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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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. |
Quote:
Originally Posted by Kolenka
No, we don't (I'm pretty close to downtown Seattle *wave*), we pay straight sales tax.
However, we also have a use tax. So if I go down to Portland, OR, where there isn't sales tax, buy an item, and bring it back home to Seattle. I'm expected to pay the use tax on that item. The use tax pretty much amounts to sales tax on the value of the item (using your residence as the location to figure out local/county sales taxes), minus any sales taxes you already paid to another state. WA's DOR has a page here: http://dor.wa.gov/content/FindTaxesAndRates/UseTax/
The expectation is that there is no specific schedule for the use tax unless you are a business, AFAIK.
As I said, because the expectation is that the buyer files and pays the use tax, enforcement is a hair-pulling affair, with the possible exception of big ticket items like vehicles which need to be licensed in the state. |
I am so glad I don't live in the States - seems like you all have to be certified accountants just to know what tax you should or shouldn't be paying on anything.
I couldn't handle that myself
