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Old 10-12-2007, 10:23 AM   #49
Xenophon
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Quote:
Originally Posted by HarryT View Post
But, Jon, doing a little research I see that Massachusetts has a 5% sale or use tax. If you buy goods out of state, or online, which are intended for use, storage, or consumption within Massachusetts, you are required to pay a 5% use tax on those goods. If the same goods are purchased in a U.S. state that does collect sales tax for such goods at time of purchase, then whatever taxes were paid by the purchaser to that state can be deducted (as a tax credit) from the 5% owed for subsequent use, storage or consumption in Massachusetts.

See:

http://en.wikipedia.org/wiki/Use_tax
That is indeed the way it is supposed to work. In practice, "use tax" is collected only on very large transactions -- those that are likely to make the news, for example. Call it "mass civil disobedience" if you like.

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