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Old 11-05-2010, 02:57 PM
 
13,969 posts, read 12,906,276 times
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I'm a California resident and it seems to me that I read once a long time ago that if a resident is buying online from an-out-of-state entity that has NO physical presence in California and NO connections whatsoever with the State, that that resident still has to fork over to the Equalization Board the exact amount of sales tax just as if that resident had purchases the item(s) in a brick-and-mortar here in Cali. I have researched on the internet and cannot find any actual statute. Naturally, I don't want to pay any money I don't legally owe, but if I do owe it BY STATUTE then I'm honor-bound to pay it. Does anyone know if such a statute exists for Cali residents? Thanks in advance for any info.
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Old 11-05-2010, 03:21 PM
 
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Michigan has what are called 'use taxes' for purchases made out of state for consumer goods that are shipped back to Michigan. This use tax is the twin of the state sales tax, which is applied to nearly all items purchased within the state. Payment of the use tax is mostly voluntary, there's a section on the Michigan 1040 tax form for estimating the tax. However, there's nothing to stop the state tax office from reviewing your credit card transactions during a tax audit and charging you with unpaid use taxes if they find out-of-state sales not accounted for on your tax return.

The Supreme Court has ruled in favor of state use taxes when they are intended to recoup lost state sales tax revenue from interstate sales.

And a quick google indicates that there is such a thing as a California Use Tax.
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Old 11-05-2010, 10:10 PM
 
Location: in a pond with the other human scum
2,249 posts, read 2,140,381 times
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You probably do owe it. Every state has use taxes-- it's just that, until the proliferation of amazon and other online merchants, states kind of left it on the honor system for their citizens to pay them, and very few people ever did, maybe except for cars. Typically, if you paid sales tax in the state where you bought the thing, then you don't have to pay it again. But if it was a tax-free purchase, then yeah, the use tax is probably there. And amazon collects sales tax in lots of states because they have lots of distribution centers.
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Old 11-06-2010, 09:44 AM
 
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I guess the BOE will get the shock of their life when they get a check from me then. Imagine--a resident who actually stepped forward to pay a tax the state didn't even know I owed!
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Old 11-06-2010, 10:00 AM
 
Location: Baltimore
1,802 posts, read 7,653,936 times
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Your Use Tax Responsibility - Board of Equalization (http://www.boe.ca.gov/sutax/faqusetax.htm - broken link)
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Old 11-07-2010, 02:42 AM
 
Location: Conejo Valley, CA
12,470 posts, read 18,219,829 times
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Quote:
Originally Posted by thrillobyte View Post
I guess the BOE will get the shock of their life when they get a check from me then. Imagine--a resident who actually stepped forward to pay a tax the state didn't even know I owed!
Because so few people pay it, it can actually be a red flag, as in what are you trying to hide by paying this tax?

But anyways, yeah you owe use tax in California.
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Old 12-05-2010, 01:43 AM
 
Location: Yucaipa, California
9,866 posts, read 19,751,345 times
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I have purchased items on ebay & amazon & have never paid state tax & i dont plan to report it to the FTB.

Im surprised the state of ca dont make us pay tax on things bought at yard sales & private homes.

Yrs back i paid 2k for my car & told the dmv i paid $500.00.

F them & the greedy legislature incl the DMV, FTB & HCD.
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Old 12-05-2010, 03:03 AM
 
Location: California
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When you do your income tax there is a place to identify these types of purchases. Nobody I know does this. I know I don't.
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Old 12-05-2010, 05:08 PM
 
2,592 posts, read 4,872,082 times
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Your supposed to report it and pay taxes on it when you do your taxes. Nobody I know does this. I live in Massachusetts close to the New Hampshire border and NH has no sales tax so many people buy items there.

Its interesting though cause MA was trying to make or wanted the companies in NH to report those that lived in MA but were buying items in NH so they would get the taxes. It started with a car tire place that was in NH (right by the MA border) and many from MA would go there. There aren't a lot of shopping malls and stores in MA once you get along the MA/NH border. My opinion is if MA could do that, would they pay the NH residents back the 6.25% tax if those NH residents shopped or bought something in MA...of course not.
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Old 12-07-2010, 05:38 PM
 
Location: Yucaipa, California
9,866 posts, read 19,751,345 times
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Quote:
Originally Posted by LeavingMA View Post
Your supposed to report it and pay taxes on it when you do your taxes. Nobody I know does this. I live in Massachusetts close to the New Hampshire border and NH has no sales tax so many people buy items there.

Its interesting though cause MA was trying to make or wanted the companies in NH to report those that lived in MA but were buying items in NH so they would get the taxes. It started with a car tire place that was in NH (right by the MA border) and many from MA would go there. There aren't a lot of shopping malls and stores in MA once you get along the MA/NH border. My opinion is if MA could do that, would they pay the NH residents back the 6.25% tax if those NH residents shopped or bought something in MA...of course not.
Its all about greedy politicians. State tax here is 8.75% to over 9.0% & that adds up fast.
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