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> If the business did not collect taxes then you the customer owe that to the state still and are suppose to self report that and pay the owed taxed annually I

> If the business did not collect taxes then you the customer owe that to the state still and are suppose to self report that and pay the owed taxed annually Interesting. But do people actually do this in practice? I wonder if states report what percentage of sales tax comes from businesses vs individuals.

sukilot 6y ago
Of course they don't. That's why Jeff Bezos is a $100Billionaire and why people drive across state lines to go shopping.
syshum 6y ago
In practice no people do not generally self report that is why there has been several high profile law suits from states wanting online businesses to collect state sales taxes on all sales shipped into the state Before 2018 or 2019 unless a business had a physical presence in the state it was outsize the reach of that states laws on taxation, as the Federal government has the exclusive domain of regulating interstate transactions under the US Constitution. However in 2018 or 2019 the Supreme court has ruled that a business shipping into a state provides enough "nexus" for a business to fall under state regulations on sales tax collection. All but one state now require any business shipping a product into the state with a total sales volume of more than $600 for that state must collect sales tax, one state says any sales at all you must collect. So the "loop hole" of buying from out of state to avoid state sales taxes no longer exist as almost all businesses now need to collect all taxes for all taxing jurisdictions in the US of which there are around 10,000 different tax jurisdictions as many area's have city and/or county level taxes in addition to the state taxes making this is very complex issue Companies like Amazon and Walmart in the past have advocated for some kind of National Standardization of Sale Taxes but that largely has gone no where as many states make up the majority of their revenue from 2 places, Property Taxes and Sales Taxes where the majority of Income Taxes go to the Federal Government >>I wonder if states report what percentage of sales tax comes from businesses vs individuals. Most states do have detailed reports of where sales taxes come from, in my state over 70% of sales taxes come from the sale of Automobiles as an example

sukilot 6y ago

Of course they don't. That's why Jeff Bezos is a $100Billionaire and why people drive across state lines to go shopping.

syshum 6y ago

In practice no people do not generally self report that is why there has been several high profile law suits from states wanting online businesses to collect state sales taxes on all sales shipped into the state Before 2018 or 2019 unless a business had a physical presence in the state it was outsize the reach of that states laws on taxation, as the Federal government has the exclusive domain of regulating interstate transactions under the US Constitution. However in 2018 or 2019 the Supreme court has ruled that a business shipping into a state provides enough "nexus" for a business to fall under state regulations on sales tax collection. All but one state now require any business shipping a product into the state with a total sales volume of more than $600 for that state must collect sales tax, one state says any sales at all you must collect. So the "loop hole" of buying from out of state to avoid state sales taxes no longer exist as almost all businesses now need to collect all taxes for all taxing jurisdictions in the US of which there are around 10,000 different tax jurisdictions as many area's have city and/or county level taxes in addition to the state taxes making this is very complex issue Companies like Amazon and Walmart in the past have advocated for some kind of National Standardization of Sale Taxes but that largely has gone no where as many states make up the majority of their revenue from 2 places, Property Taxes and Sales Taxes where the majority of Income Taxes go to the Federal Government >>I wonder if states report what percentage of sales tax comes from businesses vs individuals. Most states do have detailed reports of where sales taxes come from, in my state over 70% of sales taxes come from the sale of Automobiles as an example