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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (162170)	10/16/2000 12:43:32 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Here's a footnote on the tax discussion from stubba on the Yahoo thread rudedog - si sales tax discussion by: stubba 10/16/00 12:02 pm Msg: 366928 of 366941 you might want to mention to the si thread that DELL uses different legal entities to help solve sales/use tax problems Dell has a marketing entity that is responsible for all the relationship type business that would create nexus in any state. This entity collects sales tax from the customer on all sales shipped to any state. Dell has a catalog sales company that as the name implies is strictly for transaction type business where no nexus need be created. The customer is responsible for any applicable use tax. Dell spends a great deal of time and effort educating the sales and support staff the appropriate responses to customers that inquire about sales tax issues. Many of the sales tax agents from various states call posing as customers interested in avoiding sales tax in attempts to catch DELL using illegal practices. Posted as a reply to: Msg 366910 by rudedog_from_SI messages.yahoo.com

To: rudedog who wrote (162170)	10/16/2000 12:43:34 PM
From: edamo	Respond to of 176387

bob...that is the problem, "nexus" is easier to establish then some think........ every jurisdiction wants something...surprised that dell has escaped it for so long...probably because their large clients use direct pay permits.....they will become visible at some point in time to local jurisdictions.... cpq, gtw, ibm, hp all collect tax on their direct sales shipments.....why is dell any different? the federal issue has been going on for a long time...years ago the city of philadelphia received no wage tax from federal employees who worked at the philadelphia naval shipyard. many workers lived in new jersey and would ferry to work...it took awhile, but courts decided that the city could apply tax liens against the employees whether they lived in the city or not, inspite of the fact that they worked in a federal enclave, and never set foot in the city...the same applies to professional atheletes...they are liable, proportionately, for wage tax on monies earned while playing in the city. local jurisdictions have arms much longer then people think!!! curious... regards and best of luck...ed a.