Are you an online tax cheat?

The Los Angeles Times ^ | March 22, 2011 | Unsigned editorial

[brownsfan]

“I do and you just did!”

No way! I didn’t do it. No one saw me do it. You can’t prove anything!

[2 Kool 2 Be 4-Gotten]

I don’t smoke :)

[choirboy]

There are two types of taxes here: sales tax and use tax.

Generally, a seller is required to collect the sales tax from the buyer and then remits that to the state. The seller can pass on collecting the tax but is still required to remit the amount to the state.

One of the exceptions is in interstate commerce. The seller is not required to collect sales tax in interstate commerce.

In the case of interstate commerce, the buyer is required to remit the tax to the state. In this case, it is called a use tax.

[Patriotic1]

It used to be on the form several years ago. Back when I did my own taxes, I would fill in an amount. With having an accountant and it no longer being a line (but a schedule) for some time, I forgot all about it until last year.

It’s not that hard to at least put an estimate and pay something.

I may not like the concept of the use tax, but it is a law.

[choirboy]

It's based on where one lives, not where one buys things?

No. It's governed where the sale took place. The visitor to California who buys something taxable while in California pays California sales tax. If he purchased it online from Nevada, he's not subject to California sales tax -- thanks to the commerce clause in the US Contitution.

[stompk]

Yeah, sneak across the border, get on welfare, work under the table and all is fine. But if you do not pay that 8% tax on that book you ordered from Amazon, ve vill come for you!

you know, this really pisses me off. it was bad enough when we weren't allowed to say that things were wrong (illegal immigrants, gays, etc), but now we're not even allowed to think they are wrong. but me not paying tax on an out of state purchase is wrong. I'm freaking stunned.

[Jack Hammer]

Be advised, prole, EVERYTHING is the property of The State - you may be allowed to keep a little of what you earn if you keep your nose clean and kowtow to your Governnment Masters.

From each according to his ability, to each according to his need.

And remember - Big Brother is watching you.

[BigBobber]

Thank you for the clarification. This came up a few years back when Californians were going to Oregon (which has no sales tax) to buy vehicles that were then brought into California.

California tried to collect a tax on the vehicles but the courts did not allow it. How is buying a car out of state different from buying a post card?

[jeffc]

In the case of interstate commerce, the buyer is required to remit the tax to the state. In this case, it is called a use tax.

Interesting. How long until a state gub'mint stumbles on to charging a sales tax on the seller and a use tax on the buyer so they can garnish even more money? Do not put it past Demos to try such a thing.