Poll: Do you Pay Use Tax?
Note: This is a public poll, other users will be able to see what you voted for.
 05-01-2014, 09:43 AM
#1
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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I had a customer today complain about having to pay sales tax. He lives in California and my business is in California so, I do not have a choice in the matter...I have to collect sales tax from him. Had he lived in another state, I do not have to collect sales tax.

What I bet most people do not know though is that if you buy from an out of state vendor, you are responsible for paying your state a so-called use tax. How many of you actually self-report and pay a use tax for the items you purchase from out of state?

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 05-01-2014, 09:51 AM
#2
  • jfmii
  • Active Member
  • Pittsburgh PA
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Pennsylvania has a line item on our state tax return for use tax . I do self report .

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 05-01-2014, 10:19 AM
#3
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I can neither confirm, nor deny, that I have ever paid my state's tax for items purchased out-of-state.Wink

I hereby invoke the protections granted to me by the Fifth Amendment of the U.S. Constitution and refuse to answer any further questions concerning the payment of any purported use tax.Biggrin

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 05-01-2014, 10:37 AM
#4
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(05-01-2014, 10:19 AM)branford Wrote: I can neither confirm, no deny, that I have ever paid my state's tax for items purchased out-of-state.Wink

I hereby invoke the protections granted to my by the Fifth Amendment of the U.S. Constitution and refuse to answer any further questions concerning the payment of any purported use tax.Biggrin

Biggrin Yes, I think a lot of people will abstain from voting.

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 05-01-2014, 11:52 AM
#5
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Never heard of such a beast - Norwegian taxes are somewhat high, the tax code confusing... but at least it's consistent within the nation*. The equivalent of a sale tax over here is called merverdiavgift (value added tax/fee) and it's a tad higher** than most places in the US.

*) Unless you live in Finnmark, which has half tax - or at Svalbard, which has lower taxes and no VAT.
**) 25% on most things, 15% for food items, (% for certain defined services... and 0% for books and printed matter.

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 05-01-2014, 11:58 AM
#6
  • Agravic
  • Super Moderator
  • Pennsylvania, USA
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Do Norwegian people buy a lot of books and printed matter, Hans ... Tongue

Seriously though, tax codes here in the US are a nightmare ... for all parties involved.

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 05-01-2014, 12:09 PM
#7
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(05-01-2014, 10:19 AM)branford Wrote: I can neither confirm, no deny, that I have ever paid my state's tax for items purchased out-of-state.Wink

I hereby invoke the protections granted to me by the Fifth Amendment of the U.S. Constitution and refuse to answer any further questions concerning the payment of any purported use tax.Biggrin

+1

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 05-01-2014, 12:17 PM
#8
  • Johnny
  • MODERATOR EMERITUS
  • Wausau, Wisconsin, USA
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(05-01-2014, 10:37 AM)bullgoose Wrote:
(05-01-2014, 10:19 AM)branford Wrote: I can neither confirm, no deny, that I have ever paid my state's tax for items purchased out-of-state.Wink

I hereby invoke the protections granted to my by the Fifth Amendment of the U.S. Constitution and refuse to answer any further questions concerning the payment of any purported use tax.Biggrin

Biggrin Yes, I think a lot of people will abstain from voting.

I will cast my vote but I will not tell you what or who I voted for.

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 05-01-2014, 01:13 PM
#9
  • texquill
  • Olver Warbucks
  • Richardson - DFW area of Texas
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Something is buzzing through my head about "self incrimination."

Fortunately, Amazon has started collecting tax on some sales to Texas, so I might be okay.

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 05-01-2014, 01:46 PM
#10
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(05-01-2014, 01:13 PM)texquill Wrote: Something is buzzing through my head about "self incrimination."

Fortunately, Amazon has started collecting tax on some sales to Texas, so I might be okay.

Amazon has been collecting sales tax in New York for quite a while. However, it can sometimes be avoided by purchasing from a referred vendor who is out-of-state, although the use tax in NY is still technically required.

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 05-01-2014, 02:24 PM
#11
  • freddy
  • Banned
  • San Diego, California, U.S.A.
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Amazon has started collecting here in California, as well.

In all honesty, folks, I don't mind paying my taxes. However, a use tax is ludicrous and almost unenforceable. A better way needs to be found.

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 05-01-2014, 02:30 PM
#12
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A lot of vendors I purchase off the internet charge me a sales tax even so the cos are not located in my state.

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 05-01-2014, 04:14 PM
#13
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The companies don't need to be in the taxing state for that state to apply sales tax to purchases. The problem is enforcement (the state cannot apply any liens or judgments against a "foreign" company), which is why states "rely" on the taxpayer self-reporting their use tax (which is the sales tax in case anyone's wondering).

The reason why I put "rely" in quotations above is that states know that people won't self-report. And Freddy, all the "better ways" would be not good for the consumer; either each state beefs up their enforcement abilities (which would be a nightmare for someone like Phil) or a federal sales tax.


- Josh -

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 05-01-2014, 06:17 PM
#14
  • freddy
  • Banned
  • San Diego, California, U.S.A.
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(05-01-2014, 04:14 PM)jpakstis Wrote: The companies don't need to be in the taxing state for that state to apply sales tax to purchases. The problem is enforcement (the state cannot apply any liens or judgments against a "foreign" company), which is why states "rely" on the taxpayer self-reporting their use tax (which is the sales tax in case anyone's wondering).

The reason why I put "rely" in quotations above is that states know that people won't self-report. And Freddy, all the "better ways" would be not good for the consumer; either each state beefs up their enforcement abilities (which would be a nightmare for someone like Phil) or a federal sales tax.


- Josh -

I suppose you're right, Josh, but to have something so unenforceable on the books just seems like a waste.

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 05-01-2014, 07:32 PM
#15
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(05-01-2014, 06:17 PM)freddy Wrote: [quote='jpakstis' pid='384485' dateline='1398989692']
I suppose you're right, Josh, but to have something so unenforceable on the books just seems like a waste.

Well far be it for tax codes to contain all sorts of wasteful and unenforceable laws, right? But joking aside the use tax code could be a vehicle for states to tax on larger purchases made out of state for in-state use, like cars and the like. It might also allow the state to levy taxes on some reselling scheme, like if someone buys a bunch of discounted goods in a non-taxing state and then turns around and sells them in the taxing state.


- Josh -

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 05-01-2014, 07:59 PM
#16
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Government and waste? Never heard of something so silly my friend! It's the only way they operate, millions of dollars to study anything so stupid (insert dumb study here). I can't believe they get one nickle let alone millions of dollars. So to say anyone needs to self report so they can do things like above would seem like a waste! Because it is.

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 05-02-2014, 07:08 AM
#17
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The thing is though that I usually receive my order in a day or at most two when I order from you. Sales tax is much less than overnight or two-day shipping.

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 05-02-2014, 07:13 AM
#18
  • W.S.O.
  • Banned
  • Philadelphia, Pa
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It is my understanding that fairly soon in many states it will not matter if the person lives in or out of state, sales tax will need be charged. According to my accountant very soon here in Pa sales tax will need to be charged on out of state customers purchases.

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 05-02-2014, 12:09 PM
#19
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(05-02-2014, 07:13 AM)W.S.O. Wrote: It is my understanding that fairly soon in many states it will not matter if the person lives in or out of state, sales tax will need be charged. According to my accountant very soon here in Pa sales tax will need to be charged on out of state customers purchases.

There are a few proposed federal laws and interstate pacts under consideration that would either mandate the charging of sales tax to out of state purchases or at least report such out of state sales to other state's taxing authorities. To my knowledge, none of these proposals have yet to be passed into law. Given the vast lost revenue facing some states, I would not be surprised if something is passed sooner rather than later. One of the biggest issues, however, facing such a law is the logistics and costs facing very small internet retailers to comply with mandate to collect taxes from not only all 50 states, but innumerable localities. It's possible that any new law would only apply to businesses that maintain a certain net income or profit or employ a minimum number of persons.

There is also the small possibility of a federal sales tax similar to the European VAT. As such a tax would be in addition to state and local sales taxes, I do not even wish to dwell on such a nightmare.

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 05-02-2014, 12:55 PM
#20
  • bullgoose
  • The Enabler
  • Redondo Beach, California, U.S.A
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(05-01-2014, 04:14 PM)jpakstis Wrote: The companies don't need to be in the taxing state for that state to apply sales tax to purchases. The problem is enforcement (the state cannot apply any liens or judgments against a "foreign" company), which is why states "rely" on the taxpayer self-reporting their use tax (which is the sales tax in case anyone's wondering).

The reason why I put "rely" in quotations above is that states know that people won't self-report. And Freddy, all the "better ways" would be not good for the consumer; either each state beefs up their enforcement abilities (which would be a nightmare for someone like Phil) or a federal sales tax.


- Josh -

It certainly would -I cannot imagine figuring what I owe each state every month.

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