Posted on 05/10/2011 7:23:25 AM PDT by freedombiz
Californians who buy products online from out-of-state merchants pay virtually none of the tax, according to a new analysis by the staff of the State Board of Equalization.
California consumers are paying an average of 1.4% of the total use tax on purchases made from out-of-state retailers that do not collect the taxes for the state, according to the analysis published in the board’s May Economic Perspective newsletter.
The U.S. Supreme Court has ruled that states cannot compel companies that have no physical presence inside their borders to collect such taxes.
So the board has been on a campaign to get consumers to pay the tax on their out-of-state purchases voluntarily. It regularly issues notices that consumers owe the tax, and there’s a line on the state income tax return where consumers are supposed to declare their out-of-state purchases and pay the use tax with their state income tax.
The analysis indicates how pervasive avoidance of this tax is. Jeffrey L. McGuire, deputy director of the board’s sales and use tax department estimated that California consumers owe $795 million in use tax but in 2010 they reported and paid only $10.2 million through their state income tax returns.
(Excerpt) Read more at jan.ocregister.com ...
IL is adding an online tax and Amazon closed shop there
98.6° is the temperature of a healthy human body.
98.6% no taxes is the sign of a healthy economic venture.
If either goes to Zero, you’re dead.............
Illinois sent me a form a couple of years back, asking me to report and pay state tax on all liquor and cigarette purchases from out of state. I had a chuckle and pitched it in the trash. They haven’t sent me another one yet.
Sears is considering moving.
Boeing should , too..................
Good luck with all that.
Typical leftard reasoning. The concept of creating a climate that has smaller government, is less hostile to business and more hostile to their undocumented voters never even enters their minds.
Screw any state that consistently elects communists, supports illegal immigration and expects the rest of us to pay for it.
Seems the orange County Registrar is advocating taxing online sales......not hard to figure when you consider the near bankrupt nature of libtard-ville California...=.=
One day they will figure a way to attach a meter to your throat and tax the air you breathe.
There is no such thing as “We taxed McDonalds - but your purchase of a Big Mac is tax free.”. The cost of a Big Mac reflects any and all costs via taxation regulation and compliance.
Nope, that’s what it’s called.
you KNOW they are just ITCHING to find out how to impose an Internet Tax...
They probably can’t sleep nights trying to find out how this giant behemoth of the proof of the incredible ability of free un-government controlled enterprise remains unburdened by tax.
I live far out in nowhere. So I am more or less forced to buy a lot online. But, my second reason would be, because I’m not paying taxes. I feel like we are already way over taxed. I also go yard saleing in part to avoid taxes. The government would tax the air we breath if they could. I am truly sick of our greedy, money grabbing, busy body government.
Not just California...Texas wants to tax online purchases as well.
“California consumers owe $795 million in use tax “
Nope.
According to the Supreme court, if they didn’t purchase it in California, they owe nothing!
Clearly, THIS is why California is bankrupt.
Screw California!
Sounds like typical create an emergency story making:
“from out-of-state retailers that do not collect the taxes for the state” —— read slowly, this is a small segment.
The question is, what is the percentage of purchases that California Residents make out of their total purchases in a year to this category? I bet it is .25%.
So yes, 98% of the .25% goes uncollected, and the state is only able to collect 10% of the .25%.
Dire emergency, no tax system is perfect. There are always some leakage.
What is burning them up really, is it isn’t fair. Some people are making out in their mind, but they don’t consider you still have to pay the shipping.
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