Sales tax - anywhere less than 8.25% near nw houston? (Tomball: home, buyers)

[newinhouston]

Just moved to Champions area and I wonder if there is any shopping around where I would pay less than the 8.25% sales tax. Is there any sales tax on internet shopping in Houston? Your advice would be greatly appreciated - thanks!

[Visitor2007]

When your purchase your item on line and if the retailer is out of the state of Texas, there shouldn't be a sale tax involved.

[kaykay]

Actually, I recently learned that surprisingly, if you shop online and the retailer does not have a physical "presence" in Texas, and does not collect sales tax for Texas, the buyer is technically supposed to submt a "use fee" to the state of Texas. I don't think most people are even aware of this. I think some of the laws regarding internet shopping are likely to change in the next few years. Personally, I think the merchant should always be required to collect the sales tax or the sales tax should be abolished on internet shopping altogether.

[Metro Matt]

Originally Posted by kaykay

Actually, I recently learned that surprisingly, if you shop online and the retailer does not have a physical "presence" in Texas, and does not collect sales tax for Texas, the buyer is technically supposed to submt a "use fee" to the state of Texas. I don't think most people are even aware of this. I think some of the laws regarding internet shopping are likely to change in the next few years. Personally, I think the merchant should always be required to collect the sales tax or the sales tax should be abolished on internet shopping altogether.

Hell no you don't have to pay sales tax on an out of state item over the net. Are you crazy? Only if it comes from anywhere in Texas are you required to pay sales tax plus shipping costs.

Kinda reminds me of how most people tip a waiter, waitress, or bar tender on the total taxed amount of the bill. You're not supposed to do it that way. 10% if service was just fair, 15% if it was average, 20% & higher if it was excellent.

[chris_ut]

Porter has 7.25% tax rate but it is a 35-45 min drive from you.

[oceangaia]

Originally Posted by Metro Matt

Hell no you don't have to pay sales tax on an out of state item over the net. Are you crazy? Only if it comes from anywhere in Texas are you required to pay sales tax plus shipping costs.

Completely false. Merchants without a "presence" in the state are not required to collect the sales tax due but the state imposes an equivalent "use tax" on the purchaser. Few buyers voluntarily report and pay this, and enforcement is difficult and seldom done at the individual level, but that does not change the legality.

See the Texas Administrative Code.

TITLE 34 PUBLIC FINANCE
PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3 TAX ADMINISTRATION
SUBCHAPTER O STATE SALES AND USE TAX
RULE §3.346

(3) Use tax--A nonrecurring tax, complementary to the sales tax, which is imposed on the exercise or enjoyment of any right or power over taxable items incident to the ownership, possession, or custody of that item. (b) Imposition of the use tax.

(1) Out-of-state purchases and direct payment permit purchases.
(A) If taxable items are purchased out of state for use in Texas and are brought or shipped into Texas for storage, use, or consumption, use tax is due.

[oceangaia]

Originally Posted by newinhouston

Just moved to Champions area and I wonder if there is any shopping around where I would pay less than the 8.25% sales tax. Is there any sales tax on internet shopping in Houston? Your advice would be greatly appreciated - thanks!

State sales tax is 6.25%. Metropolitan transit agencies are allowed to add an additional 1%, and local authorities are allowed to additional taxes but the total tax is capped at 8.25%.

If you want a lower tax rate you'll have to shop outside of a metropolitan area where there are transit agencies and aggressive local taxing authorities.

[ErikU19]

My home in Tomball is 7.25

[kaykay]

Originally Posted by DiverTodd62

Completely false. Merchants without a "presence" in the state are not required to collect the sales tax due but the state imposes an equivalent "use tax" on the purchaser. Few buyers voluntarily report and pay this, and enforcement is difficult and seldom done at the individual level, but that does not change the legality.

See the Texas Administrative Code.

TITLE 34 PUBLIC FINANCE
PART 1 COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3 TAX ADMINISTRATION
SUBCHAPTER O STATE SALES AND USE TAX
RULE §3.346

(3) Use tax--A nonrecurring tax, complementary to the sales tax, which is imposed on the exercise or enjoyment of any right or power over taxable items incident to the ownership, possession, or custody of that item. (b) Imposition of the use tax.

(1) Out-of-state purchases and direct payment permit purchases.
(A) If taxable items are purchased out of state for use in Texas and are brought or shipped into Texas for storage, use, or consumption, use tax is due.

Exactly. I was surprised to recently learn about this "use tax" too, but apparently that's how it is.

[piyf]

I wish they would inforce the sales tax for internet purchases. I hate taxes but it would sure help the economy.