Use tax--is everyone ignorant?

I'll plead slopiness due to lack of sleep (working out of town and being Mr. Mom at the same time). I had originally read this (since it is something I remembered from a few years ago) and got them mixed up.

http://www.usatoday.com/news/opinion/e1024.htm

If I owe the use tax, would you mind paying twice for yours to make up for me not paying mine? Until California lowers my income tax (not a chance), I'm not paying it until they send me a bill.
Are you also ignorant that many states have Internet Tax Freedom
Acts???
http://www.techlawjournal.com/internet/80824citfa.htm
Did you just read the title of the bill? This is what the bill says:

"This bill would enact the "California Internet Tax Freedom Act" to
prohibit, with specified exceptions, the imposition, assessment, or
attempt to collect any of the following: a tax on Internet access,
Online Computer Services, or the use of Internet access or any
Online Computer Services; a bit or bandwidth tax; or any
discriminatory tax on Online Computer Services or Internet access."

That bill has to do with a tax on internet access--not use taxes on
goods bought out of state over the internet.
 
I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
--
http://www.vwvortex.com

Trogdooooooooooooooor! Burninating the countryside!
 
My understanding is that if you are an individual this does not apply.

However if you are running a small business this can be very important. My understanding is that if you try to take advantage of the internet tax loophole when you buy something like office supplies or other routine business items, you can get majorly burned by the Board of Equalization for violating the rule that you must pay taxes on anything you don't re-sell, and the internet thing is NOT an exception to this.
 
Do you have records of all your purchases made out of state? No, than you can forget the use tax for the d-REBEL because its price is below $1000. You can use the non itemized estimation which is .065% of your taxable income. You need to earn more than $99,500/yr to not make a gain on buying the camera online. If you do earn more why bother? Or just add a 550ex and a nice lens. And this is perfectly legal.

Check here, scroll to page 7:
http://www.dor.state.nc.us/downloads/D401_2002.pdf
There is no indication of changes for 2003

Another gift Canon made by keeping the price so low 8^)

I for myself think the US should add a federal sales tax for intra state purchases. It would protect local economies.

Regards
Georg
 

I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
 
Taxes from out of state transactions have been long debated since the early mail order days. I don't think they will get resolved here. Basically, the rules are if a company has a business presence (nexus - this is debated too as to what constitutes a presence), then they have to collect sales tax. States have very little authority outside of their state.

There is also the constitutional issue of "no taxation without representation." Basically, in state merchants collect sales tax but receive a benefit such as improved roads, schools and such. An out of state merchant receives no such benefit and should therefore not be taxed.

Finally, it would be a logistical nightmare to require a merchant to collect sales tax from every state and then submit the payments to the proper tax authority. This is not a big deal for large companies with million dollar IS systems but for the small mom-and-pop business (majority of all businesses) this is not feasible.

To my knowledge, I don't believe one state has ever been able to enforce "Use laws" in court.

I disagree with the fact that not collecting sales tax hurts local businesses. The customer still has to pay shipping (usually) and buy something sight unseen. Then there are the issues with returns. These negatives more than outweigh the benefits of not paying tax. Many people shop online because competitors are just a click away and price competition is rampant online.

Our business just relocated from Oregon to Colorado. Oregon has no sales tax so we did not collect sales tax. Now that we are in Colorado, we must collect sales tax from Colorado residents. Orders from Colorado have not dropped one bit. Frankly, the majority of people just don't care too much.
David
Smoke another fatty. "Use Tax" is for things like cars and
gasoline. The idea being that only people that "use" the thing in
question pay the tax that's built-in to it, instead of having a
general tax that everyone pays for, whether they "use" it, or not.
You're mistaken. "Use taxes" were specifically enacted to combat
out of state mail order businesses evading in state sales tax, and
thereby putting in state businesses at a competitive disadvantage.

You can google "use tax" and pick your state from the results.
Here is a typical explanation from the North Carolina Department of
Revenue page:

"North Carolina has a use tax on purchases made outside the State
for use in North Carolina. Residents are responsible for paying the
use tax on purchases for which no North Carolina sales or use tax
has been charged. The use tax applies to transactions that would be
subject to sales tax if the purchase were made in North Carolina.
The use tax rate is the same as the sales tax rate that would apply
to the purchase if it were made in North Carolina."
For example, if I don't drive, why should a portion of my taxes go
towards fixing roads? That's what the tax on gas is for. Use
stuff; pay the tax on it. Don't use stuff; pay no taxes. Totally
does NOT relate to not paying tax on goods you buy over the
Internet. It's a loophole - there are forces trying to undo that
loophole, but for now it's there, it's legal, no one is committing
a crime.

Man alive.
I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
 
never drove over the speed limits?
I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
 
Do you have records of all your purchases made out of state? No,
than you can forget the use tax for the d-REBEL because its price
is below $1000.
That certainly isn't true--the use tax is still owed, but the tax forms provide an alternate method of computing your use tax.
Do you have records of all your purchases made out of state? No,
than you can forget the use tax for the d-REBEL because its price
is below $1000. You can use the non itemized estimation which is
.065% of your taxable income. You need to earn more than $99,500/yr
to not make a gain on buying the camera online. If you do earn more
why bother? Or just add a 550ex and a nice lens. And this is
perfectly legal.

Check here, scroll to page 7:
http://www.dor.state.nc.us/downloads/D401_2002.pdf
There is no indication of changes for 2003

Another gift Canon made by keeping the price so low 8^)

I for myself think the US should add a federal sales tax for intra
state purchases. It would protect local economies.

Regards
Georg
 
And in some states it's illegal to walk on the left side of a cobblestone street on Tuesday. C'mon. I'm 35 and have NEVER heard of a "use" tax except as it's used to assess on individuals using the services/product paid for, like roads, health care, etc.... things to penalize the users. If the government expects people to abide by the laws it should should probably at least mention them every once in a while.
I'm not necessarily advocating
compliance with state use tax laws...
So do you advocate that each citizen should choose to obey only the
laws they agree with?
--
Jim Fuglestad

Skill in photography is acquired by practice and not by purchase. -Percy W. Harris
Our existence is determined by the truths we tell.
Why simply live and let live? Live and help live.
http://www.pbase.com/jfuglestad/galleries
 
Allright everyone... brush up... the enforcement police are here! ;-)

http://www.dumblaws.com/states/index.html
I'm not necessarily advocating
compliance with state use tax laws...
So do you advocate that each citizen should choose to obey only the
laws they agree with?
I bet she does and if she doesn't then i feel sorry for you, most
states have laws against oral sex on a man or women. Just another
law i break! I bet you never break the speed limit either? I live
in Florida which doesn't have a state tax, i wouldn't even know
where to claim a use tax on my federal tax return. Your an idiot,
which should be against the law.
--
Jim Fuglestad

Skill in photography is acquired by practice and not by purchase. -Percy W. Harris
Our existence is determined by the truths we tell.
Why simply live and let live? Live and help live.
http://www.pbase.com/jfuglestad/galleries
 
so if there is a problem I can walk in and hand it to someone to fix.

I bought the 4 extended year warranty. too many times in the past where I wish I had......
I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
--
JennZ
http://www.littleflurry.com
http://www.pbase.com/littleflurry
'me photo happy person'
 
Well, I guess I probably represent the ignorant masses. Wouldn't be the first time. =}

Here's a tricky one - I actually bought the camera in Kentucky while on a business trip. I paid the 6% sales tax. This was 2.5% less than California, where I live. So, do I now owe CA 2.5%? =} (and very good luck to them on collecting, if I do - they get enough of my money as it is)
Eric, the use tax is a very common tax in states with a general
sales tax. If I cross the border to Oregon to purchase my Digital
Rebel where there is no sales tax, I am supposed to pay the State
of Washington the use tax on the camera, which would be the same
amount as if I had purchased it here. You seem to be confusing the
use tax with a user fee, such as the gas tax- which you don't pay
if you don't drive.

By the way, I think the original post was in jest. While the use
tax is real it is probably the most avoided tax. (I bought my Rebel
in Washington, by the way, so there is no issue for me.)
 
Great shot! So true, so true. =}

I read in a lot of posts that with the tax saving from ordering
online the person is going to buy this lens or that lens. However,
every state in the U.S. has a use tax and if you don't pay sales
tax, you have to pay a use tax on an item. If you don't declare
the use tax on your tax forms, you're a tax cheat and you're
committing a crime.

It's what you do when no one's looking that determines your character.
 
this applies to everyone, individuals and businesses alike.
period.
My understanding is that if you are an individual this does not apply.

However if you are running a small business this can be very
important. My understanding is that if you try to take advantage
of the internet tax loophole when you buy something like office
supplies or other routine business items, you can get majorly
burned by the Board of Equalization for violating the rule that you
must pay taxes on anything you don't re-sell, and the internet
thing is NOT an exception to this.
 
'Since we can't keep crime in check, why don't we legalize it and
tax it out of business?' -- Will Rogers
Do you realise how funny that quote is in this context (ie when the crime in question is tax evasion)? :-)

Duncan
 
Taxes from out of state transactions have been long debated since
the early mail order days. I don't think they will get resolved
here.
It doesn't need to get resolved here because the U.S. Supreme Court has resolved that use taxes are constitutional, and as a result statutes requiring the payment of a use tax exist in every state with a sales tax.
To my knowledge, I don't believe one state has ever been able to
enforce "Use laws" in court.
You seem to be mixing up the issue of whether a use tax is legal with the issue of whether a state can force an out of state seller to collect the use tax for the state. Out of state sellers are not required to burden themselves with the collection of use taxes, but that doesn't mean in state residents are not legally required to pay use taxes and declare them on their tax forms.
I disagree with the fact that not collecting sales tax hurts local
businesses. The customer still has to pay shipping (usually) and
buy something sight unseen. Then there are the issues with returns.
These negatives more than outweigh the benefits of not paying tax.
Many people shop online because competitors are just a click away
and price competition is rampant online.
Then I suggest you take it up with the elected officials in your state and get the use tax laws repealed.
 
C'mon. I'm 35 and have NEVER heard
of a "use" tax except as it's used to assess on individuals using
the services/product paid for, like roads, health care, etc....
things to penalize the users.
All I can say is: "live and learn".
If the government expects people to
abide by the laws it should should probably at least mention them
every once in a while.
That certainly is a good point. I know several years ago, I got a separate form/notice along with my state tax forms pointing out that use taxes had to be paid on any out of state purchases where no sales tax was paid.

I also suggest you go to your state tax web site and go to the faq and look for use taxes, and it will point out that you are required to pay them. Hence, it is not some outdated law from colonial times--it's in the Frequently Asked Questions for the year 2002 taxes.
I'm not necessarily advocating
compliance with state use tax laws...
So do you advocate that each citizen should choose to obey only the
laws they agree with?
--
Jim Fuglestad
Skill in photography is acquired by practice and not by purchase.
-Percy W. Harris
Our existence is determined by the truths we tell.
Why simply live and let live? Live and help live.
http://www.pbase.com/jfuglestad/galleries
 
Actually, it's a bit strange.

Legalize tax evasion so you can tax it out of business? Hmmmm.
'Since we can't keep crime in check, why don't we legalize it and
tax it out of business?' -- Will Rogers
Do you realise how funny that quote is in this context (ie when the
crime in question is tax evasion)? :-)

Duncan
--
The Lowest Paid Concert Photographer Around
http://www.neonlightsimaging.com/artshow/final.htm
Photography -- just another word for compromise

'Since we can't keep crime in check, why don't we legalize it and tax it out of business?' -- Will Rogers
 
The same thing if you're paying to send your kids to private schools.

I've been tempted to ask for the "child of my choice" to send to
the "school of my choice" since I'm blackmailed into paying for the
education of the kids of others.
Who may one day go on to medical school and may one day save your or one of your relatives lives.

Or are you going to be happy that you will only be allowed to recieve medical attension from the paramedics, nurses and doctors who's education you personally paid for?

After all if you didn't contribute to the education of these people as kids, why should you be allowed to benefit from their skills in later life?

Dave
 

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