Florida users must pay tax on Internet purchases

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Q

Qacer

Platinum Member
Apr 5, 2001
2,721
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Official link is here.

On the site, it states that if you purchase an item outside the state of Florida and the seller does not charge you a sales tax equivalent to 6% then you must pay the difference when you file your taxes.

For example, if you purchase an item in Georgia and the seller only charges you 4% of sales tax, then you must pay the other 2% when you pay your taxes. Another example would be if an international seller does not charge you any tax, then you must pay 6% when you pay your taxes.

To tell you the truth, I made so many Internet purchases that did not include the 6% sales tax. I don't remember paying the IRS the 6% that is due to them on every item. Or maybe my accountant took care of that for me.
 
ElFenix

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,405
8,585
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why would the IRS collect florida's use tax?


iirc, all states that have a sales tax have an equivalent use tax that you are supposed to remit at some time for all out of state purchases.
 
mugs

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: NeuroSynapsis
Sounds right. Also known as a use tax.
Click to expand...

Yeah, NJ has it too.

I don't imagine many people pay it.
 
P

PokerGuy

Lifer
Jul 2, 2005
13,650
201
101
Originally posted by: Qacer
To tell you the truth, I made so many Internet purchases that did not include the 6% sales tax. I don't remember paying the IRS the 6% that is due to them on every item. Or maybe my accountant took care of that for me.
Click to expand...
Actually, you're not paying the IRS at all, sales tax is not a federal issue. Your state has a sales tax, and you are responsible for paying it, no matter where you buy the product. If you buy it in the state, the merchant collects the tax and pays it to the state. If you order from out of state and the merchant does not collect taxes on it, you are supposed to report the transaction and pay use taxes on it when you file your state taxes.

 
Q

Qacer

Platinum Member
Apr 5, 2001
2,721
1
91
Originally posted by: PokerGuy
Originally posted by: Qacer
To tell you the truth, I made so many Internet purchases that did not include the 6% sales tax. I don't remember paying the IRS the 6% that is due to them on every item. Or maybe my accountant took care of that for me.
Click to expand...
Actually, you're not paying the IRS at all, sales tax is not a federal issue. Your state has a sales tax, and you are responsible for paying it, no matter where you buy the product. If you buy it in the state, the merchant collects the tax and pays it to the state. If you order from out of state and the merchant does not collect taxes on it, you are supposed to report the transaction and pay use taxes on it when you file your state taxes.
Click to expand...

I haven't tackled taxes, yet. I leave it to a 3rd party. I guess I have many items that I need to pay use tax on. :)

How many actually pay use tax? I wonder.
 
T

thepd7

Diamond Member
Jan 2, 2005
9,423
0
0
Originally posted by: PokerGuy
Originally posted by: Qacer
To tell you the truth, I made so many Internet purchases that did not include the 6% sales tax. I don't remember paying the IRS the 6% that is due to them on every item. Or maybe my accountant took care of that for me.
Click to expand...
Actually, you're not paying the IRS at all, sales tax is not a federal issue. Your state has a sales tax, and you are responsible for paying it, no matter where you buy the product. If you buy it in the state, the merchant collects the tax and pays it to the state. If you order from out of state and the merchant does not collect taxes on it, you are supposed to report the transaction and pay use taxes on it when you file your state taxes.
Click to expand...

Exactly, this is every state, not just Florida. It's just that companies don't tell every single state exactly when/what they sent to someone in that state so there is no way to track it for the state to come after you (yet).
 
J

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Same in NY. Everytime it comes up in random conversation everyone else says they just put $0.00 on that line as well.
 
N

nwfsnake

Senior member
Feb 28, 2003
697
0
0
Good citizen that I am, I actually keep an Excel tally of purchases for each year and pay the tax! :shocked:
 
Ns1

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
The only people I know who actually PAY use tax are companies who get audited.
 
P

PokerGuy

Lifer
Jul 2, 2005
13,650
201
101
I'd guess that the vast majority of folks don't pay anything in use tax and just put $0 on that line on the form, but they are doing so at their own peril. It's the same as having some earnings and not reporting them. Sure, you can do that, and most of the time you're fine, but if you happen to be one of the unlucky ones that gets a full audit, you're going to be in a world of hurt -- penalties, interest, fines etc, and they'll go back a number of years to look at previous filings as well.
 
Q

Qacer

Platinum Member
Apr 5, 2001
2,721
1
91
Originally posted by: PokerGuy
I'd guess that the vast majority of folks don't pay anything in use tax and just put $0 on that line on the form, but they are doing so at their own peril. It's the same as having some earnings and not reporting them. Sure, you can do that, and most of the time you're fine, but if you happen to be one of the unlucky ones that gets a full audit, you're going to be in a world of hurt -- penalties, interest, fines etc, and they'll go back a number of years to look at previous filings as well.
Click to expand...

Do they actually have standardized values that you can pick based on your estimated purchases? I really don't see the majority keeping tabs on their purchases especially if they buy it out of state.

Like the site mentioned, if you buy something internationally, you still have to pay taxes on it. So does that mean Customs should be collecting use tax on behalf of the states? If that's the case, that puts a damper on duty free shopping.

 
LTC8K6

LTC8K6

Lifer
Mar 10, 2004
28,520
1,576
126
I only make online purchases from companies that charge me the NC tax, so I don't have to worry about forgetting something on the tax form and getting Nifonged.
 
Ns1

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
Originally posted by: Qacer
Originally posted by: PokerGuy
I'd guess that the vast majority of folks don't pay anything in use tax and just put $0 on that line on the form, but they are doing so at their own peril. It's the same as having some earnings and not reporting them. Sure, you can do that, and most of the time you're fine, but if you happen to be one of the unlucky ones that gets a full audit, you're going to be in a world of hurt -- penalties, interest, fines etc, and they'll go back a number of years to look at previous filings as well.
Click to expand...

Do they actually have standardized values that you can pick based on your estimated purchases? I really don't see the majority keeping tabs on their purchases especially if they buy it out of state.

Like the site mentioned, if you buy something internationally, you still have to pay taxes on it. So does that mean Customs should be collecting use tax on behalf of the states? If that's the case, that puts a damper on duty free shopping.
Click to expand...

the way it usually works is the company has an obligation to collect sales tax on customers where it has nexus. you have the obligation to submit use tax when you don't pay sales tax.
 
M

Mxylplyx

Diamond Member
Mar 21, 2007
4,197
101
106
Alabama requires it too. I imagine I cant count on one hand how many people actually fill out that line on their tax forms.
 
ultimatebob

ultimatebob

Lifer
Jul 1, 2001
25,134
2,450
126
Yeah... Connecticut has it as well. We get charged property tax on our cars as well, so we're getting doubly screwed!
 
C

compnovice

Diamond Member
Jun 18, 2005
3,192
0
0
Originally posted by: Qacer

For example, if you purchase an item in Georgia and the seller only charges you 4% of sales tax, then you must pay the other 2% when you pay your taxes. Another example would be if an international seller does not charge you any tax, then you must pay 6% when you pay your taxes.
Click to expand...

But they never reimburse you when you pay a higher sales tax in a different state!!
 
T

Tobolo

Diamond Member
Aug 17, 2005
3,697
0
0
Florida requires it because they do not charge income tax. They make it all up through sales.
 
her209

her209

No Lifer
Oct 11, 2000
56,336
11
0
You know its f*cking bullshit when you buy stuff from Oregon out-of-state and have to pay use taxe on it. What the f*ck!?
 
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