This is a guest post from Miss T, who blogs at Prairie EcoThrifter. Miss T. grew up in the Canadian prairies and still lives there today. She is passionate about saving money, being healthy, looking out for our environment, and most of all having fun. Her blog shares tips on how you too can live a green, debt free, and fun life. Please read my own guest post at Miss T’s.
This week I am participating in a Yakezie blog swap where I am to answer the question “My Biggest Financial Pet Peeve.” We all have those little things in life that drive us bonkers, even when it comes to our finances. For me, my biggest financial pet peeve is sales tax.
Now to start off I need to clarify that I am not against paying sales tax. I know that this money goes towards services that we all need. What I do have a problem with is how sales tax is presented in different situations. Let me explain the situations that drive me crazy.
- Sales tax on used items. When I buy something on Amazon or Ebay, I have to pay sales tax. If I decide to resell that item later on, the person buying it from me also has to pay sales tax. This to me is ridiculous. The government should not be trying to get tax out of consumers two times around. Used items should be free from sales tax.
- Sales tax not marked on price tags. Where I live in Canada, items in stores are marked with their pre-tax price. For example: You find a shirt in a store you like and the tag says $14.99. When you go to pay for that shirt at the register, you won’t pay $14.99, but instead will pay $16.64 (based on 11% tax). This drives me NUTS. In other countries where I have shopped the final price is marked on the tag; the taxes are included. When I go to the register I know exactly what I am paying ahead of time. For those of us not quick on the math, this makes shopping a whole lot easier.
- Lack of standardization. In Canada and the USA, each state or province has different amounts for sales tax. Where I live the sales tax is 6%, but in just one province over the sales tax is 8%. This gets confusing for local people let alone visitors. Like I mentioned, in most countries the final price is listed on the item with all of the taxes included.
- Sales tax exemptions. Where I live there are certain items that you don’t need to pay sales tax on, like groceries for example. Sure this is nice; it saves me money, but I question why. Why are some things free of tax and others aren’t? Who comes up with these arbitrary rules and what is their justification for them? If I could decide what items I paid tax on and which ones I didn’t, I, along with others, would be a much happier person.
Well there you have it: my biggest financial pet peeve; the one thing that drive me bonkers.
What are some of your financial pet peeves? Please share.
Sales tax is a big enough deal for Amazon to drop its affiliates in the state of Illinois. But I would trade a national sales tax for a repeal of the 16th amendment.
The Biz of Life recently posted..Search and Rescue Over Miyagi- Japan
A national sales tax. Now you’re talking.
Miss T @ Prairie Eco-Thrifter recently posted..Guest Post at Little House in the Valley
I’ve lived with sales tax so long I don’t bother getting peeved about it — I just make major purchases in states that don’t have sales tax, whenever possible.
Before I went trekking in Nepal, I needed a nice, thick, heavy, expensive down jacket. So I bought it in Montana (I was going to be there anyway; it wasn’t a special trip), where I saved at least $20 or $30 by not paying sales tax on it.
Recommendation: it’s actually worth the trip to a sales-tax-free (or tax-reduced) state if you’re going to buy an expensive engagement ring or other piece of jewelry. I personally don’t buy jewelry, but I read about someone who literally saved hundreds this way.
Paula @ AffordAnything.org recently posted..Giving to Japan- More Complicated than You Think
@ Paula I agree. In fact my parents often drove us to the states as kids to get our clothes for school. They still shop down there. The only issue is we have to watch the exchange rate since this can sometimes offset the savings in tax.
Miss T @ Prairie Eco-Thrifter recently posted..Financial Pet Peeves
I wish we have sales tax! Well, that’s not true. I with we have sales tax instead of state income tax. My state get 10% off the top from all my income! We don’t have sales tax, but I would rather have 10% sales tax than 10% income tax.
I know in CA, they have both sales tax and state tax. Now that really suck. I agree with paying sales tax on used item though, that’s bogus.
retirebyforty recently posted..Biggest Financial Pet Peeve- Greedy Banks
You think that’s rough, try Canada. Where I live I pay 43% income tax plus 12% on everything I buy with the exception of food. This means I lose over half of my income to the government. It SUCKS!
Miss T @ Prairie EcoThrifter recently posted..Financial Pet Peeves
Miss T, that’s about the same as in the US. Between income taxes, property, usage and excise taxes, about half our income goes the state and federal governments. *And* we get taxed on food.
I’m just glad we don’t have VAT here!
Moneycone recently posted..A Review of OptionsHouse’s iPhone App
Very good post here Miss T! As far as sales tax goes on Amazon and eBay, I’m not sure how it is in Canada, but in the US, you only have to pay sales tax on items sold within the same state.
Jacob @ My Personal Finance Journey recently posted..Taking Responsibility for Your Actions
For us it just depends on who makes the product I think.
Miss T @ Prairie Eco-Thrifter recently posted..4 Tips for Getting Healthy
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