Linky

I realize that's just a IRS newsroom statement but I'm with an earlier poster.... I bet it's a mistake.

This is an excise tax. Which means it is a tax based on the business done, not a tax on income or a tax on property. Other examples of excise taxes include taxes on fuel.  The taxes on fuel are used to help repair our roads – and they are applied to fuel taxes because those who use fuels the most will be using the roads the most – so they pay more for that use. Sports fishermen pay an excise tax – they pay a 10% tax on rods, poles, reels, as well as 3% on tackle boxes and 3% on outboard motors. These taxes invest in improvements in sports fishing, and fish populations and have served to restore fish populations tremendously. Other examples of excise tax include taxes at airports that help pay for the air port facilities.

http://yourdoctorsorders.com/2012/11/medical-device-tax-obama-care-what-is-it/

Well, I guess I'll look at it this way - looks like I just got $11.97 in what is essentially Cabelas points.

I went to Cabelas today and

only paid the sales tax. However, the check out girl did mention something about their new tax. The managers were bouncing between the registers fixing totals, so maybe the Op's Cabelas just didn't take the tax off?

America Wanted him...well you got him.

I, for one, salute our new FSA overlords!

Fitness equipment (workout clothing) being considered a "medical device"?

Weird shit for sure.
Hopefully it is just a corporate accounting software screw up and not yet another hidden gotcha in the "have to pass it to find out whats in it" law.

Cabelas has there own brand, correct? So if they made anything, say like orthopedic shoes or something wouldn't that make them required to charge the tax?

Just thinking.

Spoke to my father today as he went to Cabelas and he mentioned a similar story.  No medical excise tax on his receipt but he overhead one of the cashiers mentioning that they had the new "tax code".

Whether this is legit or not, I do hope that companies do itemize Obamacare on their receipts, so the people who think it's going to save everyone money realize the truth.  It would be nice if all companies get together on this and call it something on the receipt.........like Obamacare.
On a side note, I hope employers tell, employees of their extra health insurance costs that come from this forced birth control coverage and carrying employees' kids another eight years on their h. insurance policies, etc.

Soooooooooooooo, a friend asked me .... What about sex toys?

Why can't Cabela's legally keep the money?  If someone comes and asks, Cabelas will probably give them a refund.   Cabelas may even refund the credit card transactions.  



But for people that paid with cash/checks, that don't ask for a refund, I bet that Cabela's can keep the money.  I've worked with large companies that did that.  



 

I bought a 1 pound jug of Hodgdon H335 today and they charged me this tax. When I called the store after I got home, they told me it was an error and they were looking into it, to bring my receipt and they would refund the money ($0.57).

Not sure what is going on.


You guys that got charged the bogus tax, take your receipt back - they should refund you the money.

In our state they would have to escheat the money to the state as abandoned property.  The law expressely forbids collecting money as a tax and keeping it.  If they called it a "fee" they would be fine.

Now they could try to keep it quiet, but a big corporation like Cabela's isn't going to do that.

According to this: http://www.irs.gov/uac/Medical-Device-Excise-Tax:-Frequently-Asked-Questions Cabelas fucked up big time.

Yes, clearly a massive fuckup with their point-of-sale software.

Wow... how many transactions has Cabelas done today with this screw up??

yep

First mistake:  The reading of the code section was incorrect.  Clothes for sale at retail do no fall under section 4191, the section of the code that deals with the imposition of tax on the sale of any taxable medical device by the "manufacturer, producer, or importer."

From the AICPA:

Under Sec. 4191(b)(1), a taxable medical device is a device, as defined in Section 201(h) of the Federal Food, Drug, and Cosmetic Act (FFDCA) (21 U.S.C. §321(h)), that is intended for humans. The latter provision defines “device” as an “instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article”—including “any component, part, or accessory”—that meets certain requirements. The device must be:

(1) Recognized in the official National Formulary, or the United States Pharmacopeia, or any supplement to them;

(2) Intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease in man or other animals; or

(3) Intended to affect the structure or any function of the body of man or other animals.

The device must also “not achieve its primary intended purposes through chemical action within or on the body of man or other animals” and not depend “upon being metabolized for the achievement of its primary intended purposes.” Sec. 4191(b)(1) limits the definition for purposes of the tax to devices intended for humans.

Under what is commonly called the “retail exemption,” the tax provision does not apply to eyeglasses, contact lenses, hearing aids, and any other medical device determined by Treasury to be of a type that is commonly purchased by the general public at retail for individual use. As stated in the Joint Committee on Taxation’s Technical Explanation of the Revenue Provisions of the “Reconciliation Act of 2010,” as Amended, in Combination With the “Patient Protection and Affordable Care Act” (JCX-18-10), p. 138 (March 21, 2010), Treasury may determine that a specific medical device is exempt if the device generally is sold at retail establishments (including over the internet) to individuals for their personal use.

The exemption is not limited by device class as defined in Section 513 of the FFDCA (21 U.S.C. §360c). For example, items purchased by the general public at retail for individual use could include Class I items, such as certain bandages and tipped applicators; Class II items, such as certain pregnancy test kits and diabetes testing supplies; and Class III items, such as certain denture adhesives and snakebite kits. Such items would be exempt only if they generally are designed and sold for individual use. In this regard, Congress anticipated that Treasury will publish a list of medical device classifications that are of a type commonly purchased by the general public at retail for individual use.

Current excise tax exemptions for further manufacture and for export also apply to the tax imposed under Sec. 4191. However, traditional federal excise tax exemptions for use as supplies for vessels or aircraft, and for sales to state or local governments, nonprofit educational organizations, and qualified blood collector organizations do not apply. That is, the tax ordinarily will apply to sales of taxable medical devices to such organizations and for such uses.

... yup, and yt it appears he gave a tax break to Hollywood http://www.breitbart.com/Big-Hollywood/2013/01/01/hollywood-loophole-fiscal-cliff



 

It is on my Cabela's receipt as well

Link to Federal Register wherein "taxable medical device" is explained

Clothes are not found in section 510(j) of the FFDCA.  In fact, there is a "retail exemption" that lists eyeglasses and other typical items "purchased by individuals who are not medical professionals."  

Cabelas screwed the pooch on this one, and anyone that was taxed should go back to the store and demand a refund.

That's pure awesomeness right there.

They passed a 2,000 page piece of legislation without reading it.  What could possibly go wrong?

I just had the same thing on my Cabelas recipt today too.

Neither in TJMax

Looks like it's not just his Cabelas.  Check this link on Facebook out: Randy Lombard's Farmington Cabelas

Sooo gunna go get your 12$ back?

Yup, got hit with the "medical excise tax" at Cabela's today.  Cashier told me Obummercare in action.  Interesting to see how this pans out...I agree it would be good to show the knee jerks where Obama's gonna get the money to pay for all their entitlements.

it's only 2.3%, whats the big deal?
I kid because I care.

Agreed 100% Let the sheep see what their glorious leader and his tratiorus henchmen have done. Once the sheep feel the sting in THEIR wallets that may may think twice.

yeah bought a bunch of shit at Scheel's



no medical tax just normal sales tax
 

Tell me more....are these now taxable events and how do you pay?

It's not their money, it's a liability which would likely require being put into a suspense account or an escrow account to be claimed by the people overcharged.

Wait until it kicks in full-swing in 2014...

WTF!!??

I bought ammo and a camp axe from cabelas today and got hit with the same tax

Actually, blame Justice Roberts.

A 'Conservative' Activist Judge



 

How about adding the other four liberal Justices also?

tax on revenue? never heard of this in the world, company with thin profit margin less than 2.3% will be wiped out? this is BS

They voted as expected...Sir Pimps-a-Lot Roberts took it upon himself to Interpret the Law, Personally solidifying a Mandate to buy Healthcare through taxation





 

Also in AZ:

I bought two pistols in the Springfield Oregon Cabelas today and some tax showed up (which is very unusaul for Oregon as we have no sales tax).  The girl behind the cash register didn't miss a beat and said "don't worry, I am deleting the tax as it is just an error in computer system today".  She deleted the tax, I payed my bill and walked out of the store with 2 new pistols with 4 "evil" high capcity magazines!!

Fuck Palissi and Feinstein and rest of the gun grabber want to be's!!

"We gotta pass the bill to know whats in it"  Said no intelligent person....ever.  By the same token, I guess I dont know if getting kicked in the nuts would hurt anymore since it hasnt happened in a long time...like my divorce.....

The gentleman in question is gainfully employed and works long hours thus he is unable to attend shopping expeditions with his spouse.

Yes, this has my attention.

Yep, wait till "Kenyan Care" take full effect next year with the indivdual mandates, employer mandates, etc.....

http://articles.baltimoresun.com/2012-12-30/news/bs-ed-ehrlich-obamacare-20121230_1_obamacare-tax-on-medical-devices-employer-sponsored-health-plans