I recently purchased an item from the Blockbuster Online Outlet store. The item shipped from Texas (where the warehouse is I guess.) However, I was charged NJ sales tax. I tried calling customer service but they guy who helped me didn't really know anything about sales tax. "Don't worry, sir, we wouldn't do it unless it was legal." I thought they could only charge sales tax if they had a presence in my state. There is no Blockbuster Online Outlet warehouse/store in New Jersey.
2007-10-08 10:35:22 · 3 answers · asked by dodge66trio 2 in Business & Finance ➔ Taxes ➔ United States
If the company has a nexus in your state they must collect sales tax. Any office, storefront, warehouse, etc. counts as a nexus. Where the goods are shipped from does NOT matter! The fact that they don't have an online outlet warehouse in NJ is immaterial if they have even a single store or office of any type in NJ. Since Blockbuster has stores in virtually all states, they must collect sales tax on all sales.
2007-10-08 10:49:10 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
The rule is if the corporation has any presence in your state, not just outlet stores and warehouses. For example, if the Blockbuster video store is part of the same corporation, then the entire corporation has to charge sales tax.
2007-10-08 17:41:46 · answer #2 · answered by StephenWeinstein 7 · 4⤊ 0⤋
But I'll bet there's a Blockbuster retail outlet somewhere in NJ. If there is, then they're required to charge you sales tax.
2007-10-08 18:26:25 · answer #3 · answered by Judy 7 · 1⤊ 0⤋