Quote:
Originally Posted by sirmaru
Here in CT we are required to pay a Use Tax equal to our Sales Tax on internet purchases if not charged by the seller. We must add it on our annual income tax return.
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how do you track that?
Quote:
Originally Posted by Kolenka
Well, it gets stickier than that. If you 'operate' in a state with sales tax, your online sales to that residents of that state have to include tax. B&N having a store in every state pretty much guarantees that they collect sales tax for all the states that collect revenue this way. States may also require that online retailers who want to ship to a state to collect sales tax, as if they were operating in the state even if they don't have a physical location in the state.
Amazon has warehouses littered across the country, and so every state they have a warehouse in, that requires collection of sales tax, will require that Amazon collects sales tax for that state.
But yeup, you are right, nonetheless. 
EDIT: And sirmaru catches the other side of the coin that I totally forgot about. Many states require residents file use tax on purchases made out of state and brought in (including online purchases). Very few people actually do it, and enforcement would be hair-pulling at best. WA state also does this, but most people don't even know you are supposed to, let alone actually do it. |
we don't pay a yearly state tax here, I have no idea how this works/would work