Guest guest Report post Posted November 15, 2009 You pay sales tax when you buy something online, ONLY IF they have a store in your state. Say if I ordered something on amazon and it comes from a third party like Ace Hardware, then I do have to pay tax and shipping, because we have ACE Hardware stores in our state. Judy Quote Share this post Link to post Share on other sites
Guest guest Report post Posted November 15, 2009 Hi, I believe businesses are required by law to add sales tax to their online sales if they have a store in the state, just as you note. I also believe this is why some online business don't have stores. Nevertheless if they person lives in a state which collects sales tax and said item is taxable in their state, they are supposed to pay sales tax (aka use tax) even if the online vendor is not required by law to add it to the sale. Of this I am fairly certain. If I am wrong, I would be quite happy. California State publication - controller Ramon J. Hirsig Executive Director California Use Tax–For purchases made from out-of-state businesses http://www.boe.ca.gov/pdf/pub79b.pdf " ... How can I tell if I owe use tax? Generally, if sales tax would have applied to an item purchased from a retailer in California, use tax will apply to the purchase of the same item from a retailer located outside the state. If the out-of-state retailer does not collect the California tax which is due on your purchase, you are required to report and pay use tax. Some purchases may be exempt from tax. Please refer to publication 112, Purchases from Out-of-State Vendors, for additional information. ..... " From Nolo Site: http://www.nolo.com/legal-encyclopedia/article-29919.html " Consumers who live in a state that collects sales tax are technically required to pay the tax to the state even when an Internet retailer doesn't collect it. When consumers are required to pay tax directly to the state, it is referred to as " use " tax rather than sales tax. The only difference between sales and use tax is which person -- the seller or the buyer -- pays the state. Theoretically, use taxes are just a backup plan to make sure that the state collects revenue on every taxable item that is purchased within its borders. But because collecting use tax on smaller purchases is so much trouble, states have traditionally attempted to collect a use tax only on big-ticket items that require licenses, such as cars and boats. That, however, may be changing. Many states have reevaluated their attitude towards collecting use taxes. For example, New York state has added a line to income tax returns requiring all residents to calculate how much they should pay on Internet, mail order, or out-of-state purchases. California has begun a campaign to educate taxpayers on what's owed, as well. Watch for more states to step up use tax collections. " Gary ________________________________ wwjd <jtwigg Sun, November 15, 2009 10:29:38 AM [veg_grp] Sales Tax online You pay sales tax when you buy something online, ONLY IF they have a store in your state. Say if I ordered something on amazon and it comes from a third party like Ace Hardware, then I do have to pay tax and shipping, because we have ACE Hardware stores in our state. Judy Quote Share this post Link to post Share on other sites
