Sales Tax Demand - Online (Scarborough: for sale, credit card, how much)

[maine4.us]

I just received a letter from the Dept. of Revenue asking for sales tax on items that I have bought, but not paid sales tax on. Mainly this is for online purchases. I think the letter is somewhat confusing. I can't believe they expect people to even answer this letter. What are some of your thoughts?

[AustinB]

Of course, I never buy stuff from on-line, so this is a none issue for me. They seem to be fishing for money.

[elston]

I think that not collecting sales tax on purchases made "on-line" gives an enormous advantage to the large corporations over local merchants.....so I favor collecting taxes on both types of purchases to the same degree. The state needs the revenue and it equalizes the playing field.

(if I am all wet and sales taxes are collected on on-line purchases......I take it back.)

[Northern Maine Land Man]

If you buy from LL Bean you pay a sales tax. If you buy from Cabelas you don't pay a sales tax unless you pick up the item at the in Scarborough.

[maine4.us]

Actually, it depends on the company. If they have a physical presence in Maine, no matter how small, they must collect sales tax. Problem is a lot of people in the rural parts of Maine have no where to buy a lot of items, so we have to order them online. If I could buy them here, I would.

The way they want you to pay is based on your adjusted gross income, or if you kept receipts, that amount. There is no rhyme or reason to the formula. Based on my income, I would owe about $80 in taxes. I know I haven't spent nearly that much on line. They estimate I would have spent $1600 based on my income. That is ridiculous.

I wish we HAD MORE LOCAL MERCHANTS, but the closest thing we have to a local merchant is a corporate local merchant, WALMART.

[elston]

Originally Posted by maine4.us

Actually, it depends on the company. If they have a physical presence in Maine, no matter how small, they must collect sales tax. Problem is a lot of people in the rural parts of Maine have no where to buy a lot of items, so we have to order them online. If I could buy them here, I would.

The way they want you to pay is based on your adjusted gross income, or if you kept receipts, that amount. There is no rhyme or reason to the formula. Based on my income, I would owe about $80 in taxes. I know I haven't spent nearly that much on line. They estimate I would have spent $1600 based on my income. That is ridiculous.

I wish we HAD MORE LOCAL MERCHANTS, but the closest thing we have to a local merchant is a corporate local merchant, WALMART.

Ah the devil is in the details....not the concept.

If a consumer chooses to save receipts of on-line purchases (they should show up on credit card bills).....how do they know that you are submitting receipts for all purchases and all cards? Also there are many little mom and pop operations that do mail order business....not just llbean and Target.....but little crafty shops and artisans.

[crb01]

The state is basically asking its citizens to donate money out of the goodness of their hearts. I can't imagine anyone is actually saving receipts with the intent of paying Maine sales tax on those purchases. The letter that was sent out even states, in bold letters, that one is not required to fill out and return the letter.
Because it would be very difficult to prove who bought what and didn't pay taxes on it, whether it be in person or online, they are relying on people to self disclose.

[elston]

Originally Posted by crb01

The state is basically asking its citizens to donate money out of the goodness of their hearts. I can't imagine anyone is actually saving receipts with the intent of paying Maine sales tax on those purchases. The letter that was sent out even states, in bold letters, that one is not required to fill out and return the letter.
Because it would be very difficult to prove who bought what and didn't pay taxes on it, whether it be in person or online, they are relying on people to self disclose.

Well that clearly won't work.....altho I think I lived in a state once that made it the responsibility of the seller to collect and submit the state tax to the state....perhaps it was California????

[deerislesmile]

The Use Tax also applies to any purchases that you made out while physically outside of the State of Maine that would have been taxed had they been bought in the state, or the amount that makes up the difference between what you paid and the %5 Maine charges.... If you bought a $100 jacket while on vacation in New Hampshire, you'd then owe the State O' Maine $5 in Use Tax. If you bought that same jacket in New York (4% sales tax) you would then owe Maine $1.

[mainebrokerman]

Originally Posted by deerislesmile

The Use Tax also applies to any purchases that you made out while physically outside of the State of Maine that would have been taxed had they been bought in the state, or the amount that makes up the difference between what you paid and the %5 Maine charges.... If you bought a $100 jacket while on vacation in New Hampshire, you'd then owe the State O' Maine $5 in Use Tax. If you bought that same jacket in New York (4% sales tax) you would then owe Maine $1.

if the tax was 7%, out of state then the state would owe us 2%?????

how come this is a one way street??

I filled up with gas today in new hampshire,,,it is 3.82 gallon....how much do I owe the state of maine??