I owe a California Use Tax? WTF?!!!

BrandonR said:
If people really did pay use taxes then internet purchases would suddenly be a lot less attractive. I mean, a big part of the allure of online shopping is no sales tax (which the shipping costs tend to make up for).
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Actually, for me the sales tax thing isn't a big deal, and i live in a state with the highest sales tax in the country.

As i said earlier in the thread, since moving to California, i've had to pay sales tax on my NewEgg purchases. This hasn't stopped (or even slowed) my NewEgg purchases, because for me the main advantage to shopping online is the convenience of not having to drag my ass to the mall, find parking, and then trudge through the store looking for what i want. Also, online retailers tend to have more stock to choose from than many regular store. I know the selection at Newegg kicks the ass of Best Buy or Fry's.

There are times when i want to be able to touch the merchandise, or where i want to compare things in person, or where i need something Right Now, and on those occasions i'll go to a brick-and-mortar store. But if i know what i want, it's generally much easier to get it online, even if i end up paying exactly the same price as i would in a regular store.

And, as noted previously in the thread, the attempt to attach use taxes to internet sales is at least partly motivated by the fact that the internet vendors currently have an unfair advantage over in-state brick-and-mortar vendors, because they don't collect tax when the items are purchased. So, if collecting use taxes does make internet shopping less attractive for some people, then it will actually have served (at least part of) its purpose.
 
Steve MB said:
I don't buy the notion that this is at all "reasonable". Sorry, brick-and-mortar stores -- you use a bunch of local services that online retailers physically located in some other state don't, so it's perfectly fair that you specifically get to pay for them.
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The stores don't pay sales taxes. Customers do, but it's handled through the business.

The taxes that businesses pay for the government services they use are their business taxes (income, occupancy, property, franchise, etc.)
 
magellan01 said:
I just received a letter telling me I'll have to pay a California Use Tax. I never heard of this. Evidently, I'll have to pay this Use Tax for any purchase I made out of state that did not charge me tax. So, if I bought a book from Amazon for $20, I owe (I think) $1.75.

I'm telling you, California is the nuttiest fucking state with all these taxes. I've been thinking of moving, and this just might push me to do it.

Does anyone know anything about this. Also, Am I going to suddenly have to pay this Use Tax on stuff I bought online five years ago? I did read that the penalty for any tax you do owe is an additional 10%. It seems like it's a way for the state to tax online purchases, even though the feds have so far chosen to allow those transactions to be tax-free (unless the seller has a store in your state).

:mad: :confused: :mad:
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Moving out of state over $1.75? Makes perfect sense to me. Move to Texas.
 
The letter says that I have to register. And that one can be audited going back 8 years. I'm going to call the number provided on Monday. I never knew about this.

Assuming this is SOP, what wold happen if congress allows/requires online retailers to charge tax. Will it be the state of the the buyer or the seller? Seems like a bit of a nightmare.
 
What you said. To be honest, I don't think I've ever even looked to see if sales tax was being added to an online purchase. I just don't care that much.

If I wanted to be super-cheap, I could drive down to Palm Beach County to buy big-ticket items, since their sales tax is 1.5% lower than my county's. No online or across-state-lines purchasing needed.
 
Steve MB said:
I don't buy the notion that this is at all "reasonable". Sorry, brick-and-mortar stores -- you use a bunch of local services that online retailers physically located in some other state don't, so it's perfectly fair that you specifically get to pay for them.
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What Rumor_Watkins said.

The taxes we're talking about here are taxes paid by the consumers, not by the retailers. And the states are trying to go after this money precisely because the people who avoid the taxes by purchasing from out-of-state retailers do, in fact, live in places where they are meant to be paying tax on their purchases.
 
magellan01 said:
Hahahahaha. Okay, I accept your surrender, you pathetic little pea brain.
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Sigh, there you go again. Fine, let me continue to grind your sad little racist ass into a fine paste.

You really need to get over this pathetic infatuation with my mother. I know your time together may have been a big deal to you, given how little human contact you tend to experience. But to Mom, you were just another client. If she had a mantle, your photo wouldn't be on it. She wouldn't remember you at all, if your first check hadn't bounced.

You're also spending a lot of time rehashing everything she taught you. It sounds like you're getting pretty sexually frustrated. Honestly, I'm not sure why--surely you could find some guy who would let you suck him off, at least if you paid him. Have you tried trolling Craigslist? It would probably help if they can't see your face when you make the initial offer.

BrandonR said:
If people really did pay use taxes then internet purchases would suddenly be a lot less attractive. I mean, a big part of the allure of online shopping is no sales tax (which the shipping costs tend to make up for).
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Like mhendo and RNATB, I don't give a damn about sales tax online. There are actually several places I've shopped that still charge it. For me, it's about convenience, as well as the ability to see feedback from other customers.
 
Shot From Guns said:
You really need to get over this pathetic infatuation with my mother. I know your time together may have been a big deal to you, given how little human contact you tend to experience. But to Mom, you were just another client. If she had a mantle, your photo wouldn't be on it. She wouldn't remember you at all, if your first check hadn't bounced.
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Wait
 
All the OP tells us that that you don't have a fucking clue.

As the other posters have already pointed out, not only is this fairly standard law for most states that charge sales tax, but it's been the rule for ages. The main thing that's changed is that the prevalence on online sales has made it increasingly easy for people to avoid detection, and to avoid paying the tax.

The general rule, reflecting a 1992 Supreme court decision, says that any company that has a "nexus" (a warehouse, a distribution center, or some other physical presence) in a state can be legally required by that state to collect sales tax on purchases. So, when i purchased from NewEgg in Maryland, i didn't get changed sales tax, but now that i live in California i get charged sales tax on NewEgg purchases because the company has a nexus here in the state.

New York passed a law a couple of years ago that attempted to extend the definition of nexus to things like Amazon's affiliate program. Amazon sued to stop the law, and i think it's all still in the appeals process.

A bunch of states have recently been trying to work out a way to collect more of the taxes owed on internet purchases, and supporters of the move include brick-and-mortar stores who argue, quite reasonably, that the ability of online retailers to sell without charging sales tax effectively undercuts local retailers and makes it harder for them to do business.

If i buy a $100 item here in California, i have to pay $8.25 in sales tax. But if i buy the same $100 item online from a business without a California nexus, i pay only $100 plus shipping. And, given the number of businesses that have free or very cheap shipping, that can give those out-of-state businesses a considerable advantage over local ones, especially for more expensive items.
 
I must admit, it is somewhat odd that a state would charge both income and sales tax.
Rumor Watkins said:
FWIW, I think you're being purposefully dense (in that Oceanic "golly gee, what you Americans do is *so* incomprehensible and non-sensical to me!" moralizing way that seems to characterize every comment that every Kiwi or Kangaroo that posts on this board makes in relation to America). If not, apologies.
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You do know that Australia also has a federal system of government, yes?
 
I couldn't care less about your sexual proclivities. But you're the one who keeps insisting that Mom taught you how to suck a man off, apparently paying particular attention to his testicles.

Really, this is just getting tedious. You're not giving me any material to work with, here. You go ahead and declare victory again if you like; I'll be over here with the rest of the people, laughing at* you like the guy who keeps shouting "cocks!" throughout an improv show.

Make a note of that preposition: at, not with.
 
The current arrangement in California specifies that you receive credit for taxes paid to other jurisdictions - so for example, if you owe 9.75% tax in California, but paid (let's say) 6% Pennsylvania sales tax, you would owe the difference of 3.75% to California. Congress is of course perfectly capable of allowing or requiring any arrangement that they'd like, insofar as permitted by the interstate commerce clause of the Constitution.

If I were you I'd consult someone knowledgeable before calling the state directly and making any kind of statement that you might regret later. I can virtually guarantee you that you will be asked to identify yourself as soon as they pick up the phone, which means that you're not going to be able to get away with asking "hypothetical" questions. They may only be able to audit you if you give them a reason to suspect you. This is not to say that you may not be better off calling them, especially if you owe them a LOT of money - but if that's the case you'd certainly better get representation first. I note that you did not mention the term "amnesty" being a part of the letter, which leads me to believe that the people answering that phone are *not* there to help you, and they certainly aren't there to tell you what you don't, by right, owe.
 
gonzomax said:
Moving out of state over $1.75? Makes perfect sense to me. Move to Texas.
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While I can't begrudge anyone leaving California, I will point out that Texas has a use tax as well. Just because you don't have income tax forms to declare it on does not mean that they don't have mechanisms to collect and administer it.
 
Okay, seriously, could you both please shut the fuck up? You're ruining an otherwise very intere... oh, wait. Carry on.
 
magellan01 said:
Assuming this is SOP, what wold happen if congress allows/requires online retailers to charge tax.
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It's a state thing; it's got nothing to do with the feds. If the seller does not collect and remit the sales tax to your state, then you need to. In most cases, sellers are only required to collect the sales tax if they have a brick-and-mortar presence in a state. But the tax is still owed.

The aforementioned Amazon collects sales tax on sales to states where Amazon has a physical presence:
Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the states of Kansas, Kentucky, New York, North Dakota, or Washington are subject to tax.
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Rumor_Watkins said:
yes, I did. and that's relevant to my comment how?
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Because most of the "golly gee" posts you describe come from Britons, who don't have to deal with state and local taxes. Australians, of course, do, and yet their tax codes are largely mutually comprehensible (to other Australians), so if they feel like explaining How It's Done, they've got the right.
 
Shot From Guns said:
I couldn't care less about your sexual proclivities. But you're the one who keeps insisting that Mom taught you how to suck a man off, apparently paying particular attention to his testicles.
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You keep getting this wrong. I merely pointed out that your mom never gave me those valuable lessons concerning the use tax, probably because she was so engrossed in sucking me off. You're the one that insinuated that she has teaching skills not only in the use tax department, but in the cock slobbering department, as well. Until you raised the point I never imagined that she would share her skills with anyone, never mind that she would teach you. I find that beyond the pale.
 
Actually I should also say - yes, I do self report my use tax to California, and have been doing so since moving here. I like living here and wish to see the programs I enjoy funded, and I do not hold a grudge against the people of the state or its institutions for getting taken hostage by the state employees unions to the tune of $ 28 billion (this year) in pension funding, or about a third of the tax revenue - go ahead, look it up! This has happened to pretty much every unionized organization in existence, and is a problem to a greater or lesser extent in the entire country.
 
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