In South Bay, 99 percent of you are online tax cheats -- best in the state

San Jose Mercury News ^ | 8/19/2011 | Mike Rosenberg

[ProtectOurFreedom]

Santa Clara County consumers, take heart: When it comes to reporting your taxes on online and other out-of-state purchases, you're the most honest bunch in the state.

But don't pat yourself on the back just yet: 99 percent of you still cheat on your taxes.

A new report released Friday from the state's tax collectors found that just 0.42 percent of California residents actually reported their out-of-state purchases on their 2009 tax returns. The South Bay led the state at a whopping rate of 1.03 percent.

Carl Guardino, CEO of the Silicon Valley Leadership Group, attributes this partly to the South Bay's wealth. Silicon Valley residents, he said, also are more aware of the rules surrounding online buys.

Online retailers such as Amazon.com and Overstock.com historically had not charged sales tax to California consumers. It's been up to the honesty of the buyer to report the purchases when filing their annual state tax returns.

But nearly everyone ignores this law, saving the average person $170 per year while costing the state more than $2 billion at a time of severe budget cuts. Instead, the tax generated a paltry $10.4 million for the state.

"This is as surprising as the sun coming up or California having good weather," Guardino said. "A voluntary system that few people know about that depends on consumers to take an extra step at tax time, earns these results, where more than 99 out of every 100 people either aren't aware of it (or) don't do it."

[ProtectOurFreedom]

Ha! Why aren't all the libs in California paying their fair share? Why are they cheating? The compliance rate should be about 70% if they were honest. But they always want somebody else to pay.

[Gorzaloon]

But nearly everyone ignores this law, saving the average person $170 per year while costing the state more than $2 billion at a time of severe budget cuts.

Squeal like a pig, b1tches.

[apillar]

I've been called a tax cheat for refusing to calculate and send in use tax on my Internet purchases (and I suppose I am, but with over 99% noncompliance there are a whole lot of conservatives, liberals and moderates doing the same thing). My argument is that I'm not unwilling to pay the tax, in fact if the state wants to keep track of my purchases and send me a bill, or tax my purchase at the time of transaction, that's fine. But I make hundreds of Internet purchases a year, most under $50 dollars, but some as high as thousands. I'm just not willing to waste my time keeping track of hundreds of receipts, trying to figure out which ones withheld tax and which ones didn't, calculating it and sending it in.

[TaxPayer2000]

The links do not work for me.

[Keen-Minded]

What? Don’t the Obummer liberals want to redistribute their wealth? I find that hard to believe. (sarc)

[ProtectOurFreedom]

Links work for me. Maybe you have to register on the site to read their stuff. You get the gist of it in the excerpt.

[shorty_harris]

When I buy something directly from Amazon, it ships from Nevada. Why does CA think it should get a cut? Does Amazon have a store in CA?

[BwanaNdege]

North Carolina lets you report online/out of state purchases, or they will calculate it for you. Since this is usually based on income, they don’t come up with a significant amount owed by me.

So, I let them calculate and I don’t have the hassle of keeping records. Plus, I estimate that I pay less this way.

[LostInBayport]

99 percent of you still cheat on your taxes.

Because all liberals cheerfully and dutifully pay their "fair share", right?

[tcrlaf]

The more you raise taxes, the harder people will try to avoid paying them.

Will we EVER learn?

[seowulf]

The people are the final judge on any law; not politicians, not judges.

When the people decide not to comply for whatever reason, the law becomes unenforceable.

That is the whole idea behind civil disobedience. Segregation was the law, now it’s not because people stopped obeying it. It was only after the people decided the law was no longer the law that politicians caught up.

[ErnBatavia]

You forgot one.....

[LostInBayport]

It is outrageous...OUTRAGEOUS...that I forgot Daschle.

Remember that rant of his?

[ErnBatavia]

Little Tommy is feeling slighted......

[exDemMom]

I have always thought that purchases made out of state were not subject to state sales taxes. When did that change?

It’s absurd to think that I would keep records of everything I buy out of state so that I could then pay state sales tax on it... even if I wanted to pay that extra tax, which I don’t.

I’m glad I don’t live in CA any more.

[max americana]

I’m an SEO and PPC guy, and I’m on the work at home forums and I have read most times that Paypal rats you out eventually as the “law” states that 200 transactions must be reported for.

Then a close friend of mine just took out Paypal. Eventually made Alertpay and his own CC, be the de-facto transaction source and he has been doing it for 2 years. Z Money is also on the IRS guidelines so people tend to avoid it.

[sten]

simple solution .. buy nothing unless you absolutely must. even then, only in cash

shut it all down. screw them.

stop helping them redistribute your wealth to their politically favored base

save every penny... turn it into assets (gold, silver, guns, ammo, long term food stores). items they can’t readily confiscate

[Carry_Okie]

How hard would it be for the State to contract for writing an application program that people could install from the State website by which to calculate the tax for those who would pay it?

[10thAmendmentGuy]

Don't forget this gentleman:

[10thAmendmentGuy]

You beat me. :( My picture is better though.