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Old 11-10-2019, 08:41 PM   #69
paul2748
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Join Date: May 2010
Location: Midland Park, NJ
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Default Re: Ebay sales tax in place

Mike - your incorrect. Yes, most states call their tax Sales & Use but they are a little different. Sales tax is paid where you take delivery as mentioned above, usually from a instate seller. "Use" tax is a tax levied on the buyer if he purchases the goods from out of state and the item is shipped into the buyers location and no tax is charged by the seller. The buyer is required to report such purchases and pay the "USE" tax. This usually came into play before the new court case came into play. Now with the new court ruling, it may have less of an effect on the "Use" side because out of state sellers may be required to charge sales tax no matter where the seller has a location.

Just as a side note, prior to the court ruling, an out of state seller was not required to charge an instate buyer any sales tax if the seller did not have a business location in the state where the item was sent to.

I was in the corporate tax department of a large multi-state corporation and dealt with these taxes all the time. I dealt with a large number of states' sales taxes. I dealt with the state's auditors all the time.


I also disagree on the your statement abut "bootlegging' There is nothing illegal (as far as I know)about a person going to another state and buying goods tax free and then bring them into a state that taxes the same items. They are supposed to report out of state purchases and pay the tax if the state requires them to do so (Use Tax). The "crime" is not paying the tax, not buying the goods tax free in another state.


Quote:
Originally Posted by Mike51Merc View Post
Just to add more trivia to the bonfire:
Sales tax laws are written as "Sales and Use Taxes". The tax is imposed on where the person USES the item. Crossing state lines to buy products tax-free (and then take them home to your taxed state) is technically a crime sometimes called bootlegging. My state has no tax on food or clothing. Our border areas have many clothing outlet stores that see busloads of people daily.
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Last edited by paul2748; 11-10-2019 at 09:01 PM.
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