posted on October 11, 2000 10:01:44 PM
If I stipulate no sales in my home state, do I avoid the whole sales tax issue? (since I wouldn't be operating in my state) I do not want to fill out all those bureaucratic forms if I can avoid it.
posted on October 11, 2000 10:15:23 PM
Ummm . . . I can't understand your question.
I live in Oregon, which due to strong voter sentiment has blocked ever sales tax measure to be brought up for a vote in the last 25 years, there is no sales tax here. I do not charge anyone sales tax.
posted on October 11, 2000 10:46:06 PM
Well, obviously, you wouldn't have any sales tax to collect if you didn't have any sales in your state. However, since you are operating a business, your state may require you to file the appropriate forms even if you collected $0 sales tax.
posted on October 11, 2000 10:50:03 PM
Interesting . . .
No, I think I can safely say that Oregon is not as obnoxious as some other states are when it comes to busineses. In fact, Oregon is so Pro-Business and Anti-Worker, they don't require a whole lot of nonsense I've seen elsewhere. Any wonder why so many newer name-brands put thier corporate headquarters in Oregon?
I mentioned the obvious as that was how I interpreted myopinion's question.
If you're purchasing merchandise to resell "for profit", you're probably expected by your state taxing authority to register with them and get a tax resale certificate. Your state comptroller's office can tell you one way or the other. It also enables you to BUY your merchandise from others without paying sales tax on it, should you purchase anything for resale from a wholesaler, store, estate sale, auction, etc.
Then you would turn in a report of your total sales either quarterly or yearly (as your state tax office stipulates) along with the tax due, which would be nothing if your sales were all to out-of-state buyers. You would also turn in a profit (or loss) statement to the IRS for your business each year with your tax return, which I assume you're not doing now.
Ebay keeps records of all auctions since they started, and turns them over to any taxing authority that requests them. Anyone selling on the auction without reporting it as a business to the IRS can easily be traced through ebay's records, should the IRS audit you.
posted on October 12, 2000 08:48:55 PM
I have been paying estimated taxes to the IRS and will claim all my profits as income.
I have been paying sales tax on all my purchases for re-selling, but not charging sales tax for the several in-state sales I have had, since I haven't registered with my state's revenue department. Ironically, my state is probably making more money from me doing it this way than if I did it by the book because the sales tax I have been paying on the goods exceeds any I would have collected on sales. As a one man operation, doing all the paperwork involved for collecting sales tax would be a major headhache that I want to avoid.
