- quote -

Well, it's not usually THAT complicated <G> . There are
exceptions to everything, of course, but in general a
transaction that is subject to SALES tax is exempt from USE
tax; or a credit is allowed against the use tax for the
sales tax that was paid on the purchase. And states (and by
extension, localities) generally allow credit for sales
taxes paid to other states.

So if you went to a store in State A and bought a gadget and
took it home to use in State B, technically that purchase is
subject to State B (and local) use tax. However, you
already paid state and local sales tax to State A, because
you took title and possession of the property there. State
B (and your locals) will almost certainly give you credit
against the use tax for the sales tax you paid to State A.
So the only difference would be the excess of the State A
combined rate over the State B combined rate, if any ... not
enough for any state to pursue cost effectively.

Local taxes are generally imposed where the transfer takes
place, so if you bought something in County A and brought it
back to County B, don't worry about it unless you paid a few
million for it.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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- quote -

I think it is much more complicated than that. You also have
to account for Bricks and Mortar purchases made in state for
different counties as well. So if you border another state
or wander into different taxing jurisdictions, it could get
very complicated.

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- quote -

I'm going to tell my clients about the new line, and ask if
they make internet or phone purchases. I anticipate a large
percentage of "No" answers, especially among my AARP/TCE
clients. If they say "Yes", I'll ask if the table amount
sounds about right. If they have a better number, I'll use
it.

--
Don EA in Upstate NY

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"Wcm7315" <wcm7315[at]aol.com> wrote:

- quote -

NJ has had it for a number of years now. For the most part
its been largely ignored. However, if a taxpayer wants to
voluntarily pay use tax, I would think about filing the
sales/use tax form. That way I'm certain that the statute of
limitations starts to run on it. I really don't know if
paying use tax on an income tax return starts the statute to
toll.

--
<<< Benjamin Yazersky CPA [NJ & NY] > >
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Wcm7315 wrote:

- quote -


Oklahoma also offers a similar handy table. However,
there's no legislative authority to use the table as a
safe-harbor. Is the table a safe-harbor for New York State?

- quote -

One more organizer page.

At the top, a brief explanation of what use tax is. In the
middle, an explanation of the right way to calculate it, and
the 3 wrong methods provided in the instructions for that
line. At the bottom, a list of choices for them to choose
from:
I made no out of state purchases, and do not owe any
Oklahoma use tax.
I made out of state purchases, but the seller always charged
Oklahoma tax, so I do not owe any Oklahoma use tax.
I made no out of state purchases over $1,000, and want to
pay 0.056% of my Adjusted Gross Income.
I have calculated my use tax, and owe $___
I made out of state purchases of $___ , paid $___ in tax to
other states, and live in ___ County, within the city limits
of ___
I made out of state purchases of $___ , paid $___ in tax to
other states, and live in ___ County, not within any city's
limits.

Phoebe

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This year, Line 56 on IT 201, is new. It is the "sales and
use tax" line, which requests payment of sales tax on
purchases bought out of state (through the net, catalog, tv
shopping, indian reservations, etc.). What is interesting is
that NYS provides a table to use to pay your tax, based on
your income. The table amount does not have anything to do
with actual purchases made. I'm sure many people will use it
and NYS will just collect an extra 30 or 40 bucks from them.
Of course, if you prefer, you can figure your exact tax, but
you cannot leave the line blank. You must enter 0 on the
line if no tax is due, thereby affirming that you made no
out of state purchases.

How are you going to handle this with your clients? Will

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