Online tax

[thorbahn3]

CheapyD brought up the fact that your Xbox 360 order wouldn't be taxed but lately I've been taxed up the ass on just about everything from Netflix to Overstock . Is this a new national law on online purchases or just an Ohio thing?
Also is anyone else getting taxed outside of Ohio?

[rodeojones903]

You are actually supposed to report and pay tax on all your online purchases if I remember correctly. I think I remember there being a line about that on last years forms.

[Rictor]

If you order from a website that has a presence in the state you live in and your state has sales tax, then they are required by the laws of your state to collect sales tax from you. If you are paying tax on something like Netflix, then my guess is they have a distribution center in your state...same with Overstock. Either that or they have an agreement with your state to collect sales tax. I think a lot of online companies are trying to police themselves and collect sales tax rather than have the government pass some sort of federal online sales tax law, which would suck for consumers and retailers. I'm in Indiana and there are very few websites left that don't charge me sales tax.

[wubb]

You are actually supposed to report and pay tax on all your online purchases if I remember correctly. I think I remember there being a line about that on last years forms.

Exactly, although I'm sure very few really do.

[botticus]

You are actually supposed to report and pay tax on all your online purchases if I remember correctly. I think I remember there being a line about that on last years forms.Yeah. I just report some random guesstimate of what I've spent, since it's hard enough to remember what I bought, let alone what was taxed and not.