Bud's is open in Sevierville

[Sam1]

Yes, we are paying more due to tax but using the same sales price as compared to online Bud's is making less due to the expense of employees and rent for brick and mortar.

I prefer in person vs online shopping and they are 20-25 minutes from my house so this is a good deal for me.

Bud's is also creating jobs in TN as well.

 

See the problem is that the ONLY reason Bud's was desirable was because they had low prices, by them opening up a shop here, it automatically jacks up everything we see online now by 10% (roughly) which puts them right on par with most other shops.  Bud's will see a drop in online purchases from TN, because hiring people here or not, people are not going to pay an extra 10% just for 5 or 6 jim bob's to have a job 4 hours away from their house.

Give it some time and you'll rarely hear of anyone here ordering from bud's online again... They may be able to compete with local shops easily, but online ordering will drop dramatically from our state.

[luvmyberetta]

Yes, we are paying more due to tax but using the same sales price as compared to online Bud's is making less due to the expense of employees and rent for brick and mortar.

I prefer in person vs online shopping and they are 20-25 minutes from my house so this is a good deal for me.

Bud's is also creating jobs in TN as well.

 

+1. Because of my remote location I usually had to drive 150 miles round trip to Knoxville for FFL transfers because my LGS gouges big time. It was actually cheaper to make the drive than to pay local FFL fees. There's another local FFL I've used before, but he has a full time out of town job & is only home certain days of the week so that's not always an option. Making the extra drive to Bud's wouldn't be any more expensive for me, plus it would allow me to look at the gun in person before buying. The nearest public range is almost an hour away so I'll probably make use of that at Bud's too.

[runco]

The only Amazon purchases that are not taxed are when the actual seller of the item is located in a different state than you. Many Amazon items are sold by a third party vendor and only shipped or facilitated by Amazon, so no TN tax applies. But whenever the item is actually sold by Amazon then you pay the tax, regardless of which warehouse they ship it from. I have no idea if BUDS is charging the TN tax on their website yet, but if not then they are breaking the law and will likely fix that very soon. So the only time I could see a TN resident not paying tax to BUDS is if BUDS sells items on consignment where they are not the seller in any way,

Are you assuming the business charter for Buds in TN is the same business charter for Buds in KY? 

[wileecoyote]

[quote name="Runco" post="1172709" timestamp="1406504964"]Are you assuming the business charter for Buds in TN is the same business charter for Buds in KY? [/quote] I'm assuming that BUDS in TN will be owned and run by the same company and in the same way as BUDS in KY. If so then then they cannot sell TN residents merchandise (from any location or method) without charging sales tax, as that company now has at least one retail store, outlet, office, warehouse, facility, subsidiary, etc. within our state. Even if they did change the name of the new store, it won't matter if the legal and financial ownership is the same. Since BUDS is already advertising the new location on Facebook and in the local store, I don't expect them to become magically separated. If there was some simple loophole to avoid charging sales tax, all companies would do it, as they know they will lose some business because of the extra penalty for local residents.

[Oh Shoot]

I'm assuming that BUDS in TN will be owned and run by the same company and in the same way as BUDS in KY. If so then then they cannot sell TN residents merchandise (from any location or method) without charging sales tax,....

 

If indeed you can buy online without the tax right now, suggests they may have gotten a deferral for a period of time ala Amazon. Or perhaps there's even a delay written into the TN tax code for all I know.

 

- OS

Edited July 28, 2014 by Oh Shoot

[runco]

I'm assuming that BUDS in TN will be owned and run by the same company and in the same way as BUDS in KY. If so then then they cannot sell TN residents merchandise (from any location or method) without charging sales tax, as that company now has at least one retail store, outlet, office, warehouse, facility, subsidiary, etc. within our state. Even if they did change the name of the new store, it won't matter if the legal and financial ownership is the same. Since BUDS is already advertising the new location on Facebook and in the local store, I don't expect them to become magically separated. If there was some simple loophole to avoid charging sales tax, all companies would do it, as they know they will lose some business because of the extra penalty for local residents.

First, you are probably right.  However, I have first hand knowledge of companies that to the unbeknownst public appear to be the same, same cosmetics, same footprint, etc, but the actual ownership is not the same.  There are licenses paid for the marketing name only, for name recognition.  Sometimes we know these as franchises, sometimes they are just individual co. that paid a fee to have a certain license to market a name. What if, this is the case here?  Would that change the sales tax collection?  BTW OS argument may be valid as well.  Until I know about the sales tax issue from their web site, then I am not concerned, and then if does happen, I will pay like I always have either involuntary or voluntary ;)

[wileecoyote]

[quote name="Oh Shoot" post="1172746" timestamp="1406511574"]If indeed you can buy online without the tax right now, suggests they may have gotten a deferral for a period of time ala Amazon. Or perhaps there's even a delay written into the TN tax code for all I know. - OS[/quote] Much more likely that they just haven't invested enough money or time to update their custom website yet, which is not so easy or simple when you expand to deal with multiple states and different tax rates for each county and in some cases city or regional taxes. And even if their website doesn't charge tax, I wouldn't be surprised to see them manually add it when processing your order, until their website is updated.

[Oh Shoot]

Much more likely that they just haven't invested enough money or time to update their custom website yet, which is not so easy or simple when you expand to deal with multiple states and different tax rates for each county and in some cases city or regional taxes. And even if their website doesn't charge tax, I wouldn't be surprised to see them manually add it when processing your order, until their website is updated.

 

Actually, I'd think that quite unlikely .. they've had a year or whatever to prepare. And likely the tax option is built into interface for the shopping cart software, just as I can change my tax options for any state on my eBay sellers account.

 

- OS

Edited July 28, 2014 by Oh Shoot

[wileecoyote]

[quote name="Oh Shoot" post="1172785" timestamp="1406516047"]Actually, I'd think that quite [b]un[/b]likely .. they've had a year or whatever to prepare. And likely the tax option is built into interface for the shopping cart software, just as I can change my tax options for any state on my eBay sellers account. - OS[/quote]It's not only likely, it's nearly certain. They are not a huge corporation running a pre-packaged website built on a standard template or hosted ASP service that is used by thousands of other retailers or sellers, such as Amazon or eBay. BUDS website was custom-developed and is substandard in many ways from a technology point of view, so it was almost certainly built on a tight budget and repeatedly patched and updated over time, based solely on their specific requirements which until recently never included complex multi-state tax scenarios. Even when the technology solution is straight forward, it's rarely quick or cheap to implement on a custom website platform, and like any growing business the owners don't make it a top priority when they have much more important expenses such as opening the new location, hiring staff, advertising, etc. If they were rolling in cash and had thoroughly updated their website already, you would see more than just tax showing up, you would see lots of online advertising and promos for the new location. Instead they only mention it on Facebook, likely because that's quick, easy, and cheap, but also because they aren't ready to drive huge traffic in yet. I'm actually all in favor of BUDS having some super secret magic power to avoid charging TN residents sales tax. But you keep wishing for that to happen, and I'll put my money on the taxes coming soon to a theater near you, and we'll see who wins. :-) Edited July 28, 2014 by wileecoyote

[Oh Shoot]

... I'm actually all in favor of BUDS having some super secret magic power to avoid charging TN residents sales tax. But you keep wishing for that to happen, and I'll put my money on the taxes coming soon to a theater near you, and we'll see who wins. :-)

 

Oh, whether it's an easy mod like I think or a difficult kludge as you do,  I'm pretty sure that when they are required to start collecting sales tax, their shopping cart will add it.

 

I don't see them thumbing their nose at TN tax requirements from day one.

 

- OS

[Guest 04 Rocko Taco]

Thank's for the report!   Sounds like it's time to make a Bass Pro/Beef Jerky store/SMKW and now Bud's run.

 

This sounds exactly like the trip I have planned.
I normally stop in at whatever the new name is of what used to be Brass Bullet Army Surplus as well. 

[gjohnsoniv]

Ended up with this from my Bud's run today.  Needed a lower anyway.

 

[URL=http://s1246.photobucket.com/user/gjohnsoniv/media/output_zpsvwhadsi8.jpg.html][/URL]

[Oh Shoot]

Ended up with this from my Bud's run today.  Needed a lower anyway.

 

 

K2 Grip? Sensing pistol build? ;)

 

- OS

[gjohnsoniv]

K2 Grip? Sensing pistol build? ;)

 

- OS

It's your fault actually.  I liked the one on your pistol so I went out and bought one when I got the lower.

[Oh Shoot]

It's your fault actually.  I liked the one on your pistol so I went out and bought one when I got the lower.

 

Suspected, hence the winkie poo. :)

 

- OS

[gjohnsoniv]

That A2 grip just won't cut it anymore now that I have that K2.

[Oh Shoot]

That A2 grip just won't cut it anymore now that I have that K2.

 

Yeah, lots of people like them on any type AR, but for sure with any kind of short LOP they are the bomb. Pretty sure I'd like one on my pistol that was actually completely vertical.

 

- OS

[gjohnsoniv]

Even stuck on a full length stock rifle it's comfortable.

[Sidewinder]

Was completely clueless to this happening. Guess we have to pay sales tax if we order from Bud's online now.

Major, I was thinking the same thing about taxes. To me, that was a big attraction to Bud's. No offense to those that live in the local area, as I realize it's a convenience to be able to hold the goods in your hands. But for those that live too far away, it only means we pay more in taxes, and takes away one of the big attractions to Bud's.

[wileecoyote]

[quote name="Oh Shoot" post="1172913" timestamp="1406564818"]Oh, whether it's an easy mod like I think or a difficult kludge as you do, I'm pretty sure that when they are required to start collecting sales tax, their shopping cart will add it. I don't see them thumbing their nose at TN tax requirements from day one. - OS[/quote] So I called BUDS website telephone order center today and spoke with a sales rep. I explained I was a Team BUDS member living in TN and that I heard they recently opened a store in our state, which he confirmed. Then I asked if they were now going to charge sales tax on all TN resident purchases, and he said he didn't know because nobody ever asked that before, so he put me on hold to check with a manager. He came back after a few minutes to report the manager saying that they don't have to charge TN sales tax unless you buy in the TN store, because all website orders are shipped from Kentucky. He also admitted that this didn't sound right because he was aware of the laws requiring companies to charge tax whenever they have a presence in that state, but that's what his manager told him to say. I then checked the actual TN code and confirmed that they are in fact required by law to charge sales tax, regardless of how or where the order is placed or shipped from. I then checked with a contact at the TN department of revenue, sales tax division, and she confirmed that BUDS is required to charge TN sales tax on all sales to TN residents, just as the law states, and she confirmed that BUDS has no special exemption or free pass. Now don't worry, the inquiry was done discretely as an unofficial favor, and will not result in any report or investigation by the revenuers, but it confirms that for whatever reason BUDS is currently operating outside the law. This will certainly catch up to them (and us) soon, so shop now while you still can.

[Oh Shoot]

Has anyone actually bought something through

 

So I called BUDS website telephone order center today and spoke with a sales rep. I explained I was a Team BUDS member living in TN and that I heard they recently opened a store in our state, which he confirmed. Then I asked if they were now going to charge sales tax on all TN resident purchases, and he said he didn't know because nobody ever asked that before, so he put me on hold to check with a manager. He came back after a few minutes to report the manager saying that they don't have to charge TN sales tax unless you buy in the TN store, because all website orders are shipped from Kentucky. He also admitted that this didn't sound right because he was aware of the laws requiring companies to charge tax whenever they have a presence in that state, but that's what his manager told him to say. I then checked the actual TN code and confirmed that they are in fact required by law to charge sales tax, regardless of how or where the order is placed or shipped from. I then checked with a contact at the TN department of revenue, sales tax division, and she confirmed that BUDS is required to charge TN sales tax on all sales to TN residents, just as the law states, and she confirmed that BUDS has no special exemption or free pass. Now don't worry, the inquiry was done discretely as an unofficial favor, and will not result in any report or investigation by the revenuers, but it confirms that for whatever reason BUDS is currently operating outside the law. This will certainly catch up to them (and us) soon, so shop now while you still can.

 

Appreciate your research, really. Still hard to believe they'd be that out of the loop, especially with all the communication they must have had with the county/city/state to get licensed for the TN brick and mortar, but maybe so.

 

Definitely no tax shown on website up to the final click to confirm order though -- I'm still wondering if they haven't done something with the business structure of the Sevierville store to avoid legally having to pay it for online purchases though (or at least think they have).

 

- OS

 

Edit, just found this from 8 hours ago on the Sevierville store FB page from a Bud's employee, FWIW:

 

"Joe Murphy There is no sales tax for TN purchases online. Not sure who told Mr. Cornett that, but that is incorrect. Buds TN is a different entity than Budsgunshop.com. There will be a transfer fee for online purchases shipped to the TN location but no sales tax."

Edited July 30, 2014 by Oh Shoot

[Hershmeister]

This ^^^^^ Two different corporations are the trick

[ghawk249]

I have been out of touch recently and have been reading all the posts concerning the sales tax issue on purchasers from Buds in KY. On any transfers there will be a $25.00 transfer fee + TICS. We are in fact the first franchise for Buds GUN Shop. Most of our inventory if not all has been priced to help compensate for the sales tax. Please come by and visit our store and see why we are so proud.

[xRUSTYx]

Ok ...

 

Just did the research.  www.BudsGunShop.com is its own entity.

 

Here's the entity filing for KY:

https://app.sos.ky.gov/ftshow/(S(mt1z4uurozr5yuymtmbh3bzb))/default.aspx?path=ftsearch&id=0664678&ct=06&cs=99999

 

Buds Brick & Mortar in KY:

https://app.sos.ky.gov/ftshow/(S(s0wxnfyyco2r241zfxp2fz5s))/default.aspx?path=ftsearch&id=0497139&ct=04&cs=99997

 

Buds Brick & Mortar in TN (Filed as a KY LLC):

https://tnbear.tn.gov/ecommerce/FilingDetail.aspx?CN=064036207055215150246061028061026189085043068148

[Mark A]

I wish I'd remembered this yesterday when I drove right past the exit...