posted on November 17, 2000 03:25:32 PM
Would someone explain to me WHY I have to pay sales tax to the seller of an item I won
just because we live in the same state???
I suppose anyone who walks into his store pays sales tax, but why do only state residents have to pay when it's an internet transaction???
This bothers me, as the amount of tax on this item will be substantial.
P.S. I live at the opposite end of a large state, many other states are actually closer to where this guy is!! I almost want to have it shipped to another address out of state to save on the tax!
posted on November 17, 2000 03:43:00 PM
Tommy - - It is a State Board of Equalization issue. One must COLLECT and SURRENDER tax due on any item PURCHASED in one's own State, unless one has a RESALE Certificate Number to submit at time of purchase. The % varies from State to State. North California is 7.25% (plus the local country additional 1%); Lousiana, Pontchartrain, is about 11%...etc.
The thing is, there is no assurance the seller who collects the tax actually surrenders it (the only way to know would be to have their Resale Certificate Number, since they would have to file a Sales Tax report with their State Board of Equalization, and would be subject to Audit))
******************** Gosh Shosh!
posted on November 17, 2000 04:37:40 PM
WE don't get the satisfaction of knowing, no...But, if they dont file a Tax Return, they stand to be audited...Not a pretty thing...
******************** Gosh Shosh!
posted on November 17, 2000 04:45:21 PM
I would hope that they would tell you in the TOS that they were charging sales tax. That would make a big difference in the way some people bid. Id they didn't disclose that, I'd certainly complain.
Incidently, if you buy something from another state, you are SUPPOSED to contact your state and pay your state taxes on it, even if you already paid that states taxes. I learned that in a sales tax class that I had to take when we got our tax exemption number...and they were serious!
posted on November 17, 2000 05:00:35 PM
Teresa, I've heard about that too... isn't it called a "use" tax? It's supposed to be paid on anything coming in from out of state, including things like magazine subscriptions!!
(the only way to know would be to have their Resale Certificate Number, since they would have to file a Sales Tax report with their State Board of Equalization, and would be subject to Audit))