[cursor]

link

So this is from my local paper and it's about sales tax & cross state border purchases.

Legally, if they don't pay sales tax when they buy an item outside Tennessee, they're required to pay an equivalent "use tax" when it's delivered to their home.

That's the law.

I don't know if other states have laws like this, but I'd bet that most do.

So what do we do with all the clothes or art or other stuff we've bought on vacation or visiting friends or traveling?

"We would be very happy if (consumers) wanted to self-report that tax at this point in time," Chumley said. "We would not assess the penalty on that."

Or, in a state where lots of folks claim to believe in rendering unto Caesar what is Caesar's, maybe the legislators should change a dopey, unenforceable law.

Remember that computer you bought in parts from newegg? How about the clothes you bought while you were on vacation? That duty-free liquor? How would you feel if you got a bill in the mail for taxes on that, (plus penalties for non-payment of course)?

IMHO, this reminds me of the kazaa/RIAA thing. People are avioding paying for something that they should be paying. This really hurts local businesses who are at a competitive disadvantage as they have to play by the rules and charge 8.75% (sales tax in my county, some counties have 9.25%!) more for a purchase.

What do you think states should do about this?

[macklin01]

except that it's nonsense.

When I'm a Nebraskan shopping in Iowa, I pay the Iowa state sales tax. They don't ask if I'm an Iowan before enforcing their sales tax, under the assumption that I'd be paying my Nebraska use tax upon my return.

Likewise, Nebraska doesn't exempt Iowan from paying the Nebraska state sales tax.

Every state gets commerce (and associated sales taxes) from neighboring states. Internet sites have always been a little different because legislators have been sensitive and have attempted to prevent quashing the infant businesses.

Actually, here's an interesting clause for an exception on the Nebraska use tax (I thought I'd do a google search, since TN claims that all 45 states have these):

among 002.04's exemptions:

002.04C Transactions where the tax has been properly paid on the sale, purchase, use, or other consumption of property or services in another state at a rate equal to or greater than the rate in Nebraska.

source: http://www.revenue.state.ne.us/legal/slstaxregs.pdf

So in that instance, you'd probably be alright on clothes shopping in Iowa but not in Minnesota (where there is no clothing tax), but online goods that aren't taxed are susceptible to this tax.

Hmm, at the end of the day, I suppose this is why businesses have compliance officers -- it's literally impossible to sort through and comply with all the laws out there on the books.

An interesting point, though, although I guess we need to be sure to not wade into "debates" land ... -- Paul

[eh?]

Well. If you order off the Internet and don't pay taxes then you are supposed to claim that at the end of the year, if not then you are technically breaking the law. I heard they were trying to pass a law stating that if you ordered anything off the Internet that you would have to pay the taxes of whatever state the company is in.

If you buy a car out of state you don't have to pay taxes when you actually buy the car. But when you go to register the car they will hit you with the tax fee.

[JML]

Lets be realistic for a moment, who's gonna turn themselves in so they can be for some stupid tax law? Screw that, I payed my fee's for what I BOUGHT, I'm done.

This does not remind me of the kazaa/RIAA thing, downloading songs is just plain stealing.

[Eclypsyr]

Originally posted by JML
Lets be realistic for a moment, who's gonna turn themselves in so they can be for some stupid tax law? Screw that, I payed my fee's for what I BOUGHT, I'm done.

This does not remind me of the kazaa/RIAA thing, downloading songs is just plain stealing.

agreed

While we might not be paying tax for the items we bought out of state, other people are coming here and buying clothes too, then returning to their home state and not paying the tax. It seems silly to me that this could be a law, because it just sounds like another way for businesses and local/state governments to be making money.

Jon

[eh?]

i agree. I don't turn in what i buy. Im just stating how it works or supposed to work.

[JML]

I don't think anyone does, in fact I wonder how many out of every 10 people are even aware of this law. I've never even heard of it until this thread.

[Richard]

In time there will be collection agencies that will handle all state taxes. In other words. Enjoy it while it lasts.

[Krusty]

This just reminds me of the fact that all of my newegg purchases cost 7.5% more than all of your newegg purchases

[stompah]

Originally posted by cursor
[B This really hurts local businesses who are at a competitive disadvantage as they have to play by the rules and charge 8.75% (sales tax in my county, some counties have 9.25%!) more for a purchase.

What do you think states should do about this? [/B]

I disagree with the hurting local business part. I dont shop online because I want to avoid a 5% MA sales tax but simply because I have a wider range of stores products and prices to choose from. I do buy local when a local merchant has something that I want for the price I want. I dont think avoiding the sales tax arguement hurting local business holds much water. Things are cheaper online because of less overhead. So even if a sales tax were to be levied upon internet purchases most will still shop online since it will likely be cheaper.

States should start charging sales tax on all purchases.


BTW this practice of not paying out of state sales tax was around long before the internet. Many mail order companies do not charge sales tax for out of state sales.

[JigPu]

So does that mean I should get reimbursed by the state of Oregon for all sales taxes I pay when out of state? (yes, Oregon is sales-tax free) I hardly think so. The government wants my money in the form of sales taxes, and thus spends them. Merely living in Oregon (shouldn't anyway) give me any inherent right to not pay sales taxes. I pay the states what they wish of me, and I pay my state what it wishes of me.

Likewise in reverse. By buying out of state, one should not have to pay sales taxes (assuming of course that the state being bought from has no sales tax... like Oregon). That state does not want revenue in that form (or else they'd have it ), and should allow you to pass on paying it. On returning to your home state, why should you pay your state government the taxes that they did not 'earn'?

Just a bit of mindless rambling... Though I'd LOVE to claim stuff I bought out of state on taxes to see if they actually give me money back

JigPu

[Beast Of Blight]

Point of Reference: See " I don't give a flying flick "


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