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Californians not paying required taxes on Web purchases
Sacramento Bee ^ | 12/8/10 | Mark Glover

Posted on 12/08/2010 6:16:07 PM PST by SmithL

An estimated $1.145 billion in use tax owed by Californians goes unpaid each year, according to an estimate released today by the state Board of Equalization.

BOE noted that much of the unpaid total is the result of consumers purchasing from out-of-state retailers not required to collect California tax. Many of those purchases are made online or via catalog orders.

BOE said the use tax owed is the same as the sales tax that would be due if the purchase were made from an in-state retailer. BOE said it is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns.

(Excerpt) Read more at sacbee.com ...


TOPICS: Government; US: California
KEYWORDS: 2confusing; 2hard2understand; goldenstate; salestax; taxandspend; usetax

1 posted on 12/08/2010 6:16:08 PM PST by SmithL
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To: SmithL

Screw the state of Kalifonikation-

That is why I shop on the web!


2 posted on 12/08/2010 6:17:53 PM PST by SFC Chromey (We are at war with Islamofascists inside and outside our borders, now ACT LIKE IT!)
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To: SmithL

Screw that. The “use tax” is indicative of the greedy mindset of government


3 posted on 12/08/2010 6:18:42 PM PST by A_Former_Democrat (NO MOS-que AP: It's the "GROUND ZERO MOSQUE")
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To: SmithL

“is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns.”

Yeah, right. Compliance rate will be 1%?


4 posted on 12/08/2010 6:19:32 PM PST by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: dynachrome

I thought the liberals in California want to pay more taxes?


5 posted on 12/08/2010 6:21:05 PM PST by scooby321
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To: SmithL
BOE said it is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns.


6 posted on 12/08/2010 6:21:09 PM PST by Nervous Tick (Trust in God, but row away from the rocks!)
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To: Nervous Tick

FU CA

FU BO

Ha ha!

Please God get me out of hell.


7 posted on 12/08/2010 6:26:27 PM PST by 1st I.D Vet
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To: SmithL

Or what?

8 posted on 12/08/2010 6:27:21 PM PST by delacoert
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To: SmithL
BOE said it is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns.

Oh, sure. No problem

9 posted on 12/08/2010 6:29:09 PM PST by paul51 (11 September 2001 - Never forget)
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To: SmithL

Remember, it’s not YOUR money!

It’s THEIR money!


10 posted on 12/08/2010 6:30:49 PM PST by Attention Surplus Disorder ("Looks like I picked the wrong week to quit smoking" - Barack Hussein Obama)
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To: SmithL
by the state Board of Equalization.

Sounds rather George Orwellian-like, '1984'.

11 posted on 12/08/2010 6:35:11 PM PST by tflabo
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To: delacoert
“Or what?”

As of now they have no real way to monitor purchases but from what I understand after 1/1/11 CC companies will be turning over records of out of state purchases to the State Franchise tax board.

12 posted on 12/08/2010 6:38:00 PM PST by Polynikes (Haakkaa Paalle)
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To: scooby321
I thought the liberals in California want to pay more taxes?

No no.....liberals say 'more taxes for thee but not for me'.

13 posted on 12/08/2010 6:38:00 PM PST by tflabo
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To: SmithL
BOE said it is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns.

Sure, I'll get right on it.

14 posted on 12/08/2010 6:38:35 PM PST by RightGeek (FUBO and the donkey you rode in on)
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To: SFC Chromey

Screw NY too...I only buy big ticket items online or in Delaware w/ no sales tax.


15 posted on 12/08/2010 6:40:59 PM PST by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: SmithL
BOE said it is reminding holiday shoppers to save receipts, calculate the use tax due and make the appropriate payments to the state when they file tax returns

Why I'm sure Kalifornians are just rummaging through their waste paper baskets right now to comply... oh wait this *IS* Kalifornia... might not need a sarcasm tag after all they probably are doing it.
16 posted on 12/08/2010 6:41:24 PM PST by battousai (Conservatives are racist? YES, I hate stupid white liberals.)
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To: SmithL

A question has appeared on the state income tax form for several years asking about out-of-state purchase amounts for use taxes.

I found it very confusing and answered none, of course.


17 posted on 12/08/2010 6:45:42 PM PST by Wonka
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To: Polynikes

after 1/1/11 cash rules.


18 posted on 12/08/2010 6:47:30 PM PST by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: Ouderkirk

It is much better to pay shipping costs rather than pay CA sales tax and to pay the higher prices of the companies that also pay higher taxes. Starve the beast.


19 posted on 12/08/2010 6:49:29 PM PST by Oldexpat
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To: battousai

20 posted on 12/08/2010 6:49:57 PM PST by tflabo
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To: SmithL

Use taxes are pretty much in every state, not just California.


21 posted on 12/08/2010 6:50:38 PM PST by dfwgator (Congratulations to Josh Hamilton - AL MVP)
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To: dfwgator

More like ‘tax abuse’.


22 posted on 12/08/2010 6:53:03 PM PST by tflabo
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To: Polynikes

States cannot legally require out-of-state retailers to act as their collectors.


23 posted on 12/08/2010 7:09:14 PM PST by delacoert
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To: SmithL

How can that be? It’s simply a personal integrity issue.


24 posted on 12/08/2010 7:22:49 PM PST by SgtHooper
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To: Polynikes
As of now they have no real way to monitor purchases but from what I understand after 1/1/11 CC companies will be turning over records of out of state purchases to the State Franchise tax board.

If true about credit card companies, what about PayPal? I make a lot of purchases online that get paid via PayPal, which then charges against my credit card. The credit card company doesn't know what I purchased. Would PayPal be forced to reveal their records to the state bureaucrats?

25 posted on 12/08/2010 7:23:28 PM PST by roadcat
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To: delacoert
The retailers won't collect tax. The CC companies will report the transaction to the state franchise board who will then have a record to trace back to the purchaser. The state then have a record of the purchase and will be looking for it on the tax return.
26 posted on 12/08/2010 7:28:53 PM PST by Polynikes (Haakkaa Paalle)
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To: roadcat
I don't know about Paypal and how they will interact with the state if at all. It wouldn't surprise me if the state has that covered as well.
27 posted on 12/08/2010 7:33:47 PM PST by Polynikes (Haakkaa Paalle)
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To: Polynikes

Conditions ripening for lucrative black market.


28 posted on 12/08/2010 8:37:06 PM PST by delacoert
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To: All; dfwgator
Use taxes are pretty much in every state, not just California.

Just because they're common doesn't mean they're necessarily a good thing. The justification offered by the state that CA retailers lost out on a sale so the state must take tax revenue as an offset is preposterous.

They want you to pay the difference even items you paid the local sales tax on when you bought the item out of state. Buy a stuffed animal out of state as a souvenir? Pay sales tax in state of purchase, then pay CA for the privilege of gifting it to your child by paying use tax equal of the difference between CA's sales tax and the other state's.

The highest sales tax in CA is, I think, Pico Rivera in L.A. County. It's 10.75%.

29 posted on 12/09/2010 12:08:21 AM PST by newzjunkey (expired "Bush tax cut" = Obama Tax Increase)
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To: All
FAQ on use tax from the CA Board of Equalization:

Your Use Tax Responsibility

It's also available in Español.

30 posted on 12/09/2010 12:10:04 AM PST by newzjunkey (expired "Bush tax cut" = Obama Tax Increase)
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To: Polynikes

Where did you get this information? I could not locate any California or nationwide regulation/rule/law stating this.


31 posted on 12/09/2010 6:42:35 PM PST by yadent
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To: yadent
It mainly will be affecting mainly business but since the CC will be filing with the IRS monthly the Cali BOE is sure to be tied in. The fact that they “reminded” everyone seems to indicate that will have a fertile ground to look for irregularities.
http://www.usataxaid.com/ustaxaid-blog/internet-tax-changes-starting-in-2011/
32 posted on 12/12/2010 10:01:26 AM PST by Polynikes (Haakkaa Paalle)
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