Rules on Internet Sales Tax

[dmw16]

My friends and I were discussing this yesterday and we arent sure what the exact rules on internet sales tax is. I bought a hometheather in a box from Circuit City's website and paid tax. But my friend will buy books at B&N.com and doesnt pay tax. What are the rules on internet tax? Both of us bought items with credit cards with new jersey billing addresses. She however had the books sent here to school in Maryland. So whats the deal?
thanks,
-doug

 

[NogginBoink]

In general: If the seller has a physical presence in your state, you pay state sales tax.

 

[dmw16]

That is what i said. But B&N has a location on our campus and has plenty of locations in jersey. So that throws me. I dont think she ordered textbooks either.
-doug

 

[ViRGE]

If/When the Internet Tax Consortium rules go through, it will be based on the location of the buyer; in the mean time it's a mish-mash of rules.

 

[numark]

Originally posted by: dmw16
That is what i said. But B&N has a location on our campus and has plenty of locations in jersey. So that throws me. I dont think she ordered textbooks either.
-doug

B&N.com is most likely registered as a seperate company that's only a subsidiary of B&N. That way they can get around the whole taxation thing and only charge tax in states where B&N.com has a warehouse. Circuit City's website, however, is unlikely to be registered as a seperate company, and therefore collects sales tax everywhere.

 

[Mallow]

internet tax laws are soon to revamped. Soon we will all be paying tax on internet sales. First state to do something about it will probably be Cali and unfortunately newegg is in cali :/

 

[dmw16]

Cali...damn. Most of the places i like to get parts from is out there.
-doug

 

[rutchtkim]

Originally posted by: numark

Originally posted by: dmw16
That is what i said. But B&N has a location on our campus and has plenty of locations in jersey. So that throws me. I dont think she ordered textbooks either.
-doug

B&N.com is most likely registered as a seperate company that's only a subsidiary of B&N. That way they can get around the whole taxation thing and only charge tax in states where B&N.com has a warehouse. Circuit City's website, however, is unlikely to be registered as a seperate company, and therefore collects sales tax everywhere.

yup, they wont even pricematch to their own website.

 

[her209]

nm

 

[ViRGE]

Originally posted by: dmw16
Cali...damn. Most of the places i like to get parts from is out there.
-doug

But are you in Cali? In order to be taxed, the state you live in must be part of the Consortium, and you will only be taxed at your local rate.