Quote:
Originally Posted by crockett
Technically you're supposed to do that in every state.. It's like that in FL as well but no one does it. Also for example if I buy online from a FL company I have to pay taxes which are automatically deducted but if I buy from outside my state they don't charge.
Easy example is if I buy computer stuff from tigerdirect.com I pay taxes. If I buy from newegg.com I don't.. Now which one do you think I'm buying from?
Now here is the kicker, with Amazon, they do have warehouses in my state, but I still don't pay state sales taxes.. I've never understood how they get away with it but I guess they can claim where ever their HQ is located as their business location..
anyway, the fastest way to kill internet eCommerce will be to force websites to collect state sales taxes from all 50 states.. Only Trump would be that dumb...
|
Surprised you don't have to pay sales tax to Amazon since they have warehouses in Florida. Company headquarters have nothing to do with sales tax collection. The term is nexus. It's location. If a company has no warehouses in a state, but has one salesman located in that state making sales, then that company in thagt state and has to collect sales tax.
On Internet sales the state collects the general state rate. In reality it's almost impossible to collect the exact rate as some states have no sales tax like Alaska. But Alaska has city or borough sales taxes. Some of those taxes are only collected during non-winter months and most Native Americans are exempt. The US has thousands of sales taxes and all kinds of exemptions. In Texas, your next door neighbor can be in a different tax district. Before computers it was a nightmare. With computers it's still a nightmare. In Alabama you pay the state rate to the state. The city and county might be paid to the state, the local governments or there are a couple of private companies that collect for counties and cities.
Paying for out of state purchases are called Use Taxes. Businesses are the only ones who pay it. Individuals don't pay until they get audited and get caught making an large out of state purchase.