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It's quite well established that if you don't pay sales tax at the time of sale (e.g. via mail order/on-line) you are required to submit a use tax voluntarily b

by phil21 11y ago

It's quite well established that if you don't pay sales tax at the time of sale (e.g. via mail order/on-line) you are required to submit a use tax voluntarily by self-reporting. Of course pretty much no one does this. There are exceptions such as some states aggressively going after taxes on the sales of cars you buy across the state line/etc - but in general it's wink wink nudge nudge. If you're in a state with sales tax, and have ordered from an out of state retailer you are breaking the law if you don't pay use tax on that item. https://en.wikipedia.org/wiki/Use_tax https://en.wikipedia.org/wiki/Use_tax

JoshTriplett 11y ago
Cars are a special case, not just because of their size and thus ease of detection, but because you're required to obtain a license to operate it in the state, and the state can set arbitrary conditions on such licensure. More generally, however, under what constitutional authority are you suggesting that states could levy a sales tax on inter-state (rather than intra-state) commerce? That is a power specifically reserved to the federal government, and not granted to the states. There have been federal bills proposed that would authorize states to collect such taxes, and if such a bill passed, that would delegate the necessary taxing authority. To the best of my knowledge, no such bill has passed into law. Why do you think such a bill would be necessary if states can do this already? In any case, one more reason to be in a state with no sales tax. I certainly wouldn't want to fight that particular legal battle myself.
- eli 11y ago
  States and localities can tax their residents pretty much however they please. The fight over the "Amazon tax" has always been about whether Amazon was required to collect the tax or whether people were supposed to mail a check to the state on their own. There has never been any serious doubt over whether states and cities can levy the tax in the first place, just over whether they can force out-of-state companies to collect it for them. The bill you're thinking of is probably the Marketplace Fairness Act, which was about letting states force retailers with sales over $1 million to do the work of actually collecting the tax.
- ghaff 11y ago
  I'm not sure of the particular constitutional authority but the debate seems to be mostly around whether Internet realtors can be forced to collect taxes as opposed to whether they're owed. However, I'm not aware of cases around states collecting use taxes from residents. Indeed, states also levy income taxes on residents even if they earn the income out-of-state.

by phil21 11y ago

JoshTriplett 11y ago

Cars are a special case, not just because of their size and thus ease of detection, but because you're required to obtain a license to operate it in the state, and the state can set arbitrary conditions on such licensure. More generally, however, under what constitutional authority are you suggesting that states could levy a sales tax on inter-state (rather than intra-state) commerce? That is a power specifically reserved to the federal government, and not granted to the states. There have been federal bills proposed that would authorize states to collect such taxes, and if such a bill passed, that would delegate the necessary taxing authority. To the best of my knowledge, no such bill has passed into law. Why do you think such a bill would be necessary if states can do this already? In any case, one more reason to be in a state with no sales tax. I certainly wouldn't want to fight that particular legal battle myself.

eli 11y ago
States and localities can tax their residents pretty much however they please. The fight over the "Amazon tax" has always been about whether Amazon was required to collect the tax or whether people were supposed to mail a check to the state on their own. There has never been any serious doubt over whether states and cities can levy the tax in the first place, just over whether they can force out-of-state companies to collect it for them. The bill you're thinking of is probably the Marketplace Fairness Act, which was about letting states force retailers with sales over $1 million to do the work of actually collecting the tax.
ghaff 11y ago
I'm not sure of the particular constitutional authority but the debate seems to be mostly around whether Internet realtors can be forced to collect taxes as opposed to whether they're owed. However, I'm not aware of cases around states collecting use taxes from residents. Indeed, states also levy income taxes on residents even if they earn the income out-of-state.