Sales Tax online

[Guest guest]

You pay sales tax when you buy something online, ONLY IF they have a store in

your state. Say if I ordered something on amazon and it comes from a third

party like Ace Hardware, then I do have to pay tax and shipping, because we

have ACE Hardware stores in our state.

Judy

 

 

[Guest guest]

Hi,

 

I believe businesses are required by law to add sales tax to their

online sales if they have a store in the state, just as you note.

I also believe this is why some online business don't have stores.

Nevertheless if they person lives in a state which collects sales

tax and said item is taxable in their state, they are supposed to

pay sales tax (aka use tax) even if the online vendor is not required

by law to add it to the sale. Of this I am fairly certain. If I am wrong,

I would be quite happy.

 

California State publication - controller Ramon J. Hirsig

Executive Director California Use Tax–For purchases made from

out-of-state businesses

 

http://www.boe.ca.gov/pdf/pub79b.pdf

" ...

How can I tell if I owe use tax? Generally, if sales tax would have

applied to an item purchased from a retailer in California, use tax

will apply to the purchase of the same item from a retailer

located outside the state. If the out-of-state retailer does not

collect the California tax which is due on your purchase, you

are required to report and pay use tax. Some purchases may

be exempt from tax. Please refer to publication 112, Purchases

from Out-of-State Vendors, for additional information.

..... "

 

From Nolo Site:

http://www.nolo.com/legal-encyclopedia/article-29919.html

" Consumers who live in a state that collects sales tax are technically

required to pay the tax to the state even when an Internet retailer

doesn't collect it. When consumers are required to pay tax directly to

the state, it is referred to as " use " tax rather than sales tax.

 

 

The only difference between sales and use tax is which person -- the

seller or the buyer -- pays the state. Theoretically, use taxes are

just a backup plan to make sure that the state collects revenue on

every taxable item that is purchased within its borders. But because

collecting use tax on smaller purchases is so much trouble, states have

traditionally attempted to collect a use tax only on big-ticket items

that require licenses, such as cars and boats.

 

That, however, may

be changing. Many states have reevaluated their attitude towards

collecting use taxes. For example, New York state has added a line to

income tax returns requiring all residents to calculate how much they

should pay on Internet, mail order, or out-of-state purchases.

California has begun a campaign to educate taxpayers on what's owed, as

well. Watch for more states to step up use tax collections. "

 

 

Gary

 

 

 

 

________________________________

wwjd <jtwigg

 

Sun, November 15, 2009 10:29:38 AM

[veg_grp] Sales Tax online

 

You pay sales tax when you buy something online, ONLY IF they have a store in

your state. Say if I ordered something on amazon and it comes from a third

party like Ace Hardware, then I do have to pay tax and shipping, because we

have ACE Hardware stores in our state.

Judy