"out of state tax"

[eflat]

I was thinking of buying a keyboard from a company based in Chicago, IL. He claims that as of January of this year California is one of four states that have to pay "outside of state tax."

Have you guys heard about this? I've never paid sales tax for an out of state purchase before.

 

[Ns1]

FOS. Unless his company has nexus with CA he doesn't have to charge you tax. I'll research that for you now though.

current law

http://www.boe.ca.gov/sutax/pdf/pub109.pdf

He's supposed to yes. Does he have to? no.

 

[her209]

You pay if there is a physical presence in the state. Otherwise, you'd pay use tax to the IRS.

 

[pulse8]

Sounds like BS to me.

 

[imported_Baloo]

Either he is trying to rip youoff, because it would be illegal for Illinois to Tax such purchases, or he is not communicating it properly. If his company has a significant presence in your state, he may be required to charge sales tax.

 

[mugs]

Originally posted by: NeuroSynapsis
FOS. Unless his company has nexus with CA he doesn't have to charge you tax. I'll research that for you now though.

current law

http://www.boe.ca.gov/sutax/pdf/pub109.pdf

He's supposed to yes. Does he have to? no.

So in other words, he's not actually doing anything wrong... unless he's keeping that tax for himself.

 

[Ns1]

Oh. Note that the rules are different if he is using a dropshipper


California Use Tax Applied to Out-of-State Wholesaler/Drop Shipper In California, any former owner of tangible personal property who delivers property sold by an out-of-state retailer to a California customer is deemed a retailer of that property and is responsible for collection of tax on that property. This position was highlighted in a recent court case involving a Wisconsin wholesaler which sold shoes to its out-of-state subsidiaries for resale, but retained possession of the shoes in its warehouse until their ultimate drop shipment to the subsidiaries? California customers. As a result, the wholesaler of the property delivering the property within the State of California was responsible for the collection of California use tax. The State further ruled that the finding did not place an unconstitutional burden on interstate commerce because California wholesalers who use out-of-state retailers to drop ship their products to California customers have the same collection responsibility. (Mason Shoe Manufacturing Co. v. California State Board of Equalization, California Court of Appeal, No. A104964) (04/07)

 

[Ns1]

Originally posted by: mugs

Originally posted by: NeuroSynapsis
FOS. Unless his company has nexus with CA he doesn't have to charge you tax. I'll research that for you now though.

current law

http://www.boe.ca.gov/sutax/pdf/pub109.pdf

He's supposed to yes. Does he have to? no.

So in other words, he's not actually doing anything wrong... unless he's keeping that tax for himself.

Well he has to file with the state of CA to collect tax. Completely voluntary on his part.

 

[eflat]

So it sounds like no unless it's a drop shipment, which it is not.

I'm a little suspicious of this company now. They had a good deal on a "b-stock item" but after searching through their store I found another item for $200 less than anywhere else. There does not seem to be any reseller ratings, either.

It's audiolines.com if anyone was interested.

 

[Rumpltzer]

I ran into something like this last year when I was buying a hand gun. I live in California and I have to use a gun broker. I send money to the place where I'm buying the gun, they send the gun to the broker, he holds it for ten days and runs a background check on me, then I get the gun.

So, me and the broker are in California. I want to buy a gun from another state. The gun broker wants to collect CA sales tax (use tax) on the gun. Sounds fishy, right? Yeah.

The point became moot when I ended up buying from the Glock factory in Georgia. They collect sales tax in a lot of other states where they have vendors or something. That is, I paid sales tax to Glock and not to the gun broker. Same amount of money, but I didn't feel like I was being taken.



I do hope this free-for-all on cross-border sales tax lasts for decades to come.