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Poll: US internet buyers do you pay state sales tax?

dullard

dullard

Elite Member
Most states require you to pay sales tax on internet orders and catalog orders. However legally the companies cannot collect that tax, so you must instead put it on your yearly state tax form. Now I know very few people ever bother to pay the tax that they legally should. Do you?
 
Huh? I didn't know I had to. Now I know. I wish I'd never read the thread and continued to live in blissful ignorance.
 


<< Huh? I didn't know I had to. Now I know. I wish I'd never read the thread and continued to live in blissful ignorance. >>



Sorry Skoorb. I didn't mean to ruin your life. Is there anything I can do to make it up for you? (Note: just because I asked, doesn't mean I will actually do anything). 😉
 
1) I've never heard of this.

2) I'm not sure this is constitutional.

3) What kind of bass-ackwards state do you live in? The People's Republic of Vermont? Taxachusetts?

4) Do you have any proof at all that this exists?
 
gopunk is right. it all depends on whether there is a "business presence" - anything else would infringe on Interstate Commerce - a constitutional no-no.
 
I'm no tax expert, but I have been under the impression for awhile that this is true. You are supposed to pay local sales tax when ordering through catalogs or online. However, the company you order from cannot collect it, so getting the money is up to you. The state isn't going to research what you bought and collect on it.
 
i always thought it was that you have to pay sales tax if the company has a business presence in your state.

Yep, we just talked about this in my Business Law class.
 
found this article link (sorry there is a pop up window)



<< If the seller does not charge and remit the tax, laws require customers of Internet and mail-order companies to pay the state and local sales tax directly to their home states >>



and that is even if they don't have a physical presence in the state.
 
Here is another link talking about it.

"An oft-repeated mistake in the debate over Internet taxation is that the existing moratorium on new or discriminatory taxation makes Internet shopping tax-free. In fact, all manners of taxes apply. For nearly every Internet purchase, consumers are obligated to pay a use tax. In states where the retailer has a physical presence, the consumer pays a tax at the time of purchase. Purchases from online companies that do not have a physical presence in a state are subject to taxation ? however, most states fail to effectively collect these taxes."
 


<< gopunk is right. it all depends on whether there is a "business presence" - anything else would infringe on Interstate Commerce - a constitutional no-no. >>



It goes like this:
If the company has a "business presence" (f*ck you, Creative Labs with your tiny office in PA), then they have to charge you sales tax like normal.
If the company does NOT have a "business presence" then YOU are supposed to remit the tax later on.
 


<< However, pyonir... you left out the part about the Supreme Court. That is a very important part. >>


how did i leave it out? it is right there in the article. i'm not gonna spell the whole thing out to you, i just quoted the section i did because that pertained to the argument. the Supreme Court didn't say you didn't have to pay those taxes, they just say the company can't charge you those taxes, you have to claim them yourself.
 


<< it is like $500 or something like that. >>

I'm not sure if the minimum varies from state to state - however I think many Anandtech readers easily surpass that $500 level with computer purchases.


<< 1) I've never heard of this.2) I'm not sure this is constitutional.3) What kind of bass-ackwards state do you live in?4) Do you have any proof at all that this exists? >>


1) Many people don't know about it. 2) No court has yet overturned it. The supreme court just says that a state cannot force a company in another state to do anything (but it didn't say the tax was unconstitutional - the state just needs to collect in in a different manner). 3) It applies to every state that I know of. 4) There are hundreds of links, but I think the two already provided are sufficient. If you want more proof look at your state tax forms.
 
I'm in the military in North Carolina so I am therefore exempt from NC tax rules, however....line 6 of the NC State Income Tax Return (D-400) is labeled as follows: "Consumer Use Tax (See Page 6)". When I refer to page 6 in the instruction manual for the D-400, here is what it says about this "Consumer Use Tax":

An individual in North Carolina owes use tax on an out-of-state purchase when the item purchased is subject to the North Carolina sales tax and the retailer making the sale does not collect sales tax on the sale. Items that are subject to sales tax include computers and other electronics equipment, canned software, books, audio and video tapes, compact discs, records, clothing, appliances, furniture and other home furnishings, sporting goods, and jewelry. Out-of-state retailers include mail-order companies, television shopping networks, firms selling over the internet, and retailers located outside North Carolina.......

That about sums it up...it does exist, at least here in wonderful North Cackalacky!

Dave
 
I never pay sales tax regardless of which state I buy from, whether it's local or over the Internet.

<---- Loves Oregon's 0.00% sales tax.

😀
 
I just ordered 3 printers from HP on line and they charged me the state tax. since it was a charge card purchase, it's a done deal. There is no way to avoid it. I orderd the printers for resale. When I collect the tax from the customer, I will put it in my pocket. I am not paying twice, which is what the damn IRS wants.:|
 


<< When I collect the tax from the customer, I will put it in my pocket. I am not paying twice, which is what the damn IRS wants. >>



The IRS collects sales tax?

Russ, NCNE

 
Hmm... Intresting and didn't know about that! Guess I'll start saying i never bought anything over the net and I don't own any copies of Windows 🙂
 


<< << When I collect the tax from the customer, I will put it in my pocket. I am not paying twice, which is what the damn IRS wants. >>



The IRS collects sales tax?

 >>

DOH!!!!
 
This applies not just to the internet but to tax free purchases made in another state by any method. As an example you can go from Virginia to furniture outlets in North Carolina and purchase furniture to take back to Virginia at great prices with no tax. Virginia actually expects you to give them 4.5% of the purchase price of such items at tax time and are kind enough to provide the form for it in your tax packet. Not sure what drugs they are using in Richmond but they must be good to make them that optimistic.
 
Devilsadvocate wrote:
2) I'm not sure this is constitutional.

hehe everyone here thinks they are an expert. Allright F.Lee when are you gonna bill us for reading your legal opinion.
 


<< I never pay sales tax regardless of which state I buy from, whether it's local or over the Internet.

<---- Loves Oregon's 0.00% sales tax.

😀 >>



Thats because only broke ass people live in Oregon of their own free will.
 
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