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If you buy online from a supplier who does not have a "business nexus" in your state, they can't collect sales tax from you any you're not "obliged" to pay it

Bzzzzzzzzzzt! Wrong answer! At least it is in all the states where I have a passing knowledge of their revenue act and that's a couple dozen.

Just to make sure though, why don't you make a couple of large on-line purchases from some firms that don't have the business presence or nexus in your state? Then, tally up your receipts and call your state revenue department and tell them you purchased goods in a foreign state for use in your home state but didn't pay any taxes. See what they say about that. I'm sure they'll be more than happy to send you the appropriate reporting form.

Granted, it's an honor system in 99% of the cases but just because it's an honor system does not mean you are not obliged to pay the tax.

OTOH, those that don't report it are probably at 101%

no you're not. if your supplier doesn't have a presence in your state, your online purchases are federally exempt. simply factor that into your purchase decision and if it makes sense, order from a supplier outside your state and save the tax.

not for online transactions - the supremes nixed that.

Jim, please re-READ what you have quoted. It's pretty clear but you do have to read and understand what their ruling was. I stand by my original post.

Quote from your link, above:

Who Will Remit Sales Taxes on Internet and Mail-Order Sales?

The vitality of the sales tax as a critical state and local government revenue source has been eroded in recent years by the rapid growth in mail-order and Internet sales. Sales taxes are due on mail-order and Internet purchases just as they are on purchases in stores.(1) But a large majority of the sales taxes due on mail-order and Internet purchases made by individual consumers and a significant share of the taxes due on purchases made by businesses are effectively uncollectible. States and localities are unable to collect these taxes because the Supreme Court has prohibited states from requiring mail-order and Internet merchants to charge the customer for the tax and remit it to the customer's state unless the merchant has a physical presence or "nexus" within the state's borders. This means that although an Internet merchant like Amazon.com presumably has customers in every or nearly every state, it can only be required to collect sales tax from customers in its home state of Washington and a handful of other states in which it has built warehouses or stationed personnel.

If the seller does not charge and remit the tax, laws require customers of Internet and mail-order companies to pay the state and local sales tax directly to their home states. However, compliance with this self-remittance requirement is almost non-existent in the case of individual consumers and is spotty in the case of businesses that make purchases from Internet, mail-order, and other "remote" sellers. The combination of weak tax compliance by purchasers and a sharply limited tax collection obligation on the part of remote sellers is eroding the sales tax base of state and local governments

what part of: "...because the Supreme Court has prohibited states from requiring mail-order and Internet merchants to charge the customer for the tax and remit it to the customer's state unless the merchant has a physical presence or "nexus" within the state's borders" is unclear?

I saw it but kept on reading which, apparently, you did not.

What part of...

"Sales taxes are due on mail-order and Internet purchases just as they are on purchases in stores."

and

"If the seller does not charge and remit the tax, laws require customers of Internet and mail-order companies to pay the state and local sales tax directly to their home states. However, compliance with this self-remittance requirement is almost non-existent in the case of individual consumers and is spotty in the case of businesses that make purchases from Internet, mail-order, and other "remote" sellers.." is unclear to you?

Remember, if you will, that the OP said that he had no obligation to pay the tax himself. He is obliged to pay it. As you have pointed out, the merchant selling to him is NOT required to collect it unless they have a physical presence or nexus in his state. The synopsis of the USSC decision also points out that the tax which is due is "effectively uncollectable," I said as much in my post.

in other words, you're arguing against yourself. well done.

"jim beam" wrote

You'd make a good lawyer.

;-)

You really need to do something about your reading comprehension.

"Ignorance can be cured but stupidity is forever." You appear to be either terminal or a troll.

"Inigo Lopez de Loyola" wrote

One is legally required to report it on one's state's taxes and pay sales tax on it. Poster "Say What" is correct. Check state tax instructions yourself.

The enforceability of these state sales tax laws is another matter.

You really need to take some classes in reading comprehension. You may then understand what you are reading and get some of the facts correct.

This thread gets my vote for most anal retentive of the year. Quick show of hands - Who among the readers here has ever voluntarily sent their state a sales tax payment for an out of state internet purchase?

You'll find it happens quite frequently after an audit...

E Meyer wrote:

Bzzzzt! Really Wrong Answer!!!

If they, (the vendor), has no physical presence in your state and the order is via the internet, NO TAX OF ANY KIND CAN BE COLLECTED.

So called "use tax" tactics DO NOT APPLY to internet sales.

(One of the very few good things our conggress critters accomplished)

JT

Well, actually you both are... It is legislation that was passed that prohibits any form of internet taxes except when a vendor has a physical presence in the affected state...

But the short of it is, generally no tax..

JT

Yeah, right... I'm going to volunteer my internet purchases to an auditor who has absolutely no way to find them any other way. Get real!

On 12/26/2007 5:06 PM jim beam spake these words of knowledge:

No, Jim, he's not. It's just this simple.

1.) Here's how it works out: purchases accrue tax to the state and at the rate of the purchaser. 2.) The business which is the seller is not mandated to collect it (if they do not have a physical business structure in the state of the purchaser.) 2.) does not eliminate 1.)

If you make the purchase, you owe the tax. If your state can document that you owe it, they can (and will) collect it. If your state can document that you lied about making the transaction, that's tax fraud.

RFT!!! Dave Kelsen

On 12/26/2007 8:05 PM Grumpy AuContraire spake these words of knowledge:

Altogether wrong.

Remember that we're talking about state taxes here.

What the Supreme Court said was, in essence, 'you owe the tax, but we're not going to force the seller to collect it.'

The buyer still owes it, and the state can (and if it knows about it, will) collect it.

RFT!!! Dave Kelsen