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View Diary: Senate takes up bill to close the online sales tax loophole (131 comments)

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  •  Sales (and Use) taxes are ALWAYS based on ... (2+ / 0-)
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    unclebucky, Odysseus

    ... shipping address, so you would pay your local rate.

    Penn State - Rug too small, dirtpile too big, not enough brooms.

    by WereBear Walker on Mon Apr 22, 2013 at 05:58:59 PM PDT

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    •  Aha! I did not know that! (0+ / 0-)

      I mean, almost the only place I have ordered online is from Amazon, so I did not know that.

      Right, and the reason for this is so that the person placing the order pays his/her local rate, and there is not a race to the bottom to vendors whose states have lowest sales tax rates.

      Could you elucidate the USE TAX problem? That it seems that one should, but has never been assessed that USE TAX, and that one's state has never mounted a campaign to educate, help estimate and then collect those USE TAXES? Have there been campaigns anywhere to actively collect past due taxes?

      I truly would like this to be resolved, but without a gotcha after all this time of not paying sales taxes.

      Thx.

      --UB.

      "Daddy, every time a bell rings, a Randian Libertaria­n picks up his Pan Am tickets for the Libertaria­n Paradise of West Dakota!"

      by unclebucky on Tue Apr 23, 2013 at 06:13:50 AM PDT

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      •  Yes, there have been collection campaigns. See IL (0+ / 0-)

        Illinois Use Tax Amnesty set to expire on 10/15/11

        The Illinois Department of Revenue requires a purchaser to keep the receipts for these types of purchases and pay the applicable Use Tax to the State of Illinois.  This obligation of the Illinois taxpayer has been in existence since 1955 when the General Assembly passed the Use Tax Act.  However, many taxpayers have not been aware of their obligation to pay this tax.  The State of Illinois is now increasing its Use Tax collection efforts.  According to the IDOR website, the Department conducts routine audits based on information received from third parties, including the U.S. Customs Service and from other states.

        -7.75 -4.67

        "Freedom's just another word for nothing left to lose."

        There are no Christians in foxholes.

        by Odysseus on Tue Apr 23, 2013 at 01:12:21 PM PDT

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      •  In this context, Use Tax is equivalent to ... (0+ / 0-)

        ... sales tax, typically at the same rate. In other words, you bought something that, if purchased locally at a bricks'n'mortar retailer, you would have paid sales tax on. But because you bought it online, no tax was collected, even though by law, you owe it as Use Tax and are required to report & pay it via your state income tax filing.

        In practical terms, the state you owe Use Tax to cannot (yet) easily prove you made online, untaxed purchases, without a really expensive,  time-consuming audit; therefore most people ignore it.

        Penn State - Rug too small, dirtpile too big, not enough brooms.

        by WereBear Walker on Tue Apr 23, 2013 at 04:01:21 PM PDT

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