Is it true that foreigners in the US don't have to pay sales tax OR property tax?

Question

If this is true why isn't it a bigger political issue? I own a self storage business and property taxes are our largest expense. If a foreigner could avoid these taxes they would have an extremely unfair advantage.

Answer 1

A foreigner might be able to wiggle out of sales tax (a US citizen can do the same thing). In some states (if not all states), a state can not collect sales tax on items that are meant to be used/consumed in another state. The purchaser is "supposed" to pay the sales tax in their home state (look at the state Income Tax form..there usually is a line to pay sales tax on items that haven't been taxed...on a side note, if your state does this, remember a state can easily track credit card records to see your purchases if you are audited)

For example, when you order something over the internet, you do not get charged sales tax unless the company is in the same state as you are. Also, if you buy a car in one state, you have to pay sales tax in your home state when you register the vehicle.

Property Tax on the other hand is taxed by the local municipality, so there really isn't any way for a foreigner to get around this tax. If they don't pay, the local government would seize the property. i suppose it is possible for a local government to offer an excemption for non-US citizens, but I haven't heard of one (the only property tax excemption I have heard is for senior citizens in Alaska...they are forgiven the first $250K of their homes value when property tax is calculated)

Answer 2

Sales taxes vary from state to state. I can tell you in the state of Texas that foreigners pay taxes. I don't see how someone can own property and not pay property taxes. I cannot speak for other areas but here a large portion of the property taxes goes to the schools district. I knew someone whom lost their land because they could not afford the taxes.

Answer 3

No, they pay the sales tax. As for property tax, if the property is in the US then I do not see why they would not pay property taxes as well. They can't avoid these takes. Income taxes, well that is a different story.

Answer 4

There are not any exemptions from sales taxes for distant places visitors. Even in international places that do supply VAT refunds, the refund basically applies to UNUSED products that are taken in another u . s . a . via the tourist. products and centers that are used or fed on in the process the bypass to, at the same time with apartment motor vehicle rates, inns and inns, food, clothing that has been worn, uncovered photographic action picture, and so forth. are never eligible for the VAT refunds.

Answer 5

No if they buy something subject to sales tax they pay it. If they own real estate they pay the real estate tax. The only real estate tax not paid is when a foreign government owns property here. The U.S. Government does not pay real estate tax to a foreign government for real estate tha U.S. Government owns there.

Answer 6

No, all citizens of the US have to pay income tax, sales tax, and property tax. All of them, including immigrants. Just a rumor.

Answer 7

Nope, not true at all.

I am in the UK and am having to apply for an IRS code so I can pay tax in the USA as well as tax in the UK for some property I will be purchasing.

Scr**ed both ways on :)

Answer 8

no, the rules can be complicated, but if they life here they should be paying the same taxes you or i would pay

Answer 9

I don't think that's true. I think they get a certain deduction from taxes - like soc. security which they don't recieve benefits on anyway.

Answer 10

NO.