moving/tax/customs question

Hello June,

Yes its called Personal Tax. It was passed into law I believe May of last year and implemented in December. Here are some more details as I had called a few weeks ago to get information about it:

I asked whether it was imposed on all shipments (business and personal) as someone had mentioned prices of items going up because of it.

ANS - NO the tax is Personal - it is charged only to individuals. Businesses already have their own taxes to pay separate from this Personal Tax.

Is it imposed only on items brought in via barge?

Ans -No its imposed on all items brought in for personal use.

How would you collect taxes on items shipped through the postal service? Is there a new form that goes with packages and will the post office collect on your behalf similar to customs fees?

Ans - No the recipiant has an obligation to come in to our office and say they received items by mail that are taxable and pay the tax.

How do you determine the tax? If I were to order an expensive item and had it mailed to me and I ordered from another company 20 items each less then $1000 but invoice totally more then $1000 - what would be taxable?

Ans - You are taxed per invoice not per item. So if an invoice for one item is $999 - there is no tax. If an invoice for 40 items is $1500 you are taxed on the invoice regardless of if the items within the package are all nominally priced.

What about people shipping all their household items that they already owned, things like coffee makers, rugs ect - all together could be several thousand in value?

Ans - for people shipping large quanities of items you must have a packing list, with the packing list an estimated value for each item and a total for all packed items - the tax will be imposed on the total of the packing list for the container of items shipped not an each item.

The personal tax is Total of Shipment or Invoice minus $1000 multiplied by 4%

--Islander

Islander, That is very nice to know. I have already packed about 10 boxes, but each box really is not worth $1000 dollars, each has a packing slip with the weight, numbered, on each box. My intention is to ship one box occasionally when needed. Am I going to be charged when I pick this up at the PO box? Again each box is not worth $1000

Thanks for confirming..

--Linda

Hello Linda,

That was one question I specifically asked about. I asked them if the Post Office collected on their behalf and they said No. I then said so the Post Office is not working in conjuntion with you as they do for collecting customs from businesses. They said no. Then they said that it is your duty if you have shipped an item that is more then $1000 in packing list or invoice total to come to them at their office and report that you have received such a package or shipment and show them the invoice or packing list and pay the tax. If each box of yours is not worth more then $1000 in terms of contents and you are shipping them one by one on different days (so can't be considered one big shipment of multiple parts) then you have no worries.

--Islander

Islander, Thank you so much. That is the exact process we are taking, one by one on different days. I just replyed to your previous message on the storage with this personal tax. You don't have to answer, you answered it here in this.
Again I really appreciate all your help with answers to my questions.

How do you determine the taxable value of an item like a toaster or CD player...is it figured on replacement cost or fair market value? On some items this could make a huge difference.

Hello Andy,

When I asked about used or already owned items they said you have to make a packing list and give approximate worth of each item or fair market value as you said. They don't tax per item but per Packing List or per Invoice total. And its only on shipments that are more the $1000 as the first $1000 are tax exempt.

--Islander