posted on March 8, 2004 08:45:04 AM new
Just a thought for those buying stuff over the internet and reselling on ebay. If you live in a state with a sales tax you have to pay state sales tax for all the stuff you buy on the interent and resell on ebay. Is this true or am I missing something???
posted on March 8, 2004 08:58:22 AM new
You are missing something. Sales tax applies to in-state transactions only. If your seller or buyer lives in a different state then no sales tax applies.
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If it's really "common" sense, why do so few people actually have it?
posted on March 8, 2004 09:07:28 AM new
ok...so lets say i live in a state that has a sales tax. i buy something from store.com that is located in a different state at a great price to sell on ebay. i dont pay any sales tax at the time i originally buy the item. do i have to report this sale and pay this sales tax if store.com is located in another state and doesnt have any locations in my state?
posted on March 8, 2004 09:10:56 AM new
I think what bigislandhiker may be referring to is the growing trend among states to try to tax any Internet purchase, even those from out of state.
California's 540 income tax form for 2003 has a use tax line (line 51) where you are supposed to report purchases from out-of-state Internet sellers.
posted on March 8, 2004 09:16:27 AM new
maybe sales tax only applies when i buy somthing over the internet from a store located in my state or has a branch store in my state
posted on March 8, 2004 11:30:12 AM new
In CA, if you have a Sellers Permit, which I have. you do not pay sales tax on items for resale. You do not collect taxes on out-of-state sales.
posted on March 8, 2004 06:57:58 PM new
toollady-yea I live in NY. and used to do that all the time-how is NY going to find out if you bought stuff in NJ?? Reporting that is as dumb as not ripping the tag off mattress's because it says its against the law LOL!!
posted on March 8, 2004 07:33:47 PM new
I live in Oregon a couple of miles south of Washington. Oregon has no sales tax at all. Washington is around 8%, and they want to increase it this year. You might imagine there are many Washingtonians who live on the border who shop here to save money. There is an office in Washington where you are SUPPOSED to report your Oregon purchases, and pay the sales tax. That has to be the cushiest government job, because that place has to be deader than Death Valley.
Washington has one up on us though, no state income tax. I think those who live in Southern Washington have it made, no state income tax, and they can shop south of the border and pay no sales tax.
posted on March 9, 2004 05:40:23 AM new
http://www.wapd.org/bbs/msgs/6289.html
States Bent on Collecting Internet Taxes
Mar 3, 5:12 PM (ET)
By MICHAEL GORMLEY
This detail of a tax return shows line 56, sales or use tax, on the New York State Resident Income Tax Return form IT-201 and part of page 36 from the instruction book for 2003 that taxpayers are required to use. Eighteen states have added lines like this on their income tax forms for taxpayers to declare their owed sales tax from Internet and mail-order purchases. (AP Photo/NYS Taxation and Finance) Copyright 2003 Associated Press. All right reserved.
ALBANY, N.Y. (AP) - Remember all those gifts you bought online during the holidays? Now it's time to pay sales tax on them, at least so say the income tax forms of 20 states.
The latest to outstretch that revenue-seeking hand are New York and California, which this year added a line requiring taxpayers to declare any tax they owe on out-of-state purchases.
Though state revenue agencies similarly sought sales tax on mail-order items before the e-commerce boom of the late 90s, Internet sales have "really shined a spotlight on it and increased the urgency," said Harley Duncan, executive director of the Federation of Tax Administrators.
By law, residents are supposed to pay sales taxes to their states if they order books, clothing, computers and other items by mail or online from businesses based elsewhere.
"Nobody - very few - ever followed that rule," said Anthony Leone, a certified public accountant in Buffalo.
The National Governors Association estimates state and local governments will lose at least $35 billion this year from Internet sales.
The new tax return line, New York state officials say, forces taxpayers to confront their liability or potentially face audits that could uncover credit card statements and mounting tax debt.
But it's unclear whether that threat is enough.
Dan DeVeronica, 21, who owns an Internet cafe in Rochester, says most New Yorkers, including himself, will likely leave "line 56" blank "as sort of a protest."
Though Supreme Court precedents side with the states, DeVeronica said he was outraged New York would try to collect: "The Internet is not a government service. It's privately owned so it shouldn't be taxable."
It looks like scofflaws need worry little.
Officials from several states said they expect few, if any, tax returns to be audited - even if a taxpayer claims zero liability.
And so the revenues should keep trickling in.
New York tax officials are expecting the new tax line, for which they've added seven pages of instructions and tables, to yield just $2.5 million. Like New York, most states let taxpayers estimate their liability based on household income.
posted on March 9, 2004 06:26:33 AM new
A number of states have already gotten sales/shipping information from internet cigarette vendors. The state can now bill the customer. I believe there was special legislation for the cigarette excise tax issue, but if it holds up, expect to see the same for other merchandise sales.
The logic of the New Yorker in the previous article is faulty - there is no good reason why states should not do their utmost to collect this revenue stream. When this day comes, I expect eBay will have the capability to calculate the tax and remit to states.
[ edited by Damariscotta on Mar 9, 2004 06:27 AM ]
