Mass: Tax Due On Some Out-Of-State Purchases

Yahoo News ^ | 24 January 2003

[SheLion]

If you think you're paying too many taxes now, did you know this? Gov. Mitt Romney is hoping you'll "volunteer" to pay more. 

NewsCenter 5's Janet Wu said that for the first time, this year's income tax form will have a new line item -- asking you to estimate and pay the sales tax on items you've purchased from out of state. 

Massachusetts Revenue Commissioner Alan LeBovidge said that when you open your income tax form this year, look for line 33. You're invited to pay all the sales tax you've avoided by going over the border. 

"Under the law, it makes no difference if you buy something by calling on the phone, if you get a catalog from a company or you order it over the Internet. You bought a product. If that product is subject to tax, there is a use tax due if it is used in Massachusetts," LeBovidge said. 

The law has been on the books since 1967. But only car and boat owners registering their vehicles in Massachusetts paid. Now, the state expects you to pay up on skis, rings or any other purchases. 

"I'd never be able to calculate it in the first place. I am not going to have my accountant do it," one customer said. 

The Massachusetts sales tax is 5 percent. When you buy anything out of state, if the sales tax is less -- you're supposed to pay the difference. But if the sales tax is more -- you won't get a rebate. 

"I don't have an agent on every corner," LeBovidge said. 

LeBovidge said that the first attempt at enforcement will focus on people spending $5,000 or more on items like jewelry, paintings, boats and airplanes. 

One consumer recently paid up. 

"He came forward on his own because it was under amnesty and he paid. Where there is smoke, there is fire. Where there is one, there has to be more than one," LeBovidge said. 

With the resources available through the Internet, LeBovidge believes it will be easier and easier to find scofflaws. But officials still rely on their best tipsters to date -- disgruntled relatives, unhappy colleagues or ex-spouses.

[SheLion]

Is this guy DemocRAT or RINO?????? Anyone know???

[billclintonwillrotinhell]

This story is a little confusing as it starts out talking about people being "invited" to "volunteer" paying taxes on out-of-state purchases. But then, towards the end, it sounds like the law may be enforced.

To be safe, just avoid living in Taxachusetts. But then, we already knew that.

As far as Mitt Romney goes, he's a Republican on Sundays and special occasions, but a RINO the rest of the time.

[SheLion]

This story is a little confusing

For sure. "Volunteer???!!! What's up with that!

[Quick Shot]

Obviously they have been vacationing in Florida. That's been the standard for years. Almost all out of state purchases they attempt to tax.

When Chilse was Gov. they talked about putting in border checks to make sure the sales tax was being paid. The purchase of North Carolina furniture was there biggest complaint. If you drive up there purchase furniture and bring it back yourself they are waiting for the taxes.

[Fraulein]

I wonder how many democrats are going to be voluntering to pay this tax?

[pt17]

Is this guy DemocRAT or RINO??????

SheLion, he's the governor of Massachusetts - a state in which anyone who holds office must automatically and immediately morph into a democRAT object, regardless of their party affiliation.

[Hank Rearden]

"Yo, Governor Parasite! Blow it out your a$$!"

[SheLion]

I wonder how many democrats are going to be voluntering to pay this tax?

Not a ONE! You watch! They feel they are "above taxes!"

[NewHampshireDuo]

The Mass Dept of Revenue has been running radio spots touting their new software which will enable them to find tax scofflaws. Pay up now under the amnesty program and it will be foregiven. Otherwise you can be subject to fines or jailtime.

The parking lots at the stateline stores and malls seem to be as full of Mass cars as ever.

[SheLion]

he's the governor of Massachusetts

GOVERNOR??!! WHAT HAPPENED TO JAN SWIFT? I must have lost something here.

[SheLion]

"Yo, Governor Parasite! Blow it out your a$$!"

[RJCogburn]

The parking lots at the stateline stores and malls seem to be as full of Mass cars as ever.

You wouldn't be suggesting that they come up here to NH because we are sales tax free? The same thing seems to happen with the Vermont woodchucks over toward Keene and Lebanon.

[raybbr]

The "Tax-U-to-Death" state (Connectish%t) has been doing this for the last three years. Every year we get those threatening radio spots. "Pay your taxes during the amnesty period, or we will come after YOU!

[SheLion]

"Pay your taxes during the amnesty period, or we will come after YOU!

Sounds like MAINE!!

[OBone]

He was just became gov a couple days ago.

OB

[OBone]

Having lived on the border for several years, most of the people in that area are docile followers and the pols know it. They have been told what to do for so long, they see nothing wrong with it and will pay up out of fear. So, yeah MA will collect a bundle.

[djf]

Except they have a problem:

Art 1, Sec 9, Cl 5: No tax or duty shall be laid on articles exported from any state...

What am I saying, I must be getting delusional in my old age, that's not a problem...

[mewzilla]

Paging the Sons of Liberty...

[pt17]

WHAT HAPPENED TO JAN SWIFT? I must have lost something here.

No, you didn't lose anything by not paying attention to MA politics since nothing really ever changes. MA folks still adore clinton, vote for kennedy and relish tax increases.

[apillar]

I wouldn't put it past them to try to enforce this. I remember a couple years ago there was a story that some state was trying to subpoena shipping lists from large mail order firms and was planning to send tax bills to all instate residence that ordered from them.

Most states that have a sales tax have this same tax provision usually called the "Use Tax" although in most cases it's almost universally ignored, most people don't even know it exists, and the state doesn't bother because it's virtually impossible to enforce.