Out of state sales tax question

[dakels]

I just purchased software from a company in California, but I am in new york city.
Is sales tax applicable? They have no locations in NY.

I order stuff online from alot of companies in Cali and I usually do not get charged sales tax. It's pretty considerable on this $4500 software purchase.

Anyone know if I am responsible for sales tax? How come other companies like newegg do not charge sales tax?

 

[BHeemsoth]

no

 

[SirPsycho]

That all depends on state law. Many states do have laws that require you to pay a "use tax" on out-of-state purchases, but almost no one complies with the law because they either don't know about it or know that there's very little chance they'll ever get caught. I wouldn't be surprised if New York had such a law. I know California does; they've even gone as far as to put a new box on their state income tax forms for people to enter the amount of out-of-state purchases they've made.

Companies do not have to collect sales tax unless they have a business presence in that state. Now that Fry's owns Outpost.com, I would have to pay sales tax on anything I ordered from them since there are two Fry's locations in Phoenix. I never had to do that before, because Outpost.com was based outside of Arizona.

 

[dakels]

hmm... but me ordering in NY should not have to pay tax from a company in CA with no offices in NY correct? Its been that way with other companies but this is my first time dealing with a direct purchase from a developer in CA.

I'm wondering if the tax on the invoice is debatable. For $270 tax it was worth looking into

 

[mugs]

Ask them why they're charging you tax. Are they charging you CA tax or NY tax?

 

[BlueWeasel]

Originally posted by: dakels
hmm... but me ordering in NY should not have to pay tax from a company in CA with no offices in NY correct? Its been that way with other companies but this is my first time dealing with a direct purchase from a developer in CA.

I'm wondering if the tax on the invoice is debatable. For $270 tax it was worth looking into

That's the way I see it. If they don't have a NY office, then I thought they couldn't charge sales tax from something coming from CA.

Using Newegg as an example, I think the only states get charged sales tax are California and Tennessee since Newegg has offices/warehouses in those 2 states only.