2006-12-20 08:08:33 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I don't know about other states, but In California it is cleverly called the Sales and Use tax. I understand it as "Sales Tax" when you purchase something in the state, and "Use Tax" when you purchase something from out of state.
When you make purchases, the tax is charged to you automatically if the business has presence in your state. If not, you are still liable for keeping track of everything you've purchased without the sales tax and at the end of the year tally it up and pay the tax with your tax return.
2006-12-20 15:12:33 · answer #1 · answered by teehee 3 · 0⤊ 0⤋
You pay sales tax on catalog, on-line or phone orders if the SELLER has what is called nexus in the state where the item will be delivered and that state levies a sales tax. If the seller does not have nexus, then they have no legal obligation to charge the tax.
Nexus generally is having a physical presence in a state such as having an office or a warehouse or an agent in the state.
Your state of residency, your credit cards billing address or the location where you were physically when you placed the order have no impact at all. If you are living in New Hampshire (a no sales tax state) and place an Internet order for delivery to Aunt Bessie in California, California's tax laws apply. If you are in a Texas airport (a state with a sales tax) and order something from a California catalog business to be shipped to your kid in college in Colorado using your credit card with a Ohio mailing address, Colorado tax law applies.
Is the item being shipped to a state with a sales tax and does the seller have nexus with that state? Yes to both issues and sales tax will be charged. No to either issue and tax should not be charged.
2006-12-20 09:57:41 · answer #2 · answered by zudmelrose 4 · 0⤊ 0⤋
If your state has a sales tax, you are legally required to PAY the tax on EVERYTHING you buy. Buying on-line is no exception. If you buy from someone in another state, they are not required to COLLECT the tax. Historically, there has been little or no enforcement in this area. Many states are working to change that.
2006-12-20 09:51:15 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
I'm pretty sure it depends on the state you live in, I know when I do my income tax I have to put down an amount of stuff that I bought online. But most places online now charge sales tax.
2006-12-20 08:11:54 · answer #4 · answered by Anonymous · 1⤊ 0⤋
In Canada if you buy from a company in your own province you have to pay sales tax. My understanding is that it is similar in the US - you have to pay sales tax if you buy from within your own state.
2006-12-20 08:17:01 · answer #5 · answered by Anonymous · 0⤊ 2⤋
-online - over the phone - mail order catalog-
The only time you need to pay sales tax is when you are buying something within the state that you reside.
In real life you have to pay the tax at the rate of were you are buying at.
2006-12-20 08:12:43 · answer #6 · answered by rob u 5 · 0⤊ 3⤋
When you are buying something from a business in your state, you pay sales tax. Out of state, you don't.
2006-12-20 08:11:18 · answer #7 · answered by nottashygirl 6 · 0⤊ 3⤋
when the entity you are buying from has offices or warehouses in your state - and you normally pay sales tax.
2006-12-20 08:10:56 · answer #8 · answered by tomkat1528 5 · 1⤊ 1⤋