dclark wrote: gdanmitchell wrote: dclark wrote:
My purchases at B&H with the Payboo card show the full product price, with sales tax on the full product price, and then a discount equal to the sales tax amount.
California and San Diego County get paid the full sales tax amount.
I get a discount.
B&H has managed to discount their products without violating their agreement with the product supplier..
The credit terms are predatory, so you need to be careful the pay the balance every month.
That’s how I understand it, too. It isn’t that there is “no sales tax.” It is that the actual sale price ends up discounted to the point that the total with tax added is equal to the listed price of the item. The price of a $100 item is reduced to the point that the discounted price plus tax equals $100, for example.
And you are certainly right about the “predatory” credit terms. If one is foolish enough to not pay off the full balance every month, the interest rate is well over 20%!
Payboo is a fine way to reduce costs a bit without bargaining, but a horrible way to finance purchases that you can’t pay for right away.
I believe you are a bit off. If I buy a $1000 item, the sales tax is 7.75% which is $77.50, the total is $1077.50. I get a $77.50 discount from Payboo, and California and San Diego get $77.50. I pay Payboo $1000.00 to clear a sale of $1077.50.
It is not that the price of the item is discounted to $928.07, plus tax of $71.93, so the total sale is $1000.00. That would violate the agreement B&H has with the product owner to not discount the price, and it would lower the revenue to the state and county. B&H would be discounting the price, rather than Payboo giving me a discount on how much I have to pay.
I just checked a recent B&H transaction of mine, and it looks like you are correct, though I still can’t quite make sense out of the accounting going on. At some point, B&H/Payboo are discounting the price of the item, at least for accounting purposes, since the state/jurisdiction of the buyer still gets the tax on the full purchase amount, at least according to the receipt.
Using your example, what we see is:
$1000 item
$77.50 tax
$1077.50 total
-$77.50 “Payboo card savings”
$1000 “you paid”
Clearly there is a discount going on, and it is equal to the tax on the full, original purchase price of the item(s). My hunch is that somehow B&H is able to circumvent the rules about discounts from list price by saying that Payboo someone does the discount, not B&H. How that discount gets funded is a fascinating question…
Nov 27, 2024 at 02:35 PM
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