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Will states collect more “use” tax to cover budget shorfalls? | Internet sales tax
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| Will states collect more “use” tax to cover budget shorfalls?


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Will states collect more “use” tax to cover budget shorfalls?


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bcnu asked:


A great number of people are unaware that they owe home-state sales taxes on goods purchased on vacation, by mail, internet, phone orders or otherwise purchased out of state, once they bring the merchandise home. This could add up to millions of dollars of unpaid “use” taxes that the state treasurers could certainly use about now, at least in states that have sales taxes. Although it may be difficult to track these things, is there any movement for states to try to collect from these types of tax evaders?
Judy: Good point, but if you would owe 10% in your home state and only pay 5% over the counter, you still owe 5% more to your home state’s treasury.
viajero: No, the use tax is not hard to calculate; it is the same as the sales tax the home state charges.

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4 Responses to “Will states collect more “use” tax to cover budget shorfalls?”

  1. viajero_intergalactico on
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    June 23rd, 2009
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    7:55 pm

    this tax is too hard to determine.

    in CA all they are planinng on doing is just raise the sales tax. in LA county it might be going up from 8.25% to 10.25% if arnold gets his way.

  2. shiprepairwoman on
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    June 25th, 2009
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    6:20 pm

    They do catch business that don’t pay the use tax. Even before internet companies wouldn’t pay on out of state magazines or things like that and get caught in sales tax audits.
    My company buys from out of state companies or on line sometimes but we pay use tax on that and anything we buy for resale then use ourselves.

  3. Judy on
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    June 26th, 2009
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    9:19 am

    About the only item many states have begun to collect tax on is cigarettes bought through the Internet. That’s been going on for a few years now. Other than that, it’s just too hard to track. And by the way, if you purchase something while you are physically out of state on vacation, you’ll pay the sales tax at the point of purchase, to that state.

  4. r_kav on
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    June 27th, 2009
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    Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/html/fightnettax.com/wp-includes/functions.php on line 52

    Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/html/fightnettax.com/wp-includes/functions.php on line 54

    Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/html/fightnettax.com/wp-includes/functions.php on line 55
    5:35 am

    In MA, they added a line to the tax form asking if you owe any use tax, and requiring you to enter “0″ if you don’t. This is an attempt to intimidate people who can no longer say they forgot about it or didn’t know about it. I doubt it will have much effect.