can you be charged a sales tax if you buy something in one state but live in another?

Question

I printed 3700 magazines in Nebraska, I live in Montana, the printer is trying to charge me $125 sales tax, can they do that?!

Answer 1

Is the printer shipping the magazines to you in Montana?

Nebraska sales tax regulations:

064.02 Delivery from Nebraska. When property or services are sold within this state and the seller is required as a condition of the sale to deliver it to a point outside the state, or to deliver it to a common or contract carrier for transportation to a point outside the state, the sales tax does not apply; provided, the property is not returned to a point within this state. However, where property or services are delivered in this state, the sales tax applies, even if the buyer intends to transport the property out of this state.

064.03 Acceptable proof of transportation outside the state will be:

064.03A A waybill or bill of lading made out to the order of the buyer calling for delivery;

064.03B An insurance, registry receipt, or other receipt issued by the United States Postal Service;

064.03C A trip sheet signed by the seller's delivery agent and showing the signature and address of the person outside the state who received the delivered goods; or

064.03D Direct mail information indicating delivery locations outside Nebraska.

In most states, you would owe "use tax" on goods shipped into the state. However, Montana has no sales or use tax.

Answer 2

They shouldn't charge you NE sales tax if the product is being shipped to MT. You have 2 options: 1. Short pay the sales tax if they are sending you a bill. 2. Pay the sales tax and later claim a refund for the sales tax charged and have NE refund you the money. Send in a copy of the invoice as proof that the magazines were delivered to MT.

Answer 3

Yes they can try. You should argue that the benefit of thier services was realized in Montana, thus making MT rules apply. I give you 50/50 odds. Also, you should realize that you are liable for the tax even if you aren't charged. So if Nebraska decides your wrong, they can come after you for the tax even years later (although for $125, it's not likely).

Answer 4

Sales and use tax are due in the local areas that you purchase the items at that time in your life. The DMV where you register your vehicle in your state of residence will collect the taxes and fees that they will charge you when you go to get your license plate to be able to drive the vehicle legally in that state at that time in your life. Hope that you find the above enclosed information useful. 12/09/2011

Answer 5

If you pick them up in Nebraska, they are required to collect sales tax. If you have them shipped to Montana, YOU are required to pay Montana sales/use tax. If the printer has a location in Montana, they are required to collect Montana sales tax. If not, you are supposed to pay on your own.

NOTE: Businesses NEVER charge sales tax. They collect on behalf of the government.

Answer 6

If you actually bought them in Nebraska, then yes you'd be charged sales tax. They not only can but are required to.

Answer 7

If you pick them up: Yes.

If you are having them shipped: No.