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sales tax
- Thread starter DCSMAC
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If you purchase it online there is no sales tax unless the company you're purchasing it from is in the same state as you are. So, if you buy it online you won't get charged tax. Are you going to buy it from Apple.com or a third party?
Yeah I would not buy it from Apple no matter what. Use Amazon or MacMall. Both give you rebates and such and I think no tax in Vermont. MacMall usually is $100-200 off compared to Apple.
As someone from the UK, this seems like the most ridiculous loophole in the law ever.
I bought mine from Amazon.com and got $150 off, plus there was no tax and free shipping. I got my order in two days
Well, technically you're suppose to claim the tax when you file. But, the reason there is no tax is because the company has to prove it has a "business presence" within the state. I don't know all the details, but I don't mind
Tax is getting out of hand anyway!It's because the sales tax is a state tax only and not a federal tax.
But yes, it is a big loophole. Legally, we are required to pay 'use tax' that is equal to what sales tax would have been if we had purchased in the state.
We are supposed to keep track of that and mail it in every year.
Yeah, right.
On a similar vien... If you live in a state with sales tax but no income tax, and you buy something in a state with out sales tax and you are suppossed to pay a "use tax" how do you file?
TEG
TEG
Then could you please explain how RITZ CAMERA works, they advertised "no sale tax"! They have 100s store in my area (chicago)!
Then could you please explain how RITZ CAMERA works, they advertised "no sale tax"! They have 100s store in my area (chicago)!
Maybe they take the sales tax hit and advertise it as not having a sales tax? Their company is based out of Maryland.
Then could you please explain how RITZ CAMERA works, they advertised "no sale tax"! They have 100s store in my area (chicago)!
its just an 8% (or so) off sale, not a big deal
If you come from a state without Sales tax, and you buy from a state that DOES have sales tax, you don't have to pay it. You can show your ID and say 'I'm from Montana' or whatever and they won't charge you sales tax.
Most businesses have this happen so rarely that they don't know what to do, and most people just pay the tax not to have to hassle with it.
You similarly wouldn't owe a use tax.
I am NOT a CPA or anything so that is my best understanding, I'm sure some will correct me if I'm wrong. But I'm not providing tax or legal advice
If you come from a state without Sales tax, and you buy from a state that DOES have sales tax, you don't have to pay it. You can show your ID and say 'I'm from Montana' or whatever and they won't charge you sales tax.
Most businesses have this happen so rarely that they don't know what to do, and most people just pay the tax not to have to hassle with it.
You similarly wouldn't owe a use tax.
I am NOT a CPA or anything so that is my best understanding, I'm sure some will correct me if I'm wrong. But I'm not providing tax or legal advice
If you're physically present in a state that charges sales tax, you'll pay it, trust me. Along with every other locality-based tax available. Your residency doesn't matter in that case.
Now, I know VAT (or PST, or GST, I lose track) can be refunded to non-provincial citizens in Canada, but that's a completely different ball game.
If you come from a state without Sales tax, and you buy from a state that DOES have sales tax, you don't have to pay it. You can show your ID and say 'I'm from Montana' or whatever and they won't charge you sales tax.
Most businesses have this happen so rarely that they don't know what to do, and most people just pay the tax not to have to hassle with it.
You similarly wouldn't owe a use tax.
I am NOT a CPA or anything so that is my best understanding, I'm sure some will correct me if I'm wrong. But I'm not providing tax or legal advice
What I meant was that I live in Washington (7.5%-9.5% sales tax, no income tax), just across the Columbia River from Oregon (no sales tax, 5-7% income tax). Under Washington law, you are required to pay a use tax (i.e. sales tax) on anything you import into the state, even if you paid taxes on it before (this includes cars, they make you pay it when you register the car). In other states where they have a use tax, you pay it with your income tax, but Washington has no income tax, so how would you do it?
As for your 'I don't live here, so I don't have to pay taxes' argument, that doesn't hold water. If it were true, you could use it to get out of paying gas taxes or paying bottle deposits. If it were true, people would be coming to Washington from Oregon to buy tax free soda, beer, and liquor and returning it for deposit in Oregon.
TEG
Unless there's a specific condition (size/type of purchase, total value of tax paid, resale status, etc), I don't see how anyone could claim residency as an exemption for routine purposes. In all the states I've travelled to (46 or so, at last count), there's never been any allowance for the fact that I'm a non-resident. The issue of what state I am a resident of is moot. I'm not in my home state when I made the purchase, and they have no jurisdiction over the state I did make the purchase in.
Bottom line, a state makes certain categories of sales taxable at the retail end, and allowances for residency could practically only be made in the conditions I touched on in the first sentence. Pay it here or pay it at home or just don't buy it, those are pretty much the options in the US.
Sure, but who's going to pay the duties? Those alone will likely chew up any "savings" from avoiding VAT/PST/GST in the first place, not to mention the shipping & insurance costs. And trying to get past the Customs folks is generally not a good idea from either side (his or yours).
I work at the home depot in washington and we have a button specifically for tax exempt status from Oregon Montana or Alaska and a few other states.
they just need their ID.
*shrug*
-also, I was charged tax on my macbook pro and I don't live in california...did I misunderstand the earlier posts or was I supposed to be tax free?
Sales tax is due at the point of DELIVERY. If a business has a physical presence in your state and you order online form them, they must charge you sales tax. However, if the company DOES NOT have a physical presence, they do not have to charge you sales tax, it is your responsibility to pay it directly to the state ( picture that!) When someone is traveling, they are liable for the sales tax whenever they make a purchase. However, if someone was traveling and bought something to be delivered, they would NOT be liable for the local tax or state tax if the item is being shipped out of state, only the tax in the state they reside. I hope this clears up any confusion, but it can be complicated when multiple states are involved and it is a national chain or company.