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MountainBikeReview.com's Forum Archives - General Discussion
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If I buy a frame out of my state, do I have to pay sales tax (9 posts)
|  If I buy a frame out of my state, do I have to pay sales tax | Bob R.
Jul 16, 2003 2:53 PM | | I dont think you do but a shop is saying it has to be paid.... I did some quick searches but couldnt really find anything... Thanks. |
| Yes. It's just being shipped, not given to you. NM | Shmidt
Jul 16, 2003 3:07 PM | | |
| Ummm I think maybe... | mike in MN
Jul 16, 2003 3:14 PM | | If it is mail order type place that doesn't have a "real" store in you state then you don't. |
| Technically, yes | pimpbot
Jul 16, 2003 3:15 PM | | You are supposed to pay sales tax in your state when you buy it, the shop does not have to collect it unless they have a shop in your state.
It's not like the state is going to come after you for the sales tax. |
| I found this supreme court decision. It says no. | Bob R.
Jul 16, 2003 3:27 PM | | i States have tried to force "remote sellers," those without a physical presence in the customer's state, to collect sales and use taxes from customers of catalog and telephone sales. The Supreme Court blocked the states in Quill Corp. v. North Dakota, 504 U.S. 298 (1992). In Quill, the Supreme Court held that, because state sales and use taxes are so complicated, a state cannot require a remote seller to collect sales or use taxes unless the seller has a physical presence, or "nexus," in the state. Despite extensive litigation and sophisticated audit programs, the states contemplate the loss of substantial potential tax revenue from interstate sales, especially as Internet sales increase rapidly. The Supreme Court's decision acknowledged that Congress may pass a law compelling the collection of sales taxes and use on interstate sales.
Thanks guys. |
| Still supposed to pay... | JmZ
Jul 16, 2003 3:44 PM | | But the states can't force places like Supergo, Performance, and Jenson to collect it for them. That's all.
You're supposed to be a good boy scout, or girl scout, and report how much you spent out of state and then pay those taxes when you pay your income tax, well at least in Indiana.
JmZ |
| hey, I'm a CPA (don't tell anybody) | litespeedchick
Jul 17, 2003 4:49 AM | | You are correct. Although the states can't make an out of state seller(with no physical presence in the state) pay sales tax to the state, theoretically, a buyer of out of state merchandise should file a use tax return and pay the appropriate % tax. For example, at my corp., someone reviews all payments for each month, determines what was taxable but not paid to the vendor, and then files a return and pays. No individual in their right mind would do that, unless maybe they were hoping for a high court nomination :-) |
| Nexus | Mr Magoo
Jul 16, 2003 4:30 PM | | An out of state buyer need not pay sales tax if it is shipped out of state by common carrier. Since you are picking it up yourself, it is different. This is also true only if the seller does not also do business within your home state. This is why mail order places like Universal moved to Nevada. With no Nexus or connection in Cal, it could ship to cal buyers un taxed. |
| Here's CA law, yours may differ... | World B. Free
Jul 17, 2003 8:30 AM | | Basically, you shouldnt have to pay sales tax if the retailer does not have an actual retail outlet in your state.
For example, buying something from Performance will require sales tax, wheras an item from Ragin Ricks Bike Barn in Toledo should not.
However, some retailers are lazy/greedy and charge tax regardless.. |
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