Sales Taxes...GOTCHA
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OrangeFloyd
New member
OkeeDon - from what I understand, it's meaning is:
"if you can read this you're overeducated"
something of that nature
-OF
"if you can read this you're overeducated"
something of that nature
-OF
</font><font color="blue" class="small">( In short, most states that have a sales tax also have always had a "use tax" so that they have a mechanism to collect "out of state" purchase tax revenue. They've normally enforced this through simple means like automobile, boat, and airplane registrations. They can't charge you "sales tax" on out-of-state purchases because of a long standing little rule somebody wrote down a while ago about "taxation without representation." Use tax, on the other hand, is OK because you're using the merchandise in your locale.
Contrary to popular belief, the "no internet tax" rule isn't designed to control taxation on merchandise purchased over the internet - it is just a measure to keep the actual use of the internet from being unfairly taxed. It really has nothing to do with purchases (in state or out), unless those purchases happen *completely* through the internet (like downloading software that has no physical media whatsoever).
)</font>
Wow, I did some research to confirm, and mahlers is right on the money on internet taxes and use tax. I read the tax code for my state and it is pretty scary. Quite literally, if you possess anything in the state, and didn't pay the state's equivalent in sales tax, you owe use tax on the difference. Moving into this state from a low sales tax state irregardless of how long you owned something is subject to use tax. Think about all of your household goods taxed at say 3-5%, that's pretty scary. /forums/images/graemlins/shocked.gif
Contrary to popular belief, the "no internet tax" rule isn't designed to control taxation on merchandise purchased over the internet - it is just a measure to keep the actual use of the internet from being unfairly taxed. It really has nothing to do with purchases (in state or out), unless those purchases happen *completely* through the internet (like downloading software that has no physical media whatsoever).
)</font>
Wow, I did some research to confirm, and mahlers is right on the money on internet taxes and use tax. I read the tax code for my state and it is pretty scary. Quite literally, if you possess anything in the state, and didn't pay the state's equivalent in sales tax, you owe use tax on the difference. Moving into this state from a low sales tax state irregardless of how long you owned something is subject to use tax. Think about all of your household goods taxed at say 3-5%, that's pretty scary. /forums/images/graemlins/shocked.gif
28RedHorses
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Duane,
Welcome to the surprise world of Virginia taxation.
This same thing happens when you purchase furniture in North Carolina and have it delivered to your address in VA. You don't pay any sales tax THEN but in about two years you get a pleasant letter in the mail from the Department of Taxation in Danville VA stating (usually by the shipping company records) that you took purchased furniture and did not pay a sales tax in VA. Then then further insult you in saying that not only were you dumb enough not to pay sales tax but, oh by the way, you owe XXX for the tax and YYY for a penalty for not paying this for two years!
The legal way is to declare the purchase on your VA Tax form and that is figured into your yearly tax. That way when the extremely helpful folks at the Department of Taxation send you that friendly letter you can go tell them to pound sand.
Ouch it hurts /forums/images/graemlins/frown.gif
28Red
Welcome to the surprise world of Virginia taxation.
This same thing happens when you purchase furniture in North Carolina and have it delivered to your address in VA. You don't pay any sales tax THEN but in about two years you get a pleasant letter in the mail from the Department of Taxation in Danville VA stating (usually by the shipping company records) that you took purchased furniture and did not pay a sales tax in VA. Then then further insult you in saying that not only were you dumb enough not to pay sales tax but, oh by the way, you owe XXX for the tax and YYY for a penalty for not paying this for two years!
The legal way is to declare the purchase on your VA Tax form and that is figured into your yearly tax. That way when the extremely helpful folks at the Department of Taxation send you that friendly letter you can go tell them to pound sand.
Ouch it hurts /forums/images/graemlins/frown.gif
28Red
puter
Member
</font><font color="blue" class="small">( Moving into this state from a low sales tax state irregardless of how long you owned something is subject to use tax. )</font>
Dave, while I didn't specifically research the MA tax code, I'm almost certain it's not THAT bad! You're only subject to the MA sales and use tax if you're a resident of or a vendor who has nexus in MA. And there has to be a purchase (or maybe a trade) involved. Neither apply when you move from another state into MA and bring your stuff with you...
Any chance the stuff you read was actually saying that MA residents can reduce their use tax by the amount of tax paid in another jurisdiction?
Dave, while I didn't specifically research the MA tax code, I'm almost certain it's not THAT bad! You're only subject to the MA sales and use tax if you're a resident of or a vendor who has nexus in MA. And there has to be a purchase (or maybe a trade) involved. Neither apply when you move from another state into MA and bring your stuff with you...
Any chance the stuff you read was actually saying that MA residents can reduce their use tax by the amount of tax paid in another jurisdiction?
</font><font color="blue" class="small">( OkeeDon - from what I understand, it's meaning is:
"if you can read this you're overeducated"
something of that nature
-OF
)</font>
"si hoc legere scis nimium eruditiones habes." (essentially it says, "if you can read this, you're overeducated.")
OrangeFloyd wins the prize (as soon as I think of what it might be). While I can't read it myself (not being overeducated), that's what "they" said it says. There's no truth to the rumor that I'm older than Cicero.
The new one seems appropriate to this forum...
"if you can read this you're overeducated"
something of that nature
-OF
)</font>
"si hoc legere scis nimium eruditiones habes." (essentially it says, "if you can read this, you're overeducated.")
OrangeFloyd wins the prize (as soon as I think of what it might be). While I can't read it myself (not being overeducated), that's what "they" said it says. There's no truth to the rumor that I'm older than Cicero.
The new one seems appropriate to this forum...
milkman
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Orange Floyd,
Reminds me of a bumper sticker that I saw, "If you can read this... You're not the President.
Reminds me of a bumper sticker that I saw, "If you can read this... You're not the President.
puter
Member
</font><font color="blue" class="small">( MD, not MA.)</font>
Whoops! /forums/images/graemlins/blush.gif Didn't research MD's laws either. /forums/images/graemlins/grin.gif
Your interpretation is quite scary given the tools usually available to the compliance divisions...
- Mark
Whoops! /forums/images/graemlins/blush.gif Didn't research MD's laws either. /forums/images/graemlins/grin.gif
Your interpretation is quite scary given the tools usually available to the compliance divisions...
- Mark
Rick Jay
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BigDave,
I live in MA. I don't have the links handy right now, but I believe in our "lovely" state and others that I have read about, items that are brought into the state and used within 6 months of purchase are subject to the "use tax".
In reference to applying the tax to all "housewares" after a move, I believe most items would be exempt by the 6 month rule.
I researched the MD D.O.R. site but they didn't seem to go into all the details like other states do. I would hope that Maryland also has a similar 6 month exclusion clause. There might even be a clause to eliminate housewares from the tax during such a move, although I've never seen it. Still, could you imagine a more effective way to keep people from moving into your state: "Move here, 'cause as soon as you do, we're going to tax you 5% on everything you move into your lovely new home. Have a nice day."
Oh boy, I always shudder when I make such sarcastic remarks 'cause I'm afraid that there's a politician somewhere saying: "Wow, What a GREAT idea!!!" /forums/images/graemlins/crazy.gif
~Rick
I live in MA. I don't have the links handy right now, but I believe in our "lovely" state and others that I have read about, items that are brought into the state and used within 6 months of purchase are subject to the "use tax".
In reference to applying the tax to all "housewares" after a move, I believe most items would be exempt by the 6 month rule.
I researched the MD D.O.R. site but they didn't seem to go into all the details like other states do. I would hope that Maryland also has a similar 6 month exclusion clause. There might even be a clause to eliminate housewares from the tax during such a move, although I've never seen it. Still, could you imagine a more effective way to keep people from moving into your state: "Move here, 'cause as soon as you do, we're going to tax you 5% on everything you move into your lovely new home. Have a nice day."
Oh boy, I always shudder when I make such sarcastic remarks 'cause I'm afraid that there's a politician somewhere saying: "Wow, What a GREAT idea!!!" /forums/images/graemlins/crazy.gif
~Rick
