Quote:
Originally Posted by HarryT
Please correct me if I'm wrong, but if you buy something from another state, or over the internet, do you not have to pay "use tax" equivalent to the amount of sales tax that would have been paid had you bought it in your own state? That being the case, I don't see why it would be cheaper, unless people are committing the crime of tax evasion by not paying it?
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On the California state income tax return, there's a line for entering any untaxed, out-of-state purchases. Businesses are responsible for collecting sales tax within states that they have a physical presence; otherwise, it's the buyer's responsibility to report their purchases to the state tax board.
And, yes, come tax time people tend to "forget" all those things that they purchased online.