[IYAS9YAS]

If your state has a sales tax, you can be pretty certain that, while the purchase may come to you tax free, the state still has a law on the books that you have to report these types of items for "use" taxes. Often, they are the same rate. This was an issue for catalog sales via mail long before the internet.

Not saying I agree with it, just saying the law is probably on the books.

[bfree]

You must voluntarily file to pay the use tax in Illinois.

I will never volunteer to give money to any government. Screw them.

[KarlInOhio]

There are two categories of people who actually file those use taxes - politicians who are worried about being caught and people who expect to run for office soon who are worried about being caught.

[RebelTXRose]

Here in New York, we get charged “use tax” based upon our income. They just assume you are buying stuff on the internet! My first tax year here as a partial year resident (sept-dec ONLY) they tacked on $45 for use tax and took most of my $75 refund I was expecting.

[OldNavyVet]

To go into any form of retail business in California, you need to get a resale license and business license(s)..

Given that, the state requires periodic reports on sales, and payment of tax receipts to the state. The bigger you are, the more often you have to feed the vultures.

Sales taxs are bureaucratic, anti-business, anti-human, bottomless pit cesspools that need to be stopped ...

The initiative process is the way to do it.

Good luck!!!!

[TruthWillWin]

If your state has a sales tax, you can be pretty certain that, while the purchase may come to you tax free, the state still has a law on the books that you have to report these types of items for "use" taxes. Often, they are the same rate. This was an issue for catalog sales via mail long before the internet.

Not saying I agree with it, just saying the law is probably on the books.

And how many do you think actually report these items and pay the taxes? My guess is it much closer to 0 than 10%.

Before the internet catalog sales, at least Sears Catalog sales, had to include sales taxes at the rate of the state they were shipped to.

Not paying sales taxes on internet sales is an unfair disadvantage to brick and mortar retail stores.

[weegee]

It’s only a matter IF the catalog company (say Sears) has a store in your state. If you are ordering from Las Vegas Poker Chip Company Inc. in Nevada, you will owe no sales tax.

[stayathomemom]

Yep. The State of Michigan found us about 23 years ago. I think they assumed since we lived in Michigan and my husband practiced medicine in Wisconsin, that there would be a lot of out of state purchases for him for his practice. There weren't. He was hospital based and had very little overhead. In order to please the state, I went through and counted all the clothing we had bought at Lands End and estimated what we owed them. We now make a point of keeping records of all on line and catalog purchases and file a use tax.

[weegee]

And it is YOUR state that collects the money, not the state the package originates from.

There is some effort being made to require payment to possibly BOTH states. And that has never been law.

[Eagle Eye]

yep and they act as if that is the state’s money to begin with....why don’t they just assume a 35% spend rate of each individual’s income and then take their 6-8% cut off the top? Oy vey!

[sickoflibs]

The high tax states want this but it would be the federal government that regulates state to state trade and would have to be the one to force low tax states to comply.

I can only guess this would be unpopular, but America worships the Messiah so maybe they will gladly reward the welfare states like California and NY.

[Question_Assumptions]

I actually pay "use tax" on my tax returns. Why? I worked for my state's taxation department and know how they can find out what you've ordered out of state (they talk to other states and share audit information about mail order firms and who they ship big ticket items to) and know what they can do to you if you don't pay (penalties, interest, interest on the penalties -- it all adds up quite quickly). I'd rather not risk it.