North Carolina already taxes internet sales. When one files his NC tax return, he is supposed to declare and pay a "use tax" on all internet purchases or telephone catalog purchases for which taxes were not charged by the vendor. I understand a number of other states also do this.
"North Carolina already taxes internet sales. When one files his NC tax return, he is supposed to declare and pay a "use tax" on all internet purchases or telephone catalog purchases for which taxes were not charged by the vendor. I understand a number of other states also do this."
I believe I noted this on the Massachusetts tax forms (shocking, I know). I recall reading somewhere (FR?) that it is only a small percentage of filers who actually report this. Even the tax collectors understand that it is basically a voluntary act. The only way I could see this being a problem for someone who doesn't report the internet/catalog purchases is in an audit situation, but even then can they inquire into your actual purchases?