PSA insanity (So funny I had to post but OT)
 

Recently I received a card in the mail urging me to renew my PSA subscription for an annual price of $100. This includes all the usual goodies (6 free submissions, a handful of cardsavers, another copy of Joe's book, yada, yada, yada.)

I did renew and enclosed my check for $100.


Today, I get a bill in the mail showing that I still owe them $6.60 for some unspecified "tax." Of course, it's after 5:00 PM in CA and their offices are closed, so there's no one to answer my questions.

But apparently, they think I owe CA sales tax on this service. Lawyers feel free to correct me, but my understanding is that they are only required to collect sales tax for state in which they have a physical presence (nexus). They are in CA. I live in TX. Legally, I may owe TX a Use Tax, which TX has trouble collecting because they have no income tax and hence no annual forms to file, meaning even the most honest people have no easy mechanism to pay this tax. In no case would I owe tax to any other state.

Has this happened to anyone else? I know it didn't happen to me last year.

Nexus
 

I'm no tax lawyer, but I don't think nexus is limited to a brick-and-mortar establishment. I think the simple presence of a sales representative who does sufficient commercial activity in the state might be construed as nexus in certain cases.

That having been said, I'm not sure even that broad definition would apply to PSA in this instance.

i renewed
 

I renewed my membership, sent a check for $100 and that was it. No $6.60 bill for me. Strange stuff...

[ ] insanity
[ ] funny
[?] ot

is there an advantage or something else i'm not seeing to renew right when psa send the notice? i just let them run out and when i actually have a submission then just order the membership again...if i renew it could be months where the membership is doing nothing (i'm all over the online SMR tho...hmmm)

$6.60 makes no sense as the CA sales tax rate is 8.25%.

Why rejoin? Doesn't PSA accept single submissions now? It is $15 for a regular 10 day grading service. It's cheaper not to join, unless the extras are worth more than $10 (or $16.60).

the extra yearly stuff is probably worth $10, not to mention the latest book(s) written by joe orlando...

Again, I get most of my legal knowledge from Google and Wikipedia, which is a dangerous practice, but my understanding is that that interpretation of nexus is a state by state issue and Texas hasn't addressed the issue yet. New York, Rhode Island and North Carolina have expanded there law to include web only operations.

I could do without a new copy of the book every year. I gave the last one away.

The six "free" submissions covers the annual fee, and I like the online info.

We've had this discussion before on the board and I'm not aware that PSA lets you submit repeatedly, without being a member. I thought we discovered that they don't.



Edited to add: And Quan, I did the same thing with the renewal. My subscription lapsed for a month or so before I renewed.

renewing
 

I am certain you need to be a member to submit. I asked for no book with my last renewal, and they thankfully listened. Otherwise I would have recycled it.

It's a special "The Hell With Texas" fee, owning to the outsize pains in the butt most of you cause.

J/K

I have no idea what that would be about; it definitely isn't sales tax for CA.

LOL! It's far too low to offset Texas size pains in the butt.

A customer service rep told me this morning that PSA "charges sales tax for Texas". I told her if that was the case, it's the incorrect amount. Like most states, Texas Sales and Use taxes vary, based on where you live. 6.25% is the statewide number, but local municipalities can add up to 2.0% more. So an arbitrary 6.6% makes no sense.

I then asked her for their Texas Sales and Use Tax permit number, or, at the very least, what corporate name it had been issued under.

Response was silence. (I had already checked the State Comptroller of Public Accounts. No permit has been issued under the names of Collectors Universe or PSA.)

She promises that a "supervisor" from the "Accounting Department" will call me back after they get to work. Apparently, they don't start work until "after 9:30 or so.")

a suggestion
 

Hey Jim
I would have to guess the California State Comptroller would call you back fairly quickly :).

Their rep claims they have a Texas permit. The Texas Comptrollers web site seems to disagree. I don't think California has a dog in this fight, because in no way would an out of state person owe any tax to California.


Texas has expanded their attempts to collect more of this tax in recent years, but I suspect some retailers "collect" it but, perhaps, never get around to sending it to Austin.

I'm not saying PSA would do anything like that...

my thoughts
 

Since they are probably a California Corporation, and might be collecting sales tax, is the reason I mentioned them. I imagine if they are collecting tax FOR Texas then our State Comptroller might be interested. I know our State Comptoller's office picks their phones up on almost the first ring. It's amazing how different agencies act (note sarcasm in my tone)....regards

My guess is they do this for the free publicity on Net 54.
JimB

That would be aweful!


:)

Wouldn't it be easier to just erroneously slab another trimmed/counterfeit/altered card?

It's a media blitz; they're trying to cover all of their bases.

I am sorry my sense of humor is so dry. My wife does not always appreciate it either.
JimB

Do you get taxed on memberships or services? Here in Mass we don't (yet)
I suppose it could be tax on the stuff you get with the membership, but here they treat that sort of stuff as free things they give to get you to join. A similar enticement to buy just like most cards.