saving 4 dollars on sales tax by rewriting a reciept?

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saving 4 dollars on sales tax by rewriting a reciept?

Post by LH » Mon Aug 20, 2007 11:23 am

After making a sales clerk rewrite a bill for earrings to save $4 in sales tax, she reportedly said: "That's how the rich get richer." Her lawyers suggested that the government came after her to make an example of someone with high visibility. ... _article=1

Was reading the drudgereport today, and saw the quote above. How does one save 4 dollars according to the way the sales receipt is written? I assume they must have been expensive earings and such. But if I can save sales tax somehow, say buying a car, or whatever, depending on how the receipt is written, I would like to know how.

Of course, she did end up going to jail for 21 months for tax evasion. But I would still like to know what they are referring to. Anyone have any ideas what it could be?



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Mel Lindauer
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Post by Mel Lindauer » Mon Aug 20, 2007 12:23 pm

Hi LH:

In some (all?) states, certain items are exempt from the sales tax, so she may have made the clerk indicate that she purchased something else that was tax-exempt. An example: In PA, clothing, including shoes, is exempt from the sales tax. Golf shoes, however, are not tax-exempt, so if the recepit simply said "Shoes" rather than "Golf shoes", that would make a taxable purchase become tax-exempt.

I'm sure there are lots of other examples that folks could come up with.



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Post by mickeyd » Mon Aug 20, 2007 12:41 pm

In TX, tax exempt organizations do not have to pay Texas sales tax if proper documentation is presented at the time of sale. Maybe she ran it thru a tax exempt organization that she was a part of.
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