Quote:
Originally Posted by Marcy
I didn't pay sales tax on Prime last year and would have to pay it this year if I renew. I don't know the California date, but Amazon just started charging sales tax in my state on Jan 1, 2014.
That is part of the reason I decided not to renew prime -- not the $8 in tax I'd have to pay, but the cumulative tax over the year I now would have to pay on amazon items. I try and buy online from places I don't have to pay tax. Even if the price is 4% more than on amazon, I'm still saving money.
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Surely you have to pay the amount as "use tax" if the products or services are shipped to, or consumed in, California, do you not? I was under the impression that the amount of use tax was the equivalent of the amount of sales tax you would have paid had you bought the item in state. Where does the saving come from, this being the case, or am I wrong in my understanding of how use tax works?