State of California reaching for Sales Tax

States pay for/receive data on imports from common carriers and customs so that they can levy sales and "use" taxes.

You will need to show the item you sent and that was returned was not a purchase but was an item sent and returned for manufacturer's service. Grimm should have an invoice pro forma you can use.If you have your original purchase receipt showing the article with its purchase in state and the invoice, that should suffice.

I believe the proper reference for articles previously imported, with respect to which the duty was paid upon such previous importation, exported for repair or modification, and reimported is guide 9801.00.26.00. Here is the link:  https://hts.usitc.gov/search?query=9801.00.26.00

It is complex with time limits prescribed.  The key in determine application of tariffs is whether there was value added modifications.  The schedule chart (middle of the chart) indicates reimport is duty free if there was no value added modifications.  If Grimm did not charge for the repair, there is no value added.  You need to get Grimm to send you an attestation in the prescribed format and they need to state no value added even though it was updated as well as repaired.  
 

California law is more difficult to navigate.  Maybe this applies: https://www.cdtfa.ca.gov/formspubs/pub108/nontaxable-charges.htm  
I am not a California resident, account or lawyer.  It appears repair parts greater than 10% of the total repair bill are subject to state tax and labor cost not taxable. Seems like the key is that Grimm repaired at no cost with no value added modifications.  The  customs attestation may  be able to be used with the state as well.   

Good luck   

@carlsbad2

I went through this same thing a couple of years ago when I shipped an Aqua La Scala back to Italy for some updates. It was flagged coming through customs in New Jersey and a CA duty form arrived in the mail shortly afterwards.

I called the state franchise tax number provided and had them walk me through the cryptic online process. As long as you have the shipping waybill and state that it was already purchased/tax paid you’re good to go but no less than a PITA to bother with for sure.

@gordon Technically, any item a CA resident buys out of state and did not pay sales tax in that state then has to pay the sales tax in California. It is a question on the annual CA Tax Return Form.

I had to do the same thing when I lived in Colorado and purchased something in California and did not pay CA sales tax several years ago. The Colorado one was spotted during a random tax audit.

@gordon I've had the same problem in California. Bought a pricey painting from a dealer in Italy. Had it shipped to California, and voilà, I owe sales tax.

@gordon in CA that would be a "gotcha".  No way out of that one.  In my case, I shipped it out and they just saw it coming back.

Jerry

Good luck in convincing the state that they are owed no additional funds…..

A different situation…I bought a pair of new speakers from a Colorado dealer.  The speakers were drop shipped to me from the British manufacturer.  A month later I got a letter from the state of Idaho (where I live) telling me I had to pay state sales tax on the speakers.  The dealer told me not to pay it.  Easy for him to say.  As I was in the middle of refinancing my mortgage, and didn’t want any complications, I paid it.

@facten  Thanks.  Your suggestion helped me figure out how to find tracking.  I didn't use my normal service because it doesn't support international.  I logged into USPS and there it is.

Now I tried to create a login with the state of california and it gives me only 2 choices:

1.  I am the owner of a business.

2.  I am the representative of the owner of a business

Neither of which are factual and if I log in as one or the other, they may use that to find that indeed I am an importer.  No choice for "I am a customer".  I remember this was a problem when shipping it out.

They have a customer service number, M-F 8-5.  I'd almost rather have a root canal than sit there punching buttons for half an hour to try to get to a human.  I'll try next week.

Jerry

I thought you didn't want/like to talk politics, even as an aside.

@nonoise , when he does it it does not count as politics.  

@facten I printed it myself with USPS.

Any reason that you can't get a copy of the original shipping document from whatever company you used for sending over, and documentation from Grimm as to the nature of the service? Doesn't seem that complicated to get the documentation,  end result is a different matter 

It is very consistent with California looking for every method they can to grab money.  They burn through a lot of it.  I could name a lot of other examples but won't.  

I thought you didn't want/like to talk politics, even as an aside.

When I sent an integrated back to Canada for a replacement (since they sent the wrong model) they told me to make sure I declared it as going back for repairs and that they'd send it back the same way to avoid any hassles with customs. They even gave me the code and wording for it. That was over 15 years ago. It's always been a hassle and that work around has long been known as the way to do it. Maybe Grimm could have worked with you on it if they knew your situation?

Now that we have a 'hair on fire' situation with customs, any item that expensive is going to trigger suspicion so they are going to forward anything they have on it to the appropriate state that the receiver resides in. It's not just happening in California. I could name a lot of other examples but I won't.

All the best,
Nonoise

I feel you man.  The tax on that piece is gonna be heavy, at approximately 10%.

Here's more info on that:  CSMS# 17-000046 - Requirements for Subheading 9801.00.10 – U.S. and Foreign Goods Returned

@shtinkydog It is very consistent with California looking for evey method they can to grab money.  They burn through a lot of it.  I could name a lot of other examples but won't.  

Original receipt may help but they may want to see how it got out of the country to be returned. still have't found that. 

Jerry

@carlsbad2 That really is bizarre that CA is assessing a sales tax on your piece.  I've never heard of that happening until now.  If you have the original receipt for the item, I would assume that would be sufficient proof that it's actually "american goods returned" under classification 9801.00.10 of the HTSUSA.   

@tablejockey an others.   This is 2024 but had nothing to do with Biden. This is the sate of CA and it is sales tax.

Please at least read the post before you start posting your political BS.