Seriously? Online tax?

Discussion in 'Community Discussion' started by dukebound85, Apr 5, 2010.

  1. dukebound85 macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #1
    Never used to be this way then I get this email.
     
  2. r.j.s Moderator emeritus

    r.j.s

    Joined:
    Mar 7, 2007
    Location:
    Texas
    #2
    Actually, you have always been liable for Use Tax in lieu of sales tax in those situations, but most states never enforced it. It seems that company is just informing you of your obligation.
     
  3. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #3
    ^ Exactly, how is this a surprise? What the company just did was uphold their fiduciary duty. Now that the ball is in your court they can easily say that they did everything they could to inform you of your responsibly, the IRS cannot hold them responsible for you not paying the tax.

    This was very smart on their part.
     
  4. Hmac macrumors 68020

    Joined:
    May 30, 2007
    Location:
    Midwest USA
    #4
    Yes. It is notoriously difficult to enforce. I asked my accountant about it. He recommended against trying to keep track and file my online purchases. This state turns a blind eye.

    The only stores that are obliged to charge the buyer sales tax are those that have a physical retail presence somewhere in the state. It's the reason the Apple Store charges me sales tax, for example, whereas B&H Photo doesn't.
     
  5. mkrishnan Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #5
  6. dukebound85 thread starter macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #6
    hmm, guess that is a good thing. Just never got an email like that before

    Why can they not auto collect the tax when you check out?
     
  7. r.j.s Moderator emeritus

    r.j.s

    Joined:
    Mar 7, 2007
    Location:
    Texas
    #7
    See Mohan's post ... it is apparently a new law in Colo.

    Funny. I was just reading about this today in my Internet Commerce class. :cool:
     
  8. mkrishnan Moderator emeritus

    mkrishnan

    Joined:
    Jan 9, 2004
    Location:
    Grand Rapids, MI, USA
    #8
    I actually hadn't heard about it, and just found out about it googling after reading Dukebound's post. I know almost every state has been talking about this, since online purchasing does essentially function as a loophole in sales tax law in many places.

    What did your prof. have to say about it? Does he/she think it's actually going to work at collecting the money?
     
  9. r.j.s Moderator emeritus

    r.j.s

    Joined:
    Mar 7, 2007
    Location:
    Texas
    #9
    Oh, it's an online class ... so no lecture. And, it wasn't on the Colorado law, but Use Tax liability when purchasing on the Internet in general.
     
  10. Hmac macrumors 68020

    Joined:
    May 30, 2007
    Location:
    Midwest USA
    #10
    OTOH, they've been talking about it since the 1970's when mail order first became a big deal.
     

Share This Page