If a person in Ohio purchases a dishwasher over the Internet from Minnesota,- which state does the person owe?

Question

tax?
A. Minnesota
B. Ohio
C. Neither
D.Both

Answer 1

Neither. If you bought it in Ohio from Ohio, you would pay Ohio sales tax. If you bought it in Minnesotta, you would owe Minnesotta, but if you buy on the internet out of state, you don't pay sales tax at all.

Answer 2

B. Ohio.

If the Minnesota store also has a physical presence (a store) in Ohio, the Minnesota store is supposed to collect the Ohio sales tax.

If the Minnesota store has no other connection to Ohio and doesn't collect the Ohio sales tax, it is the buyer's responsibility to file a Use Tax Return to report the uncollected tax.

The Ohio tax form is VP USE, Ohio Use Tax Voluntary Payment Form.

Answer 3

That depends on the tax relationship between the two states. In most cases you would pay sales tax to the state in which you receive the item purchased. Some states attempt to collect on both ends. Some companies have begun to collect in the state from which they ship your item for fear that the state will attempt to collect in the future. This entire are is getting to be a problem for the consumer and the business.

Answer 4

You are the buyer. Your state is the taxing authority.

The taxable part is the state where the buyer lives, not the seller.

People sometimes drive to a non-taxable state, and bring goods over back to their state. If they ever get caught, they are charged the tax. It's the same for liquor sales, and bring it back to another state - if you get caught with liquor sales w/o tax, they also can give you a fine.

GOD bless us one and all.
CPA-retired

Answer 5

You owe SALES & USE tax to B. OHIO

That's the law.

The reality? 99.9995% of all people don't report it or pay it. Oh well!

p.s. "I don't pay it because they don't charge it when I buy" is what you hear from most people, but it isn't what's legal. Sellers don't charge it when you buy across state lines because they don't have the COLLECTION authority for your home state. The tax is due, it's just impossible to collect because there's no national system.

Answer 6

Technically, you owe Use tax (comparable to sales tax) to Ohio b.c this is where the item is being used.

Answer 7

Did you purchase it from a business or from an individual?

If you purchased it from an individual you don't pay sales tax.

If you purchased it from a business, the sales tax for the state in which the business is located is included in the sales price.

Answer 8

The answer is C, neither. One is not required to pay sales tax over the internet if it is from a different state.