[X]
Feedburner count

2
Helpful
Votes

Soda Vending Machines Informative - TAX on Soda

Review by 20131 on 2006-07-28
ALL OVER -- Ever wondered why, if you buy a soda from a vending machine, outside of a convenience store, it's your ordinary two bits, sixty five cents or whatever. HOWEVER, if you merely walk INSIDE the very same store, buy the same exact soda product from the refrigerated section of the store, you have to pay TAX on the item? What give with that!? The very same product in the machine OUTSIDE the store, you DON'T pay tax on, but when you buy it inside you DO! What the heck gives!
Comments:47 Replies - Latest reply on 2006-08-19
Posted by Anonymous on 2006-07-28:
It depends on what state or city you're in doesn't it? I don't recall getting taxed the last time I bought a pop from the store.
Posted by Anonymous on 2006-07-28:
Well, in my state and several I've visited on business, it's the same case. Odd.
Posted by Slimjim on 2006-07-28:
The sales tax is built into the price like gas and paid by the vendor. Still need Unsolved Mysteries to return your call?
Posted by Anonymous on 2006-07-28:
No, I disagree Slim. But why do you make it a practice of trolling behind me and being so rude in your posts? Addy needs to take a look at your posts.
Posted by Slimjim on 2006-07-28:
You can disagree all you want. In most states (probably all), unless the machine is in a school, church, charity etc.., the vendor builds tax into the price and pays it. Common sense stuff.
Posted by Anonymous on 2006-07-28:
If that were true, why wouldn't they tally up to the same price then? That is common sense. But who am I to argue with an experienced checkout clerk.
Posted by Anonymous on 2006-07-28:
I think PirateWithParrot has a point.
Posted by yoke on 2006-07-28:
Pirate is correct (at least in my state). The soda in the vending machine is say sixty five cents, walk into the store and it is sixty five cents plus tax (or bottle deposit).
Posted by Anonymous on 2006-07-28:
Thanks guys.
Posted by Slimjim on 2006-07-28:
The vendors who stock the machines set the price. If they want it to sell at 65 cents and state tax there is say 6%, they are simply selling the soda for 61.1 cents. While states can vary, I know in cases of machines we have put in our offices that we stocked, we were required to total gross receipts and pay the appropriate tax on said sales.
Posted by Anonymous on 2006-07-28:
Interesting theory, but I find it a bit hard to believe. Can you post the URL of your google?
Posted by Anonymous on 2006-07-28:
It would make no sense to lose money when operating a vending machine, that's where your theory doesn't hold up. Let's see, if I have a vending machine, not only do I pay a price to operate it, but I also lose money while doing so. Thanks slim, but I'd say your google is a bit off.
Posted by Slimjim on 2006-07-28:
Why are they losing money? People in business set prices with profit. Since I was speaking from experience, I had to actually "google" your request. Here is Colorado's procedures. http://www.revenue.state.co.us/fyi/html/sales59.html
What other state would you like me to check?
Posted by glc on 2006-07-28:
Pirate: I used to own vending machines (candy, cigs, soda) and I would have to pay the taxes on the products when I bought them in bulk. Like SlimJim said, the price I charged was inclusive of cost, taxes and my profit margin. But, I do see your point "IF" the machine outside the store is owned by the storeowner.
Posted by Anonymous on 2006-07-28:
Thanks G, I figured I was right.
Posted by Slimjim on 2006-07-28:
That doesn't exactly sound like what he said. LOL
Posted by Anonymous on 2006-07-28:
Using your logic Slim, I guess I'd not put a vending machine in front of my C-store. I'm making more profit by keeping it in the store. LOL.
Posted by Slimjim on 2006-07-28:
As usual, you just can't understand business or English no matter how clear it's made for you. I gave you a google like you asked confirming how this goes. glc also told you how it goes. Soda is taxed, not a revelation. Just like pump gas and cigarettes from a machine are heavily taxed. Go ask the store guy why the machine is cheaper outside if this is going to keep you up at nights. Jeez.
Posted by Anonymous on 2006-07-28:
I read and comprehend well, except when you misspell your googles. I merely made an everyday observation about the apparent lack of tax on a soda out of a vending machine. You're so obsessed with trolling me, you went into a google frenzy to find some obscure, insipid "factoid." I daresay the 2 penny tax on a can of coke is not going to keep me up at night as much as my fear that you are stalking me.
Posted by Anonymous on 2006-07-28:
Pirate, don't go "tander" on us.
Posted by Anonymous on 2006-07-28:
LOL...Pirate you are so funny!!! 'Thanks G, I figured I was right' OMG!!!! You ROCK!!!! :-}
Posted by Anonymous on 2006-07-28:
dealerdirect, there is no reason to be rude or resort to name calling. You say tomato and I say ketchup.. People can have different opinions! You do understand that, don't you?
Posted by DebtorBasher on 2006-07-28:
What do they do when buying cigarettes from a vending machine? Are taxes charged on those? Do they even HAVE cigarette machines anymore...probably not since underage kids would use them...but, my point is, did they include tax with them? We won't get into the Pop vs Soda issue again...you all know how I feel about THAT! But, I think Pirate brings up an interesting issue, things that make you go hmmmm.
Posted by glc on 2006-07-28:
DB: In New York, when purchasing cigs from the wholesaler, I was charged the same NYS taxes that any retailer would pay. The price I set the cigs to vend at included these taxes. I have been out of this business for about 10 years now, and one of the reasons that I sold my business, was that NY was restricting where cig machines could be placed. To the best of my knowledge, in NY anyway, they are still allowed in taverns and restaurants that hold a liquor license. Outdoor placement of machines have been outlawed, as have places like supermarkets and dry goods establishments.
Posted by DebtorBasher on 2006-07-28:
Thanks GLC...that makes since. I can see having those machines in taverns, since underage people aren't allowed in them without an adult.
Posted by Anonymous on 2006-07-28:
Yeah, but I'm talking about pop machines.
Posted by DebtorBasher on 2006-07-28:
I know,Pirate...but the whole tax thing made me wonder what they did with the cigarette machines. Didn't mean to get off the subject.
Posted by Anonymous on 2006-07-28:
Cigarettes, yuk ! I remember as a kid, my grandfather had a coke machine in his automotive garage. You could buy a 6 ounce bottle for a dime! And, here's the best part, in those days, the bottler still used sucrose, not corn syrup so they were extra good. Nothing tasted better on a hot summer day than a ten cent coke, drinking it with your grandpa. (tr)
Posted by spiderman2 on 2006-07-28:
In PA, if you buy from a vending machine the tax is built into the price, i.e 94 cents for the pop and 6 cents tax = $1.00. If you come into the store and buy the drink you will pay whatever the store owner is charging and the tax. AT our store it comes out to $1.05. We do not own the vending machines, they are owned by Coke, Pepsi, etc. IF you want to buy outside and save 5 cents, your selection is going to be very limited. Come inside and you can have your cold 20 oz diet vanilla cherry doctor pepper.
Posted by Anonymous on 2006-07-29:
I'm more concerned that a 1-liter soft drink costs more than a 2-liter. Unreal.
Posted by Anonymous on 2006-07-29:
Actually, in many cases, a 20-oz soft drink costs more than a 2-liter!
Posted by DebtorBasher on 2006-07-29:
$1.25 for 20 oz ... or 99 cents for 2L.
Posted by Frenchie on 2006-07-30:
Slim is more correct than most of the posts. When you purchase at item from a vending machine you will pay tax on it, even in a school (unless the school owns the machines or buys and stocks it). The 65 cents has the tax built in (if you went to 70 cents it would not sell and everyone would go inside) Two ways this is done. If the vendor does not have a re-sale license (required most states) he pays tax on the wholesale cost and then there is no other sales tax -- however most states won't allow too much of this for they want the tax on the final sale.
Since taxes have to be added on to the cost explains how it is done outside of vending machines. A vendor has a resale license and pays taxes upon the gross receipts (after the taxes are taken out - through a formula) He usually gets a l/2 of 1% credit for the bookkeeping. Most
bars that you go in an say pay $1.00 for a beer, tax is not charged but the owner will pay it as I aforesaid. Note if it is a restaurant type and you sit at the table, usually you will be charged the $1.00 plus the tax. I am very knoowledgeable relative to sales taxes. States vary
Posted by DebtorBasher on 2006-07-30:
Thanks Frenchie!
Posted by Anonymous on 2006-07-30:
I don't know Frenchie but it sounds like you are making that stuff up whereas PirateWithParrot talks from practical experience. I'm thinking Pirate is probably right in this case.
Posted by Noneill on 2006-07-30:
I really don't understand the conflict here. Taxes are being paid if there is sales tax in that state. If the machines were to give you a receipt, you could see the tax you are being charged, but I've never seen a vending maching spit out a receipt. Doesn't mean you aren't paying them. The vendors no doubt set the price to include tax, but still come out at an even coin count.
Posted by Frenchie on 2006-07-30:
Sorry awspie but the Pirates Parrot got the facts wrong from the start and kept repeating it until Pirate believed it and then put out a "falsie". Don't thing too hard on it as PWP (is that also parents without partners?--sorry I am wrong Parrot does have a partner, THE PIRATE).Does not have the experience that I have, legally or business wise.
Cigarette Vending Machines worked exactly on the same principle, except that federal and state cigarette taxes
(separate from sales taxes as remited by the vendor) are included in the whosesale price when the vendor buys with the re-sale license. This is part of sales tax 101 --then there is also use tax. All of you go to www.fairtax.org and get on board --GET RID OF THE IRS.
Posted by Anonymous on 2006-07-30:
Yeah, when you put it that way Noneill then it kinda makes sense.
Posted by DebtorBasher on 2006-07-30:
Frenchie...you comment about PWP was uncalled for...PWP is PirateWithParrot...now, it wouldn't be very nice if everyone started to post their version of what your initial "F" meant...would it? But I still agree with your explaination of the taxes.
Posted by Anonymous on 2006-07-31:
Who asked you, french-fry!
Posted by Anonymous on 2006-07-31:
Wrong again huh pirate? (LOL)
Posted by Anonymous on 2006-08-01:
Yeah, and I can't understand how many people try to pass themselves off as car dealers.
Posted by Slimjim on 2006-08-04:
LOL, this thread was worth a return trip for another read. For added enjoyment, I stopped by pirate's profile first so I could read his self awarded title "Pirate -THE most trusted advisory on M3C!" You can't buy good stuff like that.
Posted by Anonymous on 2006-08-04:
Sorry dealer dumb-dumb, you'll have to find your fantasy-man elsewhere.
Posted by Anonymous on 2006-08-07:
Even more funny is Slim trying to pass himself off as an appliance "advisory."
Posted by Slimjim on 2006-08-08:
Hmm, coming from the guy who told someone whose building washing machines were dirty and moldy, to call the super to make sure they are level. Do you suppose that cleaned them right up?
Posted by Anonymous on 2006-08-19:
Dunno, next time you wander by with your mop and bucket, check them out!

Your Name:
(displayed with your comment)
Your E-mail:
(required)

Your Experience/Advice:
Check spelling


By clicking submit you agree that you have read and accept the Terms of Service & Privacy Policy.


Note: All comments are reviewed by a moderator before being published. Please be sure to read our guidelines before commenting.