Why do some online retailers charge state sales tax while others don't?

mugs

Lifer
Apr 29, 2003
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Because they have a presence in your state.

i.e. Newegg has a distribution center in NJ, so I pay tax on Newegg purchases.
 

her209

No Lifer
Oct 11, 2000
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You're supposed to pay taxes to the IRS on everything you bought online that you didn't pay for when you bought it.
 
Dec 10, 2005
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Originally posted by: her209
You're supposed to pay taxes to the IRS on everything you bought online that you didn't pay for when you bought it.

You don't pay Use Tax to the IRS. You pay it to your state government on your state tax return.
 
Jul 16, 2006
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MagnusTheBrewer

IN MEMORIAM
Jun 19, 2004
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Originally posted by: NOTORIOUS
Originally posted by: MagnusTheBrewer
Because the State's they reside in require State sales tax on online sales.

Wrong.

I live on the east cost and the online retailer is on the westcost (buy.com) .


Last I heard, California requires State Sales Tax on online sales. Where you live isn't important.