Buying out of state - sales taxes

[TheMan419]

Back when the case law came out that said you don't pay taxes on things shipped to you there was very little of that going on. Now, of course, that has exploded. I think within the next 5 years the feds will pass a law requiring Amazon et al to collect the taxes or report to each state what they sold "tax free".

Every state, that has a sales tax, has a law that you pay the use tax if you did not pay some other states's sales tax at the time of purchase. Very rarely does anyone follow that law.....

 

[thatguy]

IF the equipment is financed, the lender will (can?) file a UCC filing with your state with is sorta the way to put a lien on non-titled equipment (from the best of my knowledge).. If you didnt pay the sales tax at purchase OR the use tax in your state, they will probably catch the purchase based his filing.

Brian

 

[djefferis]

Ok, thanks for the advice given

It is my understanding that an out of state purchaser, who is not taking delivery in the state of sale - but is having the item delivered by the seller - should be exempt from the retailers or sales tax (if any) - but would likely owe a use tax in their state of residence - again subject to laws of the buyers state and any applicable exemptions that may apply (this is what I was looking for)

It is also my understanding some retailers still insist on collecting this tax - the question remains are they properly remitting this to their state. I personally would rather see the tax processed/paid by myself as a use tax - than leave it to a stranger to report and remit to their state.

Since the question was brought up here about vehicles - this much I do know - if sales taxes are collected on an out of state purchase, in general you are entitled to an "offset" on your states use tax - in example - say I buy in a state with a sales tax of 6% - and paid 6% at point of purchase, now say my local sales tax including state is 7.5% - in this case I owe the 1.5% difference only - I get an offset credit for the 6% paid already and need to report the 1.5% to my state at income tax time and pay then - to be remitted to my local tax authority.

I also wonder if the dealer is required to collect taxes if they are not the party arranging the delivery? I priced a few places, told me no taxes, but there shipping was 4x what I was getting quoted on Uship (and above what I could buy new 30 miles away with free delivery and paying all taxes). I understand shipping is not the primary business of most dealers - but if YouShip can get it to me for x price - I wouldnt expect other haulers to cost 4x as much. To me it feels like they would charge taxes - just because they are in essence delivering the product to their parking lot - they are not responsible for arranging the delivery to my home, so tax would be owed. Bottom line for now I'm probably going local - for a few bucks its simoly not worth it - keep the goodwill of a local dealer and keeping my money local is worth it to me, at the same time not everyone is as fortunate - when a few dollars turns into a few thousand (or more) - then theres more to think about for most.

 

[aczlan]

I also wonder if the dealer is required to collect taxes if they are not the party arranging the delivery? I priced a few places, told me no taxes, but there shipping was 4x what I was getting quoted on Uship (and above what I could buy new 30 miles away with free delivery and paying all taxes). I understand shipping is not the primary business of most dealers - but if YouShip can get it to me for x price - I wouldnt expect other haulers to cost 4x as much. To me it feels like they would charge taxes - just because they are in essence delivering the product to their parking lot - they are not responsible for arranging the delivery to my home, so tax would be owed.

As far as I know, they would charge tax because it transfers from their possession to that of your agent in their state.

Aaron Z