if you're in california, you have to pay CA tax for buying online

[Lithium381]

http://jan.ocregister.com/2011/02/02/buy-cigarettes-out-of-state-pay-the-tax/53946/

sales tax + our cig tax

ouch

 

[BoberFett]

Use taxes are nothing new. The onus is on the purchaser to comply with state use tax regs.

 

[JEDIYoda]

OP is another crybaby.....you smoke you pay the piper....haHAAAAAA

 

[Craig234]

Every state with a sales tax, has a use tax that requires paying for online purchases, as far as I'm aware.

This has been the law in California since the1930's for out of state purchases -it's just been easy to evade, reducing sales tax and giving unfair competition to local stores.

 

[Zebo]

How many of you pay your online sales tax...

 

[CallMeJoe]

How many of you pay your online sales tax...

I do.
I do wonder if it makes me more or less likely to face a state income tax audit...

 

[kranky]

Every state with a sales tax, has a use tax that requires paying for online purchases, as far as I'm aware.

That's true.

But see what Illinois did this year with their state tax return (Line 22).

See where it says "Do not leave blank"? Some people are saying that's to eliminate any defense of "I didn't see it" when they get caught for not reporting out of state purchases, and the state can claim it is a fraudulent return, not a simple oversight. Penalties would be higher.

 

[Thump553]

CT return is similar to the IL return kranky posted, except with a warning that leaving the line blank means use tax return not filed therefore statute of limitations hasn't started to run.

I'm waiting for the day when the feds finally stop protecting internet sellers and force them to disclose sales info to the states. That could probably balance a few state budgets right there.

Much as I hate paying sales tax the present de facto exclusion of sales/use tax on internet sales is grossly unfair to local sellers-and they employ a whole lot more people.

 

[CallMeJoe]

Much as I hate paying sales tax the present de facto exclusion of sales/use tax on internet sales is grossly unfair to local sellers-and they employ a whole lot more people.

:thumbsup: :thumbsup:

 

[sactoking]

CT return is similar to the IL return kranky posted, except with a warning that leaving the line blank means use tax return not filed therefore statute of limitations hasn't started to run.

I'm waiting for the day when the feds finally stop protecting internet sellers and force them to disclose sales info to the states. That could probably balance a few state budgets right there.

Much as I hate paying sales tax the present de facto exclusion of sales/use tax on internet sales is grossly unfair to local sellers-and they employ a whole lot more people.

There's a bill in Congress right now that would require internet sellers to pay their sales/use tax to TPAs who would distribute teh tax revenue to the states. In order to get a distribution the state would have to join the Uniform Sales and Use Tax compact. There are already 30+ member states of the compact. Most of them are small, though some big players (CA, TX, NY) are expected to join this year.

 

[bfdd]

This is one of the many reasons we should have a federal sales tax and state level income tax. Yes I realize states have income tax as well, but I'm talking reversing the system and having the 25-30% go to your state and a 10% sales tax go towards the feds.

 

[drebo]

This is one of the many reasons we should have a federal sales tax and state level income tax. Yes I realize states have income tax as well, but I'm talking reversing the system and having the 25-30% go to your state and a 10% sales tax go towards the feds.

I'd prefer all income taxes to be replaced by sales taxes and balanced spending.

 

[BoberFett]

This is one of the many reasons we should have a federal sales tax and state level income tax. Yes I realize states have income tax as well, but I'm talking reversing the system and having the 25-30% go to your state and a 10% sales tax go towards the feds.

:thumbsup:

There's absolutely no reason for the feds to have as much money as they do.

 

[Zebo]

This is one of the many reasons we should have a federal sales tax and state level income tax. Yes I realize states have income tax as well, but I'm talking reversing the system and having the 25-30% go to your state and a 10% sales tax go towards the feds.

That would concentrate wealth more than it already is. All the rich would move to Nevada or someplace with no state income tax. Then they'd buy their warez via NAFTA tax free.

 

[Patranus]

:thumbsup:

There's absolutely no reason for the feds to have as much money as they do.

But how would the federal government control out lives if they can't dictate spending?

 

[Thump553]

There's a bill in Congress right now that would require internet sellers to pay their sales/use tax to TPAs who would distribute teh tax revenue to the states. In order to get a distribution the state would have to join the Uniform Sales and Use Tax compact. There are already 30+ member states of the compact. Most of them are small, though some big players (CA, TX, NY) are expected to join this year.

It's probably safe to say there's been a bill like that in Congress (with about the same level of state support) every year since Al Gore invented in the internet. The big arugment in the past is that it would kill internet commerce.

 

[sactoking]

It's probably safe to say there's been a bill like that in Congress (with about the same level of state support) every year since Al Gore invented in the internet. The big arugment in the past is that it would kill internet commerce.

Quite true, but with what appears to fairly widespread support/adoption of the Uniform Sales and Use Tax compact it looks like this is going to get done.

In the past States tried to regulate internet interstate commerce and the Fed said that the Commerce Clause gave them exclusive purview of that area. The States then asked the Fed to do something. The Fed declined under the reasoning that there was no way to properly distribute the revenue to the States. The States were told that if they created a compact and got enough participants (40, I believe) then the Fed would regulate interstate internet commerce and distribute the tax revenue per the compact.

In the States' eyes they're close to fulfilling their part, so it's only a matter of time until all internet transactions are taxed and distributed through the compact.

 

[Craig234]

I also noticed that TurboTax seems to have changed around 2008 to ask in the interviews, 'did you buy anything on the internet you did not pay sales tax on?'

CA and other states have been looking for years to enforce this tax, and they tell me they're pretty serious about new measures.

 

[Zebo]

What are estimates lost in revenue from buying things on internet? Can't be much. Most of what we buy is local. Gas, food, cars.

 

[Craig234]

What are estimates lost in revenue from buying things on internet? Can't be much. Most of what we buy is local. Gas, food, cars.

Looks like it's about 3% of all retail (as of a quick find for Q4 2008), and well over $100 billion annually. That's estimated as over a billion lost in sales tax to California annually.

 

[Londo_Jowo]

Every state with a sales tax, has a use tax that requires paying for online purchases, as far as I'm aware.

I've lived in Virginia and Texas, the only tax I've paid when making an internet purchase is for businesses that are located within the respective state.

 

[Zebo]

Looks like it's about 3% of all retail (as of a quick find for Q4 2008), and well over $100 billion annually. That's estimated as over a billion lost in sales tax to California annually.

Wow surprised it's that high. Ca still wouldn't be doing well but better. I think last year we only bought $8000 online which amounted to ~400 in tax. Personally I don't like looking over my shoulder but seems many do.

 

[CycloWizard]

Every state with a sales tax, has a use tax that requires paying for online purchases, as far as I'm aware.

This has been the law in California since the1930's for out of state purchases -it's just been easy to evade, reducing sales tax and giving unfair competition to local stores.

Unfair? Why is it unfair? Because the local retailer can't be bothered to pay someone to throw together a website and sell his stuff online? Because he wouldn't be able to keep up with demand without hiring more people? Woe is the poor local businessman who doesn't evolve to keep up with the times. If only the Pony Express had been treated fairly by the evil bastards running telegraph lines. Bloody hell. No wonder this country is circling the drain.