Ohio taxes on out of state purchase?

[George2615]

If your state is anything like New York, California, or I'm sure some others and you buy out of state you are required to claim that purchase on your income tax and pay sales tax on the item to your state. If you have a farm you may be exempt. Best to check with your CPA who does your taxes.
Just an FYI, a lot of people buy things out of state and don't pay sales tax and don't claim it on their taxes. Some get caught, some don't.

 

[rjkobbeman]

I think businesses that buy out of state and avoid sales taxes are most at risk. If they deduct those purchases on their business tax returns, it is easier to audit.

 

[MikeD74T]

That would seem subject to rules on self incrimination ???? If criminals were more honest & went to jail on their own police budgets could be eliminated. :confused2: MikeD74T

 

[wvpolekat]

Can't answer for your state but just this year, California has added a new question to their tax form: (paraphrased) "Did you purchase anything out of state over the internet during this tax period and had delivered into California? If so, what is the value........"

Yeah, we have had that for a couple of years. Amazingly, nobody seems to buy anything over the Internet. I would bet adding that to the form cost more than they have collected from people who actually put something in that box.

State sales tax and the Internet is certainly a gray area. I have seen several attempts to force other states to collect sales tax on Internet sales, but the problem always comes down to enforcement, WV can't force someone in PA to collect sales tax.

As for the OP, in most cases, you can file with the state/county where the purchase was made and get the sales tax refunded. Then, as others have stated, you are supposed to file in your own state. My guess is also that Ohio will report the purchase to your home state so they will know.

I first moved to WV in a Jan or something. I filed my federal return with a WV address. The feds reported this to WV, who then filed a WV return for me on my behalf. Took me months of letter writing to get them to understand that during that time I did not live in WV. They kept telling me to get them my return from where I lived previously. Well, TX doesn't have income tax. This just confused them more. Finally, I had to get a paper from the DMV showing what date I surrendered my TX license before they would believe that I did not live in WV. Even a W2 from Dec 31 showing a Texas address wouldn't do it.

Point is, these guys all talk to each other. Keep that in mind if you try to get a refund and don't file in your state.

 

[ctgoldwing]

If your state is anything like New York, California, or I'm sure some others and you buy out of state you are required to claim that purchase on your income tax and pay sales tax on the item to your state. If you have a farm you may be exempt. Best to check with your CPA who does your taxes.
Just an FYI, a lot of people buy things out of state and don't pay sales tax and don't claim it on their taxes. Some get caught, some don't.

It didn't take much of a google search to find this. It is part of a discussion on internet sales from the State of Ohio Website:
If the seller is not located in Ohio and does not have substantial nexus with Ohio, the seller cannot be required to collect and remit Ohio use tax. However, the purchaser will still owe Ohio use tax on the purchase of goods or services, unless the purchaser has a statutory basis for claiming exception or exemption.

Same deal here in Connecticut - you have to volunteer the payments at the end of the year (or before)

 

[MarkV]

I think if you dig into most any state that has sales tax you will find the "use tax" obligation the buyer has for out of state purchases. Most states don't have the ability to enforce the law other than the buyers honesty. Some states, as said earlier, are working up agreements with adjoining states to report out of state purchases over xxxx dollars.

MarkV

 

[ray66v]

Ohio claimed the law giving them the ability to collect sales tax on out of state purchases was on the books, from long ago. They just never had the ability to enforce it.

Now in the computer age, it is much easier for them to catch up with you, so states started cashing in.

 

[tulenutn2o]

Our wonderful government cronies will never be happen til they have gotten every last penny from us Americans.

 

[LBrown59]

Can't answer for your state but just this year, California has added a new question to their tax form: (paraphrased) "Did you purchase anything out of state over the internet during this tax period and had delivered into California? If so, what is the value........"

I wouldn't even bother to answer these question since internet sales are tax exempt.

 

[Inspector507]

I wouldn't even bother to answer these question since internet sales are tax exempt.

As far as sales tax, but maybe not Use Tax.