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> if you are buying lumber in Kansas City, KS to be delivered in Kanas City, MO - you pay the MO taxes (4.225%) rather than the KS taxes (6.5%) It gets even be
by rootusrootus 4y ago
> if you are buying lumber in Kansas City, KS to be delivered in Kanas City, MO - you pay the MO taxes (4.225%) rather than the KS taxes (6.5%)
It gets even better. In some places (e.g. Washington) you pay use tax[0][1] if the use tax would be higher than the sales tax you did pay. So if for example you buy something in Oregon and bring it home to Washington, you pay all of the use tax. If you bought something in a state with a sales tax that is lower than the Washington use tax, you pay the difference. (It isn't immediately clear if you can try to recoup the difference if you buy something in a higher sales tax location than your local use tax rate).
[0] It's the same as your sales tax rate.
[1] https://dor.wa.gov/taxes-rates/use-tax https://dor.wa.gov/taxes-rates/use-tax
- shagie 4y agoThat was the case before and is still the case, just most of the time they ignore it. It is really looked at when a state borders another one with no sales tax. Some time back that was also the case with online sales. That you paid the tax of the state where you bought if it if that state had a tax nexus there - otherwise you didn't pay sales tax and were expected to self report the use tax. Except no one did. So sales tax was required to be collected by online sellers always. https://www.cnbc.com/2018/06/21/heres-what-that-supreme-court-sales-tax-decision-means-for-you.html https://www.cnbc.com/2018/06/21/heres-what-that-supreme-cour... As to the use tax - when I bought clothes at Mall of America in MN (2010ish) and lived in northern Wisconsin I'd remember to add that to the tax reporting.
- ghaff 4y agoWell, you're supposed to. I expect very few consumers pay the use tax except in situations like purchasing a car where they can't hide it.