They owe sales tax on it. Any property you aquire for personal consumption after Dec. 31, 2006 is taxed. Period. Used property which is not taxed is property which has had taxed imposed on it or was aquired for personal use prior to Dec. 31, 2006. Everything else sales tax must be paid, and as the Buyer without a official sales tax receipt from a registered merchant, you would be liable for it and required to submit a monthly statement and remit the tax.
"1. I am not sure how purchases made abroad by Americans are taxed."
"They owe sales tax on it. Any property you aquire for personal consumption after Dec. 31, 2006 is taxed. Period. Used property which is not taxed is property which has had taxed imposed on it or was aquired for personal use prior to Dec. 31, 2006. Everything else sales tax must be paid, and as the Buyer without a official sales tax receipt from a registered merchant, you would be liable for it and required to submit a monthly statement and remit the tax."
Incorrect. Only items purchased for consumption within the US are taxable. A restaurant meal bought in Brazil, therefore, would not be taxable, nor would groceries that you bought for consumption in your rental cottage. However, the wine that you bring back with you would be taxable.
"as the Buyer without a official sales tax receipt from a registered merchant, you would be liable for it and required to submit a monthly statement and remit the tax"
It is enforcement of this is the scenario that worries me the most. It would require a massive restructuring of police/revenue powers, and probably the destruction of the fourth and fifth amendments. How else will people be made to comply?