I live in KY but when I buy a car in Ohio I do not pay sales tax to OH, I pay sales tax to KY.

 

If you buy a TV in Ohio you aren't paying Kentucky sales tax.

On the radio today I heard that there are something like 9600 distinct sales taxing districts in the United States each with unique standards for what is taxed and what is not. How can an online vendor possibly (or reasonably) be able to adequately accommodate all of them?

 

Good point but there are those that already do it so it's obviously possible. I would think that it would be limited to base state sales tax, not local sales taxes.

If you buy a TV in Ohio you aren't paying Kentucky sales tax.

 

 

Correct, and it shows how states already have the choice when it comes to taxation.

Correct, and it shows how states already have the choice when it comes to taxation.

 

I'm confused what side you are taking or point is , no disrespect . Car taxes deal with the state you register I thought. You don't register most retail purchases.

I'm confused what side you are taking or point is , no disrespect . Car taxes deal with the state you register I thought. You don't register most retail purchases.

 

Depends on state.

 

BMV: Titling a Vehicle

 

Sales/Use Tax

Indiana residents who purchase a vehicle from another state and pay more than Indiana’s seven percent (7%) sales tax will receive credit from Indiana for taxes paid in that other state. If you paid less than seven percent (7%) sales tax when you purchased your vehicle in another state, you will present proof of this and will pay the difference to Indiana. New Indiana residents who have titled their vehicles in another state do not have to pay sales tax when they title their vehicles in Indiana.

 

Vehicles brought into Washington from out-ofstate

 

[h=4]Current Washington Residents[/h] If you are a Washington resident and purchase a vehicle outside this state that you then bring into Washington, you owe use tax on the value of that car. Use tax is the same rate as sales tax and is due when property is brought into Washington if sales tax was not paid.

 

You must pay use tax when you license/register your vehicle. If you can show that you paid sales tax and used the vehicle in another state prior to bringing it into Washington, the tax paid elsewhere will be credited against the Washington use tax you owe. RCW 82.12.035.

 

 

Same with income tax. For some states you owe income tax in that state if you work only a few days, if you work more than a month in one local usually you owe that locality income taxes. But usually your home state will credit you back what you owe there.

Everyone does know you legally owe sales taxes on internet purchases in Kentucky - right?

 

You claim it on your 720 when filing income taxes. Everyone does this, right? :sssh:

I would think they would collect taxes based upon the state in which they reside.

 

The seller or the purchaser?

 

If the seller then the buyer would still be on the hook for use tax in states like Kentucky that tax anything and everything.

 

If it's where the purchaser is it would be a nightmare for sellers. Some states tax food some don't. Some states collect sales tax on prescription drugs and some don't. There are municipal sales taxes in addition to state sales taxes in some places. Some places consider candy exempt from sales tax as food some don't. Some states collect excise taxes on alcohol and exempt it from sales tax, some states collect both. Then let's get really problematic. What if I buy something from my home but have it shipped as a gift to someone in another state? Who's taxes get collected then? What if it's an online operation like Amazon with operations in several states? If they are going to collect taxes at at point of sale do you collect it based on the site of the computer operation or the site of the fulfillment center that actually ships the order? It's no where near as cut and dry as just collect the tax.

Everyone does know you legally owe sales taxes on internet purchases in Kentucky - right?

 

You claim it on your 720 when filing income taxes. Everyone does this, right? :sssh:

 

Thanks for that tidbit, I just sent an amended return. Now I can sleep better.

Good point but there are those that already do it so it's obviously possible. I would think that it would be limited to base state sales tax, not local sales taxes.

 

Yes and no. If you live in KY and buy something from Amazon you pay KY sales tax because Amazon has a facility in KY. If you live in Florida and buy from Amazon you pay no sales tax because they have no facility in Florida. Right now online sellers are only obligated to collect sales tax if they have a brick and mortar facility of some type in that state and the sale is shipped to that state.

Everyone does know you legally owe sales taxes on internet purchases in Kentucky - right?

 

You claim it on your 720 when filing income taxes. Everyone does this, right? :sssh:

 

Yes.

 

No, it will be a cold day in hell before I do so. They get enough that they urinate away, why give them more.

Yes and no. If you live in KY and buy something from Amazon you pay KY sales tax because Amazon has a facility in KY. If you live in Florida and buy from Amazon you pay no sales tax because they have no facility in Florida. Right now online sellers are only obligated to collect sales tax if they have a brick and mortar facility of some type in that state and the sale is shipped to that state.

 

 

Understood, I just think that if it's a state sales tax, not the various local entities, then the retailer would be able to handle the transaction. I believe the article said 46 states have a sales tax. The Amazon and other online retailers are probably operating from a central accounting location so they are already handling various state sales taxes.

Yes.

 

No, it will be a cold day in hell before I do so. They get enough that they urinate away, why give them more.

 

Thats what I say every time I order something online and it comes up "This will ship Fedex" :irked:

 

Understood, I just think that if it's a state sales tax, not the various local entities, then the retailer would be able to handle the transaction. I believe the article said 46 states have a sales tax. The Amazon and other online retailers are probably operating from a central accounting location so they are already handling various state sales taxes.

 

But that's not the way the law is written. They will be required to collect any and all sales taxes and you had better believe that every taxing entity that thinks they can collect another nicklel will have their hand out. And you're right an operation the size of Amazon could comply with current staffing but small operations can't. And what about all of the consigners in operations like E-Bay and Amazon Marketplace? After listening to the rep from the KY Retailers Assc. yesterday I have no doubt that the ultimate goal is to put online operations out of business.

 

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But that's not the way the law is written. They will be required to collect any and all sales taxes and you had better believe that every taxing entity that thinks they can collect another nicklel will have their hand out. And you're right an operation the size of Amazon could comply with current staffing but small operations can't. And what about all of the consigners in operations like E-Bay and Amazon Marketplace? After listening to the rep from the KY Retailers Assc. yesterday I have no doubt that the ultimate goal is to put online operations out of business.

 

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Good point. The bureaucracy of managing this would look like a version of AHCA.

 

States often 'double tax' things and leave it to the consumer or taxpayer to recover the over-taxation. Case in point is income taxes. If you work more than 30 days or so in California. They will come after you for state and local income taxes. Kentucky has no idea you are working out of state, so they tax your paycheck as normal. Your out the money until it is squared up - with lots and lots of paper work.

To be "fair" this needs to be a point of sale tax just like B&M establishments are required to collect. I was recently in New York and bought the typical touristy stuff. On the receipts I saw I paid the NY state and city sales tax. Not one person asked me where I was going to take my Top of the Rock shot glass.