DavesTractor
Elite Member
This is true but for most states it is voluntary to report and pay the tax so not many people actually follow through and pay it. Here in VA you are supposed to report it on your state income tax return. It is different for items like cars that need to be registered with DMV but with things like tractors or stuff you buy online it is purely voluntary.
I guess if your income tax return gets audited by the state and you are writing things off on your business or farm schedule then when the invoices are examined they could assess the unpaid sales tax.
I'm not sure voluntary is the right word, although I understand the use of it, but do you mean that it is somewhat on the honor system? It is certainly mandatory to report it and pay it, but since they don't know you bought it, you must self report. If you don't and they catch you, you are penalized, so it can't be voluntary. Otherwise, I'd opt out of such a tax! It is true that many people don't report and don't pay, and few are caught.