Quote:
Originally Posted by Andrew H.
A use tax is different from a tariff because it doesn't penalize the out-of-state company. If the state sales tax is 7%, the use tax will likewise be 7%. If there is no state sales tax, there will be no use tax.
With a tariff, the Japanese TV import would have to pay whatever the tariff is (say 10%), but the local company would not have to pay anything.
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In some states, the use tax due is reduced by the amount of any out-of-state sales tax paid on the item. So if you buy something in a 3% sales tax state and immediately ship it to a 7% sales tax state, you wind up owing only 4% rather than 7%. Did that make sense?
Xenophon