Posted on 01/13/2009 8:21:46 AM PST by DFG
I won’t be buying anything from anyone in Caliphony if they are going to insist that I pay THEM sales tax for an out of state sale (and I saw it happen nearly a decade ago, if I was to assessed ANY tax, it should have been at my state’s rate and paid to MY state, Texas).
Not saying I agree with it, just saying the law is probably on the books.
And how many do you think actually report these items and pay the taxes? My guess is it much closer to 0 than 10%.
Before the internet catalog sales, at least Sears Catalog sales, had to include sales taxes at the rate of the state they were shipped to.
Not paying sales taxes on internet sales is an unfair disadvantage to brick and mortar retail stores.
Yes. Many companies do that. Most states have a law that if there is a "brick & mortar" operation in the state, on-line sales by that operation must be taxed in that state (WalMart on-line is a good example, they charge the sales tax on on-line purchases). Other companies have agreed to add the sales tax. If it was added to your purchase, you're off the hook. Just keep the receipt.
It’s only a matter IF the catalog company (say Sears) has a store in your state. If you are ordering from Las Vegas Poker Chip Company Inc. in Nevada, you will owe no sales tax.
And it is YOUR state that collects the money, not the state the package originates from.
There is some effort being made to require payment to possibly BOTH states. And that has never been law.
My understanding is that any store that operates in PA will charge you the tax regardless of the purchase location. For example, Walmart online will charge the PA tax because they operate stores in PA. Some internet stores operate only in states that have low population and are centrally located just for that reason. The interstate sales are regulated by the Federal Government not the individual States.
Does that company have a presence in PA?
Unless they change the Constitution forced taxing of interstate commerce is illegal.
Not going to argue with you there. I worked for a state tax agency. One of our own employees glitched the system when he reported this use tax on his income tax form. He was probably the first. I know I certainly didn't.
Most of what I bought on-line came from operations that had brick-and-mortar stores in our state and they collected the tax at the time of the sale. Some didn't. At the time, I bought relatively little on-line, or from catalogs. I still don't buy much on-line. More and more on-line retailers are adding the tax.
yep and they act as if that is the state’s money to begin with....why don’t they just assume a 35% spend rate of each individual’s income and then take their 6-8% cut off the top? Oy vey!
BS! By the time you pay the shipping charges you saved nothing by not paying the taxes.
The reason people buy online is to find what they want at a reasonable price. The taxes are a moot issue if the shipping eats that and more.
People buy mail order (catalog or internet) because of savings in cost (retail pricing) and selection. They already have to factor postage into their purchase (which runs against the savings from income tax).
Ever try on some pants? Ever find that 3 pair with the same cut and sizing don’t fit the same? I won’t mail order clothes because the craftsmanship sucks and I have to try something on before buying (unless it is a t-shirt) but anything else is fair game.
Should online retailers have to limit their offerings since brick and mortars are limited to what they have floorspace for?
Netflix has unfair selection offerings over Blockbuster’s storefronts too. But brick and mortar stores have instant gratification, you make your purchase and have the item in hand. Unless they are out of stock. In which case they will tell you they will ORDER an album or book for you. When it is a piece of clothing that is out of stock in my size, they just say “sorry” and I have to go to another branch of the chain or give up altogether. But once a brick and mortar tells me they will “order” something, I can just go to the internetz and order it myself.
Yes, you know why? Because of the brick-and-mortar laws. I explained this above. Sears likely had brick-and-mortar business in every state. That is why they added the tax to your catalog sale.
Not paying sales taxes on internet sales is an unfair disadvantage to brick and mortar retail stores.
When I buy something on-line, it is because the brick-and-mortar stores don't have it for me to buy here, or the cost of the product and all other fees (shipping, etc...) is less than that of the local stores. If I can get it locally for the same or close to the same price, I do.
are you in MN ,too ?
First, they lower my credit card limits and increase my rates due to “challenging economic conditions.” Like taking Federal money is soooo challenging. Then, the States start sniffing around, trying to squeeze their citizens with taxes.
Is it just me or are these jokers going to strangle the U.S. economy, as it is, to death?”
53% of the voters- including lots of ACORN voters- voted a Socialist/Marxist/Communist with no valid birth certificate into the White House.
While they should get what they asked for, the other 47% of us have to suffer, also.
Get all the ammo and guns you can before Jan 19th.
After that, who knows???
True, you will not owe sales tax. You will owe use tax.
I can't say every state has them, but I'll wager that if they have a sales tax, they will likely also have a use tax to compliment it (usually the same rate). The use tax is written to cover items the sales tax doesn't (purchases from out of state that you use in the state). If you were an Idaho resident, you would owe use tax at 6% on the sales price of those poker chips.
Here in New York, we get charged “use tax” based upon our income. They just assume you are buying stuff on the internet! My first tax year here as a partial year resident (sept-dec ONLY) they tacked on $45 for use tax and took most of my $75 refund I was expecting.”
That is the same crap as a tax on “phantom income”, assuming somehow all of us are doing something off the books.
I would challenge this loud and hard.
I don’t buy on the internet, alstho I have found companies on the internet that I have then called and made my purchases. They have charged the appropriate taxes.
Yes, Circuit City. They didn't have the TV model I wanted in the store at the price I got. So I ordered on-line with no problems.
I understand why I got taxed now because of other Freepers comments.
The high tax states want this but it would be the federal government that regulates state to state trade and would have to be the one to force low tax states to comply.
I can only guess this would be unpopular, but America worships the Messiah so maybe they will gladly reward the welfare states like California and NY.
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