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Originally Posted by tubemonkey
My understanding was that sales tax was generally collected if the company you were buying from had a physical presence in your state - store, warehouse, headquarters. As usual, there were exceptions.
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That is how I've always understood it to be.
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Technically, when consumers shop online, they are supposed to pay sales tax by reporting it on their state tax returns. But as it turns out, Americans aren't always honest when it comes to paying their taxes.
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I don't think it is a question of honesty. I think it is more of an issue of simply understanding the tax laws. Every state does things differently. I know when I've done my taxes, I've never seen anything mentioning sales tax from online or out of state purchases. Ignorance of the law is not an excuse, but at the same time ignorance is not malicious, and one cannot be expected to know about things when it is not made readily available. I've tried looking into this before, and I've yet to find suitable answers.