Quote:
Originally Posted by HarryT
Because the law says that you have to? Most states have a "use tax" under which, if you buy something out of state and hence pay no sales tax, you have to pay the equivalent of what you would have paid in sales tax if the product is used or consumed in your state. This is what I was referring to when I said that there is tax evasion on a massive scale: many people fail to declare or pay use tax.
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If I buy something in New Mexico, I pay their sales tax. Texas does not collect sales tax for things bought in other states. If a New Mexican buys in Texas, they have to pay our sales tax. Same with Oklahoma and Arkansas.
Now the other day, I placed 3 orders at Amazon.
The first one had sales tax. It was sold and shipped from Amazon to a Texas address.
The second had no tax because it went to a different state.
The last one was sold by a 3rd party and fulfilled by Amazon. No tax but going to a Texas residence.