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The primary shopping done by people to avoid their own state taxes is for alcohol containing products. For instance a fifth of JD cost about $25 in NH and near $30-35 in MA, CT, RI and VT. Those states would like to have their citizens pay that tax and would be very happy to have NH collect it for them. In fact flatlanders that do not pay their state excise tax are legally smugglers and can be prosecuted in their home state. Most New England States ignore individual smuggling of small amounts of booze but do investigate large amounts that bypass both the local taxes and monopoly distributer arrangements.
As a Frugal Yankee I do not see any reason we should help either other state’s revenuers or monopoly distributers. If people are willing to drive to New Hampshire and take the risk of smuggling booze and fireworks back to the rest of New England that is their decision. All we should do is thank them for their money and encourage them to return for more.
Well written.
It is not NH's issue if those from other states do not pay their 'use tax'. For example, it is on the MA resident income tax form that these taxes (by MA residents) must be paid. They ended up putting it on the form, so the residents there can be cited for tax fraud:
Alcohol (actually the federally-regulated stuff i.e. ATF... Alcohol/Tobacco/Firearms) are all ultimately controlled by the federal government for inter-state transport.
Actually, since I am not even a resident of New England, it doesn't really matter to me at all, but I have no love lost for seeing MA get the big end of the stick.... (And if you turn in those that don't pay the tax, you get a percentage of the take....)
[color=black][font=Verdana]The primary shopping done by people to avoid their own state taxes is for alcohol containing products.
I doubt alcohol is primary. Look at the dearth of malls north of Rt. 128 in MA. None are built as consumers head north for any significant purchase due to the 6.25% sales tax in MA. The same lack of malls does not exist south of 128 towards RI. I don't know how much is saved at the NH liquor stores annually but the malls on the border do incredible business with MA residents...
My question is who is going to enforce it? Being in NH and another state wanting their sales tax just how are they going to collect it? A state cant just call NH and say we want our sales tax......there is no way to enforce this that I see. It would completely change how I do business myself......I moved to NH partially to not have to play this tax game. And it is NOT just alcohol.....tons of secondhand goods, and large ticket items definitely change hands to avoid state taxes. Also, cash and check would then become king.
The "use" tax makes no sense. All of the activity happened in NH. Bought from a NH store, using NH roads, NH employees, bought in NH and another states wants money from this transaction?
Use tax is a taxation by in the state where you are a resident -- Massachusetts has the right to levy a use tax on Massachusetts residents on items they bought outside of Massachusetts, because the people being taxed are Massachusetts residents. It's very much taxation *with* representation.
What would be objectionable would be if MA tried to get a cut of revenues from retailers located on the NH side of the border because they might be selling to some MA residents, that would be a problem. Or ask Amazon to collect MA sales tax on shipments to Nashua "Mailboxes, Etc." addresses even when the Amazon order doesn't come from a credit card with an MA billing address.
If MA were to try to collect a tax where the activity/item being taxed had no nexus in MA, that would be "taxation without representation...the reason we started america.".
Mass is always trying to annex NH....... At this point there are so many taxes only a fool would want anymore. Unless of course that fool was standing in the way to get a gain of them.
My question is who is going to enforce it? Being in NH and another state wanting their sales tax just how are they going to collect it? A state cant just call NH and say we want our sales tax......there is no way to enforce this that I see. It would completely change how I do business myself......I moved to NH partially to not have to play this tax game. And it is NOT just alcohol.....tons of secondhand goods, and large ticket items definitely change hands to avoid state taxes. Also, cash and check would then become king.
Not even worth a response, due to lack of comprehension (and the slightest bit of state law knowledge). In MA it is on the state tax return..
Ok, I'll bite.. it is not NH's law for sales tax... it is the recipients who make such purchases that owe it...
(No comment, but 'frozintime' means many millenia ago?)
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