State Use Tax

Ted S.

Ted S.

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I was just made aware that my state has a "use tax" on goods that I purchase online that don't already charge a tax. Anyone else not know about this stuff? Better start looking through all my old receipts for the year...:(
 
WWWWOOOOWWWWWW!!! Thats some Bullshirt.
 
Wow never knew this. I'd have to check the PA rules on this for myself
 
alko said:
WWWWOOOOWWWWWW!!! Thats some Bullshirt.
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I'm not sure every state has a "use tax", but I just found out TN does; they passed one in 2009 due to how unfair it may be to purchase things over the net, out of catalogs, or over the phone and not pay tax...

2.5% still isn't too bad.
 
I have heard a few states implementing this and letting you just pay a default amount instead of keeping track of the exact amount. I buy so much stuff online I would come out ahead by using the default. So far my tax accountant has not mentioned use tax to me, but I know other states have it, and it will likely come sooner or later.
 
LegacyGT said:
I have heard a few states implementing this and letting you just pay a default amount instead of keeping track of the exact amount. I buy so much stuff online I would come out ahead by using the default. So far my tax accountant has not mentioned use tax to me, but I know other states have it, and it will likely come sooner or later.
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Thing is, I don't have enough time to keep up with all the crap the government is doing. I'm better at it than most, but between work and school, I've never heard of the tax until an amazon confirmation e-mail had some fine print mentioning the tax (funny none of the onthe e-mails mentioned the tax in the fin print).....*expletive*....

I will have to look into whether TN has a default amount, it may be less than what I owe.
 
Illinois has it too where you have to "claim" all of your online purchases and pay a sales tax!
 
Redneckmafia said:
What they do not know will not hurt them...
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Exactly, although I believe they do know about it, at least in California. However, they don't really have the money to go after people for it (it's basically the "honor system"). I mean, they can't even get income taxes from all the people that legitimately owe them how can they really expect to collect this one? Not trying to get political or anything just making a point.
 
NC has a state use tax. You need to pay tax on any purchase no matter what state. You have the choice of calculating it exactly or use a formula (percent of income).

Of course, this turns into a honesty test. The sales tax really gives out of state companies a competitive advantage especially on higher dollar stuff since the shipping if often less than the tax. If you do not have a place selling boutique detailing supplies in your area, you know why.
 
In New York there is a formula or you can pay tax on the actual amount. I have a folder in my Old Mail where I store the orders for items that I didn't pay tax. Makes it easy to find the actual amount. But the formula is always less.

I imagine that the taxing agencies probably have models to determine was internet spending should be. Just like they do for restaurant tips. If you work as a waiter you can just declare 0 tips and expect to get away with it.

IMO The amount is so small that I sooner pay than risk an audit.
 
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