"FE" <never_say_spam[at]nospam.com> wrote:

- quote -


I think the issue is mostly political in nature.
In general, most states that have sales taxes also have
compensating use taxes.

Most often, use taxes are only collected from business
entities upon audit. The states do indeed want consumers to
pay sales taxes, but do not want to go after them indivually
to collect it (the use tax).

Accordingly, the use tax statutes are rarely enforced
against individuals. And the states really don't seem to
interested or eager in doing so.

I think that the states really have no need for any new
statutes, or any other good reason to go after out of state
internet (or mail order) vendors. They just need to pursue
the existing use tax statutes that have been around for
many, many moons. The political will do to so is another
matter altogether.

--
<<< Benjamin Yazersky CPA [NJ & NY] > >
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"D.F. Manno" <dommanno[at]netscape.net> wrote:
- quote -

Michigan uses a line on the income tax form to collect its
use tax. This is a clever ploy because one is required under
penalty of perjury to check a box indicating no use tax is
due or enter the amt of tax that is due. Now it is one
thing to tell oneself that "I probably don't owe any tax"
and not fill out a separate form; it's another to
deliberately file a false tax return. Since I typically owe
less than $50, its a lot easier to pay and sleep soundly at
night.

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"FE" <never_say_spam[at]nospam.com> wrote:

- quote -

Yes, states that impose a sales tax also impose a use tax on
items purchased out of state and brought into the state (to
the extent that the home state tax rate exceeds any sales
tax paid at purchase).

Some states have a use-tax line on the state income tax
return. Pennsylvania, my home state, does not, but it does
have a form that the consumer is to fill out and return with
payment. I assume that other states do as well.

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
(Benjamin Franklin)

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"FE" <never_say_spam[at]nospam.com> wrote:

- quote -

Yes it's true. In Nevada, sales tax auditors go around and
audit business. For private individuals, it's supposed to be
"voluntarily" reported. Want to guess how many volunteers
there are?

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"FE" <never_say_spam[at]nospam.com> wrote:

- quote -

Consult the state(s) in question.

- quote -

Probably on a Use Tax form.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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Is it true that if a consumer buys goods from an
out-of-state Internet company that the consumer must pay a
"use tax" on the goods purchased because the Internet
company, having no brick & mortar presence in the buyer's
state, doesn't collect a sales tax from the buyer? If this
is true, how in the world is a "use tax" collected from
consumers????

My apologies for the length of that first sentence.

FE

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