Buying from Amazon

N

ns27

CAGiversary!
I know that shipping is usually free if over a certain amount and tax is not charged in some states, but I was wondering, because I read off of someone on here who I cannot remember, do you end up paying for that tax later on in the future? Please help, thanks in advance.
 
[quote name='ns27']I know that shipping is usually free if over a certain amount and tax is not charged in some states, but I was wondering, because I read off of someone on here who I cannot remember, do you end up paying for that tax later on in the future? Please help, thanks in advance.[/quote]

Its just like buying anything mail-order. If the company is out of state, you are not charged sales tax (on most products).
 
Yes, you are technically suppose to pay taxes on stuff from Amazon, if you live in a state with a sales tax, of course. It's pretty much the honor system, though, and no one really does it. And that state doesn't bother going after anyone, because it's such small amounts of money that it would probably cost more to investigate you.

One good example where a state DID go after such offenders was in New York, where they tracked down people who bought thousands of dollars worth of cigarettes from indian reservations.

So, yes, you are suppose to pay sales tax even if a company doesn't have to collect it themselves, but no one is going to come after you, unless you're buying thousands and thousands of dollars of stuff online every year. It simply wouldn't make sense. The state's purpose of charging a tax is to make money. They wouldn't make any more hunting down someone who buys a few hundred dollars worth of stuff from Amazon.
 
[quote name='bigdaddybruce44']Yes, you are technically suppose to pay taxes on stuff from Amazon, if you live in a state with a sales tax, of course. It's pretty much the honor system, though, and no one really does it. And that state doesn't bother going after anyone, because it's such small amounts of money that it would probably cost more to investigate you.

One good example where a state DID go after such offenders was in New York, where they tracked down people who bought thousands of dollars worth of cigarettes from indian reservations.

So, yes, you are suppose to pay sales tax even if a company doesn't have to collect it themselves, but no one is going to come after you, unless you're buying thousands and thousands of dollars of stuff online every year. It simply wouldn't make sense. The state's purpose of charging a tax is to make money. They wouldn't make any more hunting down someone who buys a few hundred dollars worth of stuff from Amazon.[/quote]

Actually your wrong. They are only required to collect sales taxes in states where they have a physical presence.

Amazon has physical warehouses in Kansas, Kentucky, North Dakota, and Washington and as such people in those states pay sales tax no matter where their items come from.

Anyone not in one of those states doesnt have to pay tax due to the law.

On a sidenote lets think this through a bit. AMAZON is the one who isn't charging sales tax so they would go after amazon, not the consumer. Also you better damn well believe if a company wasn't charging tax and paying tax they'd be investigated asap. Please don't spread false information if you have no idea what you are talking about.
 
[quote name='Brian9824']Actually your wrong. They are only required to collect sales taxes in states where they have a physical presence.

Amazon has physical warehouses in Kansas, Kentucky, North Dakota, and Washington and as such people in those states pay sales tax no matter where their items come from.

Anyone not in one of those states doesnt have to pay tax due to the law.

On a sidenote lets think this through a bit. AMAZON is the one who isn't charging sales tax so they would go after amazon, not the consumer. Also you better damn well believe if a company wasn't charging tax and paying tax they'd be investigated asap. Please don't spread false information if you have no idea what you are talking about. [/quote]
No, actually you are completely wrong, so it's funny to me (and sad for you) that you tried to criticize me so heavily. I did not say a company has to collect the tax if they don't have a physical presence in your state. I said you have PAY the tax. And you do. A simple Google search would yield that information. Next time, try that route first, instead of blatantly insulting a fellow board member, who is only trying to help...by actualy providing the correct information...

"Tracking down who bought what, and determining how much they owe, is a loophole that anti-smoking advocates and others want to see closed."

http://www.twincities.com/wisconsin/ci_7807521?nclick_check=1

You wouldn't be able to "track" down anyone, if they didn't do something wrong. You need to pay the tax.

"But the average individual taxpayer may be more confused than educated at this point. Since online shopping sites vary widely in their policies on collecting sales tax, consumers have to review transaction-by-transaction which purchases might carry a year-end liability."

http://www.news.com/States-push-for-piece-of-online-sales/2100-1040_3-5187751.html

The year-end liability, of course, refers to the TAX you have to pay.

So, as I said above, if your state has a sales tax, you may technically have to pay up at tax time. It all depends on how your state's laws are written. But it doesn't really make a difference one way or the other, because no one is going to come after you. There is a lot of pressure on Congress right now from a number of states who want all online retailers to charge sales tax, even without a presence in their state, because so few people actually report their online purchases.
 
Actually, bigdaddybruce is correct. I live in New York, and the idea of going after online purchasers for sales tax has been discussed by politicians and consumer advocates here ad nauseum. The idea could be pursued on a larger scale at some point, no doubt depending on the state of the budget, the desperation of revenue seekers and the Federal/local climate. If you don't want that to happen -- ever -- then support politicians who have a history of voting in favor of consumers' rights and fair tax stratification.

This isn't a question of paying tax when a national company owns warehouses in your state -- that's already de rigeur -- it's a question of being taxed for buying goods in another state as if you were located in that state, and being expected to pay that tax in the form of a check to the government.
 
Thank you. As I said earlier, it was New York state that brought this to my attention, when I read in the Daily News some time back about the people buying cigs from the reservations and getting letters about how they owed hundreds of dollars in tax on them.
 
You say that now, but the way things are trending, in a few years, you might not be able to. That's the point as I see it.

On the other hand, cigarette tax enforcement probably has more to do with Mayor Bloomberg's anti-smoking campaign than redefining internet taxation. Currently, the cigarette tax precedent is just a way to use fine print to go after an undesirable business. It's the equivalent of Guiliani enforcing rezoning laws to close sex businesses in Times Square. The point wasn't morality, but to make room for a huge shopping area that catered to tourist families. The internet is a huge shopping mall already.
 
So, as I said above, if your state has a sales tax, you may technically have to pay up at tax time. It all depends on how your state's laws are written. But it doesn't really make a difference one way or the other, because no one is going to come after you. There is a lot of pressure on Congress right now from a number of states who want all online retailers to charge sales tax, even without a presence in their state, because so few people actually report their online purchases.[/quote]

That's what I remember reading, thanks again.
 
Yea, its called 'Use tax' where you are supposed to pay to your state taxes on items purchased out of state.

Ive seen emails from ebay saying to lobby your local politicians from passing laws on something like this - since people never do pay use tax. Essentially it would require retailers(and ebay sellers) to collect sales tax from buyers from every state and then pay to that state - effectively would overwhelm smaller sellers with adminstrative work.
 
Actually I am right. Like i said you don't have to pay sales tax. As pookymeister pointed out thats a totally seperate type of tax called a use tax that most states don't even have. NS27 thats also a use tax, not a sales tax. Use tax is optional and not used by every state. It is not a sales tax.

You said sales tax which is 100% wrong. You do not pay any sales tax by law unless the store has a physical presence. Which is listed on amazon's site btw under the Effect of the Internet Tax Freedom Act http://www.amazon.com/gp/help/customer/display.html?ie=UTF8&nodeId=468512&qid=1199074830&sr=1-1

Companies selling over the Internet are subject to the same sales tax collection requirements as any other retailers. Remote sellers (including Internet retailers and catalog companies) are generally required to collect taxes where they have a physical selling presence. If they do not have any such presence, they are not required to collect sales taxes.
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So once again the answer is no. You are not required to pay sales tax unless you live in one of the following states: Kansas, Kentucky, North Dakota, or Washington.

Oh and a fyi the reason New York went after people for not paying use tax is because they changed their tax forms to make people aware of it and added a section for it. I believe around 20 states have sections on their tax form for use tax so you can print out a tax form and take a look and see if they have a section on there. http://www.nysscpa.org/cpajournal/2004/704/essentials/p38.htm
 
Actually I am right. Like i said you don't have to pay sales tax. As pookymeister pointed out thats a totally seperate type of tax called a use tax that most states don't even have. NS27 thats also a use tax, not a sales tax. Use tax is optional and not used by every state. It is not a sales tax.
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LMAO! You're pretty pathetic, my friend. You know you're wrong, so you're trying to argue semantics. You tried to attack me, you were wrong, and yet, you won't admit it. After this, though, you should probably walk away. What is a use tax?

A use tax is a type of excise tax levied in the United States. It is assessed upon otherwise "tax free" tangible personal property purchased by a resident of the assessing state for use, storage or consumption of goods in that state (not for resale), regardless of where the purchase took place. The use tax is typically assessed at the same rate as the sales tax that would have been owed (if any) had the same goods been purchased in the state of residence. Typical purchases that require payment of use tax include those done while traveling (for things carried or sent home), through mail order, or purchases via telephone or internet.
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So, what's a use tax? Damn, that sounds an awful lot like a sales tax, huh? But it's called a use tax!!! So, it isn't a sales tax, amiright huh? Oh, and that's a Wikipedia link! Surely, it's wrong! I must have edited it! Well, let's see what the Colorado Department of Revune has to say on the subject.

Consumer Use tax is a complement to state sales tax. The state consumer use tax rate and the state sales tax rate are 2.9 percent.

Use tax must be paid by businesses and individuals who purchase goods when the seller did not or could not collect sales tax (for example, purchases from an out-of-state retailer who does not collect Colorado sales tax).

Colorado law requires that state sales or use tax be paid on all non-exempt tangible personal property that is sold, leased, or delivered in Colorado for use, storage, distribution or consumption in the state.
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Obviously, I have hacked their website. And don't bother telling me, "Oh, that's one state." I'm not going to bother shifting through tax codes for every state. Just face it. You were wrong, buddy.

So, what have we concluded from this lesson? A use tax is a tax you pay on items generally exempt from regular sales tax. Thus, it is a sales tax. Same, exact thing. I wouldn't have been so hardline about this, but you were a nasty, little bugger, and you were shown to be 100% wrong. Good show.
 
Notice how it says compliments sales tax, not that it IS sales tax. Pretty much every state with use tax has whats called a Sales and Use Tax department. Notice the use of the word and which signifies that they are 2 seperate entities.

They are both a form of tax on sold items but they are NOT interchangeable. They are very different. It's the same difference as a felony and misdemeanor. Both are classification of crimes but they are not the same.

A use tax is a tax you pay on items generally exempt from regular sales tax. Thus, it is a sales tax.
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So a use tax is a tax you pay on an item that is exempt from sales tax? That would make it a different type of tax since by your own admission its NOT sales tax. There are multiple types of taxes you know, they all aren't lumped under sales tax...

Thats probably why most states have a Sales and Use Tax department to handle both types of taxes....
 
Ehh yeah the whole debate is pretty stupid. All that matters is OP only has to pay the $399. Now come taxes if you have a use tax section on your tax form and you lie about value there then thats your fault :)
 
[quote name='bigdaddybruce44']LMAO! You're pretty pathetic, my friend. You know you're wrong, so you're trying to argue semantics. You tried to attack me, you were wrong, and yet, you won't admit it. After this, though, you should probably walk away. What is a use tax? but you were a nasty, little bugger, and you were shown to be 100% wrong. Good show.[/QUOTE]

You meet such cool people on the Internet. I can almost see him pumping his fist in the air and making an addition to his Online Tax Blog.
 
^ I love how I get am the one that you attack, when all I did was give the OP the information he was looking for and get criticized for it. What's a matter? I'm "new," so I have a bullseye on me. Some of you people amaze me.

So a use tax is a tax you pay on an item that is exempt from sales tax? That would make it a different type of tax since by your own admission its NOT sales tax. There are multiple types of taxes you know, they all aren't lumped under sales tax...
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Again, you want to hide behind semantics. The company selling you the item is not obligated to collect the tax. That is the exemption. It is not EXEMPT from a sales tax. That is why the state expects to collect a use tax...you are the user. Don't you find it a little odd that the tax percentage is pretty much the same in every state? Why? Because they are charging you the sales tax that the company was not obligated to collect.
 
One is a tax on the sale, the other is a tax on use.
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Again, it's semantics.

Does everyone call you by the same, exact name? I will assume by your user name that you are Brian. Does everyone call you Brian? Or do people at work or school call you, say, Mr Smith? Does your younger sibling have a nickname for you? Does your significant other refer to you as something else? If so, are you three or four different people? Obviously not. You're one person, with different names. Your nature does not change over a name. People simply call you different things, either because of different situations or your relationship to them.

A sales tax and a use tax are the same thing. They are just different names for the same thing. The sales tax is charged and collected by the retailer at the point of purchase. The use tax is reported on your personal taxes in April. That is the only difference between. In every, other way, they are similar. They are charged at the same rate, they are charged on taxable goods, etc.
 
So... I'll pay $399 for a Ps3 at the moment, but down the line I will eventually have to pay those taxes?
 
[quote name='ns27']So... I'll pay $399 for a Ps3 at the moment, but down the line I will eventually have to pay those taxes?[/quote]If you follow the letter of your tax return, you would likely (depending on your state) be expected to pay use tax on your estimated online (untaxed) purchases. But obviously CAG does not believe in the use tax. :lol: I usually just mark down a couple hundred bucks (oh noes, dozens of dollars, gone!) and that's the end of it.
 
OP asked if he had to pay tax (didn't specify which tax) so bdb44's original answer is on the ball.

Whoever thought a use/sales tax question would be a topic worthy of vs forum coinsideration ;)
 
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