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Old 04-09-2012, 11:56 AM   #28
HarryT
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Quote:
Originally Posted by ProfCrash View Post
Sales taxes in the US are a state and local tax. They are based on brick and mortar stores. Where there is a store, there is sales tax. That goes for the internet as well as the physical store. If there is no store, there is no sales tax. There is no BM store for Amazon in my state so I do not have to pay sales tax. The only people who pay sales tax for Amazon are people who live in the state of Washington because that is where Amazon is headquartered.
Yes, I know all that.

But...

I thought that if you bought a product either on-line or out-of-state on which you paid no sales tax, and then used or consumed that product in your own state, there was a state tax called "use tax" which is the equivalent of sales tax. ie, you pay the same amount in use tax that you would have paid in sales tax.

http://en.wikipedia.org/wiki/Use_tax

Does the state that you live in not require the payment of Use Tax for online purchases?
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