they levy a sales tax.

I am unaware that they levy any sales tax on a simple sale between two private parties, in which the seller is not such a "seller" as defined by the Tennessee "Sales and Use Tax Code." With the exception of when you register a vehicle or boat from such a sale.

Further, it appears that the maximum sales tax rate in Tennessee by all jurisdictions is 9.75%. To arrive at a "sales tax" bill of $665, would imply the "retail sales price" was $6820 - which does not appear to be the case here.

I’d wonder if the "tax bill" is actually a scam!

I’d contact the Tennessee Dept of Revenue... directly... via their published phone number and ask them. I doubt you’ll find they sent you a sales tax bill for such a transaction on an amp priced as low as you suggest, which was purchased from a private party (not a retail seller).

On the other hand... if... you actually did purchase from a "retail seller" as defined by the tax code... and... the real value of the amp is as you suggest (and not $6820), then you will find the actual "sales tax" is very likely less than $50 or $60.  
Also - when you contact the Tennessee Dept of Revenue re: the sales tax code there, you may want to also determine if they collect sales tax on sellers who do not have a physical presence in Tennessee.  Many states (if not most states) do not.