Quote:
Originally Posted by Xenophon
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?
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In most states the use tax is due for any purchases made out of state regardless of if it's in person or mail order. Mail order includes the internet. The difference is where the catalog is located. The provision you are summarizing is for the case where you have paid the sales tax in the other state. The place I've ran into this often is car purchases. Bring a car into MO from KS and you WILL pay the use tax on it. They won't license it otherwise. I think the two states now have a deal in place where KS car dealers will collect the sales tax for MO, but it's deal between the two states that has the KS government requiring their car dealers to collect it for MO.
Greg Weeks