AZ use tax (credit card, purchases, income)

[Rogarven]

After reading a link about the CAL pension being taxed, I came across a "use tax" on internet purchases. You are supposed to "report " untaxed internet purchases on your AZ state income tax? Is this on a "honor system" and how would the state be able to track this? Thanks,

[observer53]

Originally Posted by Rogarven

After reading a link about the CAL pension being taxed, I came across a "use tax" on internet purchases. You are supposed to "report " untaxed internet purchases on your AZ state income tax? Is this on a "honor system" and how would the state be able to track this? Thanks,

http://www.azdor.gov/LinkClick.aspx?...Z0%3D&tabid=74

Obviously, there's no way to track it.

[SluggoF16]

We have the same use tax in OK. It IS on the honor system, although unless one fastidiously keeps records of internet purchases, it's easiest and often cheapest to take the percentage of AGI option versus the actual expense. (I keep the records, and since my purchases are small, it's the way to go.)

Several state AGs and tax commissions are working to force a nationwide reporting system when you make an online purchase. I'm not sure how that will be enforced, though, since it would require one's SSN for reporting. Perhaps in the future it would involve credit card account numbers.

In OK the tax liability is taken from one's refund, or added to tax underpaid (owed).

The state was so interested in getting use tax, it made this ad:


Oklahoma Tax Commission -- Use Tax Ad - YouTube