Internet Sales Tax? Or not?

[soltrain]

ARGH! I was just slapped with $20 of sales tax on my recent Ipod purchase from apple.com. When I called up to ask why, I was told "you have to pay sales tax for everything you buy online." However, in the past week, I have made two other purchases (dell.com and buy.com) and neither of those had any sales tax charged at all. I live in Maryland, and I used to be under the opinion that only the poor people of California were taxed for online purchases.

Did apple rip me off? Or am I just an idiot?

 

[kami]

Maybe they had a warehouse or something in your state and shipped it from there?

 

[Viper GTS]

1) Does your state have a sales tax?
2) Does the vendor have a PoP in your state?

If the above questions are both answered yes, you pay tax.

Viper GTS

 

[MrBond]

For online purchases, you're charged tax as long as the vender has a physical location in your state. Apple probably has a retail store in your state, therefore can charge you tax. They charge you whatever your state's rate is (ie, here in ohio, the tax on a $300 ipod would be 18.75)

 

[FeathersMcGraw]

The rule of thumb is that online merchants are supposed to collect sales taxes from orders placed from states where the merchant has a physical presence. So if there are offices or warehouses in your state, you're liable to be charged taxes from that merchant. Not all merchants collect taxes yet, but I'm guessing the way state budgets are looking this year, a whole lot more of them are going to be pressured/required to do so in the future.

 

[PsychoAndy]

Originally posted by: soltrain
ARGH! I was just slapped with $20 of sales tax on my recent Ipod purchase from apple.com. When I called up to ask why, I was told "you have to pay sales tax for everything you buy online." However, in the past week, I have made two other purchases (dell.com and buy.com) and neither of those had any sales tax charged at all. I live in Maryland, and I used to be under the opinion that only the poor people of California were taxed for online purchases.

Did apple rip me off? Or am I just an idiot?

I'm thinking the latter rather than the former.

You are assessed state tax when sales are made in a state where the company has facilites. You are paying sales tax, but not internet sales tax. For the same reason if you order mail order intrastate.

Dell has operations throughout the US but not in your state, and buy.com IIRC operates strictly out of irvine.

" I used to be under the opinion that only the poor people of California were taxed for online purchases."

Thats just ignorant. Why would CA, out of 50 states be singled out specifically for online sales? Besides that, if CA did pass tax legislation like that, I'm sure we'd see other states or the Feds follow suit.

-PAB

 

[ElFenix]

the merchant is only required to collect tax in states where the operate. in other states that have sales tax either A) the merchant collects the sales tax, or B) the merchant does not collect the sales tax and you are responsible for remitting it to the proper authorities. if you don't pay them, you're committing tax evasion.

<--- did not know this until he started working mail order.

 

[JellyBaby]

Just be sure to fight the federal government's next attempt to add its own greedy tax on the 'net. With its budget exploding I'm nearly positive this will come up again pretty soon.

 

[ElFenix]

Originally posted by: JellyBaby
Just be sure to fight the federal government's next attempt to add its own greedy tax on the 'net. With its budget exploding I'm nearly positive this will come up again pretty soon.

from what i've read thats not what it is... all it would do is make mail-order companies legally responsible for collecting the taxes that should be paid out by consumers but aren't.

 

[arcas]

In Kentucky you're required to pay sales tax on all purchases whether they're at a brick and mortar store, online or through a catalog.

Furthermore, if you buy something in another state or country where the sales tax is less than Kentucky sales tax, you are required to pay the difference to the Kentucky treasury. Say I bought something while vacationing out of state and only had to pay 4% sales tax. I would be required to pay an additional 2% to the Kentucky state treasury (KY sales tax is 6%). Not surprisingly, though, if I bought something in a state with a HIGHER sales tax, the Kentucky treasury will not refund the difference.

 

[BillGates]

Originally posted by: arcas
In Kentucky you're required to pay sales tax on all purchases whether they're at a brick and mortar store, online or through a catalog. Furthermore, if you buy something in another state or country where the sales tax is less than Kentucky sales tax, you are required to pay the difference to the Kentucky treasury. Say I bought something while vacationing out of state and only had to pay 4% sales tax. I would be required to pay an additional 2% to the Kentucky state treasury (KY sales tax is 6%). Not surprisingly, though, if I bought something in a state with a HIGHER sales tax, the Kentucky treasury will not refund the difference.

That's absurd!! How the hell can they possibly think they need to profit from something sold elsewhere??

That's almost as annoying as having to pay sales tax when registering a used car. Taxes can be paid on a car's sale how many times - useless!

 

[globalstud]

Sales tax is complete bullocks anyway. I gave from my check more than enough. It will remain though.

 

[soltrain]

Thanks for the input. Does the vendor POP have to be a retail store? Can it be a corporate office or something? As far as I've looked, apple.com has no retail stores in Maryland. They have resellers at CompUSA, but no apple store.

I guess they know what they're doing though. Must have something somewhere.
grr... stupid tax.

 

[Mutilator]

I know here in NC technically what you're supposed to do is if you don't pay sales tax on the item when you buy it online you're supposed to keep track of your online purchases. When April comes around you're supposed to estimate how much you spent online during the past year and then figure out the NC sales tax that way. Nobody does this but it's what you're supposed to do.
I'm sure most if not all other states are like this as well.

 

[dexvx]

Sometimes I'm glad I live in a progressive state like Oregon where there is no sales tax.

 

[Linflas]

Virginia is so optimistic that we want to pay sales tax on everything we buy that they conveniently include a special form with our yearly tax packet just for that purpose. They really think they somehow deserve money for a purchase made tax free in another state. I wonder if they have ever broken the single digits of people actually filing that form.

 

[dullard]

Like many people have mentioned, if you live in a state that collects sales tax you are required to pay sales tax on ALL purchases regardless of whether the company collected it or not.

Thus if Apple didn't collect it, you would be required by law to pay that $20 on your next state income tax form. Apple just made it easier for you as you don't have to keep your receipt until next year when you file your taxes. Make sure you remember to pay your taxes from Dell.com and Buy.com as well.

I once did a poll here and about 97% of people said they ignore that law and never pay the taxes anyways (most did it due to ignorance rather than intentional law breaking). So Soltrain if you want to break the law, and hope you are never audited, then I guess Apple "screwed" you out of your illegal money.